asked the Minister for Communications if he is aware that there are substantial sums of money available in the European Regional Fund for development; if his Department have made application to this regional development fund in respect of the development of Rosslare harbour; and if he will make a statement on the matter.

I am aware that money is available in the European Regional Development Fund for portal development. It is a precondition for assistance from the fund that the State must have participated in the financing of the project. Assistance is limited to 50 per cent, or in exceptional cases to 55 per cent, of eligible expenditure, for example, State investment. As State assistance is being provided for the development works at Rosslare harbour, a submission seeking assistance from the fund is being made. I should mention that receipts of fund aid in respect of assisted projects are not paid directly to the individual authorities concerned but are applied generally to the financing of capital investment in the Public Capital Programme.

Will the Minister state when assistance for Rosslare harbour was sought from the European Regional Development Fund? Also, will he state if he has had any reply to such representations?

I am not sure I have that information, but I will be in touch with the Deputy later and give it to him.

Does the Minister remember receiving a letter from Paddy Lalor MEP on 19 October which referred to an amended proposal for Council regulations on financial support for infrastructural programmes under which the Belgian Government applied for and succeeded in getting assistance for the harbour at Ostend? Will he state if he has followed up that line?

The position is that it was only recently during our Presidency of the EC that the Council of Ministers agreed in December to set up the new transport infrastructural fund as distinct from the European Regional Development Fund. That was a major achievement of our Presidency. The Italian Minister who is now President has put forward some suggestions regarding the matters that would qualify for transport infrastructural aid. Among those listed are port developments, especially port developments that have a clear EC dimension. In that context, if it is accepted I think Rosslare harbour would have a considerable edge.

I agree with the Minister it was a major achievement to get a special fund. Will he not agree with me that the real problem with regard to that kind of funding is the Department of Finance who get their hands on the money? The problem is that it is not actually related to the development for which people have applied. Further, will the Minister not agree that in some instances money is so received by the Department of Finance at a rate of interest much less than they charge the individual Departments when they give it to them?

That is a separate question.

The Deputy will know that the arrangement regarding the application of European Regional Development Fund assistance has been in existence for several years, including when the Deputy was a Minister.

The question I asked was if it would be possible for the Minister as a member of European Ministers of Transport to have the new fund when it is formed organised in such a way that specific disbursements would relate to specific projects.

I think the Deputy is confusing the European Regional Development Fund——

No, I am not. The Minister mentioned that.

The transport infrastructural fund will apply to specific projects. We have already had two transport projects approved, namely, the Shankill by-pass and the Wexford by-pass. They have been approved for a grant under that fund and we have got about £4 million.

Did they go to Environment?

Yes. As far as we are concerned the European Regional Development Fund operates differently. As the Deputy knows, applications are made by the Department of Finance under a longstanding arrangement and the funds come to the Exchequer.

I know. That is the problem.

Will the Minister agree that CIE have budgeted for a figure of £3,500,000 for completion of work at Rosslare harbour and that providing the money piecemeal leads to inefficiency?

I do not know where the Deputy got that figure. I know there has been considerable pressure for development of Rosslare harbour. In my opinion Rosslare harbour is in need of some development, and that is why I provided £500,000 in the Estimate this year for that purpose. When there is a local harbour authority the development of the port will be more under local control and more progress is likely to be made.

Does the Minister think that the people involved in the development work at Rosslare harbour will be able to apply direct for money from the fund? That is really the nub of the question.

I do not see it operating in that way. On behalf of the Department of the Environment I applied to the Council for an allocation in respect of the Shankill by-pass and the Wexford by-pass and we got that allocation. I imagine that in respect of any transport infrastructural projects seeking funds the application would be made by me as Minister.

I am calling Question No. 8.

Will the Minister state when the Rosslare Harbour Authority will be set up?

I have called Question No. 8 and I ask the Minister to reply to that question.