Dáil Éireann díospóireacht -
Tuesday, 23 Mar 1999

Vol. 502 No. 3

Written Answers. - EU Funding.

Bernard Allen

Ceist:

102 Mr. Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will immediately deal with the case of 45 HORIZON projects which have been told by her Department they will have to go on overdraft due to the delay in the payment of European funding through her Department; and if she will make a statement on the matter. [7656/99]

Bernard Allen

Ceist:

103 Mr. Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the situation where the organisations, such as regional development authorities, operating under the HORIZON programme are being told to work off overdrafts because of the delay in payment of funds on the programme. [7730/99]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 102 and 103 together.

Long delays are being experienced in recent months in receiving European Social Fund aid for a number of operational programmes from the European Commission. At the end of 1998, the European Commission had budgetary constraints and in January 1999 it began upgrading its computer payments facilities which has added to the delays in clearing payments.

In recent days, however, my Department has received some ESF aid in respect of applications made to the Commission in November-December 1998 for a number of operational programmes, including the EMPLOYMENT initiative, of which HORIZON is a strand. Advances due for 1998 in respect of EMPLOYMENT have now been received and will allow for payments to be made to the 11 HORIZON projects which are overdue this advance.

Application for the first advance for 1999, 50 per cent, was made to the Commission in respect of the EMPLOYMENT initiative in February following verification by projects that the 60 per cent threshold to enable the drawdown of such aid had been reached. This payment is awaited and, according to the Commission, is not likely to issue until April. I am acutely aware of the problems this is causing for project promoters who are endeavouring to deliver on their action plans without ESF advances. While my Department has made every effort to speed up the release of funds, the problem is one for the Commission and is outside my control.

Officials of my Department have been in continuous contact with promoters advising them of the position and, in many cases, have made contact with their banks explaining the reasons for the delays. However, while the delays in ESF receipts are a reality, there is also a certainty that the funds will be received and that specified amounts have been committed to individual projects. This allows promoters to seek facilities from their banks to enable project work to continue. While my Department has not told project promoters to do so, many in the current circumstances have availed of such facilities.

In endeavouring to respond to the needs of promoters in a number of EU programmes, including HORIZON, in which my Department has a particular responsibility, my officials have had discussions with the Department of Finance in recent times with regard to possible Exchequer pre-financing of delayed ESF receipts. These discussions are continuing. In the meantime, every pressure is being brought to bear on the Commission to release funds at an early date to allow projects to complete their activities.