State fund challenge 'not looking good'

A challenge brought by the Government against a decision by the European Commission to withhold millions of euro in European Social Fund payments was "not looking good", according to the secretary general of the Department of Enterprise, Trade and Employment, Seán Gorman.

He told the Dáil Public Accounts Committee that the commission had withheld €15.6 million in payments under the European Social Fund. He said that the Republic had challenged this decision in the European Court of Justice but that in February the advocate general had ruled in favour of the commission. A final judgment is expected in around 18 months.

Mr Gorman said that the commission had accepted that "there was no fraud involved".

He also confirmed that the Department has raised concerns with the commission on behalf of computer chip giant Intel about sensitive information on the company being released to the media.

He told the committee that "the commission had given out information that Intel was not happy to see in the media".

Mr Gorman said that the commission's decision not to sanction a proposed major Government grant aid package for a new Intel plant in Leixlip had not lead to any other overseas company withdrawing interest in investing in Ireland.