asked the Minister for Finance if he will outline the intended use Ireland will make of the new loan facility which has been established by the European community to concentrate on helping investments in the energy and energy savings fields; by whom decisions will be made on this matter; and if aid will be available to the private sector from this fund.
Written Answers. - Energy Conservation.
106.
I take it that the Deputy is referring to the new Community borrowing and lending instrument which is also known as the new financing facility. Loans are available from this facility for infrastructure investments as well as energy investments.
The facility was established by the Council of Minister in late 1978 with an initial landing capacity of 1,000 million European Units of Account— equivalent to £670 million approximately. Almost half of this has been allocated. Ireland's share is over one-quarter of the amount allocated and is being used in about equal proportions for energy and infrastructure. It is intended to continue to avail fully of the facility.
Under the Council decision establishing the facility any interested party can apply for a loan. The EEC Commission decides on the eligibility of projects for financing and the European Investment Bank, which administers the facility, decides whether and on what terms to grant the loans.
There are no obstacles to loans to the private sector. However, the types of project eligible so far—energy and infrastructure investments—are normally carried out by the public sector. To date all loans throughout the Community have been for projects in the public sector.