asked the Minister for the Marine the criteria for selection or the priorities which will be used by BIM for processing existing and future applications under the marine credit plan in view of the following (a) that there is now an increased demand for grant aid for new vessels and refurbishment (b) that the 1987 applicants will not be due tor payment until 1989, one year for processing of EC grant and six to 12 months construction period, and (c) that BIM do not know the funds they will have available in 1989 or the following years, and under the present system will never know two years in advance what their funding situation will be; and the changes he will implement to resolve this situation.
Ceisteanna—Questions. Oral Answers. - Marine Credit Plan Applications.
18.
Applications for assistance under the marine credit plan are assessed primarily on the basis of viability. All projects, therefore, approved by BIM are given top priority when being submitted to the EC for consideration under the FEOGA grant scheme.
In so far as the availability of funds to BIM from 1989 onwards is concerned, it is simply not possible at this juncture to commit specific amounts to the fleet renewal programme. As the Deputy will be aware, estimates allocations are decided by Government on an annual basis. However, the Deputy can rest assured that I will continue to do all in my power to ensure that at the appropriate time adequate provision is made to meet the requirements of the plan in the years in question.
Can I ask the Minister what criteria and/or selection process is used for approving the applicants? The Minister answered my question post the approval stage of BIM. Thankfully there has been a great increase in the number of applicants but given that there will not be enough money to approve all of them this year and in future years, how will they be selected? Who will be approved and who will not before applications are submitted to the EC?
If all of them were to be selected immediately we would not have sufficient funds and all of the boats would have to be built in one year. The development of all the industry would have to take place in 12 months and that could not conceivably happen. It is a matter for BIM to make the decision.
On what basis?
It is a matter for BIM to answer that question but I can give an opinion in that the fairest way would be first in first served. A vital factor would be that of employment and labour content. It is a matter entirely for BIM.
I am somewhat disappointed. I accept what the Minister says, that BIM will answer my question, but I thought it was within his area to answer that very important question, because it has already arisen. There are more applications on hand for this year than can be processed. Apart from selecting the applicants on specific criteria, BIM will not know what moneys they will have in 1989 when their 10 per cent of this year's applicants will be due to be paid. Would the Minister consider a three year rolling budget for BIM to ensure maximum use of scarce resources? Would he consider decreasing the appalling 35 year old average age of our fleet at present? Would the Minister consider a three year rolling budget so that this year's applicants could be considered in the light of BIM's allocation for 1989? Perhaps progress could then be made.
I can appreciate that we have a problem in that some of the youngest boats are eight years old and it is vitally important that as many new boats as possible come on stream. I would like to think that we could do what the Deputy suggests but the Government cannot make a commitment in advance. We can assume that there will be a commitment each year but, as Deputy Doyle will be aware from her time as Minister of State, no Government can make a commitment in advance. I assure the Deputy I will do all in my power to ensure that finances are available each year. Suffice it to say that we have a commitment, that we are anxious to ensure that as many new boats as possible will come on stream and that we will take full advantage of the facilities that are available under FEOGA.
Will the Minister accept that this system is making nonsense of the new marine credit plan which has been announced? The applicants that need approval this year will not be considered for payment until 1989 at the earliest, or maybe 1990. There is a two year time lag for EC approval and for construction. If we do not know what money will be available in 1989 or 1990, BIM will not be in a position to approve even a portion of the applications they are receiving. It is making a farce of the situation when we so badly need new boats.
All of the money allocated to BIM in 1987 will be spent.
Those applications were received two years ago.
The money which has been provided for 1988 in the Book of Estimates will be adequate. The Deputy is assuming that after 1988 it is a fait accompli that we will not be providing moneys. The Government and my Department have a commitment and I am as anxious as the Deputy in this regard. Because of the complexities of the matter the Government cannot make a commitment in advance. The Deputy can rest assured that both the Minister and I will do our utmost to ensure that sufficient moneys are provided each year.
In regard to the other point raised by the Deputy, that we are running ahead of ourselves, it does not normally follow that when one applies to BIM one will have to wait six or 12 months to obtain approval or otherwise, or if they are successful that it will take eight to 12 months, depending on the tranche in Europe, before one can start work on the boat. That does not normally happen. What happens in practice is that immediately the application is submitted to Europe one is in a position to start on the work. I do not see any great difficulties in that area. I would like to think that we could plan that far ahead financially but Governments do not commit money in advance.
I would like the co-operation of the Deputies to complete the remaining questions in the prescribed time. There are three remaining and also a number of Private Notice Questions to be disposed of.