Mr. John D. TaylorTo ask the Secretary of State for Northern Ireland what funding has been allocated to the cohesion fund within the context of the agreement between the European Community and EFTA countries; when it becomes operational; how many applications for support from the cohesion fund have been submitted from Northern Ireland; and if he will make a statement.
§ Mr. MatesThe EC/EFTA treaty which was signed on 2 May and comes into force on 1 January 1993 will bring the EFTA countries into the Communities' single internal market. The treaty includes provision for a financial mechanism aimed to assist certain member states and less favoured regions to cope with the competitive pressures arising from the agreement and to contribute to the reduction of regional, social and economic disparity. The island of Ireland including Northern Ireland will benefit from this assistance.
Two types of financial assistance will be available under this mechanism in the form of interest rebates on loans and direct grants. The total volume of loans for which interest rebate will be available will be 1,500 million ecu. The total amount of grant available will be 500 million ecu.
The assistance will be disbursed through the European investment bank and particular emphasis will be placed on the environment, transport, education and training. The allocation of the assistance between member states will be decided by the Community.
When financial allocations are known suitable projects will be submitted.