Mr. Wm. Rossasked the Secretary of State for Northern Ireland (1) under the conditions attached thereto, whether EEC grants can be used to repay existing loans, or to subsidise current harbour charges, or if they must be used for new capital expenditure;
(2) what are the conditions attached to the loans from EEC grants to Northern Ireland harbours;
(3) who decides how the EEC grants to Northern Ireland harbours are to be spent, and what instructions he has issued regarding the expenditure of this money.
§ Mr. Merlyn Rees,pursuant to his reply [Official Report, 2nd August 1976; Vol. 759W 916, c.566],gave the following information:
Member States have discretion about how contributions from the European Regional Development Fund towards industrial and infrastructure projects may be used. The Government have decided that contributions earned by infrastructure projects in Northern Ireland, such as the recent awards to harbour authorities, shall be used to reduce the capital borrowings of public bodies which have substantial infrastructure responsibilities. It has already been announced that harbour authorities are to receive nearly £2 million under this arrangement, and the Department of Commerce is in touch with the individual harbour authorities on the details of how the money should be used in each case. The general principle is that the money will be used to reduce borrowings arising from capital works and the Government hope that in consequence the harbour authorities will be ableto conaihe tntshrdul shrdl mm be able to contain the level of their charges and dues.