ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)707
Vol.1981/0205

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)707final
Brussels,19thNovember1981
PROPOSAL FORACOUNCILREGULATION (EEC)
instituting aspecificactiononbehalfofhousingof
NorthernIrelandwithintheframeworkofanintegrated
operationinBelfast
(presentedbytheCommissiontotheCouncil)
v:<'r
yCV\ -...
>■
f ■
v..
COM(81)707final

STATEMENT OFGROUNDS
NorthernIrelandhasalwaysbeenconsidered,bothwithintheframeworkof
nationalregionalpolicyandatthelevelofCommunitystructuralpolicies,
asaperipheral regionexperiencing exceptionally seriousstructural problems.
ForthisreasonNorthernIrelandbenefitsinthecontextofallCommunitypoli­
ciesandfinancialinstruments fromtheprioritytreatment,fromthehigherrates
ofCommunityaidsandfromseveralspecificactionsintendedto,improve,inconjunc­
tionwithmeasuresundertaken bytheUnitedKingdom,theimpactofmeasuresdesigned
todealwiththeabovementionedproblemsintheirvariousfields.
TotalCommunitygrants(commitment )forstructural purposesonbehalfofNor­
thernIrelandfrom1973to1980inclusivearesome£214million.Itmaybe
estimatedthatthiswas1.2%ofregional GDPin1980(EECaverage1980:
some0.15%ofGDP).TheimportanceoftheCommunityeffortcanalsobe
illustrated bythetwofollowingtables:
I ■
GrantsinECU/head(1)
Commitments 1973'1974 1975 1976 1977 .1978 1979 1980
1
Northern
Ireland7.58.217.724.722.532.557.354.0
EEC 1.6-2.1.3.34.24.7 •5.79.711.6
(1)Takesnoaccountofspecificactionsdecidedin1960and1981*-I

~2"
Loans inECU/head
1973 1974 1975 1976;1977 1978 1979 1980
Northern
'Ireland- 3.2- 18.0- 50.2 53.0
EEC 3.7· 4.9 7.8 8.4 9.0 10.9 12.8 15.7
Theinitiative taken bytheCommission inproposing tatheUnited Kingdom Govern­
ment anintegrated operation inBelfast should beviewed within this general frame­
work .With this integrated operation inmind ,this Government hassent details tothe
i
Commission ofgroups oflinked investments which areimportant fordevelop !ng^fhe ur-
(
ban area ofBelfast .This isthemain urban industrial conurbation oftheregion ,
containing about onethird ofthetotal population .Also involved isthemain
port oftheregion .However ,the area suffers from theconsequences ofconcen­
tration ofindustrial sectors indecline andofanespecially marked urban
decline ."
Despite national andCommunity measures ,thesocial andeconomic situation of
theregion hasworsened continuously .TheEuropean Parliament ,initsresolution
of19June 1981 (1)adopted onthebasis ofdetailed reports onsocial and econo­
micproblems inNorthern Ireland ,hasstressed this worsening situation andhasasked
forfurther remedial measures .Thereports have stressed inparticular poverty andlow
» . . .
incomes ,housing conditions andhealth ofthepopulation ,unemployment andunder
employment andtheconditions governing energy supply inthis peripheral region .
TheParliament hasrecommended theCommission tostudy more particularly certain
points among which arethe "housing stock renewal andrenovation ofaccommodation
incertain areas (particularly Belfast )asamatter ofurgency ,since jobcreation
must belinked with improved living conditions ".
(1)O.J. n°C172of13.7.1981 /p.122

TheCommission considersthatthefieldinwhichimmediate Communityaction
couldproducetangibleresultsofanimprovedsituationoftheconditions
1ilI.
abovementionedishojsing,especiallyinBelfast.
ThehousingprobleminNorthernIrelandandparticularly inBelfastisof
considerable sizeandisarealbottleneck forthesocialandeconomic
development oftheregion.Moreover,publicexpenditure onhousingisa
prioritywithinoverallpublicexpenditure forstructural purposesinNor­
thernIreland.Theaimofthepublicauthorities istoimprovehousingcon­
ditions-currently14%ofdwellingsareinadequate-andtoreducethenumberof
familiesrequiringhousingurgentlyandwaitingt(?berehoused.Manyyearsof
continuedeffortwillbeneededtomeetrequirements .Theminimumnumberofnew
housesrequirediscalculatedatsome5,000dwellings ayear.Todate,theUnited
KingdomGovernment hasbeenunabletoprovidethemeansforaprogramme
ofthissize.In1980,only3,020newdwellingswerestartedforthewhole
region.
Thissituationcausesallthemoreconcernbecausetherei^virtuallynomarket
forsmalIdwellings sothatprivateinitiative cannotfi11\thegapdueto
lackofresourcesavailabletothepublicauthorities.domi|unityaidcould
thereforecontributetoattainingtherequiredlevel,providedthe
aidsuppliediseffectively convertedintoanincreasednumberofnew
dwellingsannually. '.,v
Theimportanceofhousingrequirements alsoemergesfromthedocument ,
presentedfortheBelfastintegratedoperation.Nearlyhalftheinvestments
envisagedareforhousing.Theseinvestments arenothowevercapableof
realisation withintheconsidered timescheduleindicatedinthedocument
(3years)withoutCommunityaid.

-4-
c-
«
Communityaidwouldtherefore havetangibleresultsinhasteninghousing
construction inNorthernIrelandwithbeneficial consequences onjobsandon
manysectorsofactivitylinkedtobuildingconstruction .Theaidisnecessary
tocarryouttheintegratedoperationinBelfastandwouldgreatlyfacilitate
therealisation ofothermeasuresforstructural purposesintheregion.
However,housingfinanceisnotusuallyeligibleforcontributions from
Communityfinancialinstruments,whethergrantsorloans.Communityaid
canonlybegrantedforhousingexceptionally andunderlimitedconditions
(withtheexceptionofECSCloansonbehalfofECSCsocialhousing)andin
mostcasesonlyforsocialhousinglinkedtoproductive investment .
Nevertheless ,thebudgetauthority haswrittenaspecialarticle(Article
541)intothebudgeturidwithinthatarticleline5411,whichisintended
forcreditstoenablefinancingofspecialmeasureswithintheframeworkof
integrated operations,jointlywithnationalorlocalauthorities ,-incases
wherethemeasuresinvolveddonotfallwithintheexistingframeworkof
Communityfinancialinstruments .
*
Theintegratedoperationsundertakenhithertoare^stillattheexperimental
stage.Thebudgetlineinquestionisonly"p.m."awaitingaformalproposal
bytheCommissiontotheCouncilinordertoestablishthenecessarylegal
/
basisfortheuseofcreditstobeallocated .tothisbudgetline.
However,inviewoftheexceptionally serioussocialandeconomicsituation
ι
fioNorthernIrelandandtogivetheintegratedoperationenv-isagedfullimpact,
theCommission hasproposedtotheCouncilintheletteramending .theinitial
draftgeneralbudgetoftheEuropeanCommunities for1982(1)toallocate
28million ECUtoline5411tofinance
(1)C0M(81)557final

-5-
aspecificactionforhousingmNorthernIrelandwithintheframeworkof
aBelfastintegratedoperation.Atthesametime,theCommission statedthat
» ■> . \
theCouncilwouldreceiveaformalproposalassoonaspossible.Theproposed
regulation attachedherewithcomplieswiththiscommitment .
TheCommissionintendsatalaterdatetomakeaproposaltotheCouncilwhich
willbealegalbasisvalidforallspecificactionstobecarriedoutwithin;
/theframeworkofintegratedoperations wherethesemeasuresareneededand
wheretheyarenotcoveredby(existingfinancialinstruments .
If'thespecificactionistobeeffectiveandsignificant,shouldbepluriannual
andlastforatleastaslongasthatforeseenforan-integratedoperation,namely
threeyears.IfthelevelofCommunityaidisatleast,28millionECUforthefirst
yearandkeptatthislevelforthreeyearsinrealterms(implyingthereby,asan
indication,some93millionECUofCommunityexpenditure )andifemployedsolely
tofinancenewhousing,theaidwouldcoverrathermorethanonethirdofthe
.numberofnewhousingcontemplated intheintegratedoperation.Potential
buildingratewilldependhoweveraswellonhousinglocation;whetherin
Belfastoroverthewholeregionalterritory ^Butactionmustbeprogressive :
Startingin1982andreturningthereafterannuallytothebudgetauthorityto
continuetheactiononthebasisofexperiencegainedovertheyearinprogress.

Theadditionalityofincreased Communityeffortinrelationtonational
expenditure mustbemeasuredinrelationtoeffectiveUnitedKingdomexpen­
ditureonnewhousingin1981.Thefigureofnationalexpenditure shouldnot
declineinrealvalueoverlateryearsoftheprogramme ,oratleastthe
relativesizeshouldbemaintainedwithintotalnationalexpenditure ,inNorthern
Irelandandthespecialprogrammeshouldshowthenumberofadditional new
housingtobebuiltannuallythankstoCommunityaidwithanestimatedtime
scheduleforbuildingandcosts.
Additionally wouldthereforeindicate,attheleast,themaintenance oftheUnited
sKingdomeffort.However,aco-financing rateof50%(seefinancialdetails)
wouldbeneededtoobtainthisresult.Moreover,tohastenimplementation ,
asystemofadvancepaymentsof80%shouldbeintroducedforeachannual
yinstalmentofforecastexpenditure inthespecialprogramme *•
TheproposalforaregulationnaturallyprovidesforannualreportsbytheUnited
Kingdomonprogressmadeincarryingoutthebuildingprogramme andfor
reportstobepresentedbytheCommissioninapplyingtheregulation,and*
theprovisionforinspection andon-the-spotchecks.
- 1 ., • ('
TheregulationisbasedonArticle235oftheEEC.Treatysothatprior
consultation oftheParliamentisrequired.TheCommission suggeststothe
CouncilthatanopinionshouldalsobesoughtfromtheEconomicandSocial

. !
.I
-i
i
' 1
■- i
?
ProposalforaCouncilRegulation (EEC)n°........781of
1981instituting aspecificactiononbehalfof
housinginNorthernIrelandwithintheframeworkofan-
integrated operationatBelfast
THECOUNCIL FOTHEEUROPEAN COMMUNITIES
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity
andinparticularArticle .235thereof,
7
Havingregard'totheproposaloftheCommission;
HavingregardtotheopinionoftheEuropeanParliament,
■HavingregardtotheopinionoftheEconomicandSocialCommittee,
iWhereasNorthernIrelandisoneoftheperipheralregions <jjftheCommunity
.experiencing particularlyseriousstructural problemsandhastherefore
?
prioritystatusinboththenationalandCommunitycontext *andbenefitsfrom
severaltypesofspecificactioninvariousfields, -
Whereas,despitetheeffortsoftheCommunity andtheUnitedKingdom-the
s - •
socialandeconomicsituationinthisregionhascontinuedtodeteriorate ;whereas
theEuropeanParliament,initsresolutionof19June1981(15,under­
linedthisdeterioration byhighlighting ,inthereportsonwhichthis
resolutionisbased,thepovertyandlowincomes,theconditionsofhousing
andhealthofthepopulation,particularly inBelfast,thelevelofunemploy-
»
•nentaridunder-employmervt andenergysupplyconditionsinthisregion;
(1)O.J.n°C172of13*7.1931,p,122

-2-
WhereastheCommission suggestedtotheUnitedKingdomGovernment thatitunder­
takesanintegratedoperationinBelfast;whereasthisGovernment,inviewofthis
integratedoperation,haspresentedtheCommission adocumentgivingdetails
ofgroupsofinvestments whichareimportantforthedevelopment ofthe
Belfasturbanarea;
Whereastheimplementation ofanintegratedoperationinBelfastshouldbeable,
withallthespecificactionsundertaken inNorthernIreland,tocontributeto
theeffortsneededprogressively toremedythissituationwithintheregion
providedthatalltheinvestments canbecarriedoutatanadequaterate;
Whereashoweveralmosthalftheexpenditure ontheseprojectsconcernhou­
sing;whereasthevolumeofannualnationalexpenditure onhousingin
NorthernIrelanddoesnotenableinvestment ataratewhichcorresponds to
thesizeofrequirements ,neitherintheregion,norinBelfast;whereas,
ontheotherhand,suchinvestments areonlyexceptionally Eligibleunder
existingCommunityfinancialinstruments;
Whereasitisinconsequence essentialtoinstitute aspecificactionon
behalfofhousinginNorthernIrelandwithintheframework theBelfast'
integratedoperation onthebasisofapluri-annual programmetobepresented
bytheUnitedKingdomGovernment,enablingtheassessmentoftheadditional
characteroftheCommunityaidinrelationtonationalexpenditure ;
WhereasthisactionisnecessaryfortheaimsoftheTreatytobeachieved
andwhereastheTreatyhasnotmadeprovisionforthenecessary meansof
actionrequiredtoachievetheseaims;
HASADOPTEDTHISREGULATION :./

Article 1
AspecificactiononbehalfofnewhousinginNorthernIrelandis
institutedwithintheframeworkofanintegrated operationatBelfast.
Thespecificactionshallbeimplemented accprdingtoapluri-annual . .,
programmetobepresentedbytheUnitedKingdom.'
Article2
Thespecificactionshallconsistofco-financing bytheCommunityintheconstruc­
tionofnewhousing.Theamountofthefinancialcontribution bytheCommunity ^
shallbedecidedaccordingtoannualinstalments ofnewhousingtobestarted
eachyearundertheprogramme. j
Withinthelimitofbudgetresourcesallocatedannuallyto$hisactionwithin
theframeworkofbudgetprocedure,themaximumamountofthiscontribution
shallbe50%offorecastconstruction costsincludinginfrastructure linked
closelythereto. '
Article3-
Theinformation containedintheprogrammeandin; ;'•>
itsannualrevisionshallenabletheCommissiontoensurethatCommunityaid
*isadditionaltonationalexpenditureallocatedtotheprogramme.The■,
grantofthisaidisconditional ontheassessment bytheCommission
ofthisadditional character. - '''
Theprogrammeshallindicate,iriparticular,thevolumeofinvestmentinnew
housingtobestartedduringtheyearandthepart-whichisthe
subjectofanapplicationforcoTfinancingbytheCommunity
andtheproportionofadditional newhousingforwhichbuildingismade
possiblebyCommunity ,'aid.Atthesametime,theprogrammeshallgiveestimates'
forthetwofollowingyears.Theseestimatesshallberevisedannuallyih

Octoberforthefollowingyear.Theprogrammeshallalsocontainanestimated
timescheduleforpaymentsandforworkonnewhousing.
Theoutlineofdatatobeincludedin.theprogrammeislaiddowninthe
Annextothisregulation .
Article4
. _____
TheCommission,actingonthebasisofinformation containedintheprogramme
-shalldecideatthebeginningof1982theamountofthecontribution andthe
conditions applicabletheretobyinstalment orpartofinstalmentofnew
housingtobestartedthatyear.Decisionsshallbetakenforfollowing
yearsafterupdatingoftheprogrammeinOctoberofthepreviousyear.
\
Article 5
AttherequestoftheUnitedKingdom,advancesmaybepaidupto80/.of.
I
theamountofthecontribution grantedforeachannualinstalment orpart
ofinstalment .Thebalanceofthecontribution shallbepaidoncompletterfr
ofthebuildingsplannedandonreceiptofastatementfromtheUnited
KingdomGovernment .'certifyingthatallpaymentsforthenewhousing 1
havebeenmade.Paymentofadvancesandtheoutstanding balance
shallbecreditedtotheagencyresponsible forimplementing thepro­
gramme.TheUnitedKingdomshallhoweverrepaytotheCommission amounts
whichithasnotbeenpossibletouseinaccordancewiththisregulationor.
theconditions governinggrantofthecontribution .
Article6
InOctoberof.,eachyear,beginningOctober1983,atthesametimeasthe
updatingoftheprogrammeforthefollowingyears,theUnited
KingdomshallsendtheCommission aprogressreportontheworks.This
reportshallbesenttotheCouncilandtheEuropeanParliament witha
relatedreportfromtheCommission onthemannerinwhichthisregulation
hasbeenapplied.

Article7
TheUnitedKingdomshallprovidetheCommissionwithalInecessarydetails
onproper-implementation ofthespecificactionand
shalltakeallmeasuresrequiredtofacilitateinspection andcheck,
whichtheCommission mayconsideruseful,moreparticularly withtheautho­
ritiesandagenciesresponsibleforimplementing theprogramme,including
on-the-spotchecks.
•v* Article8
•*' •• •'' * •-
InagreementwiththeCommission,theUnitedKingdomshelltakeallmeasures
neededtoprovideinformation onandtogivepublicityfofthespecific
action.N
Article9
Thespecificactionshalllastforthreeyearsfrom1January1982.Itmay
beprolongedbytheCouncilonaproposalfromtheCommission . '
Article10
Thisregulationshallenterintoforceonthedayfollowingitspublication
intheOfficialJournaloftheEuropeanCommunities .
Thisregulationshallbebindinginitsentiretyanddirectlyapplicablein
allMemberStates. -. 'v
FortheCouncil
ThePresident

ANNEX
OUTLINEOFDETAILSTOBEPROVIDEDINTHEPROGRAMME"NORTHERN IRELAND
HOUSING"(AlldetailsaretobesuppliedforNorthernIrelandasa
wholeandfortheurbanareaofBelfast).
I.Introduction
1.Generaldescription ofthehousingsituation:
-conditionofexistinghousing,
-newhousingrequirements ,
-requirements fortherestoration ofexistinghousing.
2.Relevantpolicyduringthelastthreeyearsbothwithregardto
quantityandfinance.
II..'Achievements duringfinancialyear1981/82
3.Extentofbudgetappropriations forhousingtobeshowninrelationto
totalpublicexpenditure inNorthernIreland,subdividedintoareas
ofmajorcost.Thisamountshouldalsobeshowninpercentages forthe
lastthreefinancialyears.
4.-Subdivision tobeshownofexpenditure onhousingfor1981/82according
tonatureofexpenditure iincurred;e.g.acquisitionofland,new
housingconstruction ,modernisation andimprovement,maintenance
andmanagement costs,loancharges,etc.
Quantitative dataonachievements (e.g.numberofnewdwellingsbuilt
orunderconstruction )tobeaddedifpossiblesIfthebudgetyearhas
notyetclosed,estimatesshouldbeaddedtoavailabledataandshould
haveregardtocostsandworkinprogress.

-2-
III.Programmeforthefinancialyear1982/83
5.Estimatesoffinancial meansavailable,withplannedexpensessubdivided
asforsectionII(4)above. -
.6.FundsrequestedfromtheCommunity andallocatedtonewhousing
construction tobestartedduringthefinancialyear.
7.Estimated numberofnewhousingtobestartedduringthefinancialyear.
y
8.Newhousingforwhichapplication hasbeenmadeforCommunity
assistance andthenumberofadditional newhousingforwhich
construction willbepossibleduetoCommunityaid.
9.Estimatedtimeschedulefornewhousingindicatedatpoints7and
8withestimatedtimescheduleforworkscompletion .
IV.Forecastsorestimatesforthetwofollowingfinancialyears.
1.Tobeindicatedasfaraspossibleaccordingtothesamesubdivisions
asinsectionIII. "
Theprogrammes aretoberevisedinOctober1982forthefinancialyear­
-1983/84aridinthesamemannerinfollowingyears.Progressreportson
completionorstateofprogrammeimplementation shouldfollowthesame
outlmeplan.

FINANCIAL STATEMENT
1.BUDGETHEADING
Line5411"Communitymeasureswithintheframeworkofintegratedoperations"
2.TITLEOFMEASURE
SpecificmeasureinfavourofhousinginNorthernIrelandwithintheframework
ofanintegratedoperationinBelfast. .
3.LEGALBASIS
Regulation (EEC)n°ofthe1Councilof..establishing aspecific
measureinfavourofhousinginNorthernIrelandwithintheframeworkofan
integratedoperationinBelfast.
4.AIMSOFTHEMEASURE
4.1\.Generalaimofthemeasure:
Thefinancing,togetherwithnationalorlocalauthorities,ofameasureout­
sidethenormalfieldofapplication oftheCommunity'sexistingfinancial *
instruments,whichhasasitsaimtheestablishment ofanintegratedoperationin
*Belfastwhichwillhavethenecessaryimpactt6contribute inassigni­
ficantawayaspossibletotheprogressive solutionofthesocio-economic
problemsofNorthernIreland.
4.2.Specificaim:
Participation intheconstruction ofnewdwellingstothebenefitofthe
wholepopulation .

5.JUSTIFICATION OFTHE MEASURE
*5.1 .Thehousing sector isrecognized asbeing oneofthemost deficient in
Northern Ireland andnotably inBelfast ;seetheEuropean Parliament 's
resolution of19th June 1981 "onCommunity Regional Policy andNorthern -
Ireland "andParagraph 10 I)ofthis resolution which states :
'...housing stock renewal andrenovation ofaccommodation incertain areas
(particularly Belfast )asamatter ofurgency ,since jobcreation must be^
linked with improved living conditions.'
5.2 .Action attheCommunity level isjustified owing totheworsening ofthe -
relative situation ofNorthern Ireland intheCommunity .This measure should ,
enable the rhythm ofdwellings construction tobe accelerated ,something that
would not happen without Community aid .
6.FINANCIAL IMPLICATIONS forthemeasure concerning intervention appropriations
6.1 .Total cost fortheCommunity from 1982 to1984 Japproximately 93million ECU
allowing foraverage monetary depreciation of10 ayear intheEuropean
'Community .
6.2.Financing thecosts ofconstruction uptoamaximum rat^of50%.
(seeArticle 2oftheproposal for aregulation )
6.3 .5year balanc# sheet ofthenecessary credits :
Mio ECU
CommitmentsPayments ■
*Î'1982 1983 1984 ■V1985 Further financial
years
1982 28 22.4 ,.-· ·■ 5.6- -
1983 31- 24.8- · 6.2 .-
1984 34- ■■- 27.2- 6.8
Total 93 22.4 24.8 32.8 6.2 6.8

3
6.4 .Method ofcalculation :
•»* '
S
a)Onthebasis ofanaverage cost of£20000perdwelling thetotal
28million ECU corresponds toapproximately 750 newdwellings ,,half the
number ofnew dwellings begun inBelfast in1?80 „The rate ofCommunity
aiddepends onthe actual possibilities fornewconstruction each year and
variations incost .Itshould befixed soastoabtain the maximum addi­
tional effect ,taking into account thevolume ofnational expenditure .A
rate that canrise toamaximum of50%.for apart oftheprogramme offers
themargin needed toobtain this result .
b)Total cost ofCommunity intervention over 3years attoday 'sprices :
84million ECU,28million ECU peryear .
c)Total cost ofCommunity intervention taking into account onaverage
+10%monetary depreciation peryear .
1982 : 28million ECU
1983 :« 31million ECU
1984 :34million ECU ,
Total : 93million ECU
d)Article 5oftheproposal ,for aregulation provides forthepayment ofadvances
of80%ofthe aid committed foreach annual instalment .The balance of
20%istobepaid after completion ofbuilding ,that istosaytwoyears
later .
/
7.FINANCING OFTHE EXPENDITURE
Credits beincluded inthefuture budgets starting from the1982 financial
year .
/
.8.PLANNED METHOD OFCONTROL
8.1 .Inaddition tothenormal internal andexternal control ,anannual report
isplanned concerning theprogress ofworks ,tobetransmitted bythe
Commission tothe Council andParliament (Article 6oftheproposal of
regulation ).

-4-
8*2.Theprevisions concerning ,thepluri-annual housingprogramme ,,whichwill
serveasthebasisofthismeasure(firstArticleoftheproposalof'regu­
lation)aretoberevisedeachyearforthefollowingyear(ibidem
Article3>2ndsub-paragraph )„ -
ThegrantingofaidissubjecttotheadditipnslityofCommunityaidbeing
.verified,onthebasisoftheindications containedintheabovementionec
programme (ibidemArticle4,firstsubparagraph )