Rory O'Hanlon
Ceist:105 Dr. O'Hanlon asked the Minister for Finance the funding, if any, that will be made available by his Department under the EU peace initiative fund. [10449/96]
Written Answers. - EU Peace Fund.
The additional EU funding provided to support the Northern Ireland peace process covers the following broad themes:
urban and rural regeneration employment cross-Border development social inclusion productive investment and industrial development
The total EU funding available to the initiative is 300 million ECU over three years. At least 20 per cent of this funding will be available for the six Border counties. Funding over a further two year period will be subject to a review of the situation by the Commission.
Every effort has been made to ensure that, wherever possible, actions under the programme will be "bottom-up" and that local groups have the maximum input into the delivery of the programme. The bulk of the programme, therefore, is being delivered by intermediary bodies funded by way of global grants. Sub-programme 2 — Urban and Rural Development — will be delivered by way of county council-led task forces. The programme will therefore be distinctively different from any of the other programmes and has but the minimum involvement of Government Departments in the direct allocation of funding to beneficiaries. The Government is, of course, committed to providing any matching funding required and appropriate from the Exchequer.
The Department of Finance is responsible (jointly with the Department of Finance and Personnel, Northern Ireland) for the overall co-ordination and management of the programme. It is directly responsible for funding provided under the technical assistance to support the intermediary funding bodies and other actions supporting the overall delivery of the programme. Total public funding available to Ireland under this provision is 1.248 million ECU (IR£0.9984).
Measure five of the Special Support Programme for Peace and Reconciliation provides for subsidised loans to SMEs in Northern Ireland and the Border counties of Cavan, Monaghan, Donegal, Leitrim, Louth and Sligo. The fund is divided 80:20 between Northern Ireland and the Border counties. The scheme is expected to provide in the region of IR£30 million capital with a 4 per cent interest subsidy for up to five years to SMEs in the Border counties operating in the industrial, related services and tourism sectors.
2. The scheme is being administered by the European Investment Bank (EIB) operating through the following financial intermediaries: AIB, Bank of Ireland, Ulster Bank, National Irish Bank, ACC, ICC and Equity Bank.
Agents have also been appointed on each side of the Border to review applications for compliance with the criteria and priorities of the scheme, to establish monitoring and reporting systems etc. KPMG has been appointed as Agent for the border counties of Ireland until April 1997.
The scheme was negotiated by the Department of Finance (in view of its responsibility for Ireland's relations with the European Investment Bank) in close consultation with Enterprise and Employment. It is now envisaged that the Department of Enterprise and Employment will take responsibility for the scheme in view of its responsibility for the SME sector.
As of 15 May 1996, 86 applications had been received for a total interest subsidy of IR£3.4 million. These applications are currently under examination by KPMG but the likelihood is that the vast majority will be approved. This represents approximately 2/3 of the subsidy available and 64 per cent of applications are in the tourism sector, 33 per cent in industry and the remainder in industry related services. It is envisaged that the investment supported will result in 966 jobs being created/secured. If demand for the scheme continues as strongly as at present it is envisaged that the fund will be exhausted by the end of the summer.