EU report criticises take-up of international funds for NI

A surprisingly low level of take-up of international funds for Northern Ireland has been remarked on by the report from the EU Court of Auditors.

The report is critical of the operation of the International Fund for Ireland and the EU's own Peace and Reconciliation Programme.

It found considerable overlapping associated with the funds.

It also remarked on what it claimed was a surprisingly low level of take-up from both funds - just 37 per cent from the International Fund for Ireland and 51 per cent from the Peace and Reconciliation Programme.

The European Union contributes to the Ireland Fund while the Peace and Reconciliation Programme is entirely funded by the EU. The Ireland Fund's annual disbursements are estimated at between £10 million and £15 million.

The EU Peace and Reconciliation Programme, which was set up to promote cross-Border cooperation and assist the peace process, administers a budget of about £100 million a year.

Reporting to the EU Parliament yesterday, Mr Gianfranco Dell'alba, of the Parliament's budgetary control committee, said there should be improved monitoring of funding arrangements. He also said there should be better evaluation procedures and improved publicity for programmes backed by the Peace and Reconciliation Programme.

However, while he accepted the criticisms contained in the auditors report, Mr Dell'alba expressed support for the funds' action in redeveloping rundown areas and promoting job-creation schemes.

He also said the complicated arrangements in relation to the Peace and Reconciliation Programme stemmed from the need to consult a wide number of bodies from the two regions. As far as redeveloping industrial areas was concerned, the budgetary control committee would like to see a better flow of financial information coming from such projects. Delays with EU-funded job-creation schemes have hampered the effectiveness of the schemes, the committee noted.

The funds - particularly the EU Peace and Reconciliation Programme - were also defended by Mr John Hume MEP, who said they were making a huge difference in Border areas. Mr Hume said he could name a number of projects which had received funding under the EU programme and which would not otherwise have been able to become operational.

"This fund was set up when Jacques Delors came to me five years ago and asked what he could do to help the peace process. I suggested a special fund and the result is that £500 million has been made available," he said.

Mr Hume also questioned the figures in relation to the take-up of the funds. He believed a much larger proportion of funding had been applied for but had not yet been drawn down.