Dáil Éireann debate -
Tuesday, 16 Dec 1997

Vol. 485 No. 2

Written Answers. - Power Stations.

John Bruton

Question:

103 Mr. J. Bruton asked the Minister for Public Enterprise if she will make a decision on whether to decommit funds of 26 MECU provisionally allocated for a peat power station under the Community Support Framework; the correspondence, if any, she has had with the European Commission regarding the matter; if she will publish this correspondence; the implications, if any, of these savings or decommitting of funds for potential beneficiaries of the expenditure; when the Community Support Framework monitoring committee will meet to discuss this matter in accordance with Parliamentary Question No. 48 of 19 November 1997; the criteria, if any, she will use in deciding whether these funds should be decommitted; and if she will make a statement on the matter. [22684/97]

Minister for Public Enterprise (Mrs. O'Rourke)

On 11 July 1997, the Commissioner for Regional Policy, Ms Monika Wulf-Mathies, wrote to me in relation to the provision of grant aid towards the new peat fired power station. The Commissioner confirmed that all expenditure incurred up to the end of 2001 will be eligible for co-financing under the Structural Funds.

I have agreed with the Commissioner on the need to ensure that there is close monitoring of the project with a full review at the end of 1998. By then, we will be in a far better position to gauge the situation with regard to the planning and environmental process which provide the greatest uncertainty with regard to the time scale. If at that stage it is clear that the station will not be completed by the end of 2001, the Commissioner and I are agreed that only expenditure certain to be spent by that date should be co-financed and that any residual element of the grant anticipated to be unspent by then should be reallocated.

As recently as 28 November last, I met with the Commissioner to discuss a number of projects, including the peat station, and welcomed her continuing support for the project. I remain confident that the time frame set down for the completion of the peat station during the latter half of 2001 is achievable and will enable the full £21 million to be drawn down.