asked the Minister for Finance the reason Ireland has not taken up grants available from the EC funds during the last two years; and if he will give details regarding the actual loss in money terms to the country as a whole, and in particular to the west.
Written Answers. - European Community Grants.
109.
It is assumed that the Deputy's question relates to the difference between commitments entered into by the Community in respect of Ireland and the payments received. The following tabular statement, which I propose to circulate in the Official Report, shows the commitments and the receipts for each of the main funds concerned, that is, the Regional Fund, the Social Fund, and the FEOGA guidance section.
In the case of each of the three funds for which figures are shown in the tabular statement, the amounts received are somewhat lower than the commitments entered into. The difference arises because the commitments relate to multi-annual programmes and projects, and payments are phased over the life of these operations according as expenditure is incurred. Accordingly a certain amount of payments will normally be outstanding.
In the case of the European Regional Development Fund, the table shows that, while total commitments amounted to IR£75.6 million in 1982, receipts in the same year totalled IR£64.7 million. The corresponding figures in 1983 were IR£74.3 million and IR£56.0 million, the latter figure being artificially low because a payment of £9.3 million proper to 1983 was not received until 5 January 1984. The balance of the commitments entered into in both years is expected to be fully drawn down by 1985. Thus, there is no question of any loss arising to the country. As regards projects in the west, receipts from the Regional Fund are not paid to individual projects but are used to increase the overall level of resources available for regional development through the public capital programme.
In the case of the European Social Fund, the gap between the commitments entered into and the payments received (IR£14.6 million in 1982 and IR£48.2 million in 1983) will, it is expected, be almost completely drawn down by June 1985. Again, there is no question of a loss of money. Applications for Social Fund assistance are made on the basis of nationwide programmes and are not distinguished by region. Accordingly no separate figures are available in respect of the west or any other individual region.
In relation to the FEOGA Guidance Section the table shows that commitments entered into in 1982 amounted to IR£68 million while receipts in that year totalled IR£60 million. The corresponding figures in 1983 were IR£67 million and IR£64 million. The balance of the commitments entered into in those years in respect of Exchequer-financed projects will be fully drawn down according as the work is completed. This satisfactory rate of drawdown applies to the country generally, including the west.
Following is the statement:
Ireland's commitments and receipts from certain Community funds*
(All figures are in IR£ million)
European Regional Development Fund
|
1982 |
1983 |
|
|
Quota Section |
||
|
Quota |
68.4 |
81.0 |
|
Commitments |
75.6 |
74.3 |
|
Receipts |
64.7 |
56.0¹ |
|
Non-Quota Section |
||
|
Commitments |
2.2 |
3.1 |
|
Receipts |
1.3 |
2.1 |
European Social Fund
|
1982 |
1983 |
|
|
Commitments |
85.5 |
123.5 |
|
Receipts |
70.9² |
75.3³ |
FEOGA Guidance Section
|
1982 |
1983 |
|
|
Commitments |
68.0 |
67.0 |
|
Receipts |
60.0 |
64.0 |
Notes
¹A payment of £9.3 million which was proper to 1983 was not received until 5 January 1984.
²The amount outstanding in respect of 1982 which has been claimed and not yet received is IR£8.7 million.
³Many claims for final instalments in respect of 1983 have not yet been paid. Applicants for monies in respect of 1983 have up to 18 months after the completion date of their programmes to apply for their final payment.
*Figures for the FEOGA Guarantee Section and for EMS-related interest subsidies are not included as no distinction is made in these cases between commitments and payments.
110.
asked the Minister for Finance if he will explain the reason EC grants for Ireland do not reach the level of grants paid to other EC member states.
I do not accept that EC grants for Ireland do not reach the level of grants paid to other EC member states as suggested by the Deputy. Apart from the FEOGA Guarantee Section, which finances the various agricultural price support mechanisms and from which Ireland is a major beneficiary, the main funds concerned are the Regional Fund, the Social Fund, and the FEOGA Guidance Section. Ireland's proportion of Community GDP is under 1 per cent. By comparison, our shares of the main EC funds are as follows:
—Since 1980 Ireland's quota under the European Regional Development Fund has been 5.94 per cent.
—In the case of the Social Fund the amount approved for Ireland represented 9.7 per cent of the total Fund in 1983 and is expected to be over 11 per cent in 1984.
—Ireland's share of grants under the FEOGA Guidance Section has averaged over 7 per cent of total commitments.