Press release
MEPs approve €14.8 million in aid to Ireland after relocation of Dell factory
Budget - 25-11-2009 - 12:45
Plenary sessions
Plenary sessions
Parliament on Wednesday approved the payment of €14.8 million from the European Globalisation Adjustment Fund to Ireland's Mid-West region, where 2,840 workers lost their jobs when Dell closed its factory in Limerick.
When Dell moved its production of laptops, notebooks and netbooks from Limerick to China and other Asian countries, 2840 workers lost their jobs. Of these, 2000 were Dell employees and the others worked at Dell's suppliers or downstream producers. Ireland applied for EU aid in June 2009 and the Commission proposed financial support in September.
The package will help 2400 of the redundant workers by offering them job guidance, support to set up their own business, training and retraining, an internship programme, education allowances and grants. All in all, these actions are expected to cost €22,817,000 of which the EGF would provide €14,831,050, that is 65% of total costs. Parliament's endorsement is necessary for the money to be released.
After questions from the Employment Committee, the European Commission wrote Parliament a letter stating that there was no connection between the redundancies in Ireland and a new Dell plant in Poland, the Polish factory having been planned long before the closure in Limerick. In Tuesday evening's plenary debate with Commissioner Spidla, the Employment Committee raised the general question of the coherence of EU financial aid and the importance of ensuring that it does not distort competition within the EU.
In the same vote, MEPs approved €9.2 million in support to redundant textile workers in Belgium. Parliament's endorsement is also needed for this money to be released.
Parliament approved the aid payments by 591 votes to 55, with 28 abstentions.
The report was drafted by MEP Reimer Böge (EPP, DE).
Earlier this year EGF support was granted in four cases: €2.7 million to Spain (car industry) and €3.3 million to Spain, €0.8 million to Portugal (both textile industry) and €5.6 million to Germany (telecom industry).
23/11/2009
REF.: 20091124IPR65105