Sandra McLellan (Cork East, Sinn Fein)
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Question 5: To ask the Minister for Arts; Heritage and the Gaeltacht if he will confirm his commitment to ensuring the restoration of the Ulster Canal between Clones, County Monaghan and Lough Erne, County Fermanagh, in line with commitments at the North South Ministerial Council in 2007 and in view of this project's important economic potential for this central border region; and if he will make a statement on the matter. [22335/11]

Dinny McGinley (Donegal South West, Fine Gael)
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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.

Sandra McLellan (Cork East, Sinn Fein)
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The Ulster Canal project holds enormous potential to open up the central Border area, which has experienced economic disadvantage for many years due to effects from its location. The potential positive impact on all the towns and villages in the canal corridor would lead to significant regeneration and benefits due to increased tourism, business development and prosperity in general, not to mention the many construction and ancillary jobs that would be created.

Does the Minister of State agree that this project can return major social, economic and peace dividends? I appreciate that 2007 was a very different time to now, economically speaking, but the merits of the project stand. Does the Minister of State agree that a large amount of preparatory work has already gone into the project, including feasibility and socio-economic studies, as well as extensive community and stakeholder consultation, to bring it to its current position? Will the Minister of State give a commitment that this project is a priority in light of the economic, social and peace dividend, and in light of existing evidence that such amenities provide a substantial boost for local economies? Is there potential for other canals to be taken in charge by Waterways Ireland?

Dinny McGinley (Donegal South West, Fine Gael)
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I agree with the Deputy's comments that completion of this project would bring great economic benefit to the area. It is an almost unique area in the country, with Fermanagh being the county of islands and lakes. I drove along the Erne last Sunday and returned in a happier mood with Donegal having won the Ulster football title. The countryside looked even better on the return journey. I went into a hotel on the banks of Lough Erne and saw the boats on the lake. Completion of the project would bring great benefits, as tourist activities such as boating are popular these days. People wax lyrical about the canals in France and elsewhere but we have our own set in beautiful countryside.

This is a North-South project to which we are committed. I am sure the Deputy would agree that the process has not come to a halt as we are preparing to go for planning permission. The process is moving along but we must be mindful of the economic and financial constraints to which we are subject. Nothing would give me greater pleasure than moving the project on. I know the Minister is very interested in this because it was discussed about a fortnight ago in Armagh at the North-South ministerial gathering. This is on the agenda and has not been put on the long finger. The project will go for planning and I am confident we will see it completed, although I am not able to give a definite date for the Deputy. I know how interested Deputies are in it.

Sandra McLellan (Cork East, Sinn Fein)
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I am glad it is progressing and we might have a date soon for completion, or even the beginning, of the project.