Paudge Connolly (Cavan-Monaghan, Independent)
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Question 383: To ask the Minister for Community, Rural and Gaeltacht Affairs his plans to reallocate funds from the €12 million returned unused by Waterways Ireland to the development of the Ulster Canal link between Clones and the Shannon-Erne Waterway particularly in view of its importance for the BMW region and the improved situation in the peace process; and if he will make a statement on the matter. [26422/05]

Éamon Ó Cuív (Galway West, Fianna Fail)
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It should be noted that any underspend arose primarily due to factors relating to the suspensions of the institutions in Northern Ireland and the deferral of the building of the new Waterways Ireland headquarters in Enniskillen, which is now due to commence in 2006. In the event of an underspend under any heading, the money is either re-allocated to other projects within the Vote or surrendered to the Exchequer. In the case of deferral, a further provision is re-entered in the Vote the following year. One of the functions of Waterways Ireland — a North-South implementation body established under the British-Irish Agreement Act 1999 — is to examine the possible restoration of the Ulster Canal.

A study was commissioned which estimated the cost of the restoration of the full Ulster Canal at approximately £90 million sterling based on 2000 costs. Matters arising as regards the project, including the question of whether a phased or partial approach might be feasible, remain under consideration by my Department and the Department of Culture, Arts and Leisure in the North. Any decision to proceed with the Ulster Canal would require both approval and funding from both jurisdictions.