asked the Minister for Labour if he will state Ireland's receipts from the EC Social Fund in 1985; the expected level of receipts in 1986; and the reasons for reductions in Ireland's receipts from the European Social Fund.
Ceisteanna—Questions. Oral Answers. - EC Social Fund.
4.
Ireland was approved for assistance totalling £192 million from the European Social Fund in 1985. The amount actually received in 1985 was £141 million, consisting of £93 million in advance payments for 1985 operations and £48 million for operations carried out in previous years.
For 1986 operations, Ireland has been approved for £170.8 million. Receipts to date in 1986 amount to £89 million, consisting of £79.8 million in advance payments for 1986 operations and £9.2 million for operations carried out in previous years. A further amount of £4.66 million in respect of advance of 1986 grants is expected imminently. Finally, balances of payment claims relating to 1984 and 1985 operations, amounting to approximately £33 million, have been submitted to the European Commission. The extent to which these claims are paid in 1986 depends on the adoption of a supplementary budget by the Commission, which Ireland is strongly supporting.
The reduction in the amount approved for this year compared with 1985 is due to the general Community budgetary situation, the effects of the accession of Spain and Portugal and an increase in the level of demands on the fund from other member states.
Will the Minister explain the effects of the very severe reductions in 1986 and state the proposals the Government have to continue the level of services and courses that benefit from the fund? Are the Department instructing various organisations to cut their services?
I understand that despite the reductions it is expected that the major ESF beneficiaries will be able to maintain their programmes at broadly the same levels as in previous years.
What does the Minister mean by the word "broadly"? Already there is widespread concern in a number of agencies and talk about cutbacks in various areas. Bodies who care for the handicapped benefit greatly from the fund and are extremely concerned. There are also cutbacks affecting trainees and apprentices. There is concern about the funds paid to trainees in the 15-18 age group. What proposals have the Government to deal with this position?
The levels of approvals and receipts in any year do not necessarily tally since 50 per cent of grants approved is paid in the year of operation and the balances are not paid until following years. While we have been notified of a balance of £4.66 million to be paid shortly, we may also receive payment this year in respect of 1984 and 1985 operations. A £33 million claim is involved which depends on a supplementary budget, which Ireland is strongly supporting, being passed by the EC.
Is the Minister confirming that the reason we are surviving on broadly the same level is that we have outstanding balances approved for previous years and that in 1987 there will be a massive cutback for AnCO and other voluntary agencies because of the cutback in the ESF? Is it the position that we are living this year on balances due from previous years?
I do not accept there will be massive cutbacks in the agencies the Deputy has mentioned. We expect to receive £85.4 million, that is 50 per cent of £170.8 million, in advance payments for 1986. Of that amount, £79.776 million has been received already and the balance is expected shortly. If the Council approve the supplementary budget, a further £33 million is due to Ireland in respect of operations for 1984-85.