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Dáil Éireann debate -
Tuesday, 22 Feb 2000

Vol. 514 No. 6

Written Answers. - Western Investment Fund.

Paul Connaughton

Question:

58 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development if the EU has given its approval to the Western Development Commission to financially assist community projects, individuals and other groups who have had their applications evaluated by the commission over the past 12 months; the number of these groups awaiting the EU decision; and if he will make a statement on the matter. [4970/00]

The western investment fund is considered to constitute a form of State aid and it therefore requires the prior approval of the European Commission for its operation. My Department has been in correspondence and discussion with the European Commission since June of last year when a formal request for the appropriate approval was lodged. The Western Development Commission has given every support and assistance to my Department in submitting a case and in responding to requests for clarification.

When I met Commissioner Fischler in Brussels on 6 December, I took the opportunity to express my concern at the time being taken by the European Commission in considering the request for approval of the fund. I also brought the matter to the attention of Commissioner Byrne at that time and again recently following the receipt of further queries from the European Commission. These queries have already been responded to and the Government's unhappiness with the slow progress has been communicated to President Prodi's office. Every effort is being made to resolve the matter and to allow the western investment fund to come on stream.

I am advised by the Western Development Commission that it has some 100 inquiries on hand regarding possible assistance from the fund. Some of these would be fully detailed projects capable of being evaluated for aid purposes. I expect that any projects on hand will be fully considered and adjudicated on once the fund is operational.

The Government is fully committed to the western investment fund. Provision of £25 million has been made in the national development plan for this purpose and £5 million is included for it in the budget for my Department for the year 2000.
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