Dáil Éireann díospóireacht -
Thursday, 13 Feb 1997

Vol. 474 No. 8

Written Answers. - Structural Funds.

David Andrews

Ceist:

15 Mr. Andrews asked the Minister for Finance the progress, if any, which has been made in securing category one status for Ireland post 1999; and the ongoing support which would be forthcoming from the Exchequer in the event of Euro support ending. [2528/97]

Robert Molloy

Ceist:

19 Mr. Molloy asked the Minister for Finance the studies, if any, which have been undertaken on a regional basis in preparation for Ireland's claim for objective 1 status in respect of EU qualifying regions post 1999; and if he will make a statement on the matter. [1384/97]

Minister for Finance (Mr. Quinn)

I propose to take Questions Nos. 15 and 19 together.

The Government is monitoring all aspects of Ireland's position in relation to eligibility for Structural Funds after 1999 and, in this connection, the Government has given close attention to the results of the ESRI estimates of regional GDP for 1991 which were based on an ESRI regional accounts study commissioned by the CSO. These estimates were published in November 1996 and the main findings of the study were that six of the eight regions examined had per capita incomes below 75 per cent of the EU average in 1991. However, recent figures indicate that the position has changed significantly since then and that the number of regions below 75 per cent of the EU average would now be fewer.

In relation to the possible implications of this study for future structural funding, regional accounts are only one element in the situation and the Government is examining all the main aspects, including the use of other measures of income and prosperity, unemployment and the continuing development needs of the economy.

The current round of structural funding expires at the end of 1999. Negotiations on the future financing of the EU, in the form of the financial perspective, for the period 2000-2005, will commence when the Intergovernmental Conference concludes, probably in mid-1997. The detailed negotiations on the Structural Funds will follow and are likely to be protracted. The Government is developing its strategy for these negotiations to ensure the best possible outcome for Ireland. Ireland has made very good use of Structural Funds, a fact recognised throughout the Community. However, we still have some way to go before we attain the level of development of the more prosperous regions of the Community. We will in our negotiations with the Commission and the member states strive to ensure that Structural Funds continue to play an important part in achieving the economic and social cohesion which the Treaty requires and in consolidating the progress already achieved.

I am confident that Ireland will continue to benefit from Structural Funds after 1999. It is the Government's intention to ensure that Ireland will adjust to post-1999 with minimum budgetary dislocation. In this regard, I refer the Deputy to my Financial Statement on the occasion of the budget on 22 January this year where I identified the uncertainty regarding the precise level of EU structural and cohesion funding after the current financial perspective expires in 1999 as an important factor bearing on our future budgetary position.