[Federal Register Volume 60, Number 120 (Thursday, June 22, 1995)]
[Presidential Documents]
[Pages 32421-32427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15383]
Presidential Documents
Federal Register / Vol. 60, No. 120 / Thursday, June 22, 1995 /
Presidental Documents
___________________________________________________________________
Title 3--
The President
[[Page 32421]]
Presidential Determination No. 95-26 of June 8, 1995
Certification To Permit U.S. Contributions to the
International Fund for Ireland for Fiscal Years
1994 and 1995
Memorandum for the Secretary of State
Pursuant to section 5(c) of the Anglo-Irish Agreement
Support Act of 1986 (Public Law 99-415), I hereby
certify that I am satisfied that: (1) the Board of the
International Fund for Ireland as established pursuant
to the Anglo-Irish Agreement of November 15, 1985, is,
as a whole, broadly representative of the interests of
the communities in Ireland and Northern Ireland; and
(2) disbursements from the International Fund (a) will
be distributed in accordance with the principle of
equality of opportunity and nondiscrimination in
employment, without regard to religious affiliation,
and (b) will address the needs of both communities in
Northern Ireland.
You are authorized and directed to transmit this
determination and certification to the Congress,
together with the Memorandum of Explanation, and to
publish it in the Federal Register.
(Presidential Sig.)
THE WHITE HOUSE,
Washington, June 8, 1995.
MEMORANDUM OF EXPLANATION FOR CERTIFICATION OF THE
FISCAL YEARS 1994 AND 1995 U.S. CONTRIBUTION TO THE
INTERNATIONAL FUND FOR IRELAND
I. INTRODUCTION
This memorandum has been prepared to comply with
legislative requirements associated with the Anglo-
Irish Agreement Support Act of 1986, Public Law 99-415
(the ``Act'').
Section 5(c) of the Act requires that each fiscal year,
prior to contributions to the International Fund for
Ireland (``IFI'' or the ``Fund''), the President
certify to the Congress that he is satisfied the
following conditions have been met:
A. The Board of the International Fund for Ireland,
as a whole, is broadly representative of the interests
of the communities of the Republic of Ireland and
Northern Ireland; and
B. Disbursements from the IFI:
1. will be distributed in accordance with the
principle of equality of opportunity and
nondiscrimination in employment, without regard to
religious affiliation; and
2. will address the needs of both communities in
Northern Ireland.
[[Page 32422]] II. BACKGROUND
A. Establishment and Operation of the Fund
The International Fund for Ireland was formally
established as an independent entity on December 12,
1986, in keeping with the provisions of the Anglo-Irish
Agreement of November 15, 1985. The overall objectives
of the Fund are to promote economic and social
advancement and to encourage contact, dialogue, and
reconciliation between nationalists and unionists
throughout Ireland and Northern Ireland. The Anglo-
Irish Agreement states that the Fund shall accomplish
these objectives by stimulating private investment and
encouraging voluntary efforts with special emphasis on
projects promoting communal reconciliation. The
Agreement also stipulated the establishment of two
investment companies under the Fund.
The Fund is an independent entity which is administered
by a Board of Directors appointed jointly by the
British and Irish governments. The Board is guided by a
Joint Advisory Committee consisting of senior civil
servants drawn equally from Northern Ireland and the
Republic of Ireland. The Advisory Committee's principal
role is to advise the Board on the economic and social
policies and priorities of the two governments and to
maximize the impact of assistance by avoiding
duplication of activity. The Board is supported by a
Secretariat composed of administrators from the two
jurisdictions. The Secretariat is headed by two Joint
Directors General, one from each jurisdiction. The
Fund's operating expenses are paid by the British and
Irish governments.
The Fund's activities are developed primarily through
program teams in the following areas: Business
Enterprise, Tourism, Urban Development, Agriculture and
Rural Development, Science and Technology, the Wider
Horizons Program, and the Disadvantaged Areas
Initiative. These program teams are composed of an
equal number of representatives from Northern Ireland
and the Republic of Ireland. The teams are administered
by joint chairmen who keep the Board of Directors
apprised of their respective program teams' activities.
In an effort to focus on the more disadvantaged areas,
the Fund directs 70-80 percent of the resources
available in the program sectors to disadvantaged areas
in Northern Ireland. The Fund has also created two
additional program schemes: Community Economic
Regeneration, which focuses on community driven
regeneration of economic activity in urban areas; and
Community Regeneration and Improvement Special Program
(CRISP), which is designated for disadvantaged areas in
Northern Ireland and focuses the Fund's resources on
smaller towns and villages by linking a series of
projects from the various program areas together.
B. Fund Contributions
The Fund receives contributions directly from bilateral
and multilateral donors. U.S. obligations to date total
$209.1 million. Under the appropriate Foreign
Operations, Export Financing, and Related Programs
Appropriations Acts, Congress appropriated an
additional $39.2 million for FY 1994 and FY 1995 funds.
Since 1989, the European Community has disbursed 15
million European Currency Units (approximately US$20
million) per year to the Fund, totaling $108 million to
date, and will contribute $60 million in FY 1995. New
Zealand contributed about $0.6 million in FY 1995 and
Canada has provided approximately $7.5 million.
Each donor is entitled to appoint a representative to
attend all Board meetings as a non-voting observer.
Observers receive all Board papers and provide guidance
to the Fund on behalf of their respective donor
countries.
C. Program Implementation
Since its establishment in 1986, the Fund has approved
a total of 3,500 projects and budgeted over $399
million to its various program areas. Some $358 million
has been committed to approved projects within the
various programs. The Fund has disbursed approximately
$279 million to ongoing and completed projects,
including $21.7 million to the two investment
companies. [[Page 32423]]
Individual project applications continue to represent a
majority of the projects for funding. However, the
program teams are assisting various communities in
identifying and preparing proposals through regular
contact and consultation with a number of area Economic
Development Consultants. The Consultants serve as a
point of contact for local communities, provide
technical assistance and advice, and help to speed
program implementation.
The Fund has put into place a computerized system of
recording key data for the projects. Information, such
as employment generation, leveraging, and geographical
distribution of funds, is collected and logged into the
new system. The information system has assisted the IFI
in developing its capacity to analyze and report on the
economic and social indicators of the Fund's
achievements.
Disbursement procedures have also been established for
the U.S. contribution to the Fund. In October 1992,
USAID established a Letter of Credit mechanism to meet
the legislative requirement to disburse funds at the
minimum rate necessary to make timely payments for
projects and activities. The Letter of Credit has
allowed the U.S. Government to exercise greater control
over money distributed to the Fund by transferring
resources only when needed, and thereby minimizing
interest costs to the U.S. Treasury.
D. Job Creation and Additional Investment
Two elements identified as priorities of the U.S.
Government in its contribution to the Fund are job
creation and the leveraging of additional investment
into the economy. Both elements have been adopted by
the Fund in the implementation of its program.
The Fund agrees that job creation is an essential
factor in determining the allocation of Fund resources
and clearly places an emphasis on the job creation
potential of each project considered for funding. The
Fund estimates that its activities directly resulted in
the creation of about 20,500 new jobs and indirectly
resulted in the creation of an additional 8,500 jobs.
Construction activities have also resulted in 25,500
person-years of temporary employment.
The Fund has also been successful in leveraging new
investment. Of the $397 million of Fund resources
committed to approved projects, another $353 million
and $264 million of private and government resources,
respectively, have been invested. Thus every dollar
that the Fund has committed has resulted in an
additional $1.70 committed from other sources.
III. PRESIDENTIAL CERTIFICATION ELEMENTS
Each fiscal year, prior to the United States making a
contribution to the Fund, the President must certify to
Congress that he is satisfied that the Fund has
complied with the legislative requirements in the Act.
This Certification covers both the FY 1994 and FY 1995
contributions to the Fund. The following discusses the
required elements.
A. Board Representation
The Board of Directors consists of seven members; three
nominated by the British government, three nominated by
the Irish government, and the Chairman. Board members
are approved by both sides through consultations
between the two governments. The Board, by design and
agreement, is representative of the communities in both
Northern Ireland and Ireland. The Board meets once
every two months, primarily to review policy and
procedural issues and to approve or reject proposals
forwarded by the program teams for consideration. In
addition, each Board member is responsible for
coordinating with specific program teams and is
consulted on a regular basis.
The Board members are as follows:
Mr. William T. McCarter (Chairman) is a prominent
businessman in the textile industry. He is the Managing
Director of Fruit of the Loom, International Ltd. with
plants in Northern Ireland and the border County
Donegal in the Republic of Ireland. Mr. McCarter was
born in Londonderry, graduated [[Page 32424]] from
Trinity College, Dublin and from the Massachusetts
Institute of Technology. He now lives in Bucranna,
County Donegal.
Mr. John E. Craig, OBE is a retired merchant banker
with extensive experience in London. He is Chairman of
Powerscreen International a very successful exporting
firm based in County Tyrone. Mr. Craig was born in
Dublin.
Mr. Paddy Duffy is a prominent lawyer with offices in a
number of rural towns in Northern Ireland. He is active
in the local credit union movement and Chairman of
Dungannon and District Cooperative Society. Mr. Duffy
is a former Social Democratic Labor Party councillor
and Senator in the Northern Ireland Assembly.
Mr. Pat Kenny is an accountant by profession and a
partner in the firm Deloitte, Touche in Dublin.
Ms. Joan McCrum until recently was the Chief Executive
of the Housing Rights Association, a voluntary housing
advice organization. Ms. McCrum now works for the Simon
Community, a voluntary charity body, and acts as an
independent consultant.
Ms. Caitriona Murphy is a former senior public official
in government service in Dublin and is now a managing
director for the Allied Irish Bank in Dublin.
Mr. Brian A. Slowey was, until his recent retirement, a
managing director of Guiness Ireland, and the Chairman
of Aer Lingus.
As in the past, the present Board is noted for its
professionalism and integrity in setting policy and
approving projects. The Board has taken an active role
in promoting the Fund throughout Northern Ireland and
Republic of Ireland as well as internationally.
B. Disbursements From the International Fund
The Fund's structure and policy framework ensure that
resources are distributed in accordance with the
principle of equality of opportunity and
nondiscrimination in employment, without regard to
religious affiliation, and that these resources address
the needs of both communities in Northern Ireland and
the six border counties of the Republic of Ireland.
The Board has developed its policies for disbursement
of resources taking into account the terms of the
Agreement under which it was established, the wishes of
the donor countries, and the need to supplement the
economic and social policies of the two governments.
The Board structure and policy framework is manifested
in the internal checks and balances in the Fund's
appraisal, approval, and management systems. Also, the
wide geographical distribution of approved projects
enhances the Fund's efforts to meet the needs of both
communities. The Fund's programs have created jobs,
leveraged private investments, and fostered
reconciliation. In addition, the Fund has made
concerted efforts to target the most disadvantaged
areas through CRISP and other special programs as well
as the through the work of development consultants.
1. Distribution of disbursements in accordance
with the principle of equality of opportunity and
nondiscrimination in employment, without regard to
religious affiliation.
a. Structure of the Fund. The Republic of Ireland
and Northern Ireland are equally represented by members
of the Fund's Board of Directors, Advisory Committee,
Secretariat, and Program Teams. These individuals are
highly respected for their professional competence,
integrity, and commitment to the Fund's objectives. The
Advisory Committee, as mentioned above, is composed of
senior officials of both the British and Irish
governments and provides guidance and support for the
Board. The Secretariat staff maintains the day-to-day
operations of the Fund and has been carefully selected
for their administrative skills and judgement. The
Program Teams are staffed with technical and
administrative professionals who are committed to the
Fund's operating principles of non-discrimination.
Review of the IFI portfolio of projects and visits to
selected sites by Agency for
Inter [[Page 32425]] national Development (USAID)
personnel have confirmed that the Fund has assembled a
competent and professional staff who have cultivated
and exercised sound project approval and management
procedures.
b. Policy Framework. All Fund publications and
solicitations for proposals clearly spell out the
Fund's commitment to equality of opportunity and
nondiscrimination. All successful applicants are
required by the Board to agree to the following prior
to receiving an award:
Acceptance of a grant or loan under this scheme will be
deemed to signify the applicant's acceptance of the
principle of equality of opportunity and non-
discrimination in employment, without regard to
religious affiliation and that the applicant will be
expected to use the money in accordance with this
principle.
Letters of offer clearly state that any violation of
this agreement will require immediate repayment of
resources. To date, the Fund has not had to request
repayment.
Equality of opportunity requirements are also enforced
in Northern Ireland under the Fair Employment (Northern
Ireland) Act of 1989. This act makes employment
discrimination on the grounds of religious belief or
public opinion illegal. The Act is designed to
eradicate job discrimination and ensure the active
practice of fair employment opportunity throughout
Northern Ireland.
c. Project Appraisal and Approval. The Fund has
instituted a clear and systematic appraisal and
approval system. Each Program Team has signed
agreements with the Fund Secretariat that spell out the
criteria upon which all applications are made. As
mentioned above, the Program Teams consist of officials
from various government agencies, both North and South,
which, in close cooperation with the Secretariat, help
to bring the programs to fruition. The Team members,
chosen for their expertise in their particular sector,
review each project based on its merit using standard
economic and financial analysis tools, as well as
criteria relevant to their technical field.
Projects must also be consistent with the economic and
social policies and priorities of the British and Irish
governments. Each government reserves the right to veto
support for activities proposed which violate their
stated policies. No resources are to be used, for
example, to improve the standing of or to further the
goals of any paramilitary organization, either directly
or indirectly. The Fund, the British government, and
the Irish government are, however, committed to
supporting activities which contribute to viable, self-
sustaining growth, prosperity, and stability. In
addition, it is hoped that the projects will have a
positive impact on increasing respect for human rights
and fundamental freedoms for citizens of both
traditions from Northern Ireland and the Republic.
Thus, within the Fund's policy guidelines and the
established criteria for the evaluation and approval
process, projects are accepted for funding, rejected,
or forwarded to an appropriate government agency for
possible support from existing government programs.
Applications are processed in a timely and efficient
manner, consistent with a proper and prudent review of
projects. In addition, of course, a considerable
responsibility rests with the individual promoters of
projects who must take the lead in completing their
share of the financial package and implementing the
project to a stage where payment can be made.
Each decision to approve, disapprove, or forward a
project to a government agency requires the
recommendation of the relevant program team, the
endorsement of the two Board members supervising the
team, and the approval of the Fund Secretariat. Any
projects which are controversial, raise policy issues,
or exceed the program team's delegation of authority,
are forwarded to the Board for consideration.
Equality of opportunity and nondiscrimination are the
guiding principles under which the Fund operates.
Projects are reviewed on merit alone, without
[[Page 32426]] regard to political or religious
affiliations of the applicants. The cross-community
composition of the Fund Board, the Secretariat, and the
program teams ensures the realization of these
principles.
2. Addressing the needs of both communities in
Northern Ireland.
In order to comply with British law, the principles
under which the Fund was established, and the U.S.
Government priorities under which our contributions are
made, religious affiliation is not a factor in the
approval process. It is generally known, however, which
religious majority is predominant within a specific
geographical area.
Past program review visits have confirmed that through
Fund activities, members of both communities have been
able to experience for the first time a working or
recreational experience with people of the opposite
tradition. Such liaisons have produced cross-community
boards of directors (under such organizations as the
enterprise centers), cross-community enterprise
matchmaking, cross-border joint ventures (such as the
Derry-Galway-Boston Trade Fair), and genuine
friendships. Other projects, (such as the Shannon-Erne
Waterway) have been able to bring people of various
communities together to promote their areas and to
provide facilities to attract visitors and holiday
markets. Because of these improvements, The Waterway
Area was awarded a Tourism Award from the British Guild
of Travel Writers. The civil servants of both
governments in laboring together on the Fund have also
developed excellent working, as well as personal,
relationships with their counterparts. Such interaction
contributes to reconciliation through dialogue and
cooperation.
During a program review visit in November of 1994,
USAID officials observed that the Fund is highly
regarded by moderates from both the Catholic and
Protestant communities for the work they have done and
the attitudinal changes they have been able to
stimulate. The Springboard-training and reconciliation
program helps to promote these changes in younger
people. This curriculum teaches courses in order to
develop vocational training and mixes students from the
West Belfast's Catholic and Protestant communities,
allowing them to work together. There has been a
concerted effort to reach out to those who were
skeptical of the Fund activities, specifically in the
Protestant communities, and this effort continue.
The Fund has made a concerted effort to direct
assistance to the more economically disadvantaged
areas. Special programs, such as CRISP, have been
developed toward this end. The work of the development
consultants is important in assisting the disadvantaged
communities to develop ideas and proposals to help
themselves through the Fund. The consultants
participate in establishing local groups, ensure cross-
community participation whenever possible, and assist
groups in creating viable projects. In many cases,
however, the IFI merely serves as a catalyst for
community initiatives that have been developing
independently of the Fund. The consultants are also
instrumental in contributing to a greater overall
understanding and positive perception of the Fund among
the people of both communities.
IV. CONCLUSION
A review of Fund activities and a visit to Republic of
Ireland and Northern Ireland by a senior USAID officer
confirmed that the Board of Directors has maintained
policies and procedures designed to ensure that both
traditions benefit from Fund activities. The Board's
operating principles ensure that project decisions are
made on the basis of merit. In addition, it has been
concluded that Fund resources are being distributed in
a manner consistent with its mandate as stated above.
All grantees are made aware of the principles of
equality of opportunity and nondiscrimination in
employment, stipulated by acceptance of any grant
monies.
[[Page 32427]] This report therefore concludes that:
The Board of Directors of the
International Fund for Ireland, as a whole, is broadly
representative of the interests of the communities in
the Republic of Ireland and Northern Ireland.
Monies from the Fund are distributed in
accordance with the principles of equality of
opportunity and nondiscrimination in employment,
without regard to religious affiliation, and address
the needs of both communities in Northern Ireland.
[FR Doc. 95-15383
Filed 6-19-95; 4:59 pm]
Billing code 4710-10-M