andMr. Horgan asked the Minister for Finance if, in view of his Dáil statements on 17 June and 28 October 1975, regarding the administration of Ireland's allocation from the European Regional Development Fund, he will change the present system of administering Ireland's allocation from the fund, whereby fund receipts go directly to the Exchequer, to a system by which identified development projects in less developed regions of Ireland would benefit directly from the fund.
Ceisteanna—Questions. Oral Answers. - European Regional Development Fund.
11.
Under the regulation establishing the regional fund the assistance received from the fund may be used either to supplement national aid given to individual investments or may remain credited to the public authorities as partial repayment of national aid, with the aim of helping the authorities to finance additional investment. As the Deputies are aware, it is the second of these methods which has been used in Ireland, receipts from the fund being applied to the financing of increases in the public capital programme. I am satisfied that there are, in fact, valid reasons why it would not make good sense to use the moneys received from the fund to "top up" the amount of national aid already given to the limited number of projects that can be put forward for fund assistance.
However, my main concern in the statements referred to in the question was that the arrangements for administration of the fund should be such as to demonstrate clearly that moneys received are used to finance additional investment, especially in the areas of greatest need, and are not simply being retained by the Exchequer. I am still not convinced that the existing arrangements are the best way of achieving this objective and at my request the matter is being re-examined by my Department. This re-examination cannot be completed until the review of the fund regulation which is currently taking place at Community level has been finalised.