Written answers

Wednesday, 19 April 2023

Department of Public Expenditure and Reform

EU Funding

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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43. To ask the Minister for Public Expenditure and Reform the total investment that each NUT region will receive under the ERDF programme in both EU and Exchequer co-funding; and if he will make a statement on the matter. [18501/23]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Across the EU, the European Commission classifies regions as either being a “Less Developed Region”, a "Region in Transition” or a “More Developed Region”, based on their GDP per head of population relative to the EU27 Average. The Northern and Western Region is classified as a “Region in Transition”, and the other two regions in Ireland, the Southern region and the Eastern and Midlands region, are classified as "More Developed". Regions classified as "Regions in Transition" like the Northern and Western benefit from a higher co-financing rate, where the EU provides 60% of the funding for programmes, whilst More Developed regions get a co-financing rate of 40%.

Ireland was allocated €395,716,021 in ERDF funding. The formal notification of this allocation from the Commission was based on category of region only– details at NUTS II level were not provided. From this allocation, the Northern and Western region, Ireland’s only region in transition, was allocated €110,238,539. The Southern and the Eastern and Midland regions were allocated €285,477,482.

In recognition of the "Region in Transition" status of the Northern and Western region, I made a decision, in consultation with the Regional Assemblies, to transfer €20m in ERDF resources from the two "More Developed" regions to the Northern and Western region. My Department, in conjunction with the Regional Assemblies, engaged with the Commission on this matter and secured their agreement on this use of ERDF funds. This increased the allocation in the Northern and Western region to €130,238,539.

The funding available to Ireland in the period 2021-2027 under the two ERDF Programmes, including technical assistance, is set out in the table below.

ERDF Exchequer Total
SEM €265,477,482 €398,216,224 €663,693,706
NWRA €130,238,539 €86,825,693 €217,064,232
€395,716,021 €485,041,917 €880,757,938

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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44. To ask the Minister for Public Expenditure and Reform the rationale for designating the Southern Regional Assembly as the managing authority for the ERDF funding allocated for the eastern and midlands region; and if he will make a statement on the matter. [18502/23]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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NUTs is a classification system created by Eurostat to define territorial units of regional statistics across the European Union. For the 2014-2020 round, European Regional Development Fund (ERDF) allocations were based on two "NUTS 2" regions in Ireland, the Border Midlands and Western region, and the Southern and Eastern region, both of which had a corresponding Regional Assembly. These were involved in the drafting of the 2014-2020 ERDF Operational Programmes, and were the Managing Authorities for the two Programmes.

In 2014, the Local Government Act 2014 led to changes in administrative structures at a local level, and the creation of a third regional Assembly in 2015 called the Eastern and Midlands Regional Assembly (EMRA), in addition to the Northern and Western Regional Assembly (NWRA) and the Southern Regional Assembly (SRA).

While the 2021-2027 ERDF programmes were under development, both the Southern Region and the Eastern and Midlands Region were classified as "more developed" regions, and the Northern and Western region was classified as a “region in transition”.

In 2019, the Department had undertaken a "Review of Structures for the Management of European Regional Development", which looked at a range of options for the 2021-2027 programming round. A Regional Development Model was subsequently chosen which created two ERDF Programmes reflecting the development status of different regions in Ireland. The “region in transition” would be managed by the NWRA, and the two regions designated as 'more developed' would be managed by the SRA with input from the EMRA.

The EMRA was established in 2015, and has limited experience managing ERDF programmes, compared to the other two Regional Assemblies, who have managed EU programmes for over 20 years. Taking that into account, the opportunity to work with the SRA will enable the EMRA to gain knowledge in this area. Additionally, for the 2021 to 2027 period, the EMRA has been designated as Managing Authority for a separate fund - the Just Transition Fund.

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