Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

It is that phenomenon where initially there is a period when people get used to what is involved in drawing it down. Things can take longer than expected. This is multi-annual funding, however. It is not a one-year project. The just transition funding projects are not single-year projects. Rather, they are multi-annual projects. In many cases, it is a timing issue. The applicants do not have everything in place. They were not able to hire the people required or get through the paperwork in the first year and so things happen later in the year than they expected. I understand that €7 million in grant payments has already been made for just transition funding projects and another €2.5 million of payments is scheduled for the rest of this year. Projects are expected to conclude by June 2024 and all remaining payments should be made by the end of next year. The total expected underspend from EU just transition funds between 2021 and 2027 has been estimated at €1.6 million. It has taken time for the projects to get used to the new schemes and to ensure compliance with regulations and governance requirements. Some applications are being sent back and the applicants told they must get their governance in order.

There are three areas in which underspend has happened to which I wish to draw attention. The first is lower than estimated payments to the Eastern and Midland Regional Assembly to support the managing authority role. Second, there were lower than estimated payments to Pobal for the administration of the local and regional economic strategies support scheme as part of the just transition fund programme. Third, there have been no payment requirements to date for the beneficiaries under the local and regional economic strategies support scheme.