95 Mr. B. Smith asked the Minister for Finance the progress to date in securing European Union funding towards to continuation of the PEACE II programme; and if he will make a statement on the matter. [18984/04]

The PEACE II programme is very important to Northern Ireland and the Border region. It promotes reconciliation by bringing these communities together and delivering projects that benefit those who have been most affected by the conflict.

The Taoiseach and Prime Minister Blair wrote to President Prodi last month to ask the Commission to consider extending the programme until 2006. This would bring it in line with the lifespan of other Structural Fund programmes. On 17 June last, the European Council recognised the valuable role of the PEACE II programme.

The support of all 25 member states for this work and for the possibility of an extension to the PEACE II programme is very encouraging. My officials will work closely with the Department of Finance and personnel in the North, the European Commission and the special EU programmes body in the coming months to make sure that this possibility becomes a reality.

I should point out that what is under discussion at this stage is an extension of the current programme for two further years to the end of 2006 rather than a new programme — a PEACE III — which relates to the 2007-13 financial perspective.