asked the Minister for Agriculture the amount of money paid from FEOGA for milk processing in 1983; and the amount approved under FEOGA to date for milk processing which has not been taken up.
Ceisteanna—Questions. Oral Answers. - FEOGA Milk Subsidy.
1.
In 1983, £1.18 million was paid from FEOGA funds for milk processing projects. Of the £17.4 million allocated since 1973 to such projects, £8.9 million has not yet been taken up. One million pounds of this has been either renounced or cancelled due to a reduction in the proposed level of investment or to non-fulfilment of the conditions of the scheme. Many of these large scale investment projects take several years to complete and it is expected that the remaining funds will be taken up over the next few years.
Would the Minister agree that the fact that 50 per cent of the allocation has not been taken up is very serious? It was a cause for concern to our EEC Commissioner who indicated some time ago that only 27 per cent was taken up. Is it not time for the Department to examine the projects and tell the co-ops and milk producers to let them know if they are not availing of the funds so that other applicants for FEOGA aid could be considered?
It is not a matter for concern. The way it has worked out is fairly normal in business. Only £1 million of the £17 million was cancelled. Approximately half of the £17 million was taken up and of the remainder, £5.3 million, has been allocated since 1981. These schemes are long-term ones and generally take three or four years to reach fruition.
How does the Minister reconcile that with the Commissioner's statement which indicated we had a take-up of only 27 per cent while our EEC partners had upwards of an 80 per cent take-up? What is the Department's policy regarding milk processors availing of grant aid?
The Commissioner in question must have got his figures wrong. The figures I have given indicate there has been a 50 per cent take up so far and the bulk of the remainder is in the process of being taken up.
Most of the projects for FEOGA aid would have to be certified by the IDA. Would the Minister agree that the IDA might be slow to process the projects and this might be the reason for the grant aid not being taken up?
The IDA process the claims and encourage firms to carry out projects as quickly as possible and claim their grants from Brussels. Our take-up figure under the scheme was fairly low until 1980 but it has improved steadily since then.
Would the Minister agree——
I ask Deputies to avoid debating every question.
Is the Minister satisfied that the IDA are processing adequately?
Yes, I am. They encourage people to speed up their projects.
(Limerick West): Is there any way in which the Department could speed up the operation? What function have the Department in the processing of applications?
It is largely a matter for the commercial concerns involved. It is a commercial undertaking.