Lucinda Creighton (Dublin South East, Fine Gael)
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Question 60: To ask the Minister for Finance the progress that has been made on the implementation of the Community part of the European economic recovery plan; and if he will make a statement on the matter. [14634/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The European economic recovery plan was endorsed by the European Council at its meeting of 11 and 12 December 2008 and amounts to more than €400 billion. The Community part of the plan, which has been agreed by the European Parliament and the Council on a proposal from the Commission, will finance projects in the field of energy and rural broadband Internet, as well as new challenges identified under the CAP health check. This Community financed package of measures, which aims at providing additional stimulus to the EU economy and improving energy security, amounts to €5 billion. Almost €4 billion will be made available for the financing of the energy projects. The balance of a little more than €1 billion will be made available for developing broadband internet in rural areas and strengthening operations related to the new challenges defined in the context of the CAP health check.

Responsibility for implementation of energy and broadband projects rests with the Minister for Communications, Energy and Natural Resources and with the Minister for Agriculture, Fisheries and Food in respect of the CAP health check. However, in regard to the energy aspects of the proposals, the Deputy should be aware that this critically important package represents a comprehensive and co-ordinated EU response to the twin challenges of supporting economic recovery and achieving EU energy policy objectives, especially security of supply. It will provide tangible support to priority energy projects, ensuring the further integration of European energy markets and it will underpin our collective actions to tackle climate change. The package proposes undertaking a programme of investment measures during 2009 and 2010 for energy projects in the following fields: gas and electricity interconnection projects in the amount of more than €2.3 billion, carbon capture and storage in the amount of more than €1 billion and offshore wind projects in the amount of approximately €0.5 billion.

Recently, the Government announced that it has given a green light to the development by EirGrid of the €600 million east west electricity interconnector linking Ireland and Wales, running from Meath to Deeside. I am informed that, as a further stimulus to this project, the interconnector has been included on the list of energy projects under the European economic recovery plan, with a proposed allocation of €110 million. This is a welcome recognition of the strategic importance of the east west interconnector, which will underpin regional energy market development and the all-island single electricity market. It will ensure that Ireland, as a peripheral island nation, can benefit from and contribute to the development of a strong internal energy market in Europe, enhancing competition, contributing to security of supply and assisting Ireland in meeting our ambitious renewable targets.

Kieran O'Donnell (Limerick East, Fine Gael)
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What proportion of the €5 billion specifically relates to Ireland? Will matching funding come from the State for these projects? Aside from the projects mentioned by the Minister, what other projects does he envisage? An energy storage project is proposed for the west coast. Will the Minister elaborate on its features?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The €5 billion community fund of the European economic plan must be matched. The Ireland to Wales interconnector has been included on the list and €110 million has been earmarked for that project. The list also contains a €165 million overall contribution towards the North Sea offshore grid which includes Ireland as a location along with the United Kingdom, the Netherlands, Germany, Denmark, Belgium, France and Luxembourg.

Ireland also expects to draw down funds from the broadband and CAP health check elements of the plan on the basis that the funding would be distributed using the same distribution key used to divide rural development funding. Ireland would receive approximately 3%, or €30 million, of the available funding with flexibility on the use of the investment for either broadband or CAP health check.

The supplementary funding required for the east west interconnector is being pursued with relevant funding interests to ensure it is funded at the lowest possible rate for EirGrid.

Kieran O'Donnell (Limerick East, Fine Gael)
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What is the total amount?

Joan Burton (Dublin West, Labour)
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Does the Minister agree that the poor broadband reception in many parts of the country, especially rural Ireland, is one of the critical constraints restricting people from creating successful businesses in small towns and villages and in larger towns and cities? The Government has failed to address the Eircom issue. The Fianna Fáil privatisation of Eircom turned into a disaster from an investment point of view. Does the Government have any proposals in the context of the EU recovery programme to recover the significant amount of ground lost? We were leaders in connectivity and linkages for telecommunications up to the time of Eircom. Since then we have continued to go downhill and we are now significantly behind competitor countries.

Does the Minister agree with the proposal to reduce the amount of red tape in respect of the European recovery programme? It is possible to go to any country in Europe and find food markets operating. In these markets women can bake and make apple tarts for the markets and for local restaurants and so on. However, in Ireland it is not possible to make an apple tart and sell it in a local market. One almost risks jail for doing so. Does the Government have any take on how to reduce red tape in respect of small enterprise initiatives?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I agree with Deputy Burton that this is an important issue and I understand it is being addressed by my colleague, the Minister for Enterprise, Trade and Employment. In regard to the question of availability of broadband, some of the funds will be committed to rural broadband. The Minister for Communications, Energy and Natural Resources is introducing several initiatives to address broadband deficiencies in rural areas.