State almost lost out on €280m from EU

IRELAND came close to losing almost €300 million in EU Structural Funds in 2003 because of long delays by Government departments in drawing down the funds.

The unspent money were part of the 1994-1999 Structural Funds Programme, worth some €5.8 billion. However, by January 2003, over three years after the programme came to an end, four Government departments had yet to spend a total of €280 million that had been allotted to them.

The EU imposed a final deadline of March 31 for submitting completed documentation for the funds, having encountered delays by several member states. The EU Commission warned that any state that missed the final deadline would forego the funds.

Internal Department of Finance documents seen by the Irish Examiner show that the then Minister for Finance Charlie McCreevy was so concerned at the delays that he presented an aide memoire to Cabinet in January 2003 reminding ministers of the deadline.

Following the January Cabinet meeting, Mr McCreevy wrote a letter to all departments warning them that if they failed to meet the deadline, he would deduct the money from their individual departmental budget.

The letter complained that documentation had been either supplied late or had not met the required standards and, therefore, could not be signed off by Finance. Handwritten notes by Finance officials also show that some Government departments had yet to submit any relevant material.

One of the departments lagging behind was Finance itself, which was responsible for the European Regional Development Funds, which accounted for almost half of undrawn funds.

The other departments which had lagged behind were Enterprise, Trade and Employment; Agriculture and Food; and Communications, Marine and Natural Resources.

The Department of Finance spokesman told the Irish Examiner that the Government did manage to meet the EU Commission’s deadline of March 31.

However, he admitted that some departments had been slow in providing closing material and that was the reason €280m was outstanding in January 2003.

The spokesman said Ireland had not applied for an extension to the closing date.

“The commission recognised the difficulties and gave all members states until March 31, 2003,” he said.