Finance Minister Brian Cowen said that the extension of the Peace II funding programme for the North and Border counties after 2006 was under "active consideration".
Mr Cowen said that although the extension of the programme was agreed only five weeks ago, attention was already being turned to the post-2006 situation.
"Under the terms of the programme agreed, spending may continue up to 2008. The question of what will happen when the extension runs out is one which will have to be reviewed by the two governments in consultation with the European Commission." Mr Cowen said a total of €707 million, including Exchequer and other matching funds, had been made available to projects in Northern Ireland and the six Border counties between 2000 and the end of last year.
"The EU contribution was €531 million, divided 80/20, a ratio of four-to-one respectively between North and South. The Border region has received €106 million in structural funds, an average of about €21 million annually, plus additional Exchequer support of some €35 million over the five years."
Mr Cowen added that under the terms of the programme, 15 per cent of total funding was allocated for promoting and supporting cross-Border activity.
The amount available this year was €80 million, with €56 million going to Northern Ireland and €24 million to the Border region.
"These are independent of or in addition to the National Development Plan programme rolling out the regional development objectives of the BMW region," Mr Cowen said.
Sinn Féin Cavan-Monaghan TD Caoimhghín Ó Caoláin said the programme was important for communities in the Border counties and "the six counties which still experience, as we all recognise, the legacy of partition, conflict and neglect over decades".
Mr Ó Caoláin said that supports under the Peace II programme should at all times be in addition to, and not substitutes for, normal investment.
Mr Cowen said the question of whether there would be a Peace III programme would be considered in the context of budget discussions for 2007-2113.
