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Dáil
‹ Ceisteanna—Questions. Oral Answers. - National Development Plan Projects.

National Development Plan funding shortfall

Summary

The Minister said Ireland had been allocated £2.86 billion in EC Structural Funds, with a possible further share from the reserve. He rejected the claim that £1 billion of projects would be lost and said project details would follow Commission approval.

(Limerick East) asked the Minister for Finance the projects in the National Development Plan, submitted to the European Commission by the Government, which the Government intend dropping in view of the fact that the allocation of Structural Funds to Ireland by the Commission is £850 million less than the amount included in the plan.

50.

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asked the Minister for Finance if the National Development Plan 1989-1993 published in March 1989 will be revised, in view of the fact that EC participation in funding the proposed programmes will be some £700 million less than the amount assumed by the Government at the time.

53.

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asked the Minister for Finance the total amount of money applied for from EC Structural Funds under the Government's National Development Plan; the amount actually allocated; if he considers the amount adequate; and if he will make a statement on the matter.

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I propose to take Questions Nos. 50 and 53 and Priority Question No. 57 together.

The National Development Plan 1989-1993 submitted to the European Commission in March last sought EC Structural Fund assistance of £3.7 billion. On 20 September last the Commission of the European Communities allocated a total of 36.2 billion ECU to the Objective I Regions of the European Community. Ireland's share of this initial allocation amounts to £2.86 billion. An allocation of a proportionate amount from the reserve retained by the Commission for Community initiatives would give Ireland an amount in excess of £3 billion which would be consistent with a doubling of our EC commitments by 1993. The Government will be seeking to maximise Ireland's share of the unallocated reserve.

Over the period 1989-93 Ireland will receive a higher level of EC aid per head of population than any other Objective I Region. Ireland will also achieve the highest per capita increase in aid over the 1987 levels. I am happy that the allocation made to Ireland will represent a major boost for our economic development prospects.

As the Deputies will be aware, discussions are now at an advanced stage on the completion of the Community Support Framework for Ireland. The Community Support Framework will set out the priorities included in the National Development Plan for which Community assistance will be given, the aggregate amount of assistance to be given annually through the three Structural Funds, the amount of assistance for each priority over the whole period and the form the assistance will take. Discussions are also taking place between the EC Commission and the various Government Departments in regard to the content of the national, sectoral Operational Programmes. At this early stage, it is not possible to predict exactly which individual projects will be selected for assistance until the negotiations on the Operational Programmes are concluded. The Community Support Framework will be published after it has been approved and will incorporate the revised expenditure and aid figures for the programmes included in the National Development Plan.

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(Limerick East): I should like to thank the Minister for his reply and to ask him if he agrees that, on the best possible projection of unallocated reserve there will still be a shortfall of £700 million and that if we add to that the local contributions to the plan we are talking about projects to the value of £1 billion which will have to be dropped from the plan. When will the Minister be in a position to give us details of the projects to the value of £1 billion which will be dropped from the National Development Plan?

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First, I totally reject the Deputy's insinuation about £1 billion worth of projects being lost. He is coming at it the wrong way around.

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(Limerick East): Seventy per cent and 30 per cent, £700 million and £300 million.

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Secondly, the details will be available and published when the operational projects have been approved——

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(Limerick East): When?

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As soon as they are approved by the Commission. Then the Deputy will have all the details and we will all know——

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(Limerick East): When does the Minister expect them to be approved?

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Seán Treacy An Ceann Comhairle Independent

I must remind the House that the time allocated for Questions is exhausted.

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It is a strange development in this country that when we get over £3 billion which we do not have to repay to the EC, people try to say we left money behind us.

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A Deputy

Very little has changed.

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We did not leave that much behind us. A sum of 48 billion ECU's in aid was sought but there was a finite figure of 38 billion ECU's.

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(Limerick East): The Minister is getting mixed up in his noughts.

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Everybody went in over the top; so did we and we came out best of all.

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Seán Treacy An Ceann Comhairle Independent

That must be the end of Questions for today.

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