Brendan Smith (Cavan-Monaghan, Fianna Fail)
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191. To ask the Minister for Arts, Heritage and the Gaeltacht the current position in regard to the proposed restoration of the Ulster Canal; when the project is likely to proceed to the next stage; and if he will make a statement on the matter. [54914/13]

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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As the Deputy will be aware, in July 2007, the North/South Ministerial Council (NSMC) 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.

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. It was 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. However, the economic downturn has had a negative impact on those plans.

I am continuing to explore all possible options to advance this project within the current fiscal constraints. In this regard, I established an Inter-Agency Group on the Ulster Canal to explore ways to advance the project and to examine possible funding options for it, including existing funding streams and the leveraging of funding from other sources. This includes the exploration of any EU funding which may be potentially available.

The Ulster Canal project is progressing on an incremental basis. Planning approvals have now been received for the project in both jurisdictions. Work on land maps is continuing, as is consideration of construction and other technical aspects of the project. I welcome these developments, which, I am sure the Deputy will agree, are a significant milestone for the project.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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192. To ask the Minister for Arts, Heritage and the Gaeltacht if he has received the feasibility study on the proposed extension of the Erne navigation from Belturbet to Killeshandra and Killykeen; and if he will make a statement on the matter. [54915/13]

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I am informed by Waterways Ireland that it commissioned a Strategic Environment Assessment for the possible extension of the Erne Navigation from Belturbet to Killeshandra and Killykeen.

On reviewing the environmental information from this process, Waterways Ireland considers that the environmental designations of this lake complex make the feasibility of the proposed navigation extension highly unviable. For that reason, I am advised that Waterways Ireland does not propose to pursue this project any further at this time.