Written answers

Tuesday, 3 July 2012

Department of Public Expenditure and Reform

EU Funding

9:00 pm

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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Question 278: To ask the Minister for Public Expenditure and Reform in the context of the new focus of the structural fund elements of the EU multi-annual financial framework which favours supporting transnational programmes across multiple Member States, the efforts being taken to ensure that Ireland is not precluded from the benefits of such funding on account of our geographical status. [32499/12]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The purpose of EU Regional/Cohesion policy is to reduce the significant economic, social and territorial disparities that still exist between Europe's regions. The budget for the 2007-2013 round is €347bn. Most of this budget is allocated for those countries and regions whose gross domestic product per capita is less than 75% of EU average (81.5% for convergence objective). The remainder is for all other countries and regions (16.5% for regional competitiveness and employment objective) and for cooperation across borders (2.5% for territorial cooperation objective). The overall budget and country allocation is agreed between the EU Commission and Member States in advance of the programming period.

Ireland has been allocated in total €901m in Structural Funding for the 2007-13 Programming period with €750 million assigned to the Regional Competitiveness and Employment (RCE) Objective. Ireland's National Strategic Reference Framework (approved by the European Commission in July 2007) sets out the strategic context within which the €750m block of funding may be applied; the delivery is via three operational programmes, the National ESF Human Capital Investment OP, managed by the Department of Education and Skills, and the Border Midland and Western (BMW) and Southern and Eastern Regional ERDF (S&E) OPs, managed by the BMW and S&E Regional Assemblies. The balance of €151m is for smaller Territorial Cooperation programmes including the PEACE III (Ireland/NI), INTERREG IVA (Ireland/NI and Western Scotland) and the Ireland Wales Programme.

For the purposes of EU Structural and Cohesion Funds, Ireland is designated into two NUTS (Nomenclature of Territorial Units for Statistics) II regions, namely the BMW Region and the S&E Region. Of the €750 million allocated to Ireland under the RCE, €458 million has been allocated to the BMW Region (due to its phasing in status – moving from convergence (less developed) to regional competitiveness and employment (more developed) status) and €292 million to the S&E Region.

The future of Cohesion policy is being framed in the context of the current economic downturn, and the challenge of an integrated Cohesion policy is to address this. Ireland agrees that Cohesion policy will be a key policy instrument in achieving the EU 2020 Strategy Priorities for Smart, Sustainable and Inclusive Growth. This will set the strategic direction for future policy. My strong view is that interventions must be focused on employment, research & innovation, education, combating poverty, climate change and energy.

The Commission last year published its proposals for the next round of funding covering the period 2014-2020. The Commission's proposal is to allocate €376bn to Cohesion policy instruments, an increase on the allocation for 2007-2013. This proposal must be seen in the context of the wider negotiations on the EU Budget, however, where there will be pressure to reduce the overall size of the budget.

The breakdown of the Commission's proposal is set out in the table.

PROPOSED COHESION Budget Allocation for 2014-2020

All figures in constant 2011 prices

Total proposed budget 2014-2020Of which€376 bn
· Convergence regions· Transition regions· Competitiveness regions· Territorial cooperation· Cohesion fund· Extra allocation for outermost and sparsely populated regions€162.6 bn€39 bn€53.1 bn€11.7 bn€68.7 bn€926 million
· Connecting Europe Facility for transport, energy and ICT€40 bn plus €10 bn ring fenced inside the Cohesion Fund

My aim will be to maximize Ireland's allocation and ensure that we continue to benefit from Cohesion policy. I have been arguing strongly that Cohesion funding has had a major impact on key economic and social programmes throughout the country and that funding for 2014–2020 must be maintained to help secure Ireland's recovery.

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