Vol. 482 No. 2
7 Mr. Deenihan asked the Minister for Arts, Heritage, Gaeltacht and the Islands if she will review the requirement that projects approved under the cultural development incentives scheme must be underwritten by a local authority or a State agency; and if she will make a statement on the matter. [17360/97]
Under the Operational Programme for Tourism 1994-99 the European Commission is entitled to seek a refund of European Regional Development Fund funding paid in respect of any project which ceases to function within a ten year period from the date of the payment of the final instalment of grant assistance. If such a situation were to arise, it would fall to the agency which approved the grant assistance to refund the project grant to the Commission.
As one of the main reasons for grant-assisted projects ceasing to function is lack of funding for operational costs, it has been standard practice since 1989 for all agencies providing grant assistance under the Operational Programme for Tourism to seek to require the promoters of projects which have been successful in securing grant assistance to secure from a local authority or other State agency operating in their area a written guarantee to underwrite any operational costs during the first ten years of operation. This procedure was adopted by my Department when the cultural development incentive scheme was introduced. I can see no good reason to review the seeking of such guarantees at this point.
Is the Minister aware this is posing difficulties for a number of local authorities? They are not willing to give this guarantee with the result a number of projects are being held up.
How many projects which have been approved under this scheme have received the guarantee demanded from a local authority? How many projects have been approved but the local authority has not as yet contacted the Department with this guarantee?
I am aware of the Deputy's concerns, because we had an opportunity to talk briefly about this matter before today's question.
The condition for proof of funding under the CDIS is considered to be one of the most important of all the conditions attaching to grant offers as full compliance will be strictly enforced.
I do not have the additional information which the Deputy sought on the number of projects which have looked for such funding but I will get that information for him.
As this presents a problem for a number of local authorities will the Minister review this open-ended requirement? Local authorities which are strapped for cash could find it difficult to meet any losses which would result from the operation of these facilities. Will the Minister review it in consultation with the European Commission to see if there is a form of wording which would be more acceptable to all local authorities?
As long as the European Commission is entitled to seek a refund of European Regional Development Fund funding paid in respect of any project which ceases to function within a ten year period, this condition must remain in place. It has remained in place for all of the projects to date, the reason being that we are talking about operational costs. If a local authority does not believe that by putting forward funds a project will continue, that in itself raises questions about the project involved.
I must be strict about this ruling. It has applied in every case to date. Because there is this ten year ruling with regard to the European Commission, I cannot see that this is likely to change in the near future.
