asked the Minister for Finance the amount of money earmarked by the European Community for road grants to Ireland in 1988; the amount of this money which Ireland availed of; and if it is intended to take up the balance.
68.
Ceisteanna — Questions. Oral Answers. - EC Road Grants.
2.
asked the Minister for Finance the amount of EC regional funds not taken up during 1987 and in 1988 to date in respect of a national primary and secondary road development.
I propose to take Questions Nos. 2 and 68 together.
On 17 December 1987 the European Commission approved a grant commitment of £194.4 million from the European Regional Development Fund for a National Programme of Community Interest "Road Development in Ireland" for 1986-1990. The total expenditure involved over this period amounts to £365.4 million.
The total expenditure envisaged under the programme for 1988 was £86.2 million which would attract an ERDF payment of £45.6 million. Due to budgetary constraints, reductions in expenditure had to be made in the Government's investment programme in 1988. The reduction resulted in projected expenditure under the roads programme being reduced from £86.2 million to some £48 million. The total ERDF contribution on the basis of the £48 million investment in 1988 is about £25.5 million, of which £18.2 million has been paid to date in 1988.
To avoid any possible loss to Ireland in ERDF commitments arising from the reduction in 1988 expenditure under the roads programme, applications for ERDF assistance for alternative projects have been lodged with the European Commission.
Do I understand the Minister's reply to mean that we have lost roadworks to the value of about £38 million this year because the Minister did not take up the grants or finance the balance?
We have lost some millions for the improvement of national and major urban routes and we will therefore have a reduced contribution for the ERDF from those purposes. As I said, to avoid any loss we have submitted applications for assistance for alternative projects.
Is it not true that we were entitled to £48 million this year and have only taken up £26 million, leaving us with a net loss from the EC of £22 million? The Minister for the Environment is setting up national road authorities and engaging in a public relations campaign about the necessity to rebuild our roads and many of the conferences on 1992 are concentrating on the importance of a proper road network, yet at the same time we not availing of these funds from the EC.
We are availing of them and we will not be leaving any money behind under the Regional Development Fund.
We are not availing of it now.
We are moving into a completely new ball game in relation to moneys coming from the various Structural Funds. The intervention rate will be increasing and the amounts in the various funds will be doubling between now and 1992. The question of withdrawing the existing roads programme and replacing it with a new programme which would attract a higher rate of Community aid is under consideration. We will be doing our utmost to get every pound available, not only under existing intervention rates and existing fund limits but also when the new regime comes in next year with higher intervention rates and increased allocations arising from the doubling of the Structural Funds.
Would the Minister agree that the Dublin region should be earmarked for regional development funds, particularly for the construction of the necessary ringroad? I speak for the south Dublin region which is in urgent need of a proper road structure since traffic there is grinding to a halt. I welcome the Minister's response. Would he agree that he should concentrate on that aspect to which I refer?
We are encroaching on the responsibilities of another Minister.
Dublin, Cork, Limerick, Sligo and the rest will get their share.
Is it not true that while we may be building up credits in a ledger in Brussels, the work needs to be done now on our communications system but we are not doing it because the Minister is not taking full advantage of the funds available from Brussels?
This is repetition.
We are taking advantage. We will get every pound available to us from Brussels. This year we are making non-Exchequer applications which will not impinge on the Exchequer. Under the new programmes, with the doubling of the funds and the higher intervention rates, we will be in a position to have private funds grant-assisted. This will save the Exchequer. I am admitting quite openly in relation to the 1986-1990 programme that we did not expend from the Exchequer what we could have expended, to get more money for the national and major urban road network. I assure the House that we have submitted alternative projects to ensure that we get every available pound from the ERDF.
I hope with the co-operation of Deputies to make more progress and deal with as many questions as possible.
(Limerick East): I welcome the information provided by the Minister. It indicates that we have foregone about £44 million in 1988.
The Deputy is wrong.
(Limerick East): How much?
About half that.
(Limerick East): On the 1989 Estimate, it looks as if we will forego a similar amount. If we are talking about a roads programme with an EC fund element of £194 million, it seems that we are backloading the money into 1990. It is obvious that the drawing down of that money is contingent on providing a national contribution either from the Department of Finance or from the private sector. Is it not true that the start up in road structuring is so slow that when we come to 1990 we will not be able to utilise the money that is being backed into that year, which is about £110 million or £120 million?
I understand the Deputy's point but I do not think it is correct. Many plans are ready to go ahead. Deputy Kitt referred to one of them and all of us know others that can be put in train very quickly if we have the resources. We can only go so far with our own resources, as Deputies will accept. Every subhead on every Vote has to be looked at very carefully because there is only so much we can allocate. At the same time we must ensure that we do not leave money behind in Brussels which could be used to help economic development here. I have given the House an assurance on that. We are working day and night preparing plans and programmes for submission and approval early in the New Year to ensure that we get the higher intervention rates and take up the increased funds which will be available from 1989 to 1992 due to the doubling of the Structural Funds.
The moneys are in ledgers in Brussels but not in the economy in Ireland.