I propose to take Questions Nos. 267 to 271, inclusive, together.
The EU co-financed Youth Employment Initiative (YEI) aims to tackle youth unemployment and implement the Youth Guarantee by providing job, education and training opportunities to young people aged 15-25 who are not in employment, education of training. YEI funding is reserved for use in those regions, including Ireland, where youth unemployment levels exceeded 25% during the reference year of 2012. The specific YEI funding allocation for Ireland of €68m is matched by equal amounts from our European Social Fund (ESF) allocation and from the Exchequer, giving an overall allocation of €204m.
The YEI is integrated into ESF programming and is being delivered in Ireland as a dedicated priority axis within the ESF Programme for Education, Inclusion and Learning (PEIL) 2014-2020. Seven specific actions are being funded under the YEI, namely the Back to Work Enterprise Allowance; JobBridge; JobsPlus Incentive Scheme; Tús; Youthreach; Social Inclusion and Activation Programme; and Momentum. The proposed funding allocations for each of these actions, including YEI funding, is set out in the following table. These actions are underway and are being fully funded up-front by the Exchequer.
In accordance with the ESF Regulations, following the adoption of the PEIL in 2015, initial pre-financing of 3.5%, and annual pre-financing of 2% for 2016, of the EU support for the YEI priority axis, amounting to some €7.5m has been received to date. Separately, additional initial pre-financing of €19.8m, to bring the rate to 30% in 2015 of the YEI allocation, has also been received. This additional funding was provided in line with EU Regulation 799 of 2015 which was introduced in response to budgetary constraints faced by Member States and the urgent need to address youth unemployment. However, in an attempt to ensure that the funding was used for the immediate implementation of the YEI, the Regulation provides that if a Member State does not submit an interim payment application by 23 May 2016 for at least 50% of the additional pre-financing amount, that the Member State must reimburse the Commission the total YEI pre-financing contribution.
In accordance with the Regulations governing the European Structural and Investment Funds (including the ESF and the YEI), the relevant managing and certifying authorities for the Operational Programme must be designated, based on the opinion of an independent audit body which must be satisfied across a range of criteria that systems are in place to allow the authorities to perform their required functions, prior to the making of any application for an interim payment under the Regulations. The systems designation requirements include the provision of a computerised accounting and information system for EU funds to meet the 2014-2020 functionality requirements. The Regulations require Member States to ensure that all exchanges of information between beneficiaries and the relevant authorities and intermediate bodies can be carried out by means of electronic data exchange systems (known as E-Cohesion). These systems will facilitate interoperability with national and Union frameworks and allow for the beneficiaries to submit information only once.
Ireland is developing a national IT system to meet the 2014-2020 ESIF requirements. A Project Board, chaired by the Department of Public Expenditure and Reform as the Department with lead responsibility, is overseeing the delivery of this system. A tender for the development of the system was published in March and the deadline for the receipt of applications was Friday, 29 April. It is expected that the system will "go-live" in December.
The intention is that the ESF authorities will be designated later this year and that a claim for an interim payment under the PEIL will be made in 2017. Accordingly, as Ireland will not comply with the relevant Regulatory requirement of making an interim claim in May 2016, the €19.8m additional pre-financing received and currently held in a Suspense Account, may be reimbursed to the Commission.
However, it should be noted that the reimbursement of this pre-financing will not result in any loss of EU monies to the Exchequer, as the full YEI allocation of €68m to Ireland will still be available for drawdown before year-end 2018, and it is expected that this funding will be fully drawn down. Furthermore, as the activities concerned are fully funded up-front by the Exchequer there is no resulting reduction in the funding available to those activities.
Youth Employment Initiative
|
Funding (€m)
|
Back to Work Enterprise Allowance (BTWEA) Scheme
|
4.648
|
JobsPlus Incentive Scheme
|
7.992
|
Tús
|
35.347
|
JobBridge, the National Internship Scheme
|
57.240
|
Youthreach
|
79.876
|
Momentum
|
13.333
|
Social Inclusion and Activation Programme (SICAP)
|
6.000
|
TOTAL
|
204.436
|