Vol. 474 No. 3
81 Mr. Barry asked the Minister for Finance Ireland's net income from the EU over each of the past five years; his views on the effects this money has had on stimulating our economy; and if he will make a statement on the matter. [3009/97]
Ireland's net income from the EU over each of the past five years is as follows: 1991, £1,853m; 1992, £1,604.6m; 1993, 1,791.8m; 1994, 1,335.9m; 1995, 1,480.2m; 1996, 1,436.0 (est).
Over the period 1989-93 Structural Fund receipts averaged 2.5 per cent of GNP, with about 4.2 billion ecu of Community funds confinancing a total spend of 9.5 billion ecu. The Community Support Framework is estimated to have raised GDP and GNP by 2.5 per cent and 3.5 per cent respectively, by the end of 1993. Employment levels were increased by 30,000 over the period. Over the longer term the ESRI have estimated that GNP would be about 1 per cent higher by the year 2000 as a result of the 1989-93 CSF which represents a real rate of return of 7-8 per cent.
Total CSF and Cohesion Fund expenditure will amount to 11.9 billion ecu over the period 1994-99, with Structural Funds and Cohesion Funds accounting for 6.9 billion ecu. The 1994-99 CSF, according to Commission estimates, will add about 1 per cent to annual average growth rates — GDP — in Ireland over the period, with Community assistance from Structural Funds and the Cohesion Fund accounting for half this growth. Overall growth for the period was forecast at over 4 per cent per annum. The Commission estimated that the CSF 1994-99 would contribute 0.4 per cent per annum to total employment, or at least 35,000 net jobs over the period. On the basis of progress to date, these projections are likely to be exceeded.
A mid-term review of the CSF, 1994-99, which is currently under way, will assess the CSF in terms of its impact, efficiency and effectiveness. The mid-term review will give an indication of the progress actually being achieved under the current round of funding and of the contribution which Structural Funds are making to the development of the Irish economy.
The other component of net income from the EU is inflows relating to agriculture. The dominant component of this — direct payments to farmers — accounted for an estimated for an estimated 42 per cent of farm incomes last year.
There is no available information on the precise impact of net income from the EU as a whole on the economy. However, while these flows have not determined our recent economic success, they have made a significant contribution to it.
