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Dáil Éireann debate -
Tuesday, 8 Jul 1975

Vol. 283 No. 5

Ceisteanna—Questions. Oral Answers. - Labour Ministry Estimate.

7.

asked the Minister for Labour the percentage of the 1975 estimate for his Department which it is hoped will be recouped from EEC Funds.

My Department's Estimate for 1974, including the additional £1.0 million allocated to AnCO in the January Budget, is £8,989,000. If applications to the European Social Fund for 1974 operations in respect of which there is some financial provision in my Department's Vote are met in full, it is estimated that payments amounting to about 63 per cent of this sum will be received from EEC funds.

In some statements which are being issued in regard to the Community Social Fund being used to alleviate unemployment throughout the Community it is said that this money can be met from unused allowances in the Fund.

Unused resources of the Fund, unused credits. The figure quoted is £20 million. Could the Minister indicate to us how it comes about that there are such substantial unused credits in the Social Fund?

The figure of £20 million that is mentioned at present to assist unemployment, this is the figure in fact which is mentioned in relation to the previous question I answered here today about the reaction on young workers. The amount of money mentioned in that is £20 million. As the Deputy knows, there is an inner debate going on about savings within the Social Fund. In general, we are not in favour of savings from within the fund. We wish to see the fund expanded. There is some difference of opinion between the applicant countries in this, between the Germans and some member countries who see any extra financial outlay by the Community coming from savings within existing funds and those who like Ireland, Italy and Britain, would hope to see the fund extended and expanded. That is our position.

It would seem from published statements that in the past years, including 1974, the resources of the Social Fund have not been fully utilised. Could the Minister tell us why this is so? Would one not expect that the Social Fund is one of the funds which would be utilised to the maximum possible extent? How does it come that these substantial unused credits have been allowed to accumulate in that fund?

I assume what is really there is the application spreading from one year to the next. There is a lag in the time in which the member country takes up the amount of money and presumably this in any one year's account can appear as a surplus in that year.

That could not be the explanation. It is implicit in all these statements which are emanating from Brussels about the use of this fund to alleviate the unemployment situation that the money can be made available from past resources of the fund which have not been taken up, and this is very disquieting.

As it relates to the Irish position at any rate, we have taken up and we are satisfied that we have taken up to the maximum what is available, what is possible for this country to take up; but the Deputy is right in saying that there has been comment emanating from certain circles in Brussels to suggest that there are more moneys which could be tapped from this source for development purposes in this country. The main argument is made about a conflict between the Industrial Development Act, 1969 and the regulations of the fund itself, and the suggestion has been made that if here at home we alter that legislation many more firms could seek aid from the fund. We had this discussion last week. That legislation comes under the responsibility of the Minister for Industry and Commerce. We are satisfied that the country, under existing legislation, gets its fair share from the European Social Fund and perhaps that is what the Deputy means when he refers to that commentary which certainly has appeared in the Press about a conflict—apparent conflict—more apparent than real—between that legislation and the regulations under the fund.

Would the Minister undertake to furnish the House with the accounts of the Social Fund?

And the amounts paid out, the balances, and so on?

Yes, I will do that.

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