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Dáil Éireann debate -
Tuesday, 25 Feb 1992

Vol. 416 No. 2

Written Answers. - EC Funding.

Tomás MacGiolla

Question:

18 Tomás Mac Giolla asked the Minister for Tourism, Transport and Communications if her Department have made a request to the EC for financial assistance for new ferries serving routes to and from Ireland; if she will outline the response received to such request; and if she will make a statement on the matter.

Bernard J. Durkan

Question:

37 Mr. Durkan asked the Minister for Tourism, Transport and Communications if she has satisfied herself that sufficient investment and improvement in road, rail, air and sea transport will be provided in the future to alleviate any trading difficulties that might arise from Ireland's position as an island nation within the European Community; and if she will make a statement on the matter.

Alan Shatter

Question:

44 Mr. Shatter asked the Minister for Tourism, Transport and Communications if she has received any reply from the EC Commission in relation to the question of granting financial assistance towards the provision of a sea bridge, such as finance for shipping, in the context of Ireland's peripherality in the Single European Market; and if she will make a statement on the matter.

I propose to take Questions Nos. 18, 37 and 44 together.

I would like to remind the House of the background to Ireland's application for EC funding for mobile assets as explained by my predecessor in response to a similar question on 24 October 1991.
Arising out of negotiations following submission of the National Development Plan 1989-1993 to the EC Commission on 22 March 1989, the Commission agreed that subject to the results of a feasibility study, investments in sea and air freight services might be considered.
The Access Transport Study, completed in July 1990 by KPMG Stokes Kennedy Crowley on behalf of the Irish Government and the EC Commission, found that while investment in internal transport facilities was necessary, it was not sufficient to cater for Ireland's unique peripherality problems. Substantial additional investment in access transport services was needed.
In the Operational Programme on Peripherality published in November 1990, the Irish Government and EC Commission undertook to examine the conclusions of the study and possibilities for co-financing by the Community of the access transport investment measures identified by the consultants.
Following detailed consideration of the consultants' findings by a high-level interdepartmental group, my predecessor made a formal application on behalf of the Government on 27 May 1991, for EC grant aid for mobile assets. Both my predecessor and the previous Minister for the Marine held formal meetings with the relevant Commissioners to advance our application and to seek a favourable decision.
Regrettably, a formal reply from the EC Commissioner for Regional Affairs received on 18 December last indicated that the Commission had rejected Ireland's application. My predecessor replied to the Commissioner on 13 January 1992 expressing profound disappointment at the Commission's negative reaction. He requested further discussion with the Commission in order to critically examine the basis of the Commission's decision and to seek to reverse it. These discussions will take place shortly.
More generally, major investments of close on £150 million are taking place over the period 1989 to 1993 on projects coming within my responsibility under the Operational Programme on Peripherality. These include investments in the State and regional airports, regional public rail transport, rail freight and the further development of Rosslare Harbour.
These investments, together with the development of our roads and other commercial seaports under the peripherality programme, are designed to reduce the impact on the economy of Ireland's peripheral location and, in particular, to reduce the cost of internal and access transport. The overall question of road infrastructure development within the peripherality programme is, of course, the responsibility of the Minister for the Environment.
Finally, I can assure the House of my determination to ensure that the impetus created by these investments will continue and will be enhanced under the next round of Structural Funds.
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