Vol. 395 No. 3
116 Mr. J. Bruton asked the Minister for Industry and Commerce if his attention has been drawn to the fact that the report of the European Court of Auditors, paragraph 8/17 and 8/18, stated that 37 per cent of industrial regional development in Ireland which qualified for aid grants were abandoned and that the aid was fully decommitted during the period 1985 to 1987; and the controls which will be introduced to prevent this type of situation arising under the current plan.
I am aware of the report in question which refers to a sample survey, carried out by the European Court of Auditors, of industrial projects which were approved for ERDF support which found that 37 per cent of the projects were abandoned and the aid decommitted. The Government do not accept that the survey results represent a fair reflection of the true position. Of the total number of projects which were approved support for the years 1985 to 1987, 21 per cent either never commenced or ceased production. This represents 16.8 per cent of total financial commitments. In addition there was a further 5.1 per cent decommitment in respect of projects which proceeded but in respect of which the actual expenditure was less than anticipated. Most importantly, the ERDF moneys decommitted were not lost to Ireland as the proceeds of these decommitments were made available towards other projects.
It is inevitable that a certain proportion of industrial projects will either not proceed or not proceed as initially envisaged for sound commercial reasons. The new arrangements for Community assistance, under the Operational Programme for Industry 1989-1993, provide for financial support to be given towards expenditure under a total programme rather than for individual projects so that a situation where individual projects are decommitted should not arise. All the agencies under my Department, which were fully involved in the preparation of the operational programme, have in place systems and controls which will ensure that the subprogrammes are implemented and that the funds are effectively spent. In addition, there will be a monitoring committee representing Government Departments, the Commission of the European Communities, the social partners and the implementing agencies, chaired by my Department, which will have the role of monitoring the implementation of the operational programme. It has been agreed with the European Communities that as the implementation of the programme proceeds figures may be adjusted to reflect outturn and emerging trends within the discretion allowed under the Community support framework.
