Vol. 482 No. 6
9 Mr. Yates asked the Minister for Public Enterprise if she has been assured by the relevant European Commissioners that the current study into the underground aspect of Luas will not result in jeopardising EU funds for the entire project as were previously agreed; and, if so, the assurances, if any, which have been given in this regard. [18719/9]
My officials have kept the EU Commission informed of all developments in relation to the project.
If the consultancy study concludes that an on-street light rail system is the preferred option and the application for a light railway order is approved on the basis proposed by CIE, construction could get under way early in 1999 and take about three years to finish. On the basis of this timetable it could be possible to complete the project by end 2001. Under EU Structural Funds regulations expenditure incurred up to end 2000 is eligible for grant assistance. The Commission has a discretion to allow an extension, normally for a further year. Such a decision would facilitate the full drawdown of EU funds in respect of the project, based on an end 2001 completion date.
If the consultancy study concludes that an underground section in the city centre is the preferred option, this will necessitate a redesign of CIE's current proposals and will defer completion of the project beyond 2001. The mid-term review of the Community Support Framework provides that a review of the EU funding allocated for the light rail project will take place next spring and it is anticipated that this will coincide with the completion of the underground study.
I have arranged a meeting with the Commissioner for Regional Policy and Cohesion, Monika Wulf-Mathies, on 28 November to discuss matters of mutual interest, including the Dublin light rail scheme.
Am I to take it that the Minister has not already had a discussion with the Commissioner for Regional Policy and Cohesion on this matter? As the monitoring committee of the Community Support Framework, which oversees expenditure across the whole Structural Fund spectrum, decided in July that "if in the spring of 1998 it cannot be proven that sufficient progress has been achieved to secure the likely completion of Luas within the existing agreed timescale, all or part of the funds will be decommitted and reallocated", and given that a public inquiry must be carried out after the consultancy study, has the Minister received assurances that the study will not put in jeopardy EU funding for Luas?
This is the first time the matter has been discussed. My officials have reported to me from their discussions and the EU officials have been kept fully informed of all developments in this project. The Commissioner will visit the North on 28 November and will travel to Dublin on the enterprise train via Dundalk. I will meet her that evening and we will have a full discussion on the matter. I am satisfied the money will be drawn down and we will have a light rail system for Dublin which will best suit its needs. As I continue to examine this matter I am convinced it is proper that a study be carried out of the underground option, which was not done heretofore by an objective group.
Is the Minister aware the monitoring committee said that funds would have to be recommitted unless the proposal goes ahead in the spring? Is she saying that if EU money is jeopardised, the Government will fund the project?
The Government is committed to the provision of a properly assessed light rail system. There is no prevarication on that issue. There is a perception that the money from Europe will be sufficient for a complete light rail system, but it will finance the Tallaght to Dublin line and Dublin city to Dundrum line to the tune of £114 million while the Exchequer will provide £106 million. EU funding of the project amounts to 65 per cent, but it is subject to a ceiling.
It is crucial.
Planning and design of the Ballymun line will be funded to the tune of £3.5 million by the Exchequer and £6.5 million by the EU while the Sandyford line will be funded solely by the Exchequer, to the tune of £14 million. It is useful to have an opportunity to clarify that point. I am aware of the report of the monitoring committee, but the Government is committed to a light rail system in Dublin. I cannot understand why a proper objective study was not carried out of the underground system. Rather than say afterwards that is what we should have done, we are looking at that option now. Regardless of the outcome of the consultancy study, we will engage in the project recommended by it.
Did the Minister discuss this matter with the Taoiseach? At recent meetings with various interest groups regarding traffic, it was outlined to me that the Taoiseach had major reservations about the level of disruption that will occur while Luas is being constructed and stated it will be intolerable during the lifetime of the Government. Can the Minister state unequivocally that, with or without EU money, post the deliberations on the feasibility study the Government will be committed to a light rail system from Tallaght and Dundrum to the city centre as a matter of priority?
I have discussed the matter with the Taoiseach and he is committed to a properly assessed light rail project.
