€20m sought for Dell lay-offs from EU

THE GOVERNMENT has sought in the region of €20 million in assistance from the European Globalisation Fund, it has emerged.

THE GOVERNMENT has sought in the region of €20 million in assistance from the European Globalisation Fund, it has emerged.

Speaking during a visit to Limerick yesterday EU commissioner for employment, social affairs and equal opportunities Vladimir Spidla said an application for assistance for 2,000 workers made redundant by Dell was received two weeks ago.

“It’s up to the Irish Government to give you the specific numbers but it is in the area of €20 million.”

Speaking through a translator, Mr Spidla said recent changes to the conditions attached to the European Globalisation Fund had widened the scope for applicants.

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He said the proportion put by the EU and governments had also been changed.

“Before it was 50-50 but now the EU will put up 65 per cent of the money and the Irish Government 35 per cent.”

According to the commissioner, the amount the Irish Government will have to contribute depends on the amount it receives and insisted he would look “favourably” on the application.

When asked if Ireland could expect to receive the €20 million it has requested, he said “it’s not automatic – there can be differences.” He also confirmed that the application was being processed as “quickly as is possible” but it may yet be several more weeks before any money is made available.

“From our side, and we are only one of the steps in the process, we will hopefully put forward a positive approval in the next few weeks but we are only one step of the process. We then need those who pull the purse strings and that’s the European Parliament and the countries in the EU to release the money.”

Mr Spidla also stressed that even if the money was not released immediately this should not be used as an excuse to delay actions that would help workers getting back to work.

“There is a provision in our regulations, which means that once we’ve approved it we can retrospectively pay back for actions, so actions paid for now can be refunded by the European Union at a later stage.

“So the fact that we cannot pay the money now should not be a reason or an excuse not to do important projects right now.”

During his visit to Limerick yesterday Mr Spidla met representatives from the Moyross Regeneration project and workers made redundant from the Dell plant.