Vol. 444 No. 2
4 Mr. Yates asked the Minister for Transport, Energy and Communications the projects that will not be included or will not be completed within the National Development Plan, 1994 to 1999 arising from the reduction of EU Structural Funds; and if he will make a statement on the matter.
I refer to the statement by my colleague, the Minister of State at the Department of Finance to this House on 16 June last, when she stated that the EU Commission had approved in principle the Community Support Framework for Ireland for the period 1994-1999 and that the Operational Programmes which will implement the sectoral objectives of the National Development Plan are being finalised.
Until the operational programmes are finalised and agreed it will not be possible to give project details other than to say that the key elements of the National Development Plan relating to the transport, energy and communications sectors will be implemented and that the effect of a pro-rata adjustment in EU resources on aggregate expenditure in the sectors concerned over the lifetime of the CSF will be negligible.
Will the Minister clarify the future of the peat generating electricity station for the midlands? Is it proposed that it will go ahead? Will the Rhode and Ferbane stations in the Minister's constituency close? Regarding the shortfall of £1 billion is it not the case that an analysis of the peat generating station must be carried out and that the European Commission has not given it final approval?
There will not be EU aid for the Rhode and Ferbane power stations.
That is not the question.
I am glad the Deputy knows where they are. The Deputy is Opposition spokesman for Finance, however much on a part-time basis it may be, and should know that all projects over 25 million ECU which are subject to EU aid must undergo an independent evaluation. That is what is happening to the peat fired station. If I take from the Deputy's supplementary question that there is support for the station I welcome it. Despite his party's haphazard approach to the prospect of developing peat as part of our energy portfolio, I assure him it will go ahead.
I note the Minister is floundering on the peat station.
I am not. It will go ahead.
His comments outline the uncertainty in that regard.
It will go ahead. Does the Deputy understand English?
An orderly Question Time, please.
The Deputy is confused.
There is a great deal of uncertainty about the light rail project in Dublin. We have been told that not all three of the routes will go ahead. Will the Minister say which route will not go ahead and what the timescale is for the other two routes?
The Dublin Transportation Initiative does not envisage completion of its total policy requirements until 1999. Decisions about the light rail project will be made in due course by the Government and brought into the public domain at the relevant time. The final report will be to hand presently.
I have said on numerous occasions in the House that the impact of any adjustment of EU aid on project completion depends mainly on the dependence on EU funding in the particular sector. In the energy and telecommunications sectors, the national plan set out quite clearly that over 90 per cent of the funds required for investment over the lifetime of the Community Support Framework will be provided from sources other than the EU. In the case of postal services dependence on EU funding is marginally greater. In these circumstances it is naive to believe that the impact of any prorata asjustments in EU funding will be anything but trivial.
In the transport sector, 75 per cent of the investment envisaged in the airports will be from non-EU sources and the same point applies there. In the case of mainline rail, the vast bulk of funding is coming from the Cohesion Fund which has not been subject to any pro rata adjustment. Therefore, the impact of aid adjustments here is minimal.
The Minister seems to have difficulty in giving straight answers to questions. We were told by the Minister for Finance and the Minister of State that one of the three routes on LRT for Dublin would not go ahead. Which route?
With the Estimates and the allocation from the Structural Funds it will not be possible to complete the full light rail network envisaged by DTI over the period of the plan.
Which routes?
That is not to say it will not go ahead beyond the period of the plan since the DTI will be implemented beyond that period. It is a matter for the Government to decide which route will not go ahead. When we make that decision we will inform the Deputy.
