Vol. 440 No. 8
8 Mr. Hogan asked the Minister for Transport, Energy and Communications the projects submitted by his Department as part of the National Development Plan, 1994-1999, which will not proceed in view of the reduction in finance secured from the European Structural and Cohesion Funds; and if he will make a statement on the matter.
16 Mr. Gilmore asked the Minister for Transport, Energy and Communications the total financial allocation under the National Development Plan, 1994-1999, as originally drafted for areas for which he has responsibility; the allocation following the overall cut of 8.5 per cent announced by the Government on 3 March 1994; the way in which this will be applied to the projects for which he has responsibility; and if he will make a statement on the matter.
I propose to take Questions Nos. 8 and 16 together.
The total allocation proposed for EU co-financing assistance in the National Development Plan, for the areas within my Department's responsibility, was approximately £650 million at 1993 prices. Over 18 per cent of this expenditure was submitted for co-financing assistance from the Cohesion Fund. This means that a significant proportion of the investment programme will not be affected by the pro rata adjustments put forward by Government in relation to the Structural Funds elements of the National Plan. Approximately £302 million of the aid allocation was to be provided directly from Structural Funds. Pro rata adjustments will result in a reduction as of now of less than 5 per cent of the original total allocation in the National Development Plan.
As regards projects, I refer to the statement by the Minister of Finance in the debate on a Private Member's motion on the National Development Plan on 1 March last, which gave details of the different planning and negotiating stages in the Structural Funds process, involving the National Plan, the Community Support Framework and the Operational Programmes. In many cases, the selection of individual projects for EU assistance is a further phase in the process which will follow the approval of the Operational Programmes. Since negotiations on the plan as a whole are ongoing, as are talks on the two Operational Programmes particular to my Department, it is not possible at this stage to give details at project level of likely Structural Fund assistance.
The Minister has sought to diminish the amount of money he will actually lose in respect of the National Development Plan. That plan, published last October, indicated many projects for his Department would be commenced and completed within its duration. Will the Minister confirm that those specific projects will go ahead, namely, a peat-fired power station in his constituency in the midlands, a light rail system for Dublin under the Dublin Transportation Initiative, the main line programme, the DART extension to Greystones and an extension of the natural gas grid to Shannon, these being but some examples of projects included in the plan? Will the Minister comment on them individually?
In relation to these projects in the National Development Plan which it would be our hope and intention to pursue, many sources of funding, not simply Structural Funding will be required to enable these projects to get on the road. In relation to the peat-fired power station, I refer the Deputy to the National Development Plan where it is said that, on the basis of its being economically feasible, we will proceed with that project. Part of that feasibility study covers European Union funding towards the capital costs and negotiations are ongoing in relation to that matter. I must await the outcome of those negotiations until then, I am not prepared to say what will happen other than to say that I am generally supportive of the project.
In relation to LRT, the extension of the DART and so on, these are all part of an integrated package resulting from the Dublin Transportation Initiative which examined initial investments over a six-year period and investments beyond that period, seeking to provide an integrated long-term solution to the ever increasing traffic congestion in this city. Some of those projects will attract European Union funding and are being negotiated at present. When those negotiations have been completed and the operational programmes published, we can discuss them in detail. Over the period of the plan there will be investment, and there will be investment beyond the duration of the plan, to complete the Dublin Transporatation Initiative. It is not envisaged that the whole transportation initiative will be completed within the period of the National Development Plan. It comprises a long term solution and entails a very detailed, considered and consultative process on the issues in relation to traffic congestion in this city. Action must be taken in a co-ordinated way, not merely in relation to light rail or the DART but in relation to busways, a whole integrated system. The Structural Funds negotiations will provide us with a major boost for public transport, not alone in this city but also on main line rail, over the ensuing six years against a background, particularly in relation to main line rail, of historic under-investment. It has been my determination throughout these negotiations to ensure that modern public transport modes are safeguarded, that we maximise the allocations so that we can phase in these projects. I cannot be more specific at this stage. Generally that is where we are in relation to those specific projects but there are many more.
The Minister engaged in a very robust defence of the allocation he was to receive, but obviously has failed. I suggest he will have to accept a substantial reduction of up to 15 per cent in the allocation he was due to receive during the six years of the plan. The fact that he is not in a position to give us categoric assurances that between 1994 and 1999 various projects specifically outlined in the plan will go ahead——
The Deputy must proceed by way of question.
Would the Minister agree that he generated great expectations politically on the various projects listed in the National Development Plan and that he should indicate when he will be in a position to name the projects to be completed under the plan over the next six years?
As I said in my earlier reply, and as the Taoiseach has outlined, we are finalising negotiations with the Commission in relation to Structural Funding. We will be the second member state to have completed that process — a piece of good news to report to the House. I suggest that Deputy Hogan is not totally au fait with the configuration of the funding available for the Department of Transport, Energy and Comunications under the plan. Over 18 per cent of expenditure was submitted for co-financing assistance from the Cohesion Fund. The Cohesion Fund is not affected by the changes that have had to be made to accommodate the £7.2 billion ceiling inserted until the review comes up in two years' time, so he should take that out of the equation. In terms of investment in our electricity and communications services, one will see that the amount of money in respect of which we have sought European Union co-financing is 5 per cent, 6 per cent or 7 per cent only of total capital requirements in expenditure terms——
We did not get it.
——over the period of the plan. It is not a case of its not having been got. It is a case of making sure that we use our commercial semi-State bodies, who have their resources and plans in place quite apart from Structural Funding, so that they can go ahead and ensure, for example, in areas like public transport, where there is not the same possibility of "own resources" allocation, that we attract maximum Cohesion Funding where the intervention rates are far higher, and Structural Funding. We are succeeding in that and those negotiations are coming to a conclusion.
