asked the Minister for Finance whether agreement has been reached to set up a job creation fund under the second national understanding similar to that set up under the first national understanding.

11.

asked the Minister for Finance if a tripartite fund was provided under the terms of the 1981 national understanding similar to that set up under the 1980 national understanding, and, if so, the uses to which the fund is being put.

With the permission of the Ceann Comhairle, I propose to take questions Nos. 10 and 11 together.

A new Employment Guarantee Fund will be established under the second national understanding. A sum of £10 million has been provided in the Estimates to cover the Government's contribution to this fund.

No decisions have yet been taken regarding the purposes to which the new Employment Guarantee Fund will be applied.

When will the fund become effective? Does the Minister expect any contribution from an outside source to be made towards the fund? Who will manage the fund? Will there be any significant difference in the type of projects which will be aided to those aided by a previous similar fund?

I have no doubt that the Deputy is aware from newspapers reports of the employers' decision not to contribute to the current fund. This was conveyed to the Government but, as the Deputy knows, we are still considering this. The Government are committed to aiding vulnerable industries. All I can say to the Deputy is that I am still hopeful there will be a contribution to the fund.

With regard to the operation of the fund, I should like to tell the Deputy that the outgoing fund was operated by the tri-partite committee representative of the employers, trade unions and the Government. If the funding is merely Government I anticipate that there will be a change in how it operates. If there is a contribution forthcoming from other sources, obviously it will affect how it is operated. A decision has not been taken yet as to how the money will be spent but the Deputy can accept that it will be preferably devoted to productive purposes.

How long does the Minister expect to go on hoping for a contribution from outside thereby deferring the actual initiating of the fund? When does the Minister expect to start it?

There is serious concern for the vulnerable industries. In our first budget we aided for the first time those vulnerable industries. We had some difficulties last year with Brussels and eventually we got an acceptable scheme, which terminated on 31 October. We are still anxious to introduce this scheme and are committed to doing so. We want to help those industries, and that is why I believe progress has been good. I am hopeful we can aid such industries. That is mainly why there has been a delay in announcing a final decision.

Is the Minister aware of the reasons given by industry for not contributing to this fund?

I have heard many reasons advanced but I do not know which one the Deputy is referring to.

Will the Minister give me one reason?

I do not have to do that. It is the Deputy who is asking me the question.

We are talking about a contribution of £10 from industry.

Not necessarily.

Is the Minister saying that he did not expect to get it?

No.

Will the Minister accept my assurance that all parties share his concern for vulnerable industries and in view of that set a time limit within which he will start the operation of the fund?

It is a matter of prime interest and concern to me. As Minister for Labour I was instrumental in having such a fund introduced in 1978 for such industries. They are top priority with me.

When will the fund start?

If the Deputy spoke to Deputy FitzGerald, who is experienced on the European scene, or claims to be, he would learn that discussions are taking place outside the country.

The Minister is a great bluffer and it will be a long time before we get as big a bluffer as he is.

The Deputy is high in those stakes.

Question No. 12 has gone for written reply.