European Social Fund and trainee allowances
The Minister said Ireland’s 1986 European Social Fund allocation was £170.8 million, down from the previous year because of budget constraints and increased demand; the outlook for 1987 was uncertain. The question about AnCO allowances was not answered before Question Time ended.
asked the Minister for Labour if he will make a statement on the operation of the European Social Fund, in particular, how it has affected the various training scheme budgets for 1986, and the likely position for 1987 and thereafter; and if AnCO trainee allowances have been reduced to £20 for 15 to 18 years olds.
Comment on this
For 1986, Ireland has been approved for £170.8 million from the European Social Fund. At this stage last year we had been approved for £187 million and supplementary grants of £5 million were approved towards the end of 1985. The reduction in 1986 is due to a number of factors—the general EC budgetary situation which has affected the size of the ESF budget; the accession of Spain and Portugal and increased demands on the ESF from other member states.
The position for 1987 and thereafter is difficult to forecast as it depends largely on the ESF budgetary situation which depends, in turn, on the position relating to the general Community budget. In the view of the Irish Government, the budgetary problems will be eased only if agreement is reached on the raising of the 12.4 per cent VAT ceiling which provides the Communities' own resources. Ireland is pressing to have the ceiling raised from 1.4 per cent to 1.6 per cent. If this change can be introduced from 1988, it would provide a significant increase in Community revenue which would ease the pressure on the ESF.
