Eamon Gilmore (Dún Laoghaire, Labour)
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I propose to take Questions Nos. 13 and 35 together.

I continue to avail of all opportunities for discussions with members of the Northern Ireland Executive to advocate for expanded cross-border trade and all-island economic co-operation. These have included my recent meetings in Dublin and Belfast with the First Minister and deputy First Minister, one of which was the North South Ministerial Council (NSMC) Institutional meeting on 10 January, 2014, and with other members of the Northern Ireland Executive at the most recent NSMC Plenary meeting on 8 November 2013. The Narrow Water Bridge project was among the issues discussed during those meetings.

I believe that there is scope for increasing the levels of intra-island trade and economic activity including in border areas. This in turn can safeguard jobs, and encourage cross-border investments. My colleague Minister Richard Bruton has responsibility for the NSMC Trade and Business Sector and meets regularly with Minister Arlene Foster to oversee the work of InterTrade Ireland, the North South Implementation Body which promotes trade and business development on the island. InterTrade Ireland has a range of programmes designed to encourage trade and business growth across the island and to create an environment where it is easier to do cross-border business, and it is doing excellent work in this area.

In addition, the Department of Jobs, Enterprise and Innovation co-funds a total of 28 projects under the Enterprise Development theme of the Interreg IVA Programme (2009-2015), together with both the administration in Northern Ireland and the EU. These include projects addressing barriers to trade faced by micro-enterprises in border counties, assisting with market entry support, developing cross border linkages, business support mentoring, capacity building for SMEs, schemes for assisting specific enterprise sectors, the provision of two Enterprise Centres and the provision of a major Science Park.

There is also close engagement and cooperation between the relevant Enterprise Development bodies, Enterprise Ireland and the County Enterprise Boards, with their counterparts in Northern Ireland on a range of mutually beneficial issues.

At the NSMC Plenary meeting last November it was agreed that Ministers from both administrations would consider their priorities for further North/South co-operation in their respective areas with the focus of these discussions on where they could lead to economic recovery, job creation, the best use of public funds and the most effective delivery of services.

The shortfall in the funding for the Narrow Water Bridge project arose when construction tender prices came in at nearly double the estimated cost.

As the additional funding required to deliver the project had not been secured, on 15 November 2013 the Special EU Programmes Body (SEUPB) withdrew the letter of offer of €17.4 million in INTERREG IVA funding. The SEUPB has since been exploring options for the reallocation of the funding which had been earmarked for Narrow Water to other eligible projects capable of being delivered by December 2015 to ensure that the drawdown of funds from the European Commission is maximised and that no money is lost.

The priority for both Administrations, North and South, is to ensure that the significant amount of EU funding which has been withdrawn from the Narrow Water Bridge is secured for the benefit of the economies of the island. It is the Government’s intention to work together with colleagues in the Executive to that end and I confirmed this at my meeting with the First Minister and Deputy First Minister on 10 January 2014. I appreciate that there is disappointment in the Louth/Down border area but I assure you that my colleagues in Government and I remain conscious of the potential benefits of the Narrow Water Bridge project.

While the priority was not to lose the EU funding involved, I want to stress that at the Plenary meeting of the North South Ministerial Council Ministers remained supportive of the concept of the Narrow Water Bridge.