Dáil Éireann díospóireacht -
Tuesday, 28 Apr 1998

Vol. 490 No. 2

Written Answers - EU Funding.

Enda Kenny

Ceist:

45 Mr. Kenny asked the Minister for Finance if his attention has been drawn to the publication, The Week in Europe, dated 21 March 1998, published by the European Commission representation in Ireland, indicating that Objective One list status is likely to be cut in member states except Greece and that Ireland will be among the regions subject to the phasing out process for Objective One status; the Government's proposals, if any, to ensure that Ireland retains Objective One status; and his views on Objective One status on a regional basis. [8944/98]

Enda Kenny

Ceist:

46 Mr. Kenny asked the Minister for Finance the Government's proposals, if any, in relation to the continuation of Objective One status for Ireland in relation to EU Structural Funds; and if he will make a statement on the matter. [8945/98]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 45 and 46 together.

I am aware of the article in the European Commission's publication,The Week in Europe which the Deputy refers. Eligibility for full Objective One status is based on a region having a per capita GDP below 75 per cent of the EU average. As a single region for Structural Fund purposes, Ireland has always qualified for full Objective One Status. Ireland's per capita GDP has now surpassed 75 per cent of the EU average. Accordingly, it will not be possible for Ireland to retain full Objective One status in the next round.

The European Commission's proposals published last month provide that regions which are graduating from full Objective One status will continue to benefit from Objective One funding on a transitional basis. Over the seven years of the next round, the Commission proposes that Ireland moves gradually from Objective One status at the beginning of the next round to an Objective Two-type status at the end of the next round. The Commission's proposals also provide for Ireland to benefit from full access to the Cohesion Fund for at least the first four years of the next round.

The Commission's proposals provide the basis for negotiations which have commenced at Council level. These negotiations, including member states' shareout, will probably not be concluded until next year. In the negotiations, the Government will endeavour to secure the best outcome possible for Ireland which will help us to: first, address our infrastructural backlogs; second, address our continuing human resource problems, particularly the challenge of long-term unemployment; and third, meet the development needs of those parts of the country which are still lagging behind. In this overall context, the Government is exploring the option of sub-dividing the existing single region of Ireland, whereby some parts of the country might retain full Objective One status in the next round. Commission approval for such an option would be necessary. The Deputy will also appreciate that the Government's consideration of this issue must have regard to what is in the interests of the country as a whole.