Written answers

Thursday, 21 July 2011

Department of Arts, Heritage and Gaeltacht Affairs

Inland Waterways

7:00 pm

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Question 21: To ask the Minister for Arts, Heritage and the Gaeltacht if €35 million was ring-fenced for the restoration of the section of the Ulster Canal between Clones and Upper Lough Erne; if this funding was included in any budget between 2008 and 2010; and if he will make a statement on the matter. [21531/11]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Question 408: To ask the Minister for Arts, Heritage and the Gaeltacht the proposals to progress the restoration of the Ulster Canal; if funding will be provided for this project in 2012; and if he will make a statement on the matter. [22501/11]

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I propose to take Questions Nos. 21 and 408 together.

As the Deputy will be aware, the North/South Ministerial Council (NSMC) Plenary Meeting in July 2007 agreed to proceed with the restoration of the section of the Ulster Canal between Clones and Upper Lough Erne. The then Government agreed to cover the full capital costs of the project, which were estimated at that time to be of the order of €35m. However, Government Accounting procedures do not provide, in that sense, for the 'ring-fencing' of funds for projects of this nature and I can confirm that this funding was not included in any budget between 2008 to 2010.

I am advised that it was always the intention that the Ulster Canal project would be funded from the Waterways Ireland annual allocations, as agreed through the annual estimates processes in this jurisdiction, as well as the deliberations of NSMC in relation to annual budgets. I am advised also that it was also a key consideration throughout the process that the Ulster Canal project would be supported by a significant level of projected income from the commercialisation of certain Waterways Ireland assets - a scenario that was affected negatively by the economic downturn.

Clearly, that downturn is of major significance and presents serious difficulties to my Department during this period when there is such pressure on the public finances. While I intend to explore all possible options that may assist in the advancement of this project, it must also be recognised that the Government is engaged at present in a Comprehensive Review of Expenditure, under which all spending is being examined rigorously. Notwithstanding that, I have asked my Department to keep in regular contact with Waterways Ireland with a view to advancing the project to the extent possible, within the current constraints. In this regard, you will be aware that Waterways Ireland is in the process of finalising documentation in order to proceed to the stage of submitting an application for planning permission - a significant milestone for the project.

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