The Minister of State at the Department of Education and Skills, Ciaran Cannon TD, today (7 October, 2011) welcomed the announcement by the European Commission of its approval of three Irish applications worth €55 million under the European Globalisation Adjustment Fund (EGF). The Irish applications must still be approved by the European Council and the European Parliament. The EGF will co-finance a range of active labour market measures to assist a specific group of almost 9,000 redundant construction workers who were made redundant in Ireland between 1 July 2009 and 31 March 2010.
Given the need to commence interventions early and in advance of EU approval, a significant element of the supports have already been delivered. In fact, support measures have been underway since the first eligible redundancies commenced in July 2009. To date, it is estimated that at least €22 million of the total value of the programme has already been invested in training supports delivered by FÁS.
Minister Cannon emphasised that "My Department, in consultation with relevant State Agencies, is developing programmes to implement the balance of this funding and I will make a further announcement on the specific interventions that will be made available and on how eligible persons will be informed in the next couple of weeks."
A large proportion of the training currently being implemented focuses on redundant apprentice training programmes with an estimated €15 million being spent to provide practical supports in this area. It is estimated that a significant number of eligible former construction workers have also availed of other FÁS delivered supports including full-time or evening training programmes or support grants to avail of training delivered by other providers.
Measures provided to these redundant workers to date include guidance, full, part-time and evening training and further education courses, apprenticeship on- and off-the-job supports, full and part-time third level education programmes and enterprise start-up advisory and financial supports as well as related training and education allowances.
The eligibility period of 1 July 2009 to 31 March 2010 was chosen to maximise the number of redundant workers who could be assisted within the strict confines of the EGF Regulations and individuals were identified based on official data from the redundancy payments process and from FÁS data on redundant apprentices.
The Government, working through the relevant State agencies and educational bodies, has been providing guidance, training, education and enterprise supports to all workers made redundant in the construction sector in recent years as that sector has suffered more than most in the economic downturn.
Minister Cannon went on to say "This EGF support will, when fully approved by the EU, assist us significantly in funding these measures at a time when the public finances are under major pressure".
Ireland has an enviable record in securing EGF funding. In total over €93m of total EGF expenditure has been approved including 35% national contributions, with over €60m being provided by the EU. This combined expenditure is being deployed in support of over 13,500 redundant workers. This funding stream is becoming increasingly important at a time of immense pressure on all areas of Government expenditure particularly in providing active labour market measures for the unemployed.
The Minister said "We have learned valuable lessons from the Dell, Waterford Crystal and S R Technics EGF programmes. I have instituted a review of the entire EGF process and we will be building on the many strengths of the current programmes but also seeking to address any weaknesses. However, it must be stressed that the EGF should not be viewed as a panacea for eligible redundant workers. The aim of EGF supports for this group of construction workers is to better enable them to augment existing skills with broader or additional skillsets with a view to their accessing, or being ready to access, employment opportunities as and when they arise. All monies, both national and EU, go towards the provision of a programme of guidance, training, education and enterprise supports."
He went on to state that "An inter-agency group under the chairmanship of my Department has been established and meets regularly to ensure EGF related measures are maximised and any inhibiting structural issues are addressed. This group will now proceed to finalise and implement the initiatives to be prescribed for the remaining period of the construction programmes out to June 2012 and to announce how individuals who are eligible for support may access these initiatives. I should stress that there are no direct monetary payments made to any EGF beneficiary."
The Irish applications must still be approved by the European Council of Ministers and the European Parliament with full approval expected by the end of the year. In the interim, measures must be funded exclusively from national sources. In total the Government is committed to providing some €19.25m by the time the relevant EGF programmes expire in June 2012.
Only active labour market measures as opposed to passive social welfare type provision are permitted under the Fund.
The implementation period for the approved EGF programme commenced on 9 June 2010 when the EGF applications were made. Under the terms of the Fund active labour market measures may last no longer than 24 months from the date of submission of the EGF application by a Member State or three months later if the measures were not commenced at the time of application submission. This later three months period must be identified within the submitted EGF application.
Minister Cannon stated "We will seek to maximise the supports to redundant workers which EGF assistance facilitates. However, we must also be conscious of the wider unemployed cohort nationally and the continued need to provide adequate training and education supports to all affected persons. Therefore, national expenditure on EGF supports must adhere to the funding allocations provided within the current budgetary allocations."