Executive pockets EU currency windfall, while groups go short
18 July 2012
EU funds to Northern Ireland are allocated in Euros, meaning that with currency fluctuations, especially with a falling Euro, there can be a windfall resulting from exchange rate changes. TUV Leader Jim Allister has established through an Assembly Question that last year the Stormont Executive pocketed a £1.4m profit from the currency fluctations, instead of making the extra funding available to groups that missed out on grant applications.
In a statement the North Antrim MLA said, "I know of many groups which failed to get funding, particularly from the Social Fund. One in particular, which has done sterling work,Traini ng Women's Network (TWN) was refused funding for vital province-wide training to help women into work - far more deserving than the £10m squandered on ex-prisoners groups. Yet, on the currency out-turn it emerges there was an extra £1.4m available, which instead of distributing to such a worthwhile group the Executive choose to appropriate it to itself - no doubt more spending money for spin or photographers or entertainment!
"EU funding is not intended as a subsidy to central government spending, but for identified projects. Thus, it is wrong that any of it, including that which flows from currency fluctuations, should be purloined by the Executive."
Below are the relevant Q & A:
Question:
To ask the Minister of Finance and Personnel, in relation to EU funding, to detail how much Departments gained from the currency fluctuation between Sterling and Euro in 2010/11; and what became of any such gains.
Answer:
In 2010/11 the total nett value of exchange rate gains on EU Structural Funds’ Programmes was £ 1,399,929.65. Nett gains are returned to the Centre as a Reduced Requirement.
