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Dáil Éireann debate -
Thursday, 31 Oct 1985

Vol. 361 No. 4

Written Answers. - Redundant Steel Workers.

30.

asked the Minister for Industry, Trade, Commerce and Tourism if he will make a statement on the rules governing EC funds available for laid-off steel workers; and if the Government has made or intends to make a formal application to avail of such funds.

Article 56 of the Treaty establishing the European Coal and Steel Community (ECSC) provides for the granting of various types of readaptation aid to coal and steel workers made redundant. This article applies to redundancies which are a direct consequence of structural economic difficulties within the coal and steel industries or where the redundancies arise from major technological changes leading to a reduction in labour requirements in either industry. Community aid to redundant ECSC workers is granted on condition that the member state concerned makes a special contribution of at least 50 per cent of the total special aid to be provided to the redundant workers. The amount of Community aid available may not exceed the amount of special aid provided by the national authorities over and above what would normally be granted under the social welfare code.

The types of aid which are eligible for Community assistance include the following:

—redundancy lump sum allowances;

—tideover allowances, which are paid as a supplement to unemployment benefit;

—early retirement allowances which take the form of a bridging pension or a supplement to unemployment benefit;

—wage support allowances, which are payable to redundant ECSC workers who are re-employed in a lower paid job;

—allowances for short time working;

—retraining allowances; and

—resettlement allowances.

The Government have made an application to the EC Commission for Community aid to assist the workers who are being made redundant as a result of the recent rationalisation measures at Irish Steel Limited. The Government have applied for over £800,000 in Community funding in respect of a package of social measures which include redundancy lump sum payments, tideover allowances (i.e. supplement to unemployment benefit) as well as allowances for early retirement, wage support, retraining and resettlement. A Commission decision on the application is expected before the end of the year.

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