Pat the Cope Gallagher
Question:50 Mr. Gallagher (Donegal South-West) asked the Minister for Tourism and Trade the way in which the proposed cut in the EU peace fund for Border areas will affect developments in tourism in these areas. [18733/96]
Written Answers. - Border Region Tourism.
James Leonard
Question:60 Mr. Leonard asked the Minister for Tourism and Trade the attempts, if any, he has made to have tourist accommodation funded from the Delors Border programme in view of the urgent need in some areas. [18763/96]
I propose to take Questions Nos. 50 and 60 together.
Overall ministerial responsibility for the administration of the special programme for peace and reconciliation lies with the Minister for Finance. The House will be aware from the Adjournment debate last Thursday that the Minister for Finance is confident that the budgetary reduction proposed by the European Parliament's Committee on Budgets will be rejected at the November meeting of the Budget Council.
While there is no specific tourism programme in the special support programme for peace and reconciliation and my Department has a limited involvement in this area, tourism-related projects are eligible for funding under a number of measures. These include urban and village renewal and tourism using European Regional Development Fund Funds; village renewal and tourism with EAGGF funds, community-led development using European Regional Development Fund funds and co-operation between public bodies using European Regional Development Fund and ESF funds. In addition, the productive investment and industrial development measure includes a scheme for providing subsidised loans for which tourism projects are eligible.
In general terms, tourism related projects are eligible for up to 75 per cent grant assistance under the programme. Specifically in relation to tourism accommodation, I understand that assistance is available under the first and third measures mentioned above.
The peace programme operates by placing a particular emphasis on a bottom-up approach to development. Under the terms of the programme, the work of initiating and approving projects for grant assistance is carried out at local level by the county council-led task forces (in the case of the urban and rural regeneration measures) and by the specially appointed intermediary bodies, ADM Ltd. and the Combat Poverty Agency, in the case of the Community-led Development Measure. The role of my Department is limited to simply responding to requests from those bodies to confirm that projects under consideration for assistance conform with overall tourism policy. However, I understand that a significant proportion of the total grant assistance approved in 1996 by the county tasks forces is destined for tourism-related projects.
In relation to the interest subsidy scheme, I am advised by the Department of Finance, who are responsible for its implementation, that the scheme is now fully subscribed and that a significant number of the projects approved to date are in the tourism sector.