Dáil debates

Wednesday, 25 March 2015

10:20 am

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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9. To ask the Minister for Public Expenditure and Reform the timeframe for the draw-down of funds by Ireland under the European Regional Development Fund; how his Department will ensure Ireland maximises its draw-down and that project targets are met in full; and if he will make a statement on the matter. [11700/15]

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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What is the timeframe for the draw-down of funds by Ireland from the European Regional Development Fund and how will the Department of Public Expenditure and Reform ensure Ireland will maximise the benefits of this draw-down and that the project targets keenly identified are being achieved?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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In the context of the 2013 agreement on the EU multi-annual financial framework which was reached during Ireland's Presidency of the European Council of Ministers, the Government was successful in securing €1.2 billion in cohesion policy funding for the period 2014-20.  This includes two special allocations of €150 million towards a new PEACE programme and €100 million for the BMW region. A total of €409 million has been allocated to two European Regional Development Fund co-funded programmes which will be delivered through two regional operational programmes aligned with Ireland's NUTS II regions, one covering the southern and eastern region and the other covering the Border, midlands and western region. Total programme expenditure for the two ERDF programmes, including match funding, will amount to just over €800 million.  The programmes will support investment in RTDI, enterprise development, the roll-out of high speed broadband in unserved areas, energy efficiency in social and low income households and urban development programmes.

I am pleased that Ireland's two regional programmes were among the first to be adopted by the Commission before Christmas. I travelled to Brussels last month for the formal signing of the two programmes and meet the new Regional Policy Commissioner, Corina Cretu, who has accepted my invitation to visit Ireland in the summer. 

Work is well under way on the implementation of the two programmes. The monitoring committee for each of the programmes met earlier this month.  Building on their record in managing previous programmes, the newly reconstituted Southern Regional Assembly and the Northern and Western Regional Assembly, representatives of which attended the signing of the agreement in Brussels, will continue as managing authorities for the new programmes.

At a national level, a partnership agreement monitoring committee is being established to oversee implementation of all the operational programmes covered by Ireland's partnership agreement for European Structural and investment funds, including not only the ERDF but also the European Social Fund, the rural development fund and the European maritime and fisheries fund. As the Deputy will be aware, Ireland has a good record of maximising its draw-down of EU funding. I am confident that this will continue in the period 2014 to 2020.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Perhaps the Minister might set out the expected yearly draw-down of this funding and outline how much of it can be drawn down in the early years, rather than, as is often the case, in the final 18 months, leading to project funding possibly not being spent as wisely as it would be if it were drawn down earlier. I acknowledge that it takes time to get systems up and running.

In regard to the regional assemblies referred to, perhaps the Minister might outline when he expects these agencies to draw down funding and give a commitment to provide further information in due course on the monitoring committee referred to in the reply.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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There is always a roll-over period. Approximately 90% of the funding for the last period which concluded last year has been drawn down. We will draw down every cent, but final documentation in that regard has yet to be completed. There is always an overlap in this regard.

On the indicative draw-down, the following is the expected draw-down by region. In 2015 the draw-down for the southern and eastern region will be €34.1 million and for for the BMW region, €21.9 million. In 2016 the draw-down for the southern and eastern region will be €34.8 million and for the BMW region, €22.4 million. I will forward this information to the Deputy, including information on the proposed spend by Science Foundation Ireland, the Maritime Institute and so on.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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I thank the Minister. I look forward to receiving the information which will be very helpful. It would be remiss of me not to raise with the Minister today another issue related to EU funding.

While it is not exactly the European Regional Development Fund, I refer to the severe cut in funding to the Leader projects that were announced this week. Although a lovely cup of tea from a teapot with everything set out was served somewhere in County Tipperary to give the impression that there is great funding, the bottom line is there has been a 43% cut in Leader funding under the Rural Development Programme 2014-2020. All counties have seen huge cuts, with County Cork suffering a reduction in funding of up to 72%. The impact will be severe and while there will be a lot of good spin with regard to rural development, the reality is of a cut of 43% in that funding, which is a key component. Moreover, it is one of the most visible funds people see throughout the country.

10:30 am

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I am dealing with the regional development funds here and the Deputy has referred to a fund that is not under my purview but under that of the Minister for Agriculture, Food and the Marine.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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It is also under the purview of the Minister for the Environment, Community and Local Government in respect of community affairs.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Yes, there is an overlap in that regard. However, the overall cohesion money is being increased and the overall spend in Ireland will be higher. Although the Border, midland and western region is now a developed area in the European aggregate, the Government managed to get an additional €100 million for it. I will get a specific response for the Deputy on a point that is not directly in my purview, as I do not have one to hand. As I recall off the top of my head, the overall spending and supports we have secured from the EU to be spent across the country have increased by 8% over the last spend although the overall fund negotiated at European level has been reduced by 8%.