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Dáil Éireann debate -
Wednesday, 25 Oct 1972

Vol. 263 No. 1

Ceisteanna—Questions. Oral Answers. - Assistance for Underdeveloped Regions.

45.

asked the Taoiseach if he is aware that his recent statements at Muintir na Tíre and other meetings have created the impression that there will be large scale industrial development in the underdeveloped areas; and if he will state if entry into EEC will be a turning point for such development.

46.

asked the Taoiseach the funds which will be made available from EEC sources for underdeveloped regions such as Mayo; and if he will make a statement on the matter.

47.

asked the Taoiseach if the Government are in a position to submit their proposals to the EEC for development of the underdeveloped areas of this country so as to ensure the earliest and maximum benefit from the Community's regional plan.

48.

asked the Taoiseach whether, in anticipation of the EEC Government decision on regional policy, any fresh initiative will be taken in the formulation of a domestic regional policy which would correct the present imbalance between the eastern and western seaboard regions.

With your permission a Cheann Comhairle, I propose to take Questions Nos.45 to 48, inclusive, together.

Funds to assist underdeveloped regions within the enlarged European Economic Community will be available from a number of sources, some already in existence and some in the process of being established.

As a member of the European Economic Community we shall have access to the funds of the European Investment Bank whose function it is to grant loans and give guarantees in order to facilitate, inter alia, projects for developing less-developed regions.

Regional development can also be assisted through the intervention of the European Social Fund which can make its resources available to deal with employment problems in less-developed regions.

Contributions are also available from the Community's Agricultural Fund towards certain expenditures entailed in implementing the Community directives on the structural reform of agriculture. In addition, individual production and marketing may, subject to certain conditions, qualify for financial contributions from the Agricultural Fund.

In March, 1972, the Council of the Community agreed in principle to the use of the Agricultural Guidance and Guarantee Fund for regional development purposes through the improvement of agricultural structures in priority areas such as the West of Ireland. The Council has undertaken to adopt the necessary decisions to give effect to this agreement by the end of 1972.

At the Summit Conference in Paris last week the Heads of State or Government invited the institutions of the Community to create a Regional Development Fund financed from the Community's own resources. In doing so the Heads of Government or State expressed the view that intervention by the Regional Development Fund, in co-ordination with national aids, should permit, progressively, with the realisation of economic and monetary union, the correction of the main regional imbalances in the enlarged Community, and particularly those resulting from the preponderance of agriculture and from industrial change and structural under-employment.

Can the Taoiseach be a little more specific when he says that funds will be made available? Can he say when the funds will be made available—will they be made available as from 1st January, 1973? Secondly, in the light of the statements made today, may we take it that we may expect large-scale industrial development in the west of Ireland or funds to help in that regard?

As I have indicated in my reply, a fund has been set up. It is a modest fund by comparison with what I hope will be created under the new regional development policy. In fact, there are two funds—one of £20 million in relation to the agricultural fund and a fund of £20 million for regional development. Allocation of that fund will be decided shortly at a meeting of Ministers. It is likely that some of that fund will be made available during the coming year. So far as the main fund is concerned, that will not commence until 1st January, 1974. I cannot say to what extent our country will benefit from these funds — it is rather too early yet—but it is my hope that it will result in increased industrial employment opportunities, especially in the underdeveloped areas.

Arising out of Question No. 48, can the Taoiseach state what impetus will be given to the development of our own regional policy in the light of these developments in EEC regional policy? What changes does the Taoiseach visualise will arise here in the meantime?

We will be taking the necessary decisions to co-ordinate our own policy with that of the Community——

Which will be?

We will be taking steps soon in order to do this.

In view of the dates mentioned by the EEC, can the Taoiseach give us any information regarding our own regional development policies in the west? Can he give us any dates in connection with this?

I am always reluctant to commit myself to dates but I can assure the Deputy that the necessary decisions will be taken.

In addition to the benefits that it has been stated will be available to us in 1973, there are resources available from the European Investment Bank. Have the Government prepared proposals to submit to the European Investment Bank for funds from that source for the west of Ireland as from 1st January, 1973?

This is under consideration. I did not mention it in my reply as I forgot to do so.

I am calling Question No. 49.

The Taoiseach's attitude appears to be exactly the same as the attitude of others which he criticised recently, namely, that they are waiting for some salvation in the EEC. With regard to the regional policy, it seems that the Taoiseach is waiting until a certain date but is doing nothing in the meantime.

We will get nothing until we have a policy.

Would the Taoiseach not agree that the lack of a regional policy by the Government will hamper our application for funds for these underdeveloped areas?

If we did not have a worthwhile regional policy that would certainly not help us.

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