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Dáil Éireann debate -
Tuesday, 7 Jul 1992

Ceisteanna—Questions. Oral Answers. - EC Funding.

Austin Deasy

Question:

12 Mr. Deasy asked the Taoiseach if he will continue to threaten to use the veto at the European Council unless Ireland is granted the £6 billion proposed in Mr. Delors' original package.

The Deputy will recall from my statement in the House on Thursday last that we were successful at the Lisbon European Council meeting, despite considerable pressure, in achieving successes on some individual elements of the Delors II package.

First, the Cohesion Fund will now be established early in 1993, compared to the date contained in the Maastricht Treaty of before the end of 1993. This fund will assist environment and transport infrastructure projects in Ireland, Spain, Portugal and Greece at particularly higher rates of aid compared to that available under the present Structural Funds.

Second, the Lisbon Summit decided that the regressive nature of the current system of own resources will be corrected for the benefit of the Community's four poorest member states. This is another advance as the Maastricht Treaty simply stated that there would be an examination of this question; now we have a clear decision that the current system will be corrected, as I have indicated.

Third, the Lisbon Summit agreed that the cumulated effect of the Structural Funds and the Cohesion Fund will be such as to achieve an appropriate increase for the regions concerned in the four poorest member states to reflect the Maastricht commitments. This is yet a further advance on the Maastricht Treaty which simply referred to a review in 1992 of the appropriate size of the Structural Funds.

As I stressed in my statement on Thursday last, these achievements must be judged as a stage of the process towards the results that we are ultimately negotiating for at or before the Edinburgh Summit. The Deputy can rest assured that, and as we clearly demonstrated at Lisbon, we will ensure that our interests and objectives are promoted and defended vigorously and the best negotiating strategy will be used between now and during the Edinburgh Summit.

I asked a very specific question and got a very woolly answer.

Surprise, surprise.

Will we receive the £6 billion that was dangled like a carrot before the public during the Maastricht Treaty Referendum campaign? The Taoiseach is reported as having said that he would use the veto if we did not get the £6 billion in the Delors II package. Will the Taoiseach veto the membership of the applicant countries if we do not receive the £6 billion?

I am amazed that the Deputy who has many years of experience of negotiating in Brussels, calls the answers he receives, woolly answers. He knows that between now and the Edinburgh Summit discussions will take place behind the scenes and in various fora. We will continue to negotiate, in advance of the Edinburgh Summit if possible, a final position that will meet with the approval of other member states. As the Deputy knows, a negotiating strategy has to be applied and other member states must also give agreement on these matters. The Deputy can be assured that we know what our best strategy is and will use that strategy in whatever fora to achieve the desired results.

There is a new expression in this instance, "negotiating strategy". I would have liked a straight answer to a straight question. Obviously, I can take it from the Taoiseach's reply that the £6 billion is not guaranteed. There is no guarantee that if we do not get the £6 billion the Taoiseach will veto membership of other countries, as he said in Lisbon.

Thank God Deputy Deasy is not negotiating.

The Deputy is trying to take meanings out of words that are not there.

The Minister for Labour——

If the Deputy gives way to me I will answer the question, but if he continues to ask questions that is a different story.

I would like a straight answer.

Perhaps the Deputy will give way.

I have given way. I had to listen to snide remarks.

The Deputy knows as well as any Member that there is no such thing as guarantees in relation to any matter. The £6 billion was put forward as a proposal by the Commission to all member states as the Delors II package. A decision was made at the Lisbon Summit that until the Delors II package is agreed negotiations on enlargement cannot proceed. That is the position and I will adhere to it.

It is very indefinite.

It is not indefinite; it is quite clear.

The Taoiseach referred in his reply to a decision to change the method of funding of the Community to make it more progressive and said that there was a commitment to this at the Lisbon Summit. May I ask the Taoiseach exactly what changes he and his colleagues have in mind to the system of contributions to EC funds to make them more progressive?

Technical matters in relation to VAT, which will be of benefit to this country, are involved in correcting the regressive contributions in relation to the four cohesion states.

Let us come to finality on this matter.

May I ask the Taoiseach if reference was made in the discussions on the progressive nature of funding arrangements for the Community to the British rebate, a special rebate received by one member state? Is the Taoiseach in favour of the continuance of the British rebate?

We are having quite an extension of the subject matter of this question.

It is a separate question. Surely the Deputy does not expect me to go into every detail of negotiations that will take place between now and the Edinburgh Summit. That matter will be discussed. Of course the British will want to retain the rebate; Spain would love to change the position in terms of reducing their contribution and we would like other changes. Every country will have their priorities and it is a question of negotiating every aspect of the matter.

It looks as if we will not get the £6 billion and the Taoiseach will not use the veto.

That is not what I said. We are more than two-thirds of the way already.

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