The Special EU Programmes Body, one of the six North/South Implementation bodies, would have a crucial role in ensuring two EU funding programmes worth €900 million (£708 million) were implemented effectively, the Minister for Finance, Mr McCreevy, said yesterday.

After the first meeting of the North/South Ministerial Council in Dublin, Mr McCreevy, said much of the negotiation and management of the new Peace II programme and the Interreg community initiative would come under the auspices of the implementation body.

He said EU funding should be used to build on the foundation of a more peaceful and stable environment which now prevailed in Northern Ireland.

Mr McCreevy said a minimum of €400 million had been earmarked for projects in the cross-Border area but he expected this would increase in the period to 2006.

At the North/South Ministerial Council meeting the Minister for Finance represented the Government, while Mr Mark Durkan, Minister of Finance and Personnel, and Mr Sam Foster, Minister for Environment, represented the Northern Ireland Executive.

Mr Durkan said the body would act as a focal point for promoting and monitoring the implementation of cross-Border co-operative actions across all structural fund projects.

Mr Foster said it was a historical day, very workmanlike and a day for building bricks and foundations. He said it was important that the body pursued all co-operative actions that were good for both North and South. In a communique all the ministers underlined the important contribution to peace, reconciliation, regional development and cross-Border co-operation made by EU programmes.

The Special EU Programmes Body is one of the six North/ South Implementation Bodies established on December 2nd, 1999. The body will have a full complement of 24 staff and begin the appointment process for a chief executive by October.

The body will be based in Belfast, with regional offices in Monaghan and Omagh.