Ireland to contribute €500m per year to EU by 2013

Ireland is expected to contribute an estimated €500 million annually to the EU budget by 2013, as it moves from being a recipient…

Ireland is expected to contribute an estimated €500 million annually to the EU budget by 2013, as it moves from being a recipient of some €40 billion in support over the years to becoming a net annual contributor, the secretary general of the Department of Finance revealed yesterday.

David Doyle told a Dáil finance committee that Ireland received some €2 billion in support from the EU budget last year, but contributed some €1.5 billion.

This means the State was in receipt of some €500 million from the EU budget in 2007, compared with some €1.5 billion just five years ago.

The trend reflects the State's position as one of the wealthiest nations in an enlarged 27-member EU.

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According to Mr Doyle, by 2011, the amount which the State receives and contributes to the EU budget is expected to be roughly equal. However, by 2013 Ireland should be a net contributor of some €500 million per year.

All projected figures are estimates based on internal departmental figures.

In an indication of the extent to which the State's farmers continue to rely on EU funding, separate departmental figures show that more than 80 per cent of the money allocated from the EU budget last year related to agriculture projects.

As the debate about the Lisbon Treaty continues, Mr Doyle told the Public Accounts Committee that Ireland received approximately €60 billion in EU support since it joined the European Economic Community in 1973.

But during that period, it has also paid out some €20 billion, leaving net receipts of some €40 billion, Mr Doyle said.

By 2013, the State will have received approximately €72 billion and is expected to have paid out approximately €31 billion.

According to departmental figures provided to The Irish Times, Ireland received €47.1 million from the EU budget in 1973, and paid out €5.7 million that year.

Just 10 years later, Ireland was receiving €924 million in EU support, and paying out almost €235 million. By 1993, the figures stood at €2.8 billion in EU payments and €575 million in payments to the EU budget.

By 2003, receipts from the EU budget were €2.5 billion, while payments were some €1.2 billion.

Mr Doyle was responding to a question from Labour Party TD Tommy Broughan.

Commenting on the figures, Mr Doyle said that EU investment in Irish agriculture remains high.

He said that the contribution of the EU to the Irish economy had been "massive" and agreed "absolutely" with the suggestion that there were other non-cash benefits from Irish EU membership.

Separately, Comptroller and Auditor General John Purcell told the committee that 24 government departments and offices had entered into 195 contracts worth €44 million without recourse to competitive tendering in 2006.

Five defence contracts accounted for €19 million of the total, he said, before noting that the HSE was not required to make a return.

"I was satisfied that departments were not resorting to single tender action unreasonably . . . although in some cases this was rather informal," he said.