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 December, I took the opportunity to express my concern at the time being taken by the European Commission in considering the request. I also brought the matter to the attention of Commissioner Byrne 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 there is a good prospect of receiving a favourable decision from the European Commission next week. I am advised by the Western Development Commission that it has 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 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.