Dáil Éireann debate -
Tuesday, 27 Feb 1996

Vol. 462 No. 2

Written Answers. - Re-adaptation Aid Package.

Ned O'Keeffe

Question:

230 Mr. E. O'Keeffe asked the Minister for Enterprise and Employment when will the re-adaptation aid package be paid to the 210 former Irish Steel workers who were made redundant in 1994; the plans, if any, he has to have the case of the employees who were made redundant in earlier years (details supplied) also paid in view of the fact that this special fund is paid to workers throughout the EU who are employees of the coal and steel industry and therefore should now qualify for payment under an article of the ECSC Treaty; and if he will make a statement on the matter. [4187/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

As I mentioned in the House last week, my Department has recently received a communication from the EU Commission in Brussels confirming that the Commission has approved grant aid, under Article 56 (2) (b) of the ECSC Treaty, amounting to ECU 376,806 for 194 workers made redundant in 1994/95. A number of aspects of the Commission's decision, and the conditions attached to the decision, have to be clarified by my Department before any payment can be made by the EU Commission. My Department is in touch with the Commission and I hope that all matters will be clarified shortly.

The Deputy refers to 210 workers being involved. My Department initially applied for re-adaptation aid in respect of 205 workers in Irish Steel Ltd. as a result of the 1994 rationalisation plan. This figure was revised to 194 to take account of workers who did not actually receive redundancy payments such as apprentices, workers who terminated their employment but were not made redundant, workers scheduled for redundancy but subsequently retained and a small number of additional redundancies.

As regards the employees of Irish Steel who were made redundant in 1985/86, the Deputy may wish to know that the 116 workers involved were approved for re-adaptation aid of ECU 678,000. Thirty workers who were made redundant in 1988 and 90 workers who were made redundant in 1992 were not eligible for re-adaptation aid from the EU Commission under Article 56 (2) (b) of the ECSC Treaty, because, I understand, the redundancies were the consequence of a rationalisation of the production range of Irish Steel Ltd. and were not the result of a permanent discontinuance, curtailment or change in activities, which at the time was necessary to qualify for re-adaptation aid from the EU under Article 56 (2) (b) of the ECSC Treaty.