Written answers

Wednesday, 25 January 2006

8:00 pm

Photo of Beverley FlynnBeverley Flynn (Mayo, Independent)
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Question 539: To ask the Minister for Finance if his attention has been drawn to the diversion of €4.36 million in funding earmarked for tourism in the west to other projects in 2005; and if he will make a statement on the matter. [1752/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The BMW regional assembly, as the managing authority of the BMW regional operational programme, carried out a review in early 2005 of the levels of project approvals and expenditure under the tourism measure. The review was carried out in consultation with my Department, the Department of Arts, Sport and Tourism and Fáilte Ireland and followed concerns about the low level of expenditure by projects under the supported schemes. The managing authority's review confirmed earlier indications of poor levels of expenditure incurred by projects under the tourism measure and concluded that there was a real risk of loss of the European Regional Development Fund, ERDF, commitment to this measure if action was not taken.

Subsequent to the review, the BMW regional assembly sought the agreement of operational programme monitoring committee to reallocate the ERDF commitment of €4.36 million for the year 2005 from the tourism measure to the faster spending child care measure within the BMW operational programme. The action to reallocate the ERDF commitment was taken by the regional assembly in fulfilment of its obligations to avoid any possible loss of Structural Funds by the application of the automatic decommitment rules for Structural Funds set out in Regulation 1260/1999, the so-called N+2 rule. My Department, the Department of Arts, Sport and Tourism andthe European Commission supported thereallocation.

I share the view of the BMW regional assembly that tourism plays an important role in the regional economy. The Minister for Arts, Sport and Tourism has indicated that he will make available Exchequer funds from the Vote of his Department to ensure that, notwithstanding the reallocation of the ERDF commitment, the same level of investment in the region's tourism product can be supported under the tourism measure over the lifetime of the regional operational programme.

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