Declan Breathnach (Louth, Fianna Fail)
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The Minister will no doubt be aware of the importance of INTERREG IVA and PEACE funding to the Border region, in the current round of which in excess of €550 million is available, with a potential sum of €1.6 billion being available into the future. The matter being raised in this Topical Issue debate is probably the first major hurdle we have to cross in the context of Brexit. It is important that we get this right and secure the money being provided by the European Union, the Northern Exchequer and in the South for the continued development of projects and programmes post-Brexit. Up to July this year, 17 projects with a total value of €120 million had been approved for funding, but letters of offer have not yet issued. At a meeting earlier this week of the Joint Committee on the Implementation of the Good Friday Agreement the Northern Ireland Minister for Finance, Máirtín Ó Muilleoir, indicated that he had signed off on the matter but that there was a log-jam elsewhere. In a response I received on 16 September to a parliamentary question the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, indicated that he was dealing with the issue. However, it has come to my knowledge that the delay centres on two major issues from a Southern perspective: the insertion in the letters of an offer of a break clause for two years to coincide with the possible timing of a Brexit and an assurance from all partners that EU rules and regulations will be followed for the duration of the projects, irrespective of when the United Kingdom leaves the European Union. This is to avoid any potential claw-back of funding. Local authorities, communities and those involved in the 17 projects are waiting for this money. If we do not get it right, there is no doubt in my mind that the additional moneys due to come down the track will not be forthcoming. This presents a huge challenge.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank the Ceann Comhairle for selecting this matter for discussion.

Deputy Declan Breathnach and I attended the meeting earlier this week of the Joint Committee on the Implementation of the Good Friday Agreement, during which alarm bells rang for all of us in respect of the full roll-out of the INTERREG IVA and PEACE IV programmes. As the Minister will be aware, the PEACE and INTERREG programmes were put in place in the mid-1990s following on the success achieved in advancing the peace process.

The funding provided by successive Irish and British Governments and the EU Commission has been particularly important in building communities and bridges between communities. We are very well aware that many business enterprise and social enterprise projects have been funded through the INTERREG and PEACE programmes. As my colleague, Deputy Breathnach, said, a huge amount of preparatory work has already been undertaken by voluntary organisations and local statutory organisations in putting together applications and projects that would meet the criteria to draw down under the new PEACE and INTERREG programmes.

We want a clear assurance from the Government that there is a commitment to the full roll-out of the PEACE IV and INTERREG programmes that were agreed some time ago between the Irish and British Governments and the European Commission. The uncertainty setting in now is creating extreme problems for groups working on bringing applications to finality and groups that have already completed the application process and are awaiting the funding approval to enable them to proceed with projects that are necessary for local communities, which will help to provide employment in many disadvantaged areas and will provide facilities that have not been provided by the statutory authorities in Northern Ireland or Southern Ireland. We need the Minister to give a clear assurance the Government is absolutely committed to the full roll-out of these programmes as agreed a considerable time ago.

Richard Bruton (Dublin Bay North, Fine Gael)
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I am taking this matter on behalf of the Minister for Public Expenditure and Reform, Deputy Pascal Donohoe, who is before a committee.

The Irish Government remains firmly committed to the full and successful implementation of the PEACE and INTERREG programmes. I am aware of the Deputies' interest in the issue and the Minister and I share their commitment to this important area of North-South co-operation. Just yesterday, the Minister’s officials met representatives of the east Border region and gave them a full briefing on the work that we have been doing to protect the PEACE and INTERREG programmes from the consequences of Brexit.

The Government is proud of its role in securing EU funding for a fourth PEACE programme. Along with its sister INTERREG programme, it will see investment of more than €500 million in the region over the period from 2014 to 2020. The programmes have made an enormous contribution to cross-Border co-operation and remain important drivers of regional development in a cross-Border context. More than this, support for the programmes is a key element of the European Union's continuing commitment to the process of peace building and reconciliation over the last quarter of a century. This is a key point that should not be lost sight of.

Earlier this month at the British Irish Association in Oxford, the Taoiseach put the role of the EU in supporting the peace process, including through the Special EU Programmes Body and EU funding, at the top of his list of issues that need to be addressed to protect the Good Friday Agreement. The UK’s decision to leave the EU will obviously have implications for two programmes that are 85% funded by the European Union, just as it will have implications for all programmes supported by the EU budget. This has created huge uncertainty for everyone involved in the programmes, and the solutions will be neither simple nor easy. The risks to the programmes were identified by the Department of Public Expenditure and Reform as a result of the contingency planning undertaken prior to the referendum, so that starting on day one, 24 June 2016, officials began working with the Northern Ireland Executive, the Special EU Programmes Body and the European Commission to establish the basis on which the programmes can continue to be implemented. The Minister, Deputy Donohoe, has discussed the matter with the Minister, Mr. Ó Muilleoir, at the North-South Ministerial Council. They have been in correspondence and I understand they plan to speak in the coming days.

The Minister is aware of assurances given by the Treasury on a whole range of EU-funded projects as a response to widespread concern in the UK about the consequences of Brexit. In the case of Structural Funds projects, however, these assurances only relate to projects approved in the normal course prior to the Chancellor's autumn statement in this coming November. As I am sure the Deputies will agree, we would be concerned at any suggestion that it would not be possible to continue to approve projects beyond then. We appreciate there is an anxiety to see letters of offer issue to applicants as soon as possible, but the UK's decision to leave the EU has, as we predicted, raised all sorts of uncertainty. It would be foolhardy to proceed before everyone concerned, including programme beneficiaries, funding Departments and the Commission itself, all understand the nature of the financial commitments they are being asked to enter into for projects that may extend beyond the UK exit from the EU.

The personal commitment of the Minister, Mr. Ó Muilleoir, to the programmes is well known, but we will nevertheless be looking for assurances from him that approval for projects will be able to continue beyond the Chancellor’s autumn statement. It is important that his officials work with ours to address the complex problems thrown up by the referendum result, so that project beneficiaries can be made robust offers of funding that will survive the consequences of Brexit.

While there are complex financial, technical and legal issues that need to be worked through, let there be no doubt about this Government’s commitment to the successful implementation of the programmes. The programmes are a long-term project and we are in this for the long haul.

Declan Breathnach (Louth, Fianna Fail)
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I welcome the Minister's response, but I put it to him that the planning process for any project takes a considerable lead-in time and considerable delivery time. The reality is the Irish Government needs to get a commitment from the EU for the continuation of projects, at least on the southern side. After the Chancellor's budget on 18 November, if the British Government is serious about the peace process and the importance of co-operation North and South, it is incumbent on the Government to ensure the money is ring-fenced. If we do not plan the projects it is no good stating that it will be for two years as has been suggested by the Department; it is not a case of live horse and you will get grass. If we want to get projects off the ground we must have a commitment right through. This is what is needed if people firmly believe in the peace process and believe that it is about getting on as a community on these islands, North and South. Everybody should sign up to it regardless of Brexit.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank the Minister for his reply. As the Minister is aware, uncertainty will kill off the best interests of the people involved in these programmes. They work on a voluntary basis to better their local communities. In many instances, they create local employment to provide better services and better facilities for, in the main, disadvantaged communities on both sides of the Border. It is essential that the Ministers, Deputies Donohoe and Noonan, make direct contact with the Chancellor of the Exchequer, Mr. Hammond, MP, regarding this issue. The Taoiseach needs to continue to pursue it with the British Government and the President of the European Commission. This is relatively small money in the scheme of things when one considers the expenditure incurred by the European Commission, but it is hugely important for areas that need investment which have been so adversely affected by trouble over the years. We have made progress on this island and much progress is still needed in these disadvantaged communities. We need to try to ensure social infrastructure is not lost through these programmes not being rolled out fully. There is a need for the Government to give an absolute message and commitment that there will be no dilution or delay in having these projects proceed. We must seek this assurance from the European Commission and the British Government. If uncertainty prevails the entire programmes will fall.

Richard Bruton (Dublin Bay North, Fine Gael)
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The Deputies recognise that between us, North and South contribute 15%, and 85% comes from the EU. There is absolutely no question about the Irish Government's commitment to this project. The issue continues to be that we need to have clarity about the EU's commitment and the UK's commitment. Both of these must be in place for us to give the type of assurances the Deputies require. This is what we are striving to achieve. The guarantee offered by the Chancellor is limited in its time, and it does not deal explicitly with what happens after the UK has left the European Union. This needs to be clarified to know exactly where these projects stand in respect of this contribution. We also need to know exactly what the EU commitment is in respect of cases where a member state has left and programmes are outstanding. We are absolutely committed to it, but the Deputies can see why it is imperative the Minister for Public Expenditure and Reform achieves, through discussions North and South and with the UK and EU, the line of sight we need to give assurances to communities that these projects, which are so important, can be fulfilled. This is what he is working to achieve.