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Dáil Éireann debate -
Thursday, 4 Feb 1988

Vol. 377 No. 5

Ceisteanna — Questions. Oral Answers. - European Social Fund.

7.

asked the Minister for Labour if Ireland stands to lose out to Spain and Portugal in its allocation from the European Social Fund in the coming year; and, if so, the action the Government are taking in the matter.

The applications to the European Social Fund for assistance for 1988 have already been submitted to Brussels and are under consideration by the European Commission. The Commission's decision on the 1988 allocations is not expected until April 1988. The amount of assistance to be approved for each member state will depend on the eligibility of the programmes submitted and whether they qualify for priority under the rules and guidelines of the Social Fund. I have no reason to think that Ireland will be approved for significantly less in 1988, or Spain and Portugal for significantly more, than was the case in 1987.

The level of assistance from the European Social Fund, as from other Community Structural Funds, for future years will depend very much on the outcome of discussions on the Delors Plan which is at present under consideration by the Council of the European Communities. Among the main elements of the Delors Plan are that the budgets of the Community Structural Funds should be doubled by 1992 and that there should be a greater concentration of the resources of the funds on the less developed Community regions, including Ireland. These proposals are being strongly supported by Ireland and I very much hope that they will be adopted. If they are adopted, Ireland's receipts from the Community Structural Funds, including the European Social Fund should increase substantially. However, the benefits of these proposals would not, in any event, become evident before 1989, when the reform of the funds is due to take effect.

Is the Minister aware of the unease there is about the structure of the Social Fund, the contemplated changes in the way it is administered and the way the regulations affect the implementation of the fund? Would the Minister have any qualms about the way that might affect our implementation of the use of the funds in future years? Fears have been expressed that the rules will change because the Commission regard the funds as being too loosely applied. Does the Minister think that will adversely affect us?

I hope not. Because of the millions of pounds that are involved, the Commission are continually tightening the system. There is a very good staff involved in this area who monitor our applications very closely, and because it is all under one Department this leads to efficiency and a great understanding of how the system works. If the rates are increased there will be discussions on how exactly they will be administered. It is important that we would be involved in any changes.

Is it true to say that there is a move away from approval of projects and that there seem to be too many individual, small projects which do not have proper monitoring? Are we prepared to put forward programmes that may be called for after the changes?

I understand that we are. The people who have been involved with the ESF applications have been involved from the very start of our entry into the EC. If there are any fundamental changes we will be in a position to put forward programmes.

May I ask the Minister on what basis FÁS are working and what is their expectation of what they can hope to get from the Social Fund this year and in coming years, because presumably they will have taken some figures into account in laying their plans? Arising from Deputy Colley's question, the Minister said he believes they are prepared for a movement towards programming. Can I ask the Minister what specific action has been taken within the Department of Labour to prepare that Department to move towards a programme of integrated packages?

That is a separate question but I can tell the Deputy that at all recent meetings — and I am sure at meetings during the Deputy's term in the Department of Labour — they were already planning for that event. There are excellent people, and I consider them to be the best in Europe, dealing with ESF funding and I think the Deputy knows that.

Question No. 8 in the name of Deputy Mary Harney.

What is the working hypothesis in FÁS——

I cannot answer that off the top of my head.

Do they think they are going to have——

I have called the next question.

8.

asked the Minister for Labour the steps he is taking to ensure that any changes in the administration of the European Social Fund, which are due to be decided on this year, will be to Ireland's advantage and that the needs of our long term unemployed will be taken into account.

Negotiations are already taking place on the reform of the Community Structural Funds, which include the European Social Fund, as part of the Delors Plan for the future of Europe. In those negotiations, Ireland is pressing in particular for a doubling of the volume of assistance to the poorer or less developed regions of the Community and for an increase in the rate of assistance to those regions. I hope that decisions on these issues favourable to Ireland will be taken at the forthcoming meeting of the European Council on 11-12 February next. When the broad decisions on the reform of the Structural Funds have been taken the European Commission will later this year submit proposals to the Council for the detailed administration of the European Social Funds. It is my intention, in the Council of Ministers, when the proposals relating to the European Social Fund are being discussed, to press for a special rate of assistance for schemes such as the social employment scheme which are designed to suit the long term unemployed. The designation of the long term unemployed as a priority category has already been agreed in principle by all delegations.

Is the Minister satisfied that the social employment scheme is the correct vehicle through which to provide work for the long term unemployed or is he examining different schemes? I am thinking of other schemes which are operating in Europe, such as local employment initiatives, which are not necessarily on the basis of our social employment scheme but which would benefit from the European Social Fund and the hopefully increased allocation we will get.

I will have more details on that for the Deputy when I reply to her priority question. The social employment scheme has proven to be a considerable success so I think it is the correct type of scheme.

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