Vol. 424 No. 10
14 Mr. Connaughton asked the Minister for Finance the plans, if any, the Government have to use funds which are being provided by the EFTA countries to help peripheral regions in the EC to meet the challenge of free trade; the total amount of such funds Ireland will receive; if projects have been earmarked for such funding; and if he will make a statement on the matter.
The European Economic Area Agreement (EEA) makes specific provision for a Financial Mechanism to promote economic and social cohesion. A Cohesion Fund is to be set up to promote development and structural adjustment in the island of Ireland, Greece, Portugal and the Objective I Regions of Spain. Financial aid will 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 ECU 500 million to be committed over the period 1993 to 1997. The total amount of loans which will be eligible for interest rebates will be ECU 1.5 billion. Priority will be given to projects which place particular emphasis on the environment, transport, including infrastructure, education and training. Among projects submitted by private undertakings, special consideration will be given to small and medium-sized enterprises. The share-out of financial assistance between the eligible countries has not yet been decided. Proposals for the use of the new Financial Mechanism will be put to the Government at an early date.
The EFTA financial mechanism will be administered by the European Investment Bank. The administrative arrangements for implementation of this fund have not yet been settled.
