'11% of EU funding for North going on red tape'

More than a tenth of the European funding programme for the North has been eaten up in administration, it was revealed today.

More than a tenth of the European funding programme for the North has been eaten up in administration, it was revealed today.

The red tape costs emerged during talks between MEPs and local decision-makers at Stormont.

Northern Ireland Brussels representative Jim Nicholson said 11% of the Peace 2 fund helping communities emerging from conflict had been devoted to bureaucracy.

“That is too high and the aim is to bring it down. The normal rate which would be acceptable would be 5% but because Peace 2 is a new type of programme there is a degree of flexibility,” the Ulster Unionist said.

“In the future you will find that the costs will be 6%.”

The cross-border Special EU Programmes Body (SEUPB) and 56 subsidiary groups distribute the money.

There has been €84m spent on administration out of a total of €944m to be spent by 2008, Mr Nicholson said. A total of 81% of the total fund has been used so far.

A successor programme, Peace 3, will run until 2013.

The money has helped groups from prisoners’ support enterprises to cross-border tourism development and police training north and south.

The 11-strong European delegation met Deputy First Minister Martin McGuinness at the Assembly and are also holding talks with the North/South Ministerial Council, SEUPB and partnerships before heading for more talks in Donegal.

The scrutiny committee is looking at the impact of cross-border activity supported by EU funds.

Members from new EU states such as Lithuania and Hungary were in Belfast and will have to be persuaded of the importance of the money to a relatively prosperous area like Northern Ireland.

Sinn Féin MEP Bairbre de Brun said the EU Commission taskforce announced by President Manuel Barroso on May 1 showed the importance of the province and cross-border links across Europe. She added other countries emerging from conflict would be hoping to learn lessons.

Mr McGuinness added: “We are determined to participate fully as an EU region and this morning was a good opportunity to tell the committee that Northern Ireland wants business success.

“With the help of the work of the EU Commission taskforce announced by President Barroso on May 1 and the funding available under our EU programmes for 2007/13, we want Northern Ireland to have a dynamic enterprising and innovative economy to which everyone in the region can contribute and from which all can benefit.”

Committee vice-chairman Jan Olbrycht said it was a useful gathering.

“This is to see how the new regulations for 2005 are working. Is it possible to translate the legislation into practical solutions, partnerships etc?

“These proposals are very interesting which can be transferred to other countries.”

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