No C 70/4 Official Journal of the European Communities 18. 3. 85 
Proposal for a Council Regulation amending Regulation (EEC) No 2619/80 instituting a 
specific Community regional development measure contributing to the improvement of the 
economic and social situation of the border areas of Ireland and Northern Ireland 
COM(84) 715 final 
(Submitted by the Commission to the Council on 21 December 1984) 
(85/C 70/03 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to Council Regulation (EEC) No 724/75 
of 18 March 1975 establishing a European Regional 
Development Fund(]), as last amended by Regulation 
(EEC) No 3325/80 (2), and in particular Article 13 (3) 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, 
Whereas Article 13 of Regulation (EEC) No 724/75 
provides, independently of the national allocations of 
resources fixed by Article 2 (3) (a) of that Regulation, 
for participation by the Fund in financing specific 
Community regional development measures; whereas the 
Council has stated its willingness to examine, within this 
framework, on a proposal from the Commission, any 
requests for aid relating to border problems in the most 
deserving regions of the Community submitted jointly by 
two or more Member States concerned; 
Whereas under the said Article 13, the Council adopted 
on 7 October 1980, Regulation (EEC) No 2619/80 (3), 
the measure instituted by that Regulation being 
hereinafter referred to as 'the specific measure'; 
Whereas, pursuant to that Regulation and in particular 
Article 3 thereof, the Commission has approved special 
programmes relating to certain border areas in Ireland, 
on the one hand, and Northern Ireland on the other, and 
has at the same time allocated appropriations to those 
programmes; 
(') OJ NoL 73, 21. 3. 1975, p. 1. 
(2) OJ No L 349, 23. 12. 1980, p. 10. 
(3) OJ No L 271, 15. 10. 1980, p. 28. Whereas the Member States concerned have provided the 
Commission with information on regional problems 
which might be the subject of a specific measure; 
whereas taking account of the extent of difficulties both 
economic and in the matter of employment, the specific 
measure in force should be extended to those zones 
particularly concerned by these problems and should be 
supplemented by new provisions; 
Whereas the encouragement of small and medium-sized 
undertakings (hereinafter referred to as 'SMUs') could be 
accelerated by allowing them better to adapt their 
production potential, in particular through investment 
aids, and by facilitating access to innovation and risk 
capital; 
Whereas economic promotion in the zones concerned 
should be further stimulated by especially active 
management of the public aids and services available, 
particularly those provided for under the special 
programme; whereas, to this end, there is a need to 
establish or extend services responsible for informing 
existing or potential undertakings of the availability of 
such aids and services and to help those undertakings to 
take advantage of them; 
Whereas the natural gas supply and consumption in some 
of these areas located in Ireland could, while enabling 
the economic development base of these areas to be 
reinforced, contribute to the realization of Community 
energy policy objectives by reducing dependence on 
oil, by increasing security of energy supply through 
diversification of energy resources, and by improving the 
balance of trade of the Member State concerned; 
Whereas, to this effect, necessary infrastructure 
operations should be provided for with a view to 
increasing the availability of natural gas through the 
development of transport and distribution networks and 
through feasibility studies, as well as a package of 
measures intended to stimulate the use of gas in the 
industrial and service sectors, comprising consultancy aid 
and technical assistance, aid for the promotion of 
consumer awareness and aid to investment in SMUs; 
Whereas, in order to accelerate the implementation of the 
special programmes, the rules laid down by Regulation 
18. 3. 85 Official Journal of the European Communities No C 70/5 
(EEC) No 2619/80 concerning budgetary commitments, 
payment of aid from the Fund and advances made from 
the Fund should be amended; 
Whereas additional financial resources are required 
to implement the specific measure so extended and 
strengthened; 
Whereas each of the Member States concerned should 
submit to the Commission an amended special 
programme, 
HAS ADOPTED THIS REGULATION: 
SECTION 1 
Article I 
Regulation (EEC) No 2619/80 is hereby amended in 
accordance with the following Articles. 
Article 2 
Article 2 is replaced by the following: 
'Article 2 
The specific measure shall apply to the following 
border areas: 
Ireland: 
the Counties of Donegal, Leitrim, Cavan, Monaghan, 
Louth and Sligo; 
Northern Ireland: 
the District Council Areas of Ballymoney, Coleraine, 
Moyle, Cookstown, Armagh, Banbridge, Craigavon, 
Dungannon, Fermanagh, Derry, Limavady, 
Magherafelt, Newry and Mourne, Omagh, 
Strabane.' 
Article 3 
The following subparagraph is added to Article 3 (2): 
'Moreover, the aim of the special programme, in 
certain areas located in Ireland, shall be the 
strengthening of economic competitiveness and 
growth potential, by the improvement of the regional 
energy situation, through the development of natural 
gas supply and demand, by means of appropriate 
measures in the fields of investment, technical 
assistance and consultancy services and the promotion 
of potential consumer awareness. It shall also be 
aimed at contributing to the realization of Community 
energy policy objectives, by reducing dependence on oil, by increasing security of energy supply through 
diversification of energy resources, and by improving 
the balance of trade of the Member State 
concerned.' 
Article 4 
The following paragraph 2a is inserted in Article 3: 
'2a. The preparation and implementation of the 
special programme shall be closely coordinated with 
national and Community policies and financial 
instruments, in particular the European Agricultural 
Guidance and Guarantee Fund (EAGGF) Guidance 
Section, the Social Fund, the European Investment 
Bank and the new Community instrument.' 
Article 5 
The following paragraph 6a is inserted in Article 3: 
'6a. When approving the special programme, the 
Commission shall satisfy itself that the programme is 
compatible with Article 20 of the Fund Regulation.' 
Article 6 
Article 3 (8) is replaced by the following: 
'8. Once it has been approved, the special 
programme shall be published for information by the 
Commission.' 
Article 7 
The introductory sentence to Article 4 is replaced by the 
following: 
'For all the areas referred to in Article 2, the Fund shall 
contribute, within the framework of the special 
programme, to the following operations:'. 
Article 8 
The following points are added to Article 4: 
'8. Aids to investment in SMUs designed to create 
new undertakings or to assist the adaptation of 
production to market potential by existing 
undertakings when justified by the analyses 
mentioned under point 7 (a) or other satisfactory 
evidence. Such investment may also concern 
common services for a number of 
undertakings; 
9. Promotion of innovation in industry and 
services: 
No C 70/6 Official Journal of the European Communities 18. 3. 85 
— collection of information relating to product 
and technological innovation and its 
dissemination among undertakings operating 
in the zones covered by the specific measure, 
which may include experimental work on 
such innovation, 
— encouragement of the introduction of product 
and technological innovation in SMUs; 
10. Better access for SMUs to risk capital; 
11. Setting up or development of economic 
promotion agencies responsible for: 
— opening up possibilities, through direct 
contacts at local level, for economic ventures 
by giving advice about access to available 
public aids and services, particularly those 
provided for under the special programme, 
and 
— contributing to the success of these ventures 
by helping existing or potential undertakings 
to take advantage of such aids and services. 
Moreover, for the Counties of Leitrim, Cavan, 
Monaghan, Louth and Sligo, the Fund may 
contribute, within the framework of the special 
programme, to the following operations: 
12. Infrastructure 
(a) investments in the extension of the existing 
gas transmission pipeline system from Dublin 
to viable centres in the counties mentioned 
above, including the urban centres of 
Dundalk and Sligo; 
(b) investments in distribution networks in the 
centres referred to under (a) in order to 
supply industrial, commercial and other 
consumers with natural gas; 
(c) studies in order to examine the commercial 
and technical feasibility as well as financial 
viability of the supply of natural gas to 
centres in the centres referred to in (a). 
13. Consultancy and technical assistance 
Making available to industrial and service 
activities, with a view to facilitating adaptation to 
natural gas and encouraging exploitation of new 
products and process possibilities, technical 
assistance and services in the following fields: 
(a) assessment of the technical implications and 
benefits and costs of conversion to natural 
gas; 
(b) identification of new products and processes 
dependent on natural gas; (c) analysis of market potential for existing and 
new products linked to the use of natural 
gas; 
(d) identification, acquisition and transfer of 
technology aiming at new high performance 
use of natural gas. 
14. Investment aids to SMUs 
Encouragement of investments in order to assist 
existing and new SMUs in: 
(a) the conversion of existing equipment 
operating on oil-based products and the 
adoption of new equipment for the use of 
natural gas; 
(b) the adoption of new products and improved 
production processes made possible by the 
use of natural gas. 
15. Promotion of consumer awareness 
Publicity and information campaigns to make 
potential users aware of the availability and 
advantages of natural gas and of the measures 
envisaged under the special programme. These 
campaigns will include the organization of 
seminars, courses and conferences, propagation 
of standards and demonstration projects to 
highlight in particular the benefits of 
high-performance gas equipment.' 
Article 9 
The following points are added to Article 5 (1): 
'(k) operations relating to investment under point 8 
of Article 4: 50% of the public expenditure 
resulting from the granting of aid to the 
investment. Such aid may contain a 
supplementary element compared to the most 
favourable existing regional arrangements. The 
supplementary aid which is to be borne by the 
Community for four years may be up to 10 % of 
the cost of the investment. The public aid may 
take the form of a capital grant or an interest 
rebate; 
(1) operations concerning the collection and 
dissemination of information on innovation 
under the first indent of point 9 of Article 4: aid 
covering part of the operating costs of bodies 
engaged in such activities, provided that these 
activities are new and concern specifically the 
zones covered by Article 2. The aid shall last for 
three years and be degressive. It shall cover 70 % 
18. 3. 85 Official Journal of the European Communities No C 70/7 
of the operating costs in the first year and shall 
not exceed 55% of the total cost over the 
three-year period; 
(m) operations for implementing innovation under 
the second indent of point 9 of Article 4: 70 % of 
the cost of feasibility studies that may concern all 
aspects, including commercial, of the 
implementation of innovation, limited to 
120 000 ECU per study. These studies must be 
undertaken by or on behalf of undertakings 
situated in the zones covered by Article 2; 
(n) operations relating to risk capital under point 10 
of Article 4: contribution towards the operating 
costs of financial institutions providing risk 
capital for SMUs. The contribution shall be 70 % 
of the costs of risk evaluation studies carried out 
by or on behalf of the financial institutions. 
These studies may also examine commercial 
aspects; 
(o) operations relating to economic promotion 
under point 11 of Article 4: aid covering a part of 
the operating costs arising from the activities of 
promoters. The aid shall last for five years and 
shall be degressive. It shall cover 60% of 
operating costs in the first year and shall not 
exceed 50% of the total expenditure per 
promoter over the five-year period. These 
activities, which must be new and concern 
specifically the zones referred to in Article 2, may 
be entrusted by the Member State concerned to 
special bodies; 
(p) for infrastructure: 
(i) operations relating to investments in the 
transmission pipeline under point 12 (a) of 
Article 4: 50% of the public expenditure, 
(ii) operations relating to investments in 
distribution networks under point 12 (b) of 
Article 4: 50% of the public expenditure 
linked to the grant of interest rebates on 
loans in order to facilitate the financing of 
those networks, 
(iii) operations relatingto studies under point 12 
(c) of Article 4: 50% of the public 
expenditure resulting from the granting of 
aid to these studies; 
(q) for economic consultancy and technical 
assistance: 
(i) operations under point 13 (a) of Article 4: 
50% of the public expenditure resulting 
from the granting of aid to these studies, 
(ii) operations under point 13 (a) of Article 4: 
50% of the public expenditure resulting 
from the granting of aid to the costs of 
research and development work; the 
contribution of the Community is limited to 
120 000 ECU for any one project, 
(iii) operations under point 13 (b) of Article 4: 
50% of the public studies, (iv) operations under point 13 (d) of Article 4: 
50% of the public expenditure resulting 
from the granting of aid to feasibility 
studies; the contribution of the Community 
is limited to 120 000 ECU for any one 
project; 
(r) for operations relating to investment under point 
14 of Article 4: 50% of the public expenditure 
resulting from the granting of aid to investment 
in equipment for conversion to natural gas (for 
existing firms), investment in equipment related 
to natural gas (for new firms), and investment in 
equipment related to the adoption of new 
products and production processes (for existing 
and new firms). Public aid may take the form of a 
capital grant or an interest rebate; 
(s) operations relating to promotion of awareness 
under point 15 of Article 4: aid covering part of 
the cost of publicity and information campaigns. 
This aid shall last for five years and shall be 
degressive. It sjiall cover 60 % of expenditure in 
the first year and shall not exceed 50% of the 
total expenditure over the five-year period.' 
Article 10 
Article 5 (2) is replaced by the following: 
'2. In the case of the aid referred to in paragraph 1 
(a), (c), (d), (f), (k), (p) and (r), aggregation of aid 
from the quota and non-quota sections of the Fund is 
excluded.' 
Article 11 
The last sentence of Article 5 (3) is replaced by the 
following: 
'The aids referred to in paragraph 1 (h) and (j), and 
(m) where they directly benefit undertakings, as well 
as those referred to in (q) (iii), may not have the effect 
of reducing the share paid by undertakings to less than 
20% of total expenditure.' 
Article 12 
Article 5 (5) is replaced by the following: 
'5. Budgetary commitments relating to the 
financing of the special programme shall be 
implemented by annual tranche. The first tranche 
shall be committed at the time of the Commission's 
acceptance of the programme. The commitment of 
subsequent annual tranches shall be made according 
to budgetary availability and progress on the 
programme.' 
No C 70/8 Official Journal of the European Communities 18. 3. 85 
Article 13 
The introductory sentence to Article 6 (1) is replaced by 
the following: 
'1. The amount of the Fund contribution in respect 
of the measures included in the special programme 
shall be paid to the Member State concerned or 
directly, and in accordance with the latter's 
instructions, to the bodies responsible for their 
implementation, according to the following rules:'. 
Article 14 
Article 6 (1) (c) is replaced by the following: 
'(c) at the request of a Member State, advances may 
be granted for each annual tranche according to 
progress made on operations and budgetary 
availability. 
From the beginning of operations, a 60% 
advance on the Fund contribution concerning the 
first annual tranche may be paid by the 
Commission. Where the Member State certifies 
that half this first tranche has been spent, a 
second advance, of 25%, may be paid by the 
Commission. 
When payment of the following annual tranche 
has begun, advances may be paid under the terms 
of the preceding subparagraphs. 
The balance of each annual tranche shall be paid 
at the request of the Member State when it has 
certified that the operations corresponding to the 
tranche in question may be considered as 
finished, and on presentation of the amount of 
public expenditure which has been incurred.' 
Article IS 
Article 6 (5) is replaced by the following: 
'5. When each special programme has been 
implemented, a report including information on the 
number and nature of the jobs created and maintained 
shall be presented by the Commission to the Regional 
Policy Committee and to the European Parliament.' 
Article 16 
The Annex is amended as follows: 
1. The second sentence in point 1 (a) is replaced by the 
following: 
'Analysis of the situation and needs of SMUs 
particularly as concerns market potential and measures to be implemented in order to adapt and 
develop production, management and organization 
servies, information on innovation and for 
implementing it, and access to risk capital. Analysis 
of the state of energy supply, and an evaluation of the 
potential natural gas demand by type of consumers, 
particularly as concerns industry. In respect of 
natural gas consumption, analysis of the situation 
and the needs of industry by sector and of their 
economic consultancy and technical assistance 
requirements, and those of SMUs concerning 
investments.' 
2. The following subparagraph (v) is added at point 
2(a): 
'(v) description and location of the planned 
extensions of natural gas transport and 
distribution networks'. 
SECTION 2 
Article 17 
1. Ireland and the United Kingdom shall adapt the 
special programmes referred to in Article 3 of Regulation 
(EEC) No 2619/80 in accordance with the amendments 
introduced by Section 1 of this Regulation. 
2. The adapted special programmes shall be approved 
by the Commission in accordance with Article 3 (6) of 
Regulation (EEC) No 2619/80. 
3. Without prejudice to Article 5 (4) of Regulation 
(EEC) No 2619/80, the amount of the Fund's assistance 
to the adapted special programmes may not exceed the 
amount fixed by the Commission at the time of approval 
of the programmes. 
4. The duration of the adapted special programmes 
shall be extended until the end of the fifth year starting 
from the 60th day following the date on which this 
Regulation enters into force. 
5. Expenditure arising from the special programmes 
thus adapted which is incurred from the date of entry into 
force of this Regulation shall be eligible. 
Article 18 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.