Dáil debates

Thursday, 21 November 2013

10:05 am

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

6. To ask the Minister for Public Expenditure and Reform when Ireland will have in place a plan for the disbursement of European structural and investment funds for the period 2014-2021; and if he will make a statement on the matter. [49582/13]

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I ask the Minister to outline the plans for the European structural investment funds that will be available from 2014 to 2021. Is the Department of Public Expenditure and Reform the lead Department, on behalf of the Irish Government, in co-ordinating efforts in this regard?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

I welcome the outcome of yesterday’s vote in the European Parliament on the cohesion legislative package. This brings to a close more than two years of negotiations involving the Council of Ministers, the European Parliament and the European Commission. I am pleased that during our Presidency of the Council of Ministers, Ireland was able to play an important role in that process.

The legislative package that was agreed yesterday will provide the basis for the next round of structural funds spending in Ireland and across the European Union. The package comprises a set of six regulations covering the European Regional Development Fund, ERDF, the European Social Fund, ESF and the Cohesion Fund. Political agreement on four of the six regulations that were finalised yesterday was reached under the Irish Presidency of the Council of Ministers. Along with the European Agricultural Fund for Rural Development, EAFRD and the European Maritime and Fisheries Fund, EMFF, these funds comprise the European Structural and Investment, ESI funds.

My Department has overall responsibility for EU cohesion policy and for the ESI funds, as well as specific responsibility for the ERDF. The Minister for Education and Skills has primary responsibility for the ESF while the Minister for Agriculture, Food and the Marine has responsibility for the EAFRD and the EMFF. Ireland no longer benefits from the Cohesion Fund.

Member states will have four months from the entry into force of the new regulations to submit a partnership agreement to the Commission. This will constitute a formal agreement between Ireland and the Commission regarding the use of the funds. Preparations for the new programming period have been underway in Ireland for the past year. This has involved public consultations as well as the preparation of needs analyses and ex-ante evaluations. The outcome of these processes will inform the preparation of the partnership agreement and related operational programmes through which EU funding will be drawn down. As regards the ERDF and ESF programmes, the issues likely to be addressed include combatting long-term and youth unemployment and social exclusion, promoting research and development investment and the competitiveness of the business sector as well as promoting an environmentally-friendly and resource-efficient economy.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

It sounds as if the Department of Public Expenditure and Reform will have a key role but the Departments of Agriculture, Food and the Marine and Education and Skills will also have key, but separate roles. To go back to my earlier theme, I would like to see one, joined-up approach on behalf of the Irish Government. There must be one lead Department to co-ordinate efforts in this area and I hope it will be the Minister's Department.

As I understand it, up to €3 billion could be available for Ireland through the aforementioned funds. The Minister did not make any reference to expenditure in the health area, which was included under previous rounds of ESI funding. The Minister made reference to employment and education, which are fundamental aspects of this but I ask the Minister to confirm that expenditure in the Department of Health will be allowable this time.

Matching funding will have to be provided by the Irish Exchequer. In view of the cuts the Minister is making to the capital expenditure programme, can he confirm that all matching funds that might be required will be made available by the Government to ensure all available funding can be drawn down.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

I can confirm that Ireland has been allocated approximately €1 billion from the structural funds, that is the ERDF and ESF; €2 billion from the rural development fund, that is, the EAFRD; an additional €100 million for the Border and midlands region; and €150 million for the peace programme. Regarding the latter, it was not clear that there would be a Peace IV programme and we took initiatives in that regard. I met the UK authorities and we made a joint application to the Commission to ensure there would be a Peace IV programme and I know that was very much welcomed at the North-South Ministerial Council.

The rules regarding the six regulations and how they are to be co-ordinated are set at EU level. The ESF is a matter for the Minister for Education and Skills but, of course, bilateral discussions will take place to make sure there is no overlap and that our approach is co-ordinated.

On the issue of capital, the Deputy will be aware that the Department of Health is the only Department which did not have a diminution of its capital budget in the multi-annual capital expenditure programme. That Department's €390 million has been maintained and is being supplemented through the PPP programme and through the ring-fenced money for the National Children's Hospital from the proceeds of the sale of the National Lottery licence.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

In the justice area funding was available previously for a European territorial co-operation programme. Can the Minister confirm that this funding is still available? My question on health was not about national spending but about whether spending in this area can be facilitated under these new EU programmes between now and 2021. Spending on education and employment is permitted but the last time, so too was spending on health. Is it in or out this time? I ask the Minister to elaborate on the funding for the Border and midlands region to which he referred.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

I will be in a much better position to answer the Deputy when we have the plan submitted to Brussels, which we are working on now. When the regulations are passed by the European Parliament, we can then formally get cracking on them. We might have some debate about it within the committee system before we make our submission to Brussels. I would be happy to facilitate that, as would other line Ministers, including the Minister for Agriculture, Food and the Marine and the Minister for Education and Skills.

The overarching priority, following the discussions we had in the run up to the adoption of the multi-annual financial framework, is youth unemployment. That will account for a big chunk of the spend. It was also agreed that we would front load that spend rather than spreading it out over the seven year programme. Prime responsibility in this area will fall to the Minister for Social Protection.

The territorial programme will involve ourselves, Northern Ireland and Scotland. Proposals will come from each of the three Governments before the end of the year so that we can make a joint presentation. Again, once that is done, I will be very happy to give the Deputy the details.