Vol. 414 No. 6
85 Mr. Connaughton asked the Minister for Finance if he will outline the Government's plan to use funds, which are being provided by the EFTA countries, to help peripheral regions in the EC meet the challenge of free trade; and if he will make a statement on the matter.
The draft EC-EFTA Treaty makes provision for a financial mechanism to provide financial assistance to promote development and structural adjustment in the island of Ireland, Greece, Portugal and the Objective 1 regions of Spain. Financial aid shall be provided in the form of direct grants and in the form of interest rebates on loans.
The total amount of grants provided will be 500 million ECU to be committed in equal tranches over the period 1993 to 1997 inclusive. The total amount of loans, which will be eligible for interest rebates over the period 1993-97 will be 1.5 billion ECU. Priority will be given to projects which place particular emphasis on the environment, on transport including infrastructure, education and training.
It is clearly a little early to formulate the "Government's plan to use funds" since the text of the agreement has not even been initialled and some important judicial issues remain to be finalised and the agreement will have to be ratified by the EC and EFTA member states in 1992 prior to entry into force on 1 January 1993.
