Dáil Éireann Debate, Thursday - 6 July 2017
20. Deputy Robert Troy asked the Minister for Education and Skills if the Government held negotiations with the EU to reduce the eligibility criteria for EU cohesion funding in order that small businesses can avail of this funding when making persons redundant. [30502/17]
View answerThe European Globalisation Adjustment Fund (EGF) assists Member States to provide active labour market supports to workers made redundant as a result of globalisation or due to a global financial and economic crisis. The Fund stands outside the EU multiannual financial framework and the Cohesion Fund, drawing from savings across the EU budget, subject to a maximum annual amount of €150m.
To be eligible for assistance there must be at least 500 redundancies in a specific company (including suppliers/downstream producers) in a 4 month period, or at least 500 redundancies in a specific sector in a 9 month period. The threshold number of redundancies was originally set at 1,000, however this was reduced to the current 500 threshold as part of EU Member States negotiations on revisions to the EGF in 2009.
Under the current EGF Regulation, workers made redundant from small companies can be included in EGF programmes in a number of ways.
Company specific EGF applications can include small businesses and self-employed persons whose activity has ceased, provided that it can be demonstrated that their activity was dependent on the specific company concerned (i.e. they were a supplier or downstream producer of the company). Sectoral EGF applications can include small businesses and self-employed persons who were operating in the relevant economic sector.
In small labour markets or in exceptional circumstances, applications can be made where the minimum threshold number of redundancies is not entirely met and the Member State can substantiate that there is a serious impact on employment and the local, regional or national economy. Cases approved on exceptional circumstances grounds cannot exceed 15% of the total EGF annual budget. A number of Irish EGF applications have been approved on exceptional circumstances grounds.
