asked the Minister for Foreign Affairs the reason the Government agreed to a reduction in Ireland's percentage of the EEC Regional Fund as recently proposed by the Commissioner for Regional Affairs, Signor Giolitti; and if he will make a statement on the matter.
Ceisteanna—Questions . Oral Answers . - EEC Regional Funds .
8.
: It will be necessary to revise regional fund quotas to take account of Greek accession to the Community in 1981. Proposals for such a revision have not yet been discussed by the Council.
While it is to be expected that our percentage share of the regional fund will not be as great with the accession of Greece and the consequent division of the fund between ten rather than nine member states, I can assure the Deputy that there is no question of a reduction in our cash receipts from the fund. This would of course be unacceptable.
Since the proposals have not yet been discussed, it would be premature to comment further at this stage.
: There is a big difference between cash receipts and the percentage of a particular fund. Are the Government still committed to the formal reservation put on record by the then Minister for Foreign Affairs, Deputy Garret FitzGerald, when the Council agreed in principle to the resumption of discussions on the accession of Greece to the Community after the fall of the generals? Could he indicate if Ireland's defence of the regional policy as initiated at the very outset will be continued as vigorously by his Government as it was in the past.
: Naturally this is so. It is a paramount aspect of Irish policy within the Community to secure an enlargement of what is not by any means a satisfactory regional fund. That is a continuing battle we have to fight against serious difficulties last year and probably this year from countries that take a very severe budgetary attitude towards the Community budget. That is a negotiating problem we shall have to continue to fight.
: The Minister must have the Council decision in regard to the proposed budget for 1981 which proposed that the share which Ireland would get in 1981 would be a sum of £52 million. Does the Minister agree with that figure? If so, is he now aware that such a figure, taking account of inflation, will involve a fall in real terms in what we are getting from the regional fund?
: I was careful to say in my reply that we are not yet out of 1980. Proposals for a revision of the regional fund have not yet been discussed by the Council. I went on to say that since the proposals have not been discussed it would be premature to comment further at this stage. What the Deputy is referring to are proposals from the Commission. The difficulty in talking about Commission proposals here is that they may be changed. The Commission proposals show a substantial increase as far as we are concerned in percentage and amount terms. The actual increase proposed by the Commission over 1980 is 21 per cent,, £58 million as against £48 million. That is the Commission's proposal, but I want to emphasise that a Commission proposal may be increased by the Parliament, probably will be, and may be diminished by the Council, but at the end of the day it is the final Council figure that a country gets under this or any other heading.
: Is the Minister saying that the Commission proposals have not been discussed by the Council? Is not the situation in regard to the social fund that the amount has been amended by the Council?
: At the end of the day the Council will finally decide, but the Parliament must go through it first. The Commission are the initiating body, they propose, the Parliament discuss and the Council decide. We have not come to that point yet.
: I appreciate the Minister is negotiating, and the combined efforts of Deputy O'Keeffe and I should strengthen his hand.
: I thank the Deputies for it.
: Can the Minister indicate whether he is in a position to resist what I regard as a retrograde step, the reduction of our allocated percentage share, irrespective of how big the fund is? The Labour Party would argue with me that the increase of the Community from nine to ten members should not mean a pro rata reduction in our share of the regional fund.
: It is very hard to take that attitude when we are getting the highest increase and when the actual overall reduction in our case is the lowest of the nine. All nine members of the Community are taking a reduction but ours is easily the lowest. Each of the nine has taken a cut in order to facilitate Greece.
: It is a question of bargaining on the day.
: I share the Deputies' views.