Brendan Smith (Cavan-Monaghan, Fianna Fail)
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157. To ask the Minister for Arts, Heritage and the Gaeltacht the position regarding the proposed restoration of the Ulster Canal; when this project will proceed to the next stage; the timescale for construction; and if she will make a statement on the matter. [31989/14]

Heather Humphreys (Cavan-Monaghan, 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 will continue to explore all possible options to advance this project within the current fiscal constraints. In this regard, an Inter-Agency Group on the Ulster Canal was established 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 Inter-Agency Group continues its work.

In the meantime, the Ulster Canal project is progressing on an incremental basis. Planning approvals have been received for the project in both jurisdictions. Compulsory Purchase Order land maps are in preparation and consideration is being given to how the construction work and other technical aspects of the project will be structured and the necessary lands secured.