asked the Minister for Finance if the Irish allocation from the EEC Regional Fund will be used to supplement national aid for projects as outlined in Article 4 of the fund regulations; or whether it will be used to reimburse his Department.
Ceisteanna—Questions. Oral Answers. - EEC Regional Fund.
125.
A pre-condition of assistance from the Regional Fund is that public moneys of a member state must be expended on financing any project which qualifies for assistance from the fund. The objective of the fund is to increase the volume of aid for regional development. This aim will be promoted by the manner of application of the moneys which Ireland will receive from the regional fund.
Article 4 of the Council Regulation of 18th March, 1975, establishing the fund provides that assistance from the fund "may either supplement aid granted to the relevant investment by public authorities or remain credited to those authorities and considered as a partial repayment of such aid". Each member state has, therefore, the option of applying either of these systems.
To enable the benefits of the fund to be equitably spread over the largest possible number of projects, it is intended to pool the fund assistance with Exchequer expenditure on state aids to industry and infrastructure. Fund moneys will thus augment the scarce capital resources available to finance future industrial and infrastructural development, rather than increase the level of aid granted to a limited number of projects. This is the best way of ensuring that the fund's resources will provide additional industrial and infrastructural development. I understand that a similar approach will be adopted by most, if not all, of the other member states.
Arising from the Minister's reply and his statement in the Irish Independent last Tuesday, where, in justification for the use of the repayment system, he stated this will generate more industrial development, would the Minister indicate the nature of this development and where it will occur? Further, will he state if the fund moneys will be allocated under Article 4 (1) (c) of the fund's regulations? This is the section of the article dealing with infrastructure in disadvantaged and hill farming areas. Finally, the Minister has stated the majority of member states will opt for the repayment clause. Will he indicate those member states?
I said our understanding is that most, if not all, of the member states will do that. There has been a gross misinterpretation of the language of the Community regulation that governs this matter. This country either has a choice of taking a few limited projects and giving them grants far above what is available to anyone else—to do that there would have to be something like a lottery, where someone would get a bonanza and others would not get assistance—or else we can use the fund as we must sensibly use it, in order to increase the volume of aid so that more areas, more projects and more people will benefit.
The Minister will find it very difficult to sell that.
He is stealing from the west of Ireland.
This money represents only 1 per cent of the State's annual capital investment and it is only a tiny fraction of the amount of public money that has to be wasted on matters like security because the Fianna Fáil Party helped to stimulate all kinds of violence in this country——
The Government are stealing from the regional fund.
Now they are trying to make a meal out of the proper application of the regional fund. The proper application of the fund means that the maximum number of projects will benefit. Perhaps the Members who are so critical and others would read the Community regulations. The money must be used in the way we are using it——
That is not true.
The money must be applied in a way that meets the Community's requirements; otherwise Community money is not made available. It is as simple as that. The Community money will be made available only for projects where the state has already made a contribution. The State's contribution on industrial projects must be not less than 50 per cent and the State's contribution on infrastructural projects must be not less than 70 per cent. There cannot be——
(Interruptions.)
The cost of security in this country is operating at £4 million a week because members of the Fianna Fáil Party established the Provisional IRA and now they have the neck to talk about the regional fund.
(Interruptions.)
This money will go to the development of projects and not to the buying of arms. I can guarantee that. Not one penny of this money will go to buy arms. It will provide employment.
The remaining questions will appear on next Tuesday's Order Paper.