The decision to transfer 28 million ECU in EU funding from Measure 1 of the Food Sub-Programme was taken as part of the mid-term review of the Community Support Framework carried out last year following independent reviews of both the Framework and its component Operational Programmes.
The main factors taken into account in that decision were: the substantial underspend on measure 1 up to that time and, having regard to the prevailing level and flow of applications under it, the very real danger that the remaining funds might not be fully utilised; and the need to meet commitments and priorities under other measures for which funding had been exhausted.
The decision to transfer the funding has not been the subject of correspondence with the European Commission. It was, however, taken by the Community Support Framework Monitoring Committee on which both the European Commission and my Department are represented. That committee re-allocated the transferred funds to areas which will benefit the food industry, either directly or indirectly — namely, the industry research, technology and innovation measure and control of farmyard pollution.
The transfer of funds from Measure 1 of the Food Sub-Programme did not impinge on commitments already made under that measure. It did not result in the decommitment of funds or the abandonment of projects. With a view to ensuring that the time scale set out in the Community Support Framework for the drawdown of funds is met and in recognition of the time lag between approval and completion of capital projects, the remaining moneys under the measure will be committed shortly.
Overall progress under the Food Sub-Programme is satisfactory. The value-added prepared consumer foods and food ingredients sectors continue to show strong growth and contributed to a 4 per cent increase in the value of total exports in 1997. In the case of employment, it is estimated that, in the period 1994 to 1997, some 10,200 gross jobs were created, which is in excess of an annual average target of 2,000.
