I propose to take Questions Nos. 24 and 54 together.
Suggestions that funding under the Lomé Convention, provided through the European Development Fund, be incorporated in the EU general budget have been rejected by the Council. As recently as last December, the General Affairs Council concluded unanimously that it would be inappropriate to amend the provisions currently applicable to financing the European Development Fund. This decision reflected the Declaration adopted by the Intergovernmental Conference at the time of negotiating the Final Act of the Treaty on European Union. That Declaration, which is annexed to the Final Act states: "The Conference agrees that the European Development Fund will continue to be financed by national contributions in accordance with the current provisions."
The size of the 8th EDF, to cover the period 1995-2000, is under negotiation among the EU member states. In those negotiations, Ireland offered to increase its contribution from its current £48 million to £60 million, an increase of £12 million over the five year period in question. As regards the cost to Ireland of including the EDF in the general budget instead of the present system of national contributions, the best estimate, on the basis of the latest figures suggested by the Presidency, is that it would cost a further £10 million over the five years.
In view of the current position of the Council on budgetisation, and the implications of the additional costs of budgetisation for Ireland's other aid priorities, I believe that the current EDF arrangements offer the best hope of arriving at a satisfactory amount to meet the European Union's obligations to the developing countries which are parties to the Lomé Convention.
To date, it has not been possible to reach agreement on the size of the 8th EDF because some member states have sought to make significant reductions in their contributions. We will continue to work with the Presidency and other member states to arrive at a realistic and acceptable offer for the 8th EDF.