Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank members for the opportunity to present and discuss the proposed supplementary Estimate for my Department's Vote for 2012 for which I am seeking approval.

This supplementary Estimate refers to the provision of funding for the EU co-funded programme for peace and reconciliation 2007-13 - known as PEACE III. PEACE III runs from 2007 to 2013 and is co-funded with the EU, the Northern Ireland Assembly with the support of the British Government and the Irish Government. The full programme cost is €333 million over its seven year lifetime and Ireland's contribution equates to 36% of this cost, some €120 million.

Of this Irish contribution, 54% is reimbursed by the EU - approximately €65 million.

While responsibility for the funding of the PEACE programme is shared with the Department of Public Expenditure and Reform, my Department is the main contributor on the Irish side, with an investment of €100 million over the lifetime of the programme. PEACE III builds on the work and accomplishments of its predecessors, PEACE I which started in 1995 and PEACE II which ran from 2000 to 2006. The overall objectives of PEACE III are to reinforce progress towards a peaceful and stable society, and to promote reconciliation in Northern Ireland and the Border region. The programme is now in its final phase, with almost all funding committed to projects, and with a number of the projects having reached completion. As is common with programmes of this type, PEACE III addresses a number of themes in a range of areas.

Members may be familiar with some of the larger projects that have been co-funded by my Department under the programme, such as the award-winning Peace Bridge in Derry, officially opened in June 2011 and the Castle Saunderson International Scout Centre in Cavan which had its official opening by President Higgins in August this year. Both these projects were funded under Theme 2.1: Creating Shared Spaces, which focuses on tackling the problems of separation of communities within society and addressing the underlying problems of sectarianism, racism and prejudice by encouraging the development of shared spaces that are open to all.

However, PEACE III also funds smaller projects at a local level. Theme 1.1: Building Positive Relations at the Local Level provides funding to local authorities in Northern Ireland and the Border region to implement local peace plans. Through these plans, the local authorities channel the funding to local, community-focused projects on both sides of the Border, which work towards the creation of a more peaceful and tolerant society. These smaller projects have a strong focus on embedding into local communities the tools and knowledge required to build a more inclusive and integrated community environment.

As well as the local projects, the programme also supports a number of strategic collaboration projects implemented at a regional level. They establish meaningful, cross-community and cross-Border initiatives that improve trust and tolerance. An example is the work of Groundwork Northern Ireland which has received PEACE III funding for a regeneration project focusing on the peace walls in Belfast. This project has established what is termed a "peace gate" in the peace wall that divides Alexandra Park in North Belfast. This is the only known public park in western Europe with a wall dividing it into two separate entities, so it is good that action is being taken to counter this legacy of sectarian strife.

The work under Theme 1.2 deals with acknowledging and dealing with the past. It supports public efforts to remember all those affected by conflict, including the recording of the complex history and experience of Northern Ireland and the Irish Border counties. Projects funded range from trauma counselling for victims and survivors of the conflict to engaging participants in dialogue about the past in order to build positive relationships and positive communities. To date, more than 33,000 people have attended events assisting victims and survivors, while more than 22,000 people have attended conflict resolution workshops.

We cannot underestimate the value of peace on the island of Ireland. It was long-desired and hard-won and requires ongoing investment and support to ensure that it becomes an embedded part of life on both sides of the Border. By the end of this year, my Department will have invested €58 million in PEACE III funding since 2007 to help ensure that this happens. By the end of the programme, this investment will have increased to €100 million. This is tangible evidence of the Government’s commitment to maintaining strong North-South relations, as outlined in the programme for Government.

For the programme to continue its work, Ireland must continue to provide its share of the financial investment. As I mentioned, Ireland contributes 36% of the overall programme cost. Commitments under the programme were set out and agreed at the outset. This is a demand-led programme within overall ceilings, with drawdown requests being made as the committed funding is spent. An initial 2012 allocation in my Department’s Vote was set at €7.978 million, in the context of the severe constraints on the capital and current sides of the Vote, as well as the very difficult economic situation at local level. Notwithstanding the difficult economic climate, drawdown requests amounting to €16 million have been received in 2012 which must be met. In order to meet these funding requirements for 2012, it has been agreed with the Department of Public Expenditure and Reform that the monies refunded by the EU in respect of my Department’s programme expenditure will be made available to meet our continuing programme commitments, instead of being receivable by the Department of Public Expenditure and Reform as has been the case up to now. This will allow additional expenditure on the programme from the Vote.

Accordingly, the Supplementary Estimate adds €8 million to the gross spending Estimate for the Department and this is balanced by an additional €8 million in EU receipts that we are receiving this year. This will allow total expenditure on the programme to reach €16 million in 2012 without affecting the net Vote position. The additional spending is balanced by equivalent additional income. This provision, combined with that already made in my Department’s funding envelopes, will provide sufficiently for the programme this year and the same approach will be taken for the remaining years of the programme.

I thank the committee for taking this Supplementary Estimate today. As I have outlined, the proposal before us today is necessary to give effect to revised financial arrangements to fulfil our commitments to PEACE III. It is important, even in these very difficult times, that we maintain our contribution towards achieving peace, stability and reconciliation on the island.