asked the Minister for Finance the amount out of the £42 million paid over by Chevron to the Irish Government which has been spent under the terms of the west Cork package announced at that time by the Government.
Ceisteanna — Questions. Oral Answers. - West Cork Package.
8.
The decision of the then Government to allocate £15 million over a four year period for development in the west Cork area was announced in the 1986 Budget Statement. In the context of a wide ranging review of all public expenditure commitments undertaken by the Government during 1987, it was decided to wind down the west Cork development package in an organised and constructive manner and to concentrate uncommitted 1987 funds on elements of the package which would have the greatest impact on the local economy. A total of £6.75 million has been spent on the various projects included in the package.
It is clear from the Minister's reply that £8.25 million of that allocation was withdrawn by this Government. Would the Minister now tell the House when he intends to restore that sum of money to the relevant bodies implementing the Bantry package?
The Deputy must not have been listening too attentively to my answer when I said the Government had already decided to wind down the package and that a total of £6.7 million had been spent. The amount of money remaining to be spent at present is £200,000 for industry, which will be administered by the IDA — and £100,000 was allocated by the IDA in 1988 and a further £100,000 is available for equity in small enterprises in the area — and BIM got £100,000 for distribution and they will be allocating it in 1989. The Government have no plans to spend any more of the money referred to in the question.
I now call Deputy Desmond, whom I should have called earlier.
Is the Minister aware that when the previous Government were negotiating the very substantial sum involved, £42 million, there was implicit good faith on our part that a very substantial part of that money would be spent on general economic and social development of the west Cork area and that that assurance has been almost wholly reneged on? It is possible that we would not have got £42 million if this had been known.
It is the price paid for electing two Fine Gael TDs.
First, I must correct some of the figures referred to in the question. The Deputy referred to £42 million, but the actual figure was $44 million, which realised £31.9 million.
On current exchange rates.
In June 1986 we received £31.9 million.
This was not the rate of exchange when the agreement was negotiated.
The Deputy's side negotiated the agreement, so why did they not buy dollars forward when the exchange rate was attractive?
The reality is that the money went to the Exchequer and this Government never gave the money back to west Cork.
There is a huge difference between £31.9 million and £42 million. Second ——
(Limerick East): It is speculation to buy dollars forward.
It is good prudent business sense for anybody in business to buy forward in order to hedge currency fluctuations and to engage in the financial engineering that exists in the world today in an era of turbulent international currencies——
(Interruptions.)
I can tell Deputy Desmond that we would have another £13 million to spend if the then Government had done their business right. However, they had not done their business right. In 1987 the Government in looking at every aspect of public expenditure decided that a total of £6.75 million was the figure. They had to take their share of expenditure cuts the same as every other part of the country.
A final question to Deputy Sheehan.
A Cheann Comhairle——
I am sorry Deputy Desmond, I called Deputy Sheehan earlier.
It is now clear from the information conveyed by the Minister that £250,000 of that £15 million packet was hijacked from the people of west Cork. When does the Minister intend to give it back? It was the greatest robbery since the Great Train Robbery.
I can appreciate the Deputy's concern for the balance of £15 million. Every Deputy in this House could stand up and make a similar case asking when I would restore this or that service and asking when I would give more money to this, that and the other. I do not have the money. It is as simple as that.
What did you do with it?
(Interruptions.)
A Deputy
Where is the money?
(Interruptions.)
Deputy Desmond has been called now.
Is the Minister aware that the Taoiseach went to west Cork and elaborated not only that more than £15 million would be spent but that the money would be spent on Bantry Hospital, on further IDA projects, on multiple aquacultural projects and so on in the west Cork area? It is entirely legitimate that we should remind the Minister that his party leader reneged on every single one of those promises in relation to west Cork.
During the last number of years there have been many pious aspirations around this country——
(Interruptions.)
(Limerick East): Is this an attack on the Taoiseach?
The fact is that expenditure is being cut back. We want to get better value for money.
(Interruptions.)
(Limerick East): Is the Minister attacking the Taoiseach?
Question No. 9 please.
(Interruptions.)
I took my share of the cutbacks in Longford, just the same as west Cork. We closed a hospital in Longford. I could be looking for a couple of million to try to replace that as well.
I am just saying what the Minister promised, not what he did.
(Interruptions.)
Let us have a reply to No. 9 please.
When will we get the money back?
(Interruptions.)