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EU Funding

Dáil Éireann Debate, Thursday - 22 March 2018

Thursday, 22 March 2018

Questions (12)

Pearse Doherty

Question:

12. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the Structural Funds Ireland went without or had delayed as a result of the failure to have in place the information technology structure (details supplied) necessary to fulfil EU obligations; and if he will make a statement on the matter. [13220/18]

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Written answers

Ireland has been allocated €1.2 billion (in current prices) in Structural Funds for the period 2014 - 2020,  which involves the European Regional Development Fund (ERDF) and the European Social Fund (ESF). This is comprised of:

- €411 million for the two ERDF co-funded Regional Programmes, under the aegis of my Department, and delivered through the Southern Regional Assembly and the Northern and Western Regional Assembly.

- €169 million for European Territorial Co-operation programmes; the PEACE Programme, the Ireland/Northern-Ireland/Scotland Programme, the Ireland/Wales Programme; and the Northern Periphery and Arctic, North West Europe and Atlantic Area trans-national programmes.

- €545 million for ESF co-funded programmes, and an additional €68 million provided for the Youth Employment Initiative (YEI) which is the responsibility of the Department of Education and Skills. 

It is an EU regulatory requirement of the 2014 - 2020 round of Structural Fund that each Member State implements an ICT system, "e Cohesion", to control and monitor expenditure. The original procurement exercise in 2016 for such a system was unsuccessful, due to insufficient effective and genuine competition and due to the fact that the only valid bid was significantly in excess of the Budget set for the solution. 

It was agreed with the EU Commission - specifically in order to safeguard Ireland's structural fund allocation - that the ICT system in use for the 2007 - 2013 round of funding, with minimal modifications, could be used for initial claims. This was on the understanding that the more comprehensive e Cohesion system was being developed. 

The agreed "Contingency ICT System" went live in May 2017. It has been successfully used for claims by ERDF and the European Maritime and Fisheries Fund (EMFF).

Following a second, successful procurement a contract for e Cohesion was signed in April 2017. Phase One went live on 25 August 2017, Phase Two on 1 December 2017  and the final Phase is expected to be live before the end of March. The new e Cohesion system has already been successfully used by the Fund for European Aid to the most Deprived (FEAD) for a claim in December 2017.

With regard to the Deputy's question on drawdown I would like to reassure him that we have not lost any EU funding.  He will be aware that most programmes are funded up front by the Exchequer and EU funding is claimed in arrears, as set out in the respective regulations.

In relation to ERDF receipts, my Department have claimed €32.2m to date, in addition to €23.5m we have been paid in advances.  Furthermore, it expects to claim in the region of €75m by the end of this year.

In respect of the ESF and YEI, the EU Regulations allow for the  2014/2015 allocations to be claimed by the end of 2018. Preparations are underway by the Department of Education and Skills for the submission of a first payment application to the Commission in Q3 of 2018. The ESF authorities will ensure that sufficient payment applications are submitted to fully drawdown  €127.7m by the end 2018 deadline.

The Deputy should be aware that the European Territorial Co-operation Programmes, including the north/south programmes, are subject to separate administrative arrangements on a cross border basis and are not covered by e Cohesion.

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