I propose to answer Questions Nos. 14 and 42 together.
Deputies will already be aware of my position on certain administrative expenditures of the European Bank for Reconstruction and Development from my reply to a question from Deputy Bruton last week.
I am informed by the EBRD that, from April 1991 to the end of 1992, a total of £200 million sterling was spent on the bank itself; this includes staff costs, overheads, fitting out the headquarters and travel. I would mention that the UK Government has given the bank a subsidy of £40 million sterling to be spent on the headquarters.
I have attended all the annual meetings of the governors. The first was in Budapest in April 1992 and the second in London in April 1993. The inaugural meeting of the governors was attended by my predecessor in London in 1991.
The bank's authorised capital to ECU 10 billion of which Ireland accounts for 0.3 per cent. Our total liability to the bank is therefore ECU 30 million — or approximately 23 million Irish pounds. Only 30 per cent of the authorised capital needs to be paid in and this over a period of five years from 1991. Ireland is therefore required to pay in some ECU 9 million, or ECU 1.8 million a year — 1.4 million Irish pounds. To date we have contributed ECU 3.6 million — or about 2.8 million Irish pounds. Some of this is in promissory notes which have yet to be encashed by the bank according to a pre-agreed schedule.
I am asked to consider withholding any further subscription to the bank. Ireland's next capital contribution is due later this month. I do not propose to withhold this as I do not believe that this would be in the interest of the bank or the bank's countries of operation for whom the funds are intended.
The bank has a serious task in hands in the countries of Central and Eastern Europe and the former Soviet Union. It has already made significant progress in committing ECU 2 billion to projects involving total investment of some 8 billion ECU in the area. Actual disbursements to date have been slow and I would like to see them speeded up. I am informed that the board of directors is addressing this problem.
Deputies will be aware, from an earlier reply to the House, that the audit committee of the board of directors is conducting a comprehensive inquiry into the administrative expenditures of the bank. I expect to be informed of the outcome of this inquiry and I will fully support any appropriate action which may be called for as a result.