Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2009/021 IE/SR Technics from Ireland)
Date: 2010-09-21
Institutions: European Commission
Subjects: EU aid, Ireland, budgetary discipline (EU), budgetary procedure, commitment of expenditure, dismissal, financial management, fund (EU), globalisation, interinstitutional agreement, reintegration into working life

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EUROPEAN COMMISSION 

Brussels, 21.9.2010 
COM(2010) 489 final 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund 
in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 
between the European Parliament, the Council and the Commission 
on budgetary discipline and sound financial management 
(application EGF/2009/021 IE/SR Technics from Ireland) 

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EXPLANATORY MEMORANDUM 

Point  28  of  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management1  allows  for  the  mobilisation  of  the  European  Globalisation  Adjustment  Fund 
(EGF) within the annual ceiling of EUR 500 million over and above the relevant headings of 
the financial framework. 

The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 
1927/2006  of  the  European  Parliament  and  of  the  Council  of  20  December  2006  on 
establishing the European Globalisation Adjustment Fund2. 

On  9  October  2009,  Ireland  submitted  application  EGF/2009/021  IE/SR  Technics  for  a 
financial  contribution  from  the  EGF,  following  redundancies  in  the  enterprise  SR  Technics 
Ireland Ltd in Ireland (hereafter 'SR Technics'). 

After  a  thorough  examination  of  this  application,  the  Commission  has  concluded  in 
accordance  with  Article  10  of  Regulation  (EC)  No  1927/2006  that  the  conditions  for  a 
financial contribution under this Regulation are met. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 

EGF Reference no. 
Member State 
Article 2 
Enterprises concerned 
Suppliers and downstream operators 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundancies before and after the reference period 
Total eligible redundancies 
Redundant workers targeted for support 
Personalised services: budget in EUR 
Expenditure for implementing EGF3: budget in EUR 
% expenditure for implementing EGF 
Total budget in EUR 
EGF contribution EUR (65 %) 

EGF/2009/021 
Ireland 
(a) 
SR Technics Ireland Ltd 
None 
3/4/2009 to 2/8/2009 
25/3/2009 
9/10/2009 
800 
335 
1 135 
850 
11 015 174 
440 000 
3,8 
11 455 174 
7 445 863 

1. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  9  October  2009  and 
supplemented by additional information up to 18 May 2010. 

OJ C 139 of 14/6/2006, p. 1. 
OJ L 406 of 30/12/2006, p. 1. 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

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2. 

The application meets the conditions for deploying the EGF as set out in Article 2(a) 
of  Regulation  (EC)  No  1927/2006,  and  was  submitted  within  the  deadline  of  10 
weeks referred to in Article 5 of that Regulation.  

Link  between  the  redundancies  and  major  structural  changes  in  world  trade  patterns 
due to globalisation or the global financial and economic crisis 

3. 

Ireland  argues  that  the  redundancies  in  SR  Technics  can  be  directly  linked  to  the 
reduction  in  air  transport  activity  as  a  result  of  the  global  financial  and  economic 
crisis. It has provided statistics from Eurostat that show a decline in turnover in the 
air  transport  sector  between  2008/Q1  and  2009/Q3  of  over  9 %  (EU-27).  For  the 
Euro zone the decline was even greater; during the same period turnover declined by 
15,9 %. 

The decline in air transport turnover placed enormous cost pressures on airlines, as 
well  as  reducing  the  actual  volume  of  maintenance,  repair  and  overhaul  (MRO) 
activities  worldwide.  The  move  by  airlines  to  reduce  their  costs  by  sourcing  their 
suppliers  of  MRO  services  in  lower-cost  countries  had  already  been  visible  before 
the crisis. MRO activities in Eastern Europe were predicted to grow by 10,8 % per 
annum  between  2007  and  2017,  and  the  Middle  East  by  5,3 %  per  annum.  In 
Western Europe, however, growth rates of 3,8 % were predicted. The reasons cited 
by  industry  experts  were  largely  related  to  labour  costs  in  Western  Europe.  The 
global financial and economic crisis reversed even these low-growth projections, and 
led to a steep decline in MRO activity in the EU. 

More  recent  projections,  outlined  at  an  MRO  industry  convention  in  September 
2008,  are  for  a  decline  in  the  Western  European  market  share  by  2 %  per  annum 
from 2008 to 2018, while the share of the market of lower-cost countries in Eastern 
Europe would increase by 3 % per annum. 

4. 

The  model  followed  by  airlines  also  changed,  from  one  of  'full  service'  MRO 
contracts  to  specialisation  and  contract  division.  In  this  way  the  airlines  replace  a 
single MRO contract with several smaller ones, selected for cost advantage. 

SR Technics lost two significant contracts in this way; one with Aer Lingus and one 
with Gulf Air. The Aer Lingus contract, when it came up for renewal, was split into 
several  smaller  contracts  and  put  out  to  tender,  leading  to  a  gain  of  over 
EUR 20 million annually  to Aer Lingus, but a significant loss to SR Technics.  The 
Gulf Air contract was won by a firm based in Bahrain. 

Ireland  argues  that  the  global  financial  and  economic  crisis  exacerbated  an  already 
difficult situation for MRO operators in high cost regions, and led airlines to pursue 
cost-cutting more vigorously.  

Demonstration  of  the  number  of  redundancies  and  compliance  with  the  criteria  of 
Article 2(a) 

5. 

Ireland  submitted  this  application  under  the  intervention  criteria  of  Article  2(a)  of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
four-month period in an enterprise and in its suppliers and downstream producers. 

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6. 

The  application  cites  800  redundancies  in  SR  Technics  during  the  four-month 
reference period from 3 April 2009 to 2 August 2009. All of the redundancies were 
calculated in accordance with the first indent of the second paragraph of Article 2 of 
Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

7. 

The Irish authorities argue that the global economic and financial crisis had a severe 
impact  on  the  aviation  industry,  and  that  the  numbers  of  passengers,  air-miles  and 
aircraft  in  service  all  declined.  As  a  result  the  industry  was  forced  to  seek  cost 
savings in its maintenance, repair and overhaul (MRO) sector, and as contracts came 
up  for  renewal  airlines  sought  the  cheapest  alternative.  SR  Technics  lost  important 
contracts with Aer Lingus and Gulf Air in the period leading up to the redundancies. 
Although  the  aviation  industry  had  already  suffered  from  a  global  downturn  as  a 
result  of  9/11,  there  was  no  prior  warning  of  the  severity  of  the  current  global 
economic  and  financial  crisis.  Therefore,  a  planned  and  gradual  response  was  not 
possible.  Faced  with  the  loss  of  contracts  and  strong  competition  from  lower-cost 
regions, SR Technics had no alternative than to close their operation in Dublin. 

Identification of the dismissing enterprises and workers targeted for assistance 

8. 

The  application  cites  a  total  of  1 135  redundancies,  all  in  SR  Technics  in  Dublin. 
This number includes 800 during the four-month reference period, and 335 after that 
period, but who are also eligible for assistance from the EGF. 

Ireland estimates that 850 of the redundant workers will receive assistance from the 
EGF.  The  remaining  workers  are  expected  to  find  employment  through  their  own 
initiative without requiring assistance from the EGF, or to leave the labour market. 

9. 

The break-down of the targeted workers is as follows : 

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15 to 24 years old 
25 to 54 years old 
Over 54 years old 

Number
797
53
850
0
32
808
10

Percent 
93,8 
6,2 
100,0 
0,0 
3,8 
95,1 
1,2 

10. 

In terms of professional categories, the break-down is as follows : 

Category 
Managers 
Professionals 
Technicians and associate professionals 
Clerical support workers 
Craft and related trades workers 

Number
173
24
152
99
402

Percent 
20,4 
2,8 
17,9 
11,6 
47,3 

11. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Ireland  has 
confirmed  that  a  policy  of  equality  between  women  and  men  as  well  as  non-
discrimination has been applied, and will continue to apply, during the various stages 
of the implementation of and, in particular, in access to the EGF. 

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Description of the territory concerned and its authorities and stakeholders 

12. 

13. 

The territory concerned is the north of the geographic county of Dublin, within the 
NUTS  III  region  IE021  Dublin,  where  the  SR  Technics  plant  is  situated  at  Dublin 
Airport.  The  Dublin  Region  consists  of  four  local  authority  areas  (administrative 
counties): Dublin City, South Dublin, Fingal and Dun Laoghaire-Rathdown. The vast 
majority of the SR Technics workers live in the Dublin region and counties Meath, 
Kildare  and  Louth.  All  four  Dublin  administrative  counties  and  Kildare  and  Meath 
represent  six  of  the  seven  most  populated  counties  in  the  State  with  a  combined 
population  of  1 536 342  people  or  36,2 %  of  the  national  population.  Of  the  639 
redundant workers interviewed by the national training authority FÁS by May 2009, 
only 17 (2,7 %) lived in a county not listed above. 

The  principal  stakeholder  is  the  Department  of  Enterprise,  Trade  and  Employment. 
Responsibility  at  operational  level  resides  in  Foras  Aiseanna  Saothair  (FÁS),  the 
National  Training  and  Employment  Authority.  FÁS  North  Dublin  region  offices 
provides  a  range  of  labour  market  services  and  programmes  to  unemployed 
jobseekers and to persons in employment on the north side of Dublin City.  

Additional stakeholders include: Enterprise Ireland (EI), the State authority with the 
mandate  to  assist  the  growth  of  Irish  enterprises  by  providing  locally  controlled 
businesses  with  a  single,  integrated  source  of  development  advice,  funding  and 
support services; and the Department of Education and Science, which is responsible 
for  policy  formulation  and  national  funding  of  education  in  Ireland.  Operational 
responsibility resides (at lower educational qualifications level) with the Vocational 
Education  Committees  in  terms  of  the  provision  of  adult  learning  and  (at  higher 
levels  of  educational  qualifications)  in  a  number  of  higher  educational  institutions 
including universities and institutes of technology. These higher education bodies fall 
under the remit of the Higher Education Authority (HEA),  which in turn reports to 
the Department of Education and Science. 

The higher education institutions – Dublin City University (DCU), Dublin Institute 
of  Technology  (DIT),  the  Institute  of  Technology  Blanchardstown  (ITB)  and  the 
Institute  of  Technology  Tallaght  (ITTD)  collectively  serve  the  general  catchment 
area  in  which  the  SR  Technics  workers  live.  These  institutions  collaborate  on  a 
number  of  initiatives  including  the  Dublin  Region  Higher  Education  Alliance,  the 
Learning  Innovation  Network  and  projects  funded  by  the  HEA  under  its  Strategic 
Innovation Fund such as the Education in Employment (EIS) project and Roadmap 
for Employment-Academic Partnership (REAP).  

14. 

15. 

Trade  unions  representing  workers  are  UNITE,  AGEMO,  ATGWU,  IMPACT,  IEI, 
SIPTU, UCATT and TEEU.  

Other stakeholders include the Fingal Task Force, IDA, North Dublin Development 
Coalition (NorDubCo), Dublin Area Partnerships and Local Enterprise Boards.. 

Expected impact of the redundancies as regards local, regional or national employment 

16. 

Ireland  expects  the  impact  of  the  redundancies  to  be  locally  significant.  The 
redundancies  amount  to  over  1 %  of  the  total  labour  force  in  the  Fingal  County 
Council area. The numbers on the ‘Live Register’ (a measure of those in receipt of 
social  welfare  payments  used  as  a  barometer  of  unemployment  levels  ahead  of  the 

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more  precise  quarterly  statistics  from  the  Central  Statistics  Office  contained  in  the 
National Household Quarterly Survey) rose from 7 562 to 9 057 (+19,8 %) during the 
period March to September 2009 in the Social Welfare North County Dublin region (in 
which  SR  Technics  is  situated).  The  highest  national  Live  Register  increase  at  a 
Social Welfare local office for this period was recorded at Balbriggan, north County 
Dublin (+21,9 %). 

17. 

18. 

The March-September 2009 period coincides with the period  during which 838 SR 
Technics  workers  were  made  redundant.  As  at  early  October  2009,  593  former  SR 
Technics workers were signing on the Live Register and 442 (75 %) of these reside 
in a Dublin region. 

Whilst  no  redundancies  directly  linked  to  SR  Technics  have  been  reported  at 
suppliers  or  downstream  producers,  the  loss  in  revenues  owing  to  the  SR  Technics 
redundancies  is  expected  to  generate  significant  losses  in  indirect  employment 
through  the  loss  in  workers’  incomes  and  through  a  reduction  in  SR  Technics 
purchases  of  goods  and  services  locally  and  regionally.  In  this  regard,  the  value  of 
payroll at EUR 69 million in 2007 and volumes of materials and services purchases 
at EUR 24,9 million and EUR 18,1 million in 2007 respectively was considerable. 

The SR Technics redundancies come on top of other recent significant job losses at 
traditional manufacturing enterprises in the food production sector in the region. 

Co-ordinated  package  of  personalised  services  to  be  funded  and  a  breakdown  of  its 
estimated  costs,  including  its  complementarity  with  actions  funded  by  the  Structural 
Funds 

19. 

20. 

21. 

Ireland  proposes  a  package  of  measures  in  favour  of  the  redundant  workers  that  is 
built  around  five  pillars;  FÁS  Guidance  and  Training,  Redundant  Apprentice  On- 
and  Off-the-job  training,  VEC  training,  Entrepreneurship/Self-employment,  and 
Third-level education. 

The pillar FÁS Guidance and Training includes basic occupational guidance for the 
majority  of  the  redundant  workers,  in  addition  to  a  number  of  training  courses 
designed either to provide basic computer or life skills, or alternative career paths for 
the  workers.  Each  person  undertaking  a  full-time  FÁS  course  is  also  eligible  for  a 
training allowance. 

It is estimated that 850 workers will avail of occupational guidance at an estimated 
cost  of  EUR 100  per  worker.  An  estimated  789  workers  will  participate  in  FÁS 
training courses, at an estimated cost of EUR 784 per worker. Of these, an estimated 
70 will receive a training allowance of EUR 3 863 per worker. 

The total cost for this pillar is estimated at EUR 973 710. 

The  pillar  Redundant  apprentice  on-  and  off-the-job  training  is  designed  to  allow 
existing apprentices at SR Technics to complete their apprenticeships. The Standards 
Based Apprenticeship System is based on seven alternating phases of on-the-job (odd 
numbers) and off-the-job (even numbers) training. SR Technics apprentices, who had 
already  finished  phases  1  to  4  before  SR  Technics  closed  down,  need  to  complete 
phases 5 and 7 'on-the-job' with a break in between to complete phase 6 'off-the-job' 
training.  Seventy  apprentices  are  expected  to  complete  the  off-the-job  element  of 

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their apprenticeships, at a cost per apprentice of EUR 7 699, and 37 apprentices are 
expected  to  complete  the  on-the-job  element  of  their  apprenticeships,  at  a  cost  per 
apprentice of EUR 6 886. 

The total cost for this pillar is expected to be EUR 793 714. 

22. 

The pillar VEC training will be provided by the Vocational Education Committees of 
the  surrounding  areas,  including  Counties  Dublin,  Meath  and  Louth.  It  includes 
activities  tailored  to  the  redundant  workers'  technical  backgrounds,  including  an 
initial  induction  programme,  a  skills  transfer  programme,  a  digital  competence  for 
work programme, and a module on self-employment. 

The  initial  induction  programme,  which  aims  to  provide  recognition  of  prior 
learning,  psychometric  testing  and  educational  guidance  support,  will  benefit  an 
estimated 480 workers, at an estimated cost of EUR 250 per worker. 

The package plans skills transfer courses, as appropriate, in Green Technology, PC 
maintenance,  Business  and  Accounting  Skills,  Business  Through  Computers, 
Microsoft Certified Professional and Communication Skills, at an estimated cost of 
EUR 7 000 per worker for 162 workers. 

An  estimated  108  workers  will  benefit  from  the  digital  competence  for  work 
programme, which includes modules on IT and Reception Skills, IT Retail Sales and 
Customer Care, Warehousing and Data Skills, IT Office Administration and Design, 
IT and Communications Skills and Communications in E-Commerce. The estimated 
cost per participant is EUR 7 000. 

Finally,  an  estimated  90  workers  will  benefit  from  courses  in  Computers  for 
Business,  Accounts  for  Small  Business,  Manual  and  Computerised  Accounts  and 
Communications  for  Business,  in  order  better  to  be  able  to  start  up  their  own 
businesses. The estimated cost per worker is EUR 7 000. 

The estimated total cost of this pillar is EUR 2 640 000. 

23. 

The  pillar  Entrepreneurship  and  Self-employment  will  be  provided  by  Enterprise 
Ireland  (EI)  in  cooperation  with  Fingal  County  Enterprise  Board  (CEB)  and  a 
number  of  other  actors.  It  includes  an  initial  promotion  of  entrepreneurship  though 
Business Information Workshops, at which an estimated 850 workers will participate 
at an estimated cost of EUR 50 per worker. 

The number who will progress to participation in the short EI/CEB Entrepreneurship 
Programme is estimated at four, at a cost of EUR 3 000 per worker. 

An  estimated  five  workers  will  receive  an  Enterprise  Ireland  Feasibility  Grant,  to 
enable potential start-up company promoters who have or are developing a business 
proposal to ascertain whether or not there is a niche in the market for their product 
offering; to then validate the actual market potential and fine-tune their proposition 
before  finalizing  an  investment-ready  proposal  to  investors.  The  promoters  are 
expected have significant background work done on their proposal and have a strong 
management team behind the business. The level of grant available will be maximum 
EUR 15 000. 

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A further five are expected to participate in the more demanding CORD (coordinated 
research  and  development)  campus  programme  for  entrepreneurs  who  attend  a  full 
time  third  level  Enterprise  Platform  Programme  delivered  by  Blanchardstown 
Institute of Technology or the Institute of Technology, Tallaght. This programme is 
restricted to start-ups that are deemed to be a High Potential Start Up (HPSU – i.e. 
with  the  potential  to  grow  sales/exports  of  EUR 1 million  and  employ  10  or  more 
staff  within  three  years  of  commencement).  If  the  entrepreneur  is  accepted  after 
assessment  by  Enterprise  Ireland  his/her  company  will  be  entitled  to  a  maximum 
grant  of  EUR 30 000  (or  50 %  of  their  salaries  for  the  previous  three  years, 
whichever is the lesser). 

An estimated 20 workers are expected to apply for Employment Grants, designed to 
encourage the recruitment of employees by start-up companies, at an estimated cost 
of EUR 10 000 per employee. 

The  total  cost  of  the  Entrepreneurship  and  Self-employment  pillar  is  estimated  at 
EUR 479 500. 

24. 

The  fifth  pillar  providing  third  level  education  as  appropriate  to  the  redundant 
workers  will  be  delivered  by  the  higher  education  institutions  (HEIs)  which 
collectively  serve  the  area  in  which  the  SR Technics  workers  live.  These  include 
Dublin City University (DCU), Dublin Institute of Technology (DIT), the Institute of 
Technology,  Blanchardstown  (ITB)  and  the  Institute  of  Technology,  Tallaght 
(ITTD). 

Ireland  estimates  that  250  workers  could  benefit  from  an  activity  under  this  pillar. 
All of these 250 workers will be offered a preparatory course of seminars, workshops 
and  information  sessions,  which  will  address  areas  such  as  financial  planning  and 
budgeting, personal and professional development, returning to education advice and 
preparation,  entrepreneurship  amongst  others.  The  cost  per  worker  for  this 
preparatory course is estimated at EUR 150. 

Three  different  National  Framework  of  Qualifications  (NFQ)  levels  of  third  level 
education will be made available, either full-time or part-time as appropriate; Level 6 
(Advanced  Certificate  and  Higher  Certificate  awards  enabling  development  of  a 
variety of skills which may be vocationally specific and/or of a general supervisory 
nature),  Level  7  (Ordinary  Bachelor  Degree),  and  Level  8  (Honours  Bachelor 
Degree). As none of the targeted workers already hold a primary degree, no Masters 
or Post-Graduate education is foreseen in the package. 

The HEIs will primarily offer programmes and awards aligned with Irelands ‘Smart 
Economy’ policy, focussing in particular on Business, Engineering and Computing at 
the three NFQ levels: 

The estimated cost per worker (full-time) is EUR 7 500, and the numbers expected to 
participate are; Level 6, 20 workers; Level 7, 70 workers; Level 8, 110 workers. 

The remaining 50 workers who will benefit from this activity will participate in the 
courses at Levels 6, 7 and 8 on a part-time basis, and the estimated cost per worker is 
EUR 2 750. 

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In  addition  to  the  cost  of  the  courses,  the  package  includes  the  cost  of  support  and 
learning materials, at an estimated cost of EUR 163 per participant. 

All 250 expected participants in the third-level education pillar will be included in a 
Recognition  of  Prior  Learning  (RPL)  process  in  order  to  identify  the  learning 
relevant  for  particular  programmes.  The  process  includes  a  general  information 
session where the HEIs provide an overview of their respective offerings and more 
detailed  information  on  the  courses  being  provided  and  supports  for  recognition  of 
prior  learning.  Those  who  are  interested  in  pursuing  third  level  courses  may  then 
avail  of  a  two-day  RPL  process  in  the  form  of  Learning  Assessment  sessions. 
Participants  will  be  assisted  to  define  educational  goals  and  to  understand  how  the 
learning options available can be used to achieve these goals. Individuals may then 
choose to apply for a place on a third level course. The RPL process will enable each 
participant  to  map  their  formal  and  experiential  learning  in  order  to  identify 
appropriate  disciplinary  areas  to  pursue,  verify  equivalent  standards  for  entry  to  a 
particular  award  and  demonstrate  award  outcomes  already  achieved  through  other 
experience or learning in order to gain advanced access into a programme. The cost 
per participant is estimated at EUR 750. 

Finally,  the  package  includes  the  cost  of  allowances  to  the  workers  who  are 
participating  in  third  level  education.  All  of  the  estimated  250  workers  will  benefit 
from such allowances at a cost of EUR 16 900 per worker. 

The total cost of the third level education pillar is estimated at EUR 6 128 250. 

The  expenditure  for  implementing  EGF,  which  is  included  in  the  application  in 
accordance  with  Article  3  of  Regulation  (EC)  No  1927/2006,  covers  preparatory, 
management and control activities as well as information and publicity. 

The personalised services presented by the Irish authorities are active labour market 
measures  within  the  eligible  actions  defined  by  Article  3  of  Regulation  (EC)  No 
1927/2006.  The  Irish  authorities  estimate  the  total  costs  of  these  services  at 
EUR 11 015 174  and  the  expenditure  for  implementing  EGF  at  EUR 440 000 
(=3,8 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 7 445 863 (65 % of the total costs). 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

Total costs 
(EGF and 
national co-
financing) (in 
EUR) 

25. 

26. 

Actions 

Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006)) 

FÁS Occupational guidance 

FÁS Training courses 

FÁS Training Allowances 

Apprentices - off the job training  

850

789

70

70

100 

784 

3 863 

7 699 

85 000

618 310

270 400

538 930

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Apprentices - on the job training 

VEC Induction Programme  

VEC Skills Transfer Programme  

VEC Digital Competence for Work 

VEC Skills for Self Employment 

EI/CEB entrepreneurship promotion 

EI Entrepreneurship Programme 

EI Feasibility Grants 

Campus Enterprise Programme (CORD) 

EI/CEB for self employment grants 

Third level preparatory courses 

Third level NFQ Level 6 Certificate 
courses in Computing, Engineering, 
Business, Social studies 

Third level NFQ Level 7 Degree courses 
in Computing, Engineering, Business, 
Social studies 

Third level NFQ Level 8 Degree courses 
in Computing, Engineering, Business, 
Social studies 

Third level Certificate & Degree NFQ 
Levels 6-8 p/t courses in Computing, 
Engineering, Business, Social studies 

Third level Mature Student Support and 
Learning Materials 

Third level - Recognition of Prior 
Learning (RPL) 

Third level – Income support allowance 

Sub total personalised services 

37

480

162

108

90

850

4

5

5

20

250

20

70

110

50

250

250

250

6 886 

254 784

250 

120 000

7 000 

1 134 000

7 000 

7 000 

50 

3 000 

15 000 

756 000

630 000

42 500

12 000

75 000

30 000 

150 000

10 000 

200 000

150 

37 500

7 500 

150 000

7 500 

525 000

7 500 

825 000

2 750 

137 500

163 

750 

40 750

187 500

16 900 

4 225 000

11 015 174

Expenditure  for  implementing  EGF  (third  paragraph  of  Article  3  of  Regulation  (EC)  No 
1927/2006) 

Preparatory activities 

Management 

Information and publicity 

40 000

230 000

80 000

EN 

10 

   EN 

 
 
 
 
 
 
 
Control activities 

Sub total expenditure for implementing 
EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

90 000

440 000

11 455 174

7 445 863

27. 

Ireland confirms that the measures described above are complementary with actions 
funded by the Structural Funds. The managing authority for the EGF, which is also 
managing authority for the ESF, has put in place the necessary control procedures to 
eliminate any risk of double funding. 

Date(s)  on  which  the  personalised  services  to  the  affected  workers  were  started  or  are 
planned to start 

28. 

Ireland started the personalised services to the affected workers included in the co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  25  March  2009.  This 
date therefore represents the beginning of the period of eligibility for any assistance 
that might be awarded from the EGF. 

Procedures for consulting the social partners 

29. 

Upon  receiving  notification  of  proposed  SR  Technics  redundancies,  FÁS  met  with 
SR  Technics  trades  union  representatives.  While  the  discussions  focused  primarily 
on approaches to ensuring SR Technics or other interested parties would continue to 
operate  at  Dublin  Airport.  FÁS  and  the  Department  of  Enterprise,  Trade  and 
Employment have continued to liaise with trade union representatives on all aspects 
of  the  SR  Technics  redundancies.  Informal  discussions  between  FÁS  and  SR 
Technics trade unions on the proposed coordinated package of personalised services 
continue. 

Information  on  actions  that  are  mandatory  by  virtue  of  national  law  or  pursuant  to 
collective agreements 

30. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Irish authorities in their application:  

•  confirmed that the financial contribution from the EGF does not replace measures 
which are the responsibility of companies by virtue of national law or collective 
agreements; 

•  demonstrated that the actions provide support for individual workers and are not 

to be used for restructuring companies or sectors; 

•  confirmed that the eligible actions referred to under points 20 to 28 above do not 

receive assistance from other Community financial instruments. 

Management and control systems  

EN 

11 

   EN 

 
 
 
 
 
 
 
 
31. 

Ireland has notified the Commission that the financial contributions will be managed 
and controlled by the same bodies that manage and control the European Social Fund 
(ESF) funding in Ireland. 

Financing 

32. 

33. 

34. 

35. 

On the basis of the application from Ireland, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 7 445 863, representing 
65 %  of  the  total  cost.  The  Commission's  proposed  allocation  under  the  Fund  is 
based on the information made available by Ireland. 

Considering the maximum possible amount of a financial contribution from the EGF 
under  Article  10(1)  of  Regulation  (EC)  No  1927/2006,  as  well  as  the  scope  for 
reallocating  appropriations,  the  Commission  proposes  to  mobilise  the  EGF  for  the 
total  amount  referred  above,  to  be  allocated  under  heading  1a  of  the  financial 
framework. 

The  proposed  amount  of  financial  contribution  will  leave  more  than  25 %  of  the 
maximum annual amount earmarked for the EGF available for allocations during the 
last  four  months  of  the  year,  as  required  by  Article  12(6)  of  Regulation  (EC)  No 
1927/2006. 

By  presenting  this  proposal  to  mobilise  the  EGF,  the  Commission  initiates  the 
simplified  trialogue  procedure,  as  required  by  Point  28  of  the  Inter-institutional 
Agreement of 17 May 2006, with a view to securing the agreement of the two arms 
of the budgetary authority on the need to use the EGF and the amount required. The 
Commission invites the first of the two arms of the budgetary authority that reaches 
agreement on the draft mobilisation proposal, at appropriate political level, to inform 
the other arm and the Commission of its intentions. In case of disagreement by either 
of  the  two  arms  of  the  budgetary  authority,  a  formal  trialogue  meeting  will  be 
convened.  

36. 

The Commission presents separately a transfer request in order to enter in the 2010 
budget specific commitment and payment appropriations, as required in Point 28 of 
the Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations  

37. 

38. 

In  the  current  state  of  implementation,  it  is  foreseeable  that  the  payment 
appropriations  available  under  the  budget  line  01.04  05  'Completion  of  programme 
for enterprises: improvement of the financial environment for small and middle-sized 
enterprises (SMEs)' in 2010 will not be fully used this year.  

Payment appropriations are transferred to trust accounts as required to ensure that the 
European Investment Fund (EIF) is at all times in a position to make disbursements 
to  the  financial  intermediaries.  The  financial  crisis  had  a  major  effect  on  the 
disbursement profile of financial instruments, particularly those in the area of venture 
capital.  According 
the  European  Venture  Capital  Association  (EVCA), 
investments and divestments (exits) were more than halved between 2007 and 2009 
compared  to  the  pre-crisis  situation.  These  developments  had  also  a  substantial 
impact on the forecasts in terms of disbursements for 2010. As a consequence of the 
above elements, payment appropriations foreseen in the 2010 budget will not be fully 

to 

EN 

12 

   EN 

needed in 2010. The amount of EUR 7 445 863 can therefore be made available for 
transfer.  

EN 

13 

   EN 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund 
in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 
between the European Parliament, the Council and the Commission 
on budgetary discipline and sound financial management 
(application EGF/2009/021 IE/SR Technics from Ireland) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having  regard  to  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management4, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20  December  2006  establishing  the  European  Globalisation  Adjustment  Fund5, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission6, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional support for workers made redundant as a result of major structural changes 
in world trade patterns due to globalisation and to assist them with their reintegration 
into the labour market. 

The scope of the EGF was broadened for applications submitted from 1 May 2009 to 
include support  for workers made  redundant  as a direct result of the global financial 
and economic crisis. 

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF 
within the annual ceiling of EUR 500 million. 

Ireland  submitted  an  application  to  mobilise  the  EGF,  in  respect  of  redundancies  in 
SR Technics on 9 October 2009 and supplemented it with additional information up to 
18  May  2010.  This  application  complies  with  the  requirements  for  determining  the 
financial  contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006. 
The Commission, therefore, proposes to mobilise an amount of EUR 7 445 863. 

4 
5 
6 

OJ C 139 of 14/6/2006, p. 1. 
OJ L 406 of 30/12/2006, p. 1. 
OJ C […], […], p. […]. 

EN 

14 

   EN 

                                                 
(5) 

The EGF should, therefore, be mobilised in order to provide a financial contribution 
for the application submitted by Ireland. 

HAVE DECIDED AS FOLLOWS: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2010,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 7 445 863 in commitment and payment appropriations. 

This Decision shall be published in the Official Journal of the European Union. 

Article 2 

Done at, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

15 

   EN