Clock is now ticking on 2011 deadline
HALF of the €23 million European Globalisation Fund for former Dell workers may never be spent as the process now remains at a standstill until September.
Chairman of the Dell Redundant Workers Association Denis Ryan, said: “We now know that between and €8-11million will not be used”.
Not overly happy with how the globalisation fund has been managed, he added: “It’s not going to the individuals in the manner that was initially intended”.
The clock is now ticking on the June 2011 deadline for utilisation of the fund and over 250 people have applied for funding to start up businesses.
According to Denis, those who wish to start businesses using EGF funding have encountered many obstacles.
“They are only receiving 50% of the capital at present, many of these people have been unemployed for 18 months, and the banks aren’t lending so they can’t secure the rest of the capital.
“Over 70 people have had their business plans signed off, but it has been a slow process.
“They are been bounced from pillar to post and being sent from the EGF office to the Enterprise Board”.
Many have no business background and availed of help from the Dell Redundant Workers Association office.
“We’re still busy everyday helping people fill out forms and pointing them in the right direction”.
Denis doesn’t blame FÁS or other agencies for the difficulties experienced in maximising the fund’s potential.
“The people that are working in these agencies are good people but are under pressure also”.
He estimates that just 50% of the original funding will be used.
“If the agencies were given more power then some of the problems with red tape would be eased,” said the former Dell employee.
Another problem encountered was a recent cabinet reshuffle:
“At Government level we were dealing with the Tanaiste initially and then we were passed on to Dara Calleary at the Department of Enterprise, Trade and Employment, and now we’re dealing with Sean Haughey, Minister of State for Lifelong Learning”.
There are also difficulties in the retraining aspect of the EGF.
“It does not seem to be as flexible as was initially planned and many people are finding themselves on courses they are not interested in”.
Going forward, he hopes that someone at Government level will take responsibility for ensuring that the fund is spent.
A recent trip to Brussels proved successful for the group as the Commissioner for Employment is set to send a team over to investigate how the fund is being used.
“The commissioner was amazed to learn that the fund wasn’t as flexible as first envisioned and that the start-ups were only receiving 50% of capital”.
Logistical problems are proving significant for former Dell workers as the Government has no directive or procedure to deal with the Globalisation fund.
“Every agency we deal with has different procedures and policies such as County and City Enterprise Boards, FAS, UL and the colleges. There has to be a procedure in place to use this fund given the short time frame”.
Along with numerous local bodies and agencies, the group are now investigating the possibility of using the surplus funding to benefit the thousands of unemployed in the Mid West.
They believe they will not get an opportunity to meet Minister Sean Haughey to discuss their position until September, when there will be less than a year left to distribute the fund.
