CELEX: 52012PC0423
Language: en
Date: 2012-07-27
Title: 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/2012/001 IE/Talk Talk from Ireland)

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		52012PC0423
		
			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/2012/001 IE/Talk Talk from Ireland) /* COM/2012/0423 final */
			
				
		
		
			
			   	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 management[1] allows for the mobilisation of
the European Globalisation Adjustment Fund (EGF) through a flexibility
mechanism, 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 Fund[2].
On 29 February 2012, Ireland submitted application EGF/2012/001 IE/Talk
Talk for a financial contribution from the EGF, following
redundancies in Talk Talk Broadband Services (Ireland) Limited (hereinafter
referred to as Talk Talk) and three of its suppliers in Ireland.
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. || EGF/2012/001 
 Member State || Ireland 
 Article 2 || (a) 
 Primary enterprise || Talk Talk Broadband Services (Ireland) Limited 
 Suppliers and downstream producers || 3 
 Reference period || 7.9.2011 – 7.1.2012 
 Starting date for the personalised services || 7.9.2011 
 Application date || 29.2.2012 
 Redundancies during the reference period || 586 
 Redundancies before and after the reference period || 6 
 Total eligible redundancies || 592 
 Redundant workers expected to participate in the measures || 432 
 Expenditure for personalised services (EUR) || 5 092 765 
 Expenditure for implementing EGF[3] (EUR) || 300 000 
 Expenditure for implementing EGF (%) || 5,6 
 Total budget (EUR) || 5 392 765 
 EGF contribution (50 %) (EUR) || 2 696 382 
1.           The application was
presented to the Commission on 29 February 2012 and supplemented by additional
information up to 15 May 2012.
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
3.           In order to establish the
link between the redundancies and major structural changes in world trade
patterns due to globalisation, Ireland argues that Talk Talk was a customer
service centre based in Waterford, originally set up to provide services for
both the companies Talk Talk UK and AOL UK. The company supported Talk Talk’s
UK market for broadband, voice and, more recently, for TV via inbound,
outbound, email and white mail services. Following the purchase of the UK’s ISP
division of AOL, broadband services under the AOL Broadband brand were also
provided.
Talk Talk offered telecoms services to
residential Irish customers under the Talk Talk and AOL brands and to business
customers under the Opal brand. It also provided full lifecycle management of
Talk Talk’s customers in the UK. 
4.           Talk Talk in Waterford, as
near-shore location for the provision of shared services for a foreign client
(AOL and Talk Talk UK), benefited from the international trend over the past
decade known as business process outsourcing (BPO). BPO typically involves a
company contracting specific operations or processes to a third party provider.
Trends that are currently influencing the development and location of shared services
include: 
·              
Cost Reduction:
Growth in BPO services can be attributed to companies' need to decrease costs
and improve service delivery process. The transition to a BPO service model
allows companies to increase and decrease capacity quickly and more efficiently
as determined by business conditions. Lower cost locations such as India, with
a technologically knowledgeable, English speaking workforce, continue to win
new business in BPO. 
·              
Technology developments have influenced how the industry has developed and is playing a
greater role in contact centre operations e.g. voice over internet protocol
(VOIP), e-mail, web-generated queries, automated contact tools, voice
recognition etc. 
·              
Remote services:
The ability to service clients / customers remotely has been enabled by
improvements in global technology infrastructure.
·              
Complexity: Firms
are outsourcing a broader range of increasingly complex business functions and
the original cost driven, primarily volume transaction model has evolved
considerably.
5.           Talk Talk grew very
rapidly, both by acquisition and organically. Between 2005 and 2011, it grew
from no broadband customers to over four million. This rapid growth happened
when the company acquired UK internet service providers such as One Tel, AOL
and Tiscali and offered free broadband services to the UK market. It gave Talk
Talk a call centre "estate" of 24 centres in Ireland, the UK, India,
the Philippines and South Africa. These centres had been handling millions of
calls per week in the past. To address the new challenges, Talk Talk rationalised
its IT systems, improved and simplified its business processes, and reorganised
its brands, customer offering and organisation into one company i.e. Talk Talk
Group plc, down from nine companies previously.
6.           One major result of these
actions was that the volume of calls to Talk Talk centres was reduced
dramatically, particularly in the five or six months before the Waterford
facility closure, to the extent of up to a 40 % volumetric reduction.
7.           Talk Talk reduced its
number of call centres from 24 to 13. The Waterford redundancies were a direct
result of the company’s decision to consolidate activities both in the UK and
with three chosen outsourcers. In 2011, the company adopted a strategic
alliances with three key non-EU providers where a significant bulk of work is
being transferred. These third country providers are Wipro in India, Transcom
in the Phillipines, and CCI in South Africa. As a result, some 80 % of
Talk Talk volumes are now estimated by the company to be handled outside the
EU. Talk Talk has moved towards a primarily outsourced call services model with
some specialist activities being retained in the United Kingdom only, and this
has resulted in the loss of the entire Waterford based operation. 
Demonstration of the number of
redundancies and compliance with the criteria of Article 2(a)
8.           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 in a Member State, including workers made redundant in its
suppliers and downstream producers.
9.           The application cites 586
redundancies in Talk Talk Broadband Services (Ireland)
Limited and three of its suppliers during the four-month reference period from 7 September 2011 to 7 January 2012 and a further six redundancies
outside the reference period, but related to the same collective redundancies
procedure. All of the redundancies from Talk Talk (573) were calculated in
accordance with the third indent of the second paragraph of Article 2 of
Regulation (EC) No 1927/2006. The Commission has received confirmation from
Ireland that all of these redundancies have meanwhile been effected. The
redundancies from the suppliers (19) were counted according to the first indent
of the second paragraph of Article 2 of Regulation (EC) 1927/2006.
Explanation of the unforeseen nature
of those redundancies
10.         The Irish authorities argue
that there were two previous rounds of redundancy (April 2010 and April 2011)
with an estimated 50 persons per instance. These were viewed as representing
management restructuring which would allow for the Waterford operation to be
managed directly from UK headquarters. In addition, while there was an estimated
40 % decrease in the volume of calls to the Talk Talk centre in Waterford,
there was nothing to suggest that the complete closure of the centre, as
transpired with the complete closure in October 2011, with the consequential
loss of all employment, was being considered by the company. 
Identification of the dismissing
enterprises and workers targeted for assistance
11.         The application relates to 592
redundancies, of which 573 occurred in Talk Talk Broadband Servives (Ireland)
Limited and a further 19 in three of its suppliers, i.e. AA Security Services (four
redundancies), Campbells Catering trading as Aramark (seven redundancies) and
Noonan Services Group Ltd (eight redundancies).
12.         The break-down of the
targeted workers is as follows:
 Category || Number || Percent 
 Men || 237 || 54,86 
 Women || 195 || 45,14 
 EU citizens || 426 || 98,61 
 Non EU citizens || 6 || 1,39 
 15-24 years old || 48 || 11,11 
 25-54 years old || 371 || 85,88 
 55-64 years old || 12 || 2,78 
 > 64 years old || 1 || 0,23 
13.         A survey of the redundant
workers found that some 74 % were between the ages of 20 and 35, with the
median age being 26.
There are no workers with longstanding health
problem or disability among the affected or targeted workers.
14.         In terms of occupational
categories, the break-down is as follows:
 Category || Number || Percent 
 Sales || 114 || 26,39 
 Customer services || 173 || 40,05 
 Customer technical support || 96 || 22,22 
 IT || 6 || 1,39 
 Catering Assistant || 5 || 1,16 
 Cleaning operative || 6 || 1,39 
 Security || 3 || 0,69 
 Other || 29 || 6,71 
15.         The 'other' occupations
were typically associated with the back office management in Talk Talk –
general administration, finance, and facilities management.
16.         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.
Description of the territory
concerned and its authorities and stakeholders
17.         The Talk Talk facility was
located on the outskirts of Waterford City in the NUTS III South East Region of
Ireland. In 2011, Waterford City had the fifth largest urban population in the
State of Ireland with a population of 51 203.
18.         Agriculture remains a
significant employer in the region, with 9,6 % of the regional workforce,
more than twice the State average and higher than any other region. The
proportion involved in industry / manufacturing is also above the average
nationally. Although services employment has grown in the surrounding region
(NUTS III South East), the proportion employed there (37,5 %) is lower
than the national average (40,5 %).
19.         In relation to the labour
force educational attainment, there is a significantly lower percentage of
those in the labour market in the South East region with third level
qualifications (34 %) compared to the national average (40 %). The
percentage of those with a highest educational attainment of lower secondary
level and below in the South East is high (23 %) compared to the national
average (19 %).
Compared to other regions, the South East’s
industrial base has not developed strong clusters in specific areas that can
help attract future investments. The multinational sector is proportionately
smaller than in other regions. The region and the city of Waterford in
particular has been hit by a series of major redundancies in recent years
including over 650 redundancies at the Waterford Crystal facility at Kilbarry
and ancillary enterprises which were the subject of a separate EGF application
(EGF/2009/012 IE/Waterford Crystal). These mass redundancies have had a major
adverse impact on the workers involved, Waterford City and its hinterland and
the wider South East region.
20.         Apart from the national
stakeholders, i.e. the responsible government Departments and Agencies, the
more local stakeholders are the Talk Talk Redundant Workers' Committee,
Waterford City Council, Waterford Area Partnership Board, Waterford Chamber of
Commerce and local service providers such as FÁS / SOLAS, Waterford Chamber
Skillnet, Contact Centre Management Association Skillnet (national call centre
network), Waterford City and County Enterprise Boards and Waterford Institute
of Technology. 
21.         The Department of Education
and Skills (the main national stakeholder and managing authority) has engaged
with representatives of the redundant workers at both political (ministerial)
and official levels. The views of the representatives were sought in preparing
the EGF application in order to ascertain the most appropriate measures to
enable redundant workers to improve their employability prospects and to be
kept in contact with the labour force. Written proposals from stakeholders were
received and taken into consideration in the framing of the EGF application.
Expected impact of the redundancies
as regards local, regional or national employment
22.         The South East region has
had persistently higher than average levels of unemployment compared to the
rest of the country. In addition, it has fared disproportionately badly as a
result of the financial and economic crisis. Since 2007, the region’s
unemployment rate has jumped from 4,9 % to 18,2 % in 2011 compared to
a national average of 14,3 %. The 18,2 % unemployment rate was the
highest of all regions in 2011.
23.         Over the period September
2011 to January 2012 when the Talk Talk redundancies were effected, the numbers
of unemployed on the unemployment register for Waterford City increased from 11 529
to 12 193 (+ 5,76 %) compared to a national increase from 437 441
to 439 589 i.e. just + 0,49 %.
24.         After a period of sustained
growth, employment levels in the region have declined significantly over the
past three years. There were almost 35 000 less people at work in the
region at Q1 / 2011 than in 2008, when employment peaked at 223 000.
Labour force participation rates have dropped from 62,7 % in 2007 to 58,1 %
in 2011 (below the State average).
25.         In addition, during the
period from Q4 / 2010 to Q3 / 2011 numbers employed in the NACE section N
'Administrative and support service activities' (which includes the NACE Call
centre division 82 corresponding to the Talk Talk operation) increased from 58 700
to 65 900 for the State as a whole, but decreased for the South East
region from 6 400 to 4 800, highlighting the limited potential for
the sector to create new employment opportunities for the redundant workers.
26.         The loss in revenues owing
to the Talk Talk redundancies is also expected to generate significant losses
in indirect employment through the loss in workers' disposable incomes and
through a reduction in Talk Talk's purchases of Irish goods and services
locally and regionally. 
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
27.         The main actions can be
summarised as follows :
–     
Guidance and career planning: The services provided under this measure include individualised
profiling, needs identification, learning assessment, CV preparation, career
guidance, job search assistance and other related supports and advice to
redundant workers. A range of bodies are involved in providing their services
to assist the redundant workers during this phase and thereafter.
This process commenced swiftly on foot of the
announced closure of the Talk Talk facility in September 2011 through initial
FÁS / SOLAS interventions. A tailored certificate in career development and
skills enhancement is also being run to assist the redundant workers to assess
their potentiality in terms of recognition of prior learning, personal
development and study skills and to provide the opportunity to sample relevant
and appropriate educational pathways.
–     
Training programmes: Redundant workers have, upon consultation, expressed interest in a
wide range of training areas including computing, business, accountancy, sales,
office skills, graphic art, beauty care, child care etc. Training will be
provided both directly by State providers and also through private sector
trainers via the EGF training grant, which allows applicants to identify and
select approved training programmes outside of the services provided by FÁS and
other State agencies. Specific internship, work placements, work experience,
traineeship and community-oriented training programmes will also be a feature
of some training interventions, where appropriate.
–     
Further education and higher education
courses: The majority of courses are accredited on
the National Framework of Qualifications. Programmes can be offered at the
times and places that most suit the learners' circumstances. Where possible,
the use of additional dynamic tailored courses and programmes will be
considered.
Emphasis will be placed initially on assessing
those considering higher education pathways, their skills sets and suitability
to enter particular courses or whether preparatory courses or alternative
options in other support areas are more appropriate. Due to the time
constraints of the EGF implementation period, EGF funding will not be provided
for courses which exceed the EGF implementation period. As such, third level
supports will be confined to those courses which can be completed either
entirely, or on a strictly modular basis, within the EGF implementation period
and may include specifically tailored courses in this context. It is worth
noting as an innovative measure that Waterford Institute of Technology is
designing an accelerated Bachelor of Science course (Level 7) specifically for
the targeted group of workers, which will include existing modules and bespoke
modules that address identified skills shortages in the science and related
areas, for completion within the EGF implementation period.
–     
EGF training grant: This will also enable redundant workers to access privately
provided third level courses where these are not available through the publicly
funded system or are not suitable to a redundant worker’s particular
circumstances. This approach has proved beneficial in previous EGF programmes
in Ireland.
–     
Skillnets training: Skillnets is a State funded, enterprise-led support body dedicated
to the promotion and facilitation of training and upskilling. It supports and
funds networks of enterprises to engage in training under the Training Networks
Programme. These networks, now referred to as 'Skillnets', are led and managed
by the enterprises themselves, to design, manage and deliver specific training
programmes across a broad range of industry and service sectors nationwide.
Skillnets provide training to former Talk Talk
employees through two of Skillnets’ training networks - CCMA Ireland Skillnet
and Waterford Chamber Skillnet. Courses on offer include Customer Service,
Broadband Service Skills and Frontline Technical Support for call centres.
Courses on offer for those looking for a career change include Creativity for
Entrepreneurship, Start your own Business and Project Management. Already a
number of call centre companies have offered job placements to former TalkTalk
staff as part of the Skillnets training programme package, and it is expected
that this will lead to some job offers in the near future.
–     
Enterprise / self-employment supports: Enterprise and self-employment support will be delivered through
the relevant City and County Enterprise Boards in the South East Region, or
other relevant structures. A wide array of supports are being made available to
redundant workers who are contemplating starting their own businesses,
including introductory modules, workshops, mentoring, business planning and
grant aid to assist with self-employment and start-up costs.
–     
Training, education and enterprise allowances: Depending on the provider of the education, training or enterprise
schemes, various allowances are available to the redundant workers in lieu of
social welfare payments.
–     
EGF course expenses contribution: In order to increase the accessibility of EGF co-financed
supports, a limited EGF Course Expenses Contribution scheme will be paid
towards the cost of travel, subsistence, course equipment and materials etc.
This contribution will help to facilitate an individual’s access to relevant
courses and seeks to increase participation by the eligible redundant workers
in the pursuance of EGF co-financed measures and opportunities, where
appropriate.
28.         The expenditure for
implementing the 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
somewhat higher amount at 5,6 % of the total reflects, inter alia, the
early establishment of the EGF Co-ordination Unit in Waterford to deliver
strong co-ordinated interventions to the redundant employees. Furthermore, the
Department proposes to engage external auditors to conduct appropriate
validation checks. It is also expected that an additional resource will be
required by the County Enterprise Board in Waterford to manage applications in
respect of enterprise and self-employment supports.
29.         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 5 092 765
and the expenditure for implementing the EGF at EUR 300 000 (5,6 %
of the total amount). The total contribution requested from the EGF is EUR 2 696 382
(50 % of the total costs).
 Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR) 
 Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Guidance and career planning || 110 || 487,27 || 53 600 
 Training programmes || 134 || 2 745,71 || 367 925 
 Further and higher education courses || 205 || 7 395,02 || 1 515 980 
 EGF training grant || 119 || 2 600,84 || 309 500 
 Skillsnets training || 260 || 1 076,92 || 280 000 
 Enterprise / self-employment supports || 370 || 2 600,00 || 962 000 
 Training, education and enterprise allowances || 145 || 3 612,14 || 523 760 
 EGF course expenses contribution (instances) || 432 || 2 500,00 || 1 080 000 
 Sub total personalised services ||   || 5 092 765 
 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Preparatory activities ||   || 10 000 
 Management ||   || 250 000 
 Information and publicity ||   || 20 000 
 Control activities ||   || 20 000 
 Sub total expenditure for implementing EGF ||   || 300 000 
 Total estimated costs ||   || 5 392 765 
 EGF contribution (50 % of total costs) ||   || 2 696 382 
30.         Ireland confirms that the
measures described above are complementary with actions funded by the
Structural Funds and that measures are in place to ensure that no double
funding can occur. The Irish authorities have established a Monitoring
Committee for the Coordination of EU Funds under the National Strategic
Reference Framework in accordance with Article 27(5) (b) of Regulation 1083/2006
encompassing ESF, EFF and EAFRD. The Department of Public Expenditure and
Reform chairs the Committee which discusses any issues of relevance including
the demarcation of funds in operational programmes and any implementation
issues that may arise and any plans for new programmes to ensure that Funds are
not overlapping. In addition, as part of the implementation process for the ESF
and ERDF, a group was established and is chaired and co-ordinated by the
Department of Public Expenditure and Reform, to deal with any issues relating
to the implementation of the Structural Funds for the 2007-2013 period. Since
2010, the EGF has been included in this process.
Date(s) on which the personalised
services to the affected workers were started or are planned to start
31.         Ireland started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 7 September 2011. 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
32.         As there was no trade union
involved in Talk Talk, the EGF Managing Authority has been in discussions with
the redundant workers' representatives both directly and through a local group
of stakeholders and service providers chaired by the Waterford City Manager
(see also point 20 above).
33.         The Irish authorities
confirmed that the requirements laid down in national and EU legislation
concerning collective redundancies have been complied with.
Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements
34.         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 above do not receive
assistance from other EU financial instruments.
Management and control systems 
35.         Ireland has notified the
Commission that the financial contribution will be managed by the designated
staff of the Department of Education and Skills, who have been appointed as the
EGF Managing Authority. The Managing Authority examines and pays EGF claims
submitted by Intermediate Bodies on behalf of public expenditure bodies.
36.         Intermediate
Bodies are responsible for claiming EGF funding from the Managing Authority and
in most cases for its disbursement. Intermediate Bodies are also responsible
for verification that the purpose, scope and scale of funding is appropriate
within the terms of the EGF application. In addition, they ensure that
monitoring and adequate recording and internal control procedures in relation
to all EGF-related expenditure and claims are established by public beneficiary
bodies and duly documented.
37.         The
EGF Certifying Authority is resonsible for the certification of expenditure
statements related to EGF co-financed measures. In doing so, the Certifying
Authority satisfies itself on compliance with all requirements relating to the
accuracy, legality, eligibility and regularity of expenditure. 
38.         Independent
bodies performing second-level checks ensure that the declaration of final
expenditure by the public beneficiary bodies in respect of all paid interim
claims is accurate and supported by a clear audit trail and make a formal
declaration to the Managing Authority of the total amount of eligible
expenditure.
39.         The Secretary General, as
Accounting Officer for the Department of Education and Skills with
responsibility for EGF, has delegated specific statutory responsibility for
certifying claims to an appropriate officer at each level of the 'cascade'
arrangement of monitoring and verification of EGF services and expenditure.
This ensures that there can be no overruling or undue influence on these
persons by more senior officers in the management chain. It thus underpins
their individual authority and the segregation of duties and controls during
the implementation of the EGF application.
Financing
40.         On the basis of the application
from Ireland, the proposed contribution from the EGF to the coordinated package
of personalised services (including expenditure to
implement EGF) is EUR 2 696 382,
representing 50 % of the total cost. The Commission's proposed allocation
under the Fund is based on the information made available by Ireland.
41.         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 to above, to be allocated under heading 1a of the financial
framework.
42.         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.
43.         By presenting this proposal
to mobilise the EGF, the Commission initiates the simplified trialogue
procedure, as required by Point 28 of the Interinstitutional 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.
44.         The Commission presents separately
a transfer request in order to enter in the 2012 budget specific commitment
appropriations, as required in Point 28 of the Interinstitutional Agreement of
17 May 2006.
Source of payment appropriations 
45.         Appropriations on the EGF
budget line will be used to cover the amount of EUR 2 696 382
needed for the present application.
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/2012/001 IE/Talk Talk 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 management[4], 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 Fund[5], and in particular Article
12(3) thereof,
Having regard to the proposal from the European
Commission[6],
Whereas:
(1)       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.
(2)       The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million.
(3)       Ireland submitted an
application to mobilise the EGF, in respect of redundancies in the enterprise Talk Talk Broadband Services (Ireland) Limited and three of its
suppliers, on 29 February 2012
and supplemented it by additional information up to 15
May 2012. 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 2 696 382.
(4)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Ireland,
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the European
Union for the financial year 2012, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 2 696 382 in
commitment and payment appropriations.
Article 2
This Decision shall be published in the Official
Journal of the European Union.
Done at Brussels, 
For the European Parliament                       For
the Council
The President                                                 The
President
[1]               OJ C 139, 14.6.2006, p. 1.
[2]               OJ L 406, 30.12.2006, p. 1.
[3]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.
[4]               OJ C 139, 14.6.2006, p. 1.
[5]               OJ L 406, 30.12.2006, p. 1.
[6]               OJ C […], […], p. […].