Vol. 418 No. 2
10 Mr. Connor asked the Minister for Tourism and Communications if her attention has been drawn to the fact that all the funding under the EC structural funded operational programme for tourism has now been allocated and that there remains applications from hundreds of projects that have had to be refused; and if she intends to seek further funding from the Commission in order that these applications can be dealt with before the end of this year.
Bord Fáilte, and SFADCo in the case of the mid-west have been designated by the EC as the agencies responsible for evaluating, and approving applications for European Regional Development Fund grant aid under the operational programme for tourism.
I understand from the agencies that, while funds provided for eligible work by public or similar bodies are now almost fully committed for projects due for completion by end of 1993, applications are still being accepted for privately funded developments.
Further EC funding is unlikely to become available during the life of the current programme. Discussions have been initiated with the EC about Structural Funds for Ireland post-1993 and the question of further funding for tourism will be considered in the context of the Community Support Framework to be agreed for Ireland for the period 1994 to 1998.
Will the Minister agree that the operational programme for tourism negotiated by her predecessor has been a complete failure? There have been about 350 applications under the agri-tourism scheme but letters of approval have been issued to only 145 applicants; 122 are, supposedly, under consideration and about 25 have been approved. There are hundreds more applications which come to Bord Fáilte or SFADCo and which we do not know about. Incidentally, I do not have figures in relation to SFADCo.
Deputy Connor, you are supposed to look for information at Question Time.
With respect, a Leas-Cheann Comhairle, I might get more information if I imparted a little to the Minister, who should comment on the points I made.
The total investment under the operational programe for tourism will amount to £300 million at 1989 prices. Out of that, £118.4 million comes from the European Regional Development Fund and the rest — £28.5 million — comes from the ESF. I do not think that a Government, or an agency on their behalf, could possibly find the huge levels of money in excess of that, would have been necessary to cater for every single application. This is the first time we have had an operational programme for tourism. If we did not have it we would not have been able to afford from Exchequer funding the kind of developments aided under the operational programme. When it comes to an end in 1993 we are most hopeful that there will be a fresh operational programme for tourism. If and how that happens depends on the negotiations which will start at the end of this year, with the European Commission working towards an increase in the level of funding for tourism under the European Regional Development Fund.
Will the Minister agree that, to say the very least, her Department grossly under-estimated the response to this scheme, which was a great mistake? Will she give some hope to at least 25 applications with which I know Bord Fáilte are dealing and have approved? The amount involved is £2.245 million. Can she give any word of comfort or hope to those 25 applicants?
The question raised by the Deputy refers specifically to tourism. Unfortunately, I did not realise he intended to refer to agri-tourism, so I do not have the figures. I am not sure what figures he is quoting.
It is all in the operational programme.
In relation to the operational programme as it stands, Bord Fáilte and SFADCo are the agencies who first get the applications, assess them and make decisions in relation to them. The Department have no role in any of those areas, their only role being co-ordinating and monitoring the way in which the funds are spent and how quickly they are spent. Bord Fáilte and SFADCo make the decisions and, as I said, under the operational programme a sum of £300 million is available, £28.5 million from the ESF and the rest under the European Regional Development Fund.
Will the Minister tell the House the number of applications under the operational programme which have been approved but for which there may not be finance available this year? It could be next year before the money can be paid. Will she indicate whether Bord Fáilte are coming under increasing pressure to approve more and more projects which they do not have the finance to back up?
The Deputy's remarks cause me great concern because he seems to be telling me that Bord Fáilte and SFADCo — or one of them — sent out letters of approval to applicants where there is no money to meet that approval. That is a serious matter which I intend to raise with the chairman and chief executive of Bord Fáilte. It would not be normal business practice, in any instance, for a letter of approval of a grant to be sent to an applicant where there was no money to pay that grant. I will certainly investigate that matter.
In the context of what the Minister said a moment ago about her Department's role in monitoring and overseeing the application of these schemes, will she give consideration to the procedure in a number of cases where applicants received oral approval of a project but who found, when the paper work had all been gone through, that it had been turned down or declassified on the basis that there was no further funding for it? Will the Minister tighten that part of the scheme to prevent such misunderstandings which are most unfair to applicants? Will the Minister also look at the kind of investment appraisal techniques applied by Bord Fáilte to these cases, because I am sure other Deputies have, like myself, come across cases where business plans approved by banks — God knows the banks look for strong guarantees — have been turned down by the investment analysts of Bord Fáite without a reason for a different view being taken? Will the Minister undertake to look into those aspects of the scheme because it may be that projects which deserve funding are not getting it as a result of those deficiencies?
I will be glad to investigate the matters which the Deputy raised and I will come back to him.
In view of the fact that the Minister's predecessor said that the programme would be valid until the end of 1993 — which is not the case — what are the possibilities of the Minister going back to the Commission to seek further funding for these programmes?
I did not hear the Deputy properly but I take it he said that there would not be funding to the end of 1993. That is not correct.
On the Minister's own admission, the funding has all been committed.
Yes.
Where will the Minister secure funding between now and the end of 1993?
All the projects which have been approved——
Gabh mo leithscéal, a Aire agus Deputy Connor, this is not some sort of very puerile urban council, if there is such a thing.
That is not fair to urban councils, they act properly. I am a member of one and I know what goes on.
I was trying to discover how low I could go and——
We are reflecting on urban councils and that in itself is the message.
I can explain to Deputy Connor what I meant. I was not misleading the House. Projects have been approved for aid under the operational programme for tourism and they cannot be completed within a period of six months or one year; they are mostly in relation to projects over a number of years. That is why I said that the £300 million for the operational programme for tourism is spread over a five-year period for a whole range of different projects. It would be very easy for me to say that of course more money might be available or that I will see if more money is available. However, I am trying to be as frank and open as I can. I do not see the possibility of the European Community giving us extra funding under this operational programme, because the figures were laid down for five years and they are not open to change within that period. In the autumn we will begin to work with the various directors general of the Commission to ensure that we have a followup operational programme on tourism post-1993. My objective will be to look for increased funding for this programme.
The Minister would need to make a better job of it than was made the last time.
However, if the full allocation for one of the other operational programmes was not spent, which is most unlikely, there is the possibility that finance from that programme could be transferred to the operational programme for tourism.
