asked the Minister for Finance if, in view of the fact that he now accepts that moneys from the EEC Regional Fund must be additional to any money the Government proposes to spend on regional development, he proposes to apply the fund moneys to specially selected projects named in advance.
Ceisteanna—Questions. Oral Answers. - EEC Regional Fund.
15.
It always has been the policy of the Government that moneys received from the European Regional Development Fund should be used to increase the total volume of regional development investment and there has been no change in this policy.
Fund moneys are not allocated to specific projects named in advance because it may happen that an investment project does not progress as planned or is deferred or cancelled and the finding of another project might give rise to a delay in the receipt of fund moneys. The best and most flexible method of putting receipts from the regional fund to immediate use is to increase the total investment budgets of the industrial promotion agencies rather than to restrict their freedom of manoeuvre by earmarking fund receipts for particular projects which may or may not proceed as planned.
This country's estimated receipts from the fund for 1976 are £12 million. As the Deputy is aware, the Government have allocated these receipts to increasing the budgets of the industrial promotion agencies, mainly of the IDA, by £11 million and by increasing the provision for telephone development by £1 million.
What criteria is used for selecting applications for projects under the development fund?
I should like to point out to the Deputy that the Commission recently circulated a paper outlining the positions adopted by the various member states on using regional fund aid in addition to national aid. The position to date is that in each of the nine member states the projects included in approved regional fund applications will not receive fund aid in addition to national aid. Germany and the Netherlands have said that they may change their minds in the coming year. Italy is much different because there is only one agency in that country but in Ireland six Government Departments are directly involved—Local Government, Finance, Industry and Commerce, Gaeltacht, Agriculture and Fisheries and Posts and Telegraphs. There are three industrial promotion agencies—the IDA, Shannon Free Airport Development Company and Gaeltarra Éireann. Therefore, it would be almost impossible for us to follow the Italians.
Would the parliamentary Secretary agree that the Minister for Finance created a lot of confusion last year regarding the regional fund and its application and that he should let people know the position regarding the selection of projects? Does the Parliamentary Secretary agree that it was very badly handled last year and that the position should be clarified?
I could not agree with that.
Does the Parliamentary Secretary agree that local authorities and regional development organisations are wasting their time in formulating plans for assistance under the regional fund?
That is not so.
The Parliamentary Secretary stated that six Government Departments were involved. Would he further agree that the EEC does not direct the spending of the money in the way it should? Therefore, local authorities and regional development organisations are wasting their time looking for assistance.
We are having repetition of questions.
That is not so. I will give the Deputy a copy of the list of the distribution of funds for 1976.