Vol. 476 No. 6
2 Mr. McCreevy asked the Minister for Finance the plans, if any, he has to address the critical issues which will arise for Ireland in the future in view of the fact that the State will no longer be eligible, in part or full, for many existing EU schemes; and if he will make a statement on the matter. [7729/97]
The Deputy is making assertions about the outcome of negotiations which have not yet commenced. Apart from being misleading, such assertions are not helpful as the Government is preparing its approach for the forthcoming negotiations on the Structural Funds post-1999. As I stated on several occasions, the Government's objective will be to ensure that Ireland's interests are vigorously and effectively pursued and that the economic achievements which have led to the improvement in our relative position within the European Union are further maintained and continued.
The current round of Structural and Cohesion funding expires at the end of 1999. Negotiations on the future financing of the European Union will commence when the intergovernmental conference concludes, probably in mid 1997. Detailed negotiations on the Structural Funds will follow and are likely to be protracted.
The Government is developing its strategy for these negotiations to ensure the best possible outcome for Ireland, which has made very good use of Structural Funds, a fact recognised throughout the Community. However, we still have some way to go before we attain the level of development of the more prosperous regions of the Community. In our negotiations with the Commission and the member states we will strive to ensure that Structural Funds continue to play an important part in achieving the economic and social cohesion which the Treaty requires and in consolidating the progress already made.
As regards any change in the level of funding post 1999, I have already stated in reply to a question from Deputy Andrews on 13 February 1996 that it is the Government's intention to ensure that Ireland will adjust to the post-1999 situation with minimum budgetary dislocation.
I suppose we can whistle by the graveyard and say nothing will change in 1999. Any realistic assessment of the figures would indicate we will have to develop a strategy to make up the shortfall which will inevitably happen at the end of this round of funds for the 1993-99 programme. This was more or less signalled by the Taoiseach during a recent visit to Brussels when he said there would be an uphill fight. While I commend the Minister for not giving in at this stage we should be planning now for the future. Has a strategy been developed and has an assessment been made of what amount of Exchequer funding will be required to make up the shortfall to continue to fund many infrastructural projects which will be needed post-1999? The Minister is correct in saying we have not completed our development and will need more funding for a wide range of capital projects. No politician would predict that, when EU funds had been diminished, some projects will be abandoned. Has an assessment been made of the amount of Exchequer funding which the Irish tax-payer will have to put forward post-1999? That is the least the Administration should do at this stage.
I appreciate the spirit in which the Deputy posed the question and I understand and share some of his concerns. The mid-term review of the existing national plan — Structural and Cohesion Funds programme which expires in 1999 — is under review. A series of evaluation reports have been commissioned by the Commission. An overall evaluation, on behalf of the Commission, will take place and there will be discussions between ourselves and the Commission. That review process will take us into the months of July and possibly September. The final timetable is not completed as much depends on the actual progress. It will then set the balance for the final part of the period 1997-9.
The Commissioner with responsibility for the Cohesion and Structural Funds — the regional component — Monika Wulf-Mathies has said on numerous occasion that Ireland has been the golden performer in terms of the utilisation of existing funds, that the funds, particularly the Cohesion Funds, have achieved in Ireland the purpose for which they were intended at the Council in Edinburgh and there will be no sudden or abrupt change in the flow of funding. As to what precise change there will be in the overall funding, after 1999 — I am not being evasive — it is too early to say. There is an assumption that the existing structure and composition of the funds will continue. That assumption may not necessarily be valid. There is clarity regarding the total overall European Union budget which is set at own resources of 1.27 per cent within which Structural Funds in their entirety will command 0.46 per cent — subject to confirmation. Within those two fixed elements there is an enormous array of options. The Government is adopting a negotiating position which will unfold irrespective of which combination of parties forms the next Administration. We need to ensure we maximise our position. We are in the process of preparing the ground in a way which will impress the Deputy although he will appreciate I am not in a position to outline in any great detail what that might be. I assure the House we are doing good preparatory planning in relation to all these matters with the declared objective of ensuring Ireland maximises its entitlement and consequent drawdown of the funds we will still require to complete our development as an economy.
I agree with the Minister about putting the best case forward and I appreciate that much planning has gone into it. Will the Minister confirm if the figure for the total EU budget, as a percentage, has been agreed for the period 1999-2005? Has the Commission made any decision at this stage? If we know the total size of the pot we could start to pitch our demands at that end of the market?
I am 99.9 per cent sure it has been agreed but I do not wish to mislead the Deputy. I am sure about the overall budget figure of 1.27 per cent and the figure of 0.46 per cent but I will confirm the latter figure.
