Vol. 436 No. 1
3 Mr. Yates asked the Minister for Finance the revisions that will be made to the National Development Plan, 1994-1999, if Ireland is unable to draw down £7.84 billion, in view of the fact that the EC Commission has only allocated £7.2 billion; and if he will alter the operational programmes before they commence so that they will be based on the actual funds allocated, rather than a desired draw down figure.
18 Mr. Deenihan asked the Minister for Finance if, in view of the tourist industry's potential for job creation, he will give an assurance that funding allocations to tourism, as set out in the National Development Plan, 1994-1999, will not be diminished by the reductions in available EC funding recently announced by the Commission.
26 Mr. Dukes asked the Minister for Finance the amount of the projected expenditure on agriculture under the National Development Plan 1994-1999 that is at risk following the EC Commission's determination that the level of funding available for Ireland is less than that announced by the Government in July 1993.
64 Mr. Connor asked the Minister for Finance the effects, if any, the shortfall in EC Structural Funds to Ireland resulting from the decision of the Commission on 21 October 1993, will have on the agriculture and food industry in the operation of the published National Development Plan 1994-1999.
65 Mr. Nealon asked the Minister for Finance the total amount of EC funding now available for National Development Plan projects in view of the total community aid allocation now available as distinct from the figure on which the original National Development Plan 1994-1999 was based; if consideration has been given to the specific projects which will be curtailed or dropped; and if he will make a statement on the matter.
66 Mr. Durkan asked the Minister for Finance the extent of curtailment of expenditure on transport, in view of the shortfall of £600 million in Structural Funds; and if he will make a statement on the matter.
86 Mr. Durkan asked the Minister for Finance the proposals, if any, he has to modify the public capital programmes, 1993-1999, to accommodate the £600 million shortfall of anticipated Structural Funds from Europe during the next five years; and if he will make a statement on the matter.
I propose to take Questions Nos. 3, 18, 26, 64, 65, 66 and 86 together.
While the allocation of EC aid under the recent EC Commission decision is less than the figure on which the National Development Plan was based it still would allow for a total EC contribution of between £7 billion and £8 billion. The allocation announced by the Commission on 21 October is indicative and is seen as a minimum figure and Commission sources have confirmed that there is every prospect that a higher figure can ultimately be achieved. The Government is confident it will prove possible to draw down the full £7.84 billion EC aid in the period up to 1999 and on this basis it is intended that the plan will be implemented in full over the period.
Does the Minister not consider that the one lesson to be learned from the Government's humiliating fiasco in respect of this entire episode is to be frank with the people?
Hear, hear.
Is it not the case that Commissioner Millan has been explicit that the figure agreed by the Commission is £7.2 billion? It would be much more honest of the Government to alter the plan to take account of the fact that it is £640 million less than provided for in it. Will the Minister not agree that the money which the EC Commission is working towards in respect of the Community Support Framework and the operational programmes is the lower and not the higher figure? Why must we continue with the pretence and charade that we are working on a draw down figure of which there is absolutely no guarantee?
The plan forms the basis of negotiations with the Commission leading to the Community Support Framework and those negotiations are ongoing. The correct course of action is for us to pursue our plan in full. We do not intend to sell this country short——
Do you not? The Government is doing that.
Ciúnas.
——in terms of our negotiations with Brussels. The Community Support Framework will represent the Community's response to the plan and will set out the agreed development priorities, the forms of assistance and the indicative financing plan. The operational programmes, which will set out in greater detail the development measures to be implemented in each sector, will be negotiated in parallel with the Community Support Framework.
Is the Minister aware of newspaper reports that the plan has run into very heavy weather with EC officials and that some of the projects, particularly the Tallaght hospital, have come under close scrutiny? Will she clarify, leaving aside the figures which we know are bogus, that the content of the plan will not be entirely acceptable?
I am happy to have this opportunity to inform the Dáil that there is absolutely no basis for those newspaper reports.
Is the Minister 100 per cent certain?
I met Commissioner Millan last weekend in Liége at an informal Council of Ministers' meeting, he went out of his way to tell me he had checked the validity of the newspaper reports and that there was no basis for them. Our plan is undergoing the normal scrutiny to which all plans are subjected and there is no basis for the story published in the Irish Independent last Thursday week.
This is the first time Commissioner Millan has been quoted in this House.
We should remember what Delors said, he used the big "L" word.
Our plan is being examined and negotiations are ongoing at official level. We have not run into any obstacles in the course of those negotiations and I do not anticipate we will. I am satisfied that, based on the quality of our plan and programmes, we will draw down not only the initial indicative figure allocated to us, but that at the mid-term review we will draw down further sums of money as we did on the last occasion when at the indicative allocation stage we were offered £2.8 billion but ultimately drew down £3.4 billion.
Inflation and the exchange rate accounted for the rest. What about the fourchette?
