Dinny McGinley (Donegal South West, Fine Gael)

As the Deputy will be aware, the North-South Ministerial Council plenary meeting in July 2007 agreed to proceed with the restoration of the section of the Ulster Canal between Clones and Upper Lough Erne. The then Government agreed to cover the full capital costs of the project, which were estimated at that time to be of the order of €35 million. However, Government accounting procedures do not provide in that sense for ring-fencing funds for projects of this nature.

I am advised that it was always the intention that the Ulster Canal project would be funded from the Waterways Ireland annual allocations, as agreed through the annual Estimates processes in this jurisdiction, as well as the deliberations of the council with regard to annual budgets. I am advised also that it was also a key consideration throughout the process that the Ulster Canal project would be supported by a significant level of projected income from the commercialisation of certain Waterways Ireland assets, a scenario that was affected negatively by the economic downturn.

That downturn is of major significance and presents serious difficulties to my Department during this period when there is such pressure on the public finances. I intend to explore all possible options that may assist in the advancement of this project but it must also be recognised that the Government is engaged at present in a comprehensive review of expenditure, under which all spending is being examined rigorously. Notwithstanding that, the Minister asked my Department to keep in regular contact with Waterways Ireland with a view to advancing the project to the extent possible within the current constraints. In this regard, the Deputy will be aware that Waterways Ireland is in the process of finalising documentation to proceed to the stage of submitting an application for planning permission, which is a significant milestone for the project.

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