Vol. 485 No. 2
288 Mr. J. Bruton asked the Minister for Arts, Heritage, Gaeltacht and the Islands if her Department has received money under the community support framework; the underspendings of allocated funds, if any, there have been under the community support framework in the areas for which her Department is responsible; if a report giving details of the reasons for underspending has been prepared for the monitoring committee; and, if so, if she will publish this report. [22639/97]
Under the community support framework 1994-99 my Department is charged with the administration of European Regional Development Fund assisted programmes under subprogramme 1 of the Tourism Operational Programme, under the Operational Programme for Industry in respect of expenditure by Údarás na Gaeltachta and by the Irish Film Board and the Film Industry and under the Fisheries Operational Programme in respect of specific marine works in the Gaeltacht.
Under the mid-term review a reduction of 10 million ECU in European Regional Development Fund funds has been effected for subprogramme 1 of the OP for Tourism.
It has also been agreed as a result of the mid-term review that an appraisal of spending progress on projects approved under subprogramme 1 of the tourism OP will be completed by spring 1998 to enable the monitoring committee for the OP to review the necessity, if any, for reallocation of resources at that time. Arrangements are at present in train to engage external consultants to prepare a report to assist the monitoring committee in this regard.
It is not anticipated that there will be any understanding of the 1994-99 committee subprogramme framework moneys at present allocated to my Department.
289 Mr. J. Bruton asked the Minister for Arts, Heritage, Gaeltacht and the Islands the measures, if any, which are being taken to increase cost recovery or provide for more competition in the delivery of services in accordance with a decision taken in the context of the mid-term review of structural funds in relation to funds received by her Department, or bodies under the aegis of her Department, from the European Structural Funds; and, if so, the specific new measures, if any, which are being undertaken for this purpose. [22653/97]
The decision in question in the agreed CSF mid-term review package has only an indirect relevance for the delivery of services by my Department or by agencies under its aegis.
The Deputy can be assured, however, that in all relevant areas, my Department, as a matter of principle, is committed to an ongoing appraisal to focus on the possibilities of greater recourse to cost recovery and on the need for more competition in the delivery of services. This will apply in all areas of activity and not just those where EU funding is involved.
290 Mr. J. Bruton asked the Minister for Arts, Heritage, Gaeltacht and the Islands the steps, if any, she will take to improve the quality of cost benefit analyses in relation to funds received by her Department or by bodies under the aegis of her Department, under the community support framework in view of the criticisms of the quality of some cost benefit analysis arising during the mid-term review of the Structural Funds. [22669/97]
I assume that the Deputy is referring to the requirement under the regulations governing the CSF that major projects undergo a cost benefit analysis.
Article 16 (2) of the relevant EU Council Regulation defines major projects for infrastructure investments as "those the total cost of which taken into account in determining the amount of Community assistance is, as a general rule, greater than ECU 25 million". The National Museum of Ireland Collins Barracks project was the only project in sub programme one of the tourism operational programme 1994-99 where a cost benefit analysis was required to be submitted to the European Commission in accordance with that Article. There are a number of technical difficulties with cost benefit analyses, particularly where projects are non-commercial in nature and where many of the benefits are difficult to quantify in financial or economic terms. While I understand that the approach taken in the Collins Barracks project was generally satisfactory, there were concerns expressed about the treatment of the shadow labour pricing element in this cost benefit analysis and in the analyses of other projects not falling within my area of responsibility. The cost benefit analysis has been completed and the results were regarded as satisfactory in that the project has been accepted by the European Commission and the relevant funding has been approved.
