Vol. 486 No. 1
55 Mr. Deenihan asked the Minister for Finance if he will raise the critical issue of the continuity of Objective 1 Status for Ireland under the next round of Structural Funds at the next ECOFIN meeting; and if he will make a statement on the matter. [2078/98]
In its Agenda 2000 proposals, the European Commission has proposed that transitional arrangements be put in place for regions which no longer meet the eligibility threshold for Objective 1 funding. The Government is aiming to negotiate a transition package which will ensure continued access to the Objective 1 funding envelope, albeit on a diminishing scale, during the next financing round for the whole country.
I can assure the Deputy that every appropriate opportunity will be used to advance Ireland's case in the negotiations ahead. These negotiations will be structured around many meetings of Councils, both General Affairs and ECOFIN, and will include many technical working groups.
I am sure the Minister will agree with me that some parts of Ireland did not benefit to the same extent as others under this round of structural funds. This has led to loss of population and competitiveness in those areas. Although structural funds have assisted many parts of the country, they have discriminated against others, particularly those counties mentioned in the NESC report. Surely the argument could be made that those regions which are still well under the average income per head of population in Europe should have a different status to those areas which are well ahead of the average income per head of population in Europe. Will the Minister clarify whether any argument is being made along those lines in view of the regional disparities which exist?
Negotiations in this area are at a very early stage and it is unlikely that they will be concluded before the middle of 1999. The Government's position is to try to get the best possible deal for Ireland. When President Santer met the Taoiseach in December, he indicated to him that it was his view that transitional arrangements would encompass the next full period from 1999 to 2005. As of now, the position of the Irish Government is to get the best possible deal for the country.
In July 1997, the Commission put forward its proposals regarding transitional arrangements and that is the document on which negotiations will be based. However, we are still a considerable time away from the finalisation of negotiations.
Would the proposed transitional arrangements equate with Objective 1 status or be close to it? Will any consideration be given to regional disparities in the negotiations leading up to the next round? Will the Minister comment on the report, for which a member of his own party, Gerry Collins, MEP was a rapporteur, which recommended some form of regionalisation within the country for the next round of structural funds?
Until now, the traditional position of the Irish Government has been to treat Ireland as a single region and that remains its position. The proposals put forward by the Commission, which include the transitional period, also treat Ireland as a single region.
I am aware of the report referred to by the Deputy. I am also aware of the disparities which exist in the country where some regions did much better than others in previous rounds. Those matters must be taken into consideration in negotiating a final package. However, as of now we have not got down to that type of detailed negotiation.
Does the Minister expect cohesion funds to continue into the next decade?
In relation to Deputy Deenihan's question on regional disparities, my understanding is that the Department of Agriculture and Food commissioned a report from the CSO last year which suggested that the per capita income of various regions was not actually quite as disparate as most people had assumed. I do not know if the Minister is aware of the report or if he intends to commission any further report from the CSO or otherwise to indicate whether regional disparities would, given the current criteria for Objective 1 status, allow some regions to continue to enjoy this status while others would not.
As I stated previously, we are at an early stage of negotiations with the Commission on these matters. I am sure everyone in this House wishes to secure the best possible deal for Ireland as a whole. I do not want to limit the Irish negotiating position as we move along. I am aware of the report referred to by the Deputy. I met a west of Ireland Deputy and experts from the region some months ago and they ensured I was familiar with the findings of the report. At this stage, the Government's intention is to negotiate for Ireland as a single region. It will probably be sometime in 1999 before these negotiations can be concluded.
Will cohesion funds be included in those negotiations?
Yes.
Having regard to Deputy Deenihan's considerations about depopulation in some counties, will the Minister give equal recognition to the large concentrations of endemic poverty in some of the country's main urban centres and ensure that such concerns will have equal weight in terms of preparing the Irish case?
The Taoiseach regularly brings that matter to my attention. Problems are not confined to particular regions. There are big conurbations throughout the country in which problems exist and we will bear that in mind. I do not want to give away our negotiating position on this matter. However, I would point out that under the current rules it would be extremely difficult to pick out little pockets here and there which are below the threshold. That is one reason the Government wishes to treat Ireland as a single region for funding purposes. To say that one area meets a criteria and another does not would present considerable difficulties.
That concludes the time allocated for questions.
