asked the Minister for Finance if portion of the regional fund allocation will be used under Article 4.2 (b) of the fund regulation.
Ceisteanna—Questions. Oral Answers. - EEC Regional Fund.
9.
Article 4.2 (b) of the Council Regulation (724/75) of 18th March, 1975, establishing the regional fund provides that fund assistance for qualifying infrastructure projects may consist wholly or in part of a rebate of three percentage points on loans made by the European Investment Bank. While we may consider availing of this option, I would point out that, given the small size of the fund, to use portion of our fund allocation in this way would confer only very limited benefit. The Government's basic objective is to use regional fund assistance to finance additional industrial and infrastructural investment in the areas of greatest need. The article referred to in the Deputy's question, if applied by us, would simply reduce the cost of borrowings already negotiated with the European Investment Bank and would not therefore meet our primary requirement of additional capital for development purposes.
The Deputy will no doubt be aware that applications for regional fund assistance and for European Investment Bank loans are not interdependent. The European Investment Bank have already made three infrastructure loans totalling £21 million for telephone and rail development in this country and discussions are taking place with the bank on possible further infrastructure loan projects. These discussions will proceed independently of our application for regional fund assistance.
What areas is it proposed to help on the industrial infrastructure side? What areas have been decided on or has any consideration been given to the areas suffering at present because of run-down in industrial employment?
That does not arise on the question which deals with Article 4.2 (b) of the fund regulation.
My question arises out of the Minister's reply.
I have already answered on previous occasions very fully about the application of the fund.
In the course of his reply the Minister referred to the fact that it was proposed to devote some of this money to industrial infrastructure in areas where it was most needed?
That is correct.
Arising out of that statement I should like to ask the Minister if the Government have considered the areas most in need?
That is a separate question.
That was mentioned in the Minister's reply. If the scope of my question is broadened it is broadened by the reply of the Minister.
10.
asked the Minister for Finance if his Department or other Government Departments have received applications for regional fund aid from public authorities or from the private sector.
Applications for aid from the regional fund have been received by my Department and other Departments from public authorities and the private sector.
11.
asked the Minister for Finance the parts of County Limerick that will receive aid from the EEC Regional Fund.
In my reply to the adjournment debate on 23rd April, 1 indicated that the counties which will mainly benefit from the regional fund are those comprising the areas designated under the Undeveloped Areas Act, 1952. They include certain townlands in the Barony of Connello Upper in County Limerick, including the town of Drumcolliher, which were designated by order dated 3rd April, 1963 (S.I. No. 56 of 1963).
I should again like to stress that the selection of a particular project for assistance will not increase the level of aid already being paid to that project. Rather will it be the means of obtaining assistance from the fund to increase our total industrial and infrastructural investment effort, particularly in the areas of greatest need.
Can the Minister say how much in actual money terms will be allocated to County Limerick?
It is not possible to state.
When will the Minister know?
When all projects have been looked at and the money distributed.
When is that likely to be?
I cannot say because it will depend upon what projects are approved by the EEC.
Does what applies to County Limerick apply to other areas such as Cork?
That is correct. The Community will have to approve all projects.
It is a question of live horse and get grass as far as the Minister is concerned.
Will the Minister state how he defines areas of greatest need? Does he mean counties or parts of counties and is he referring to services such as water and sewerage services and industry?
On behalf of the Government I have already acknowledged that the places of greatest need are those areas which are designated areas.