Dáil Éireann díospóireacht -
Tuesday, 3 Jul 2001

Vol. 540 No. 1

Written Answers. - EU Funding.

John McGuinness

Ceist:

153 Mr. McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment the reasons for the delay in paying funds already sanctioned to a project (details supplied) in County Kilkenny; if the funds will be paid forthwith with bank interest; and if she will make a statement on the matter. [20044/01]

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

The Kilkenny community action network's Youthstart project was approved for ESF funding on 22 January 1998 and carried out its activities until the end of March 2000. The project was allocated 467,477 ECU (approximately £350,608) from the European Social Fund, for which additional match funding of 25% was secured from FÁS, the South-Eastern Health Board, Ossory Youth Services, Kilkenny city vocational school and the private sector.

Delays from time to time in releasing ESF funds by the EU Commission have resulted in cash flow difficulties being encountered by some projects. The situation is also hindered by the method of retrospective verification and certification of ESF expenditure and regulations. The internal audit unit of my Department must also be satisfied that procedures have been complied with relating to closure of the entire programme before a final claim can be sent to the Commission. This process is currently under way.

The Department of Finance has agreed to allow my Department to establish a special Exchequer suspense account in order to pre-finance projects until procedures concerning final claim submission have been complied with to the satisfaction of the Commission and ESF moneys became available. As a result it proved possible to part pay, from Exchequer funds, claims from all eligible projects, including Kilkenny community action network. Of the original commitment of 467,477 ECU (£350,608) to this project, a final sum amounting to 26,498 (£20,868) which is equivalent to 50% of their final payment remains to be paid from the ESF.

The budgetary situation is being examined by my officials with a view to accessing additional funding in order to complete the process of project closure as quickly as possible. However, claims in respect of bank interest are not eligible under ESF eligibility rules and regulations.