EU funding for light rail to Dundrum is agreed after report

THE Dublin light rail system, Luas, will be built out to, Dundrum on the southside in preference to northside Ballymun, it was confirmed here last night. However, there must be a firm commitment to provide a line to Ballymun in a later phase.

The EU Regional Affairs Commissioner, Mrs Monika Wulf Mathies, confirmed that the European Commission was now likely to approve funding. The Minister for Transport, Mr Lowry, welcomed the Commission's funding approval for the system as originally proposed.

But the Commissioner made it clear she would be seeking a solemn commitment from the Government to build the Ballymun line next - and to start planning it as soon as possible.

"The Commission values very highly the necessity for the Ballymun route", she said.

A preliminary report on the social aspects of the Luas project, jointly commissioned by the Government and Brussels, has found that the Dundrum line is economically more viable, technically easier and that work on it, can start sooner. The technology lessons from construction can be' put to use on the Ballymun line, the report from a British consultant, Mr Oscar Faber, suggests.

Ms Wulf Mathies, who will be in Ireland until Saturday, is to meet Mr Lowry on the issue tomorrow. She stressed that the report is provisional, but if it is confirmed and she can get a general agreement with Mr Lowry on the whole project, the Commission's £112 million funding of the Tallaght and Dundrum Luas lines can go ahead.

She thought that agreement will not be a problem as the Irish Government has already said it wants to build the Ballymun line".

Ms Wulf Mathies said the Commission will co fund the planning of the Ballymun line and also its construction fro 1999 to 2003, "if the eligibility situation allows it". That, however, is no small "if Ireland's entitlement to structural funding as one of the Union's poorer Objective regions in the post 1999 period is seriously in doubt, with the country's GDP per capita more than 15 per cent over the 75 per cent of EU average eligibility limit.

The debate on future eligibility rules will begin next year, steered by the regional affairs Commissioner herself. But with enlargement to eastern Europe in prospect and Ireland's hugely successful record, Ms Wulf Mathies was holding out no promises.

All she would say was that she believed there would be transitional arrangements. She pointed to the fact that Ireland will still receive more funding per capita than any other EU country for the next three years.

"But a transitional period for sure does not mean the financing of Ireland forever in order to avoid any kind of shocks ... Structural funding is not meant to be there forever. It is aimed to give help for self help, and when successful, its aim is to make itself unnecessary."

Speaking to Irish journalists, Ms Wulf Mathies also said she was hopeful that the cut in the Northern Ireland Peace and Reconciliation Fund would be restored next week by MEPs. The fund, she said, was needed more than ever in some areas the only contact between communities now was through the partnerships being set up to use the funding. "Reconciliation is happening silently," she said.

The European Parliament's Christian Democrat/Conservative group, the EPP, last night voted unanimously to restore the £80 million funding that was cut from the Northern peace fund by the budget committee. Mr Joe McCartin (FG) said the group was committed to the fund, but "given the misleading information circulating in Ireland it was decided to take a formal decision to clear up any misunderstanding."

It is understood there has been direct contact between the Taoiseach, Mr Bruton, and the group's leader, Mr Wilfred Martens. The Tanaiste, Mr Spring, is also believed to be planning direct discussions on the issue with the leader of the Socialist Group, Ms Pauline Green, and the President of the Parliament, Mr Klaus Haensch.