Bertie Ahern
Question:3 Mr. B. Ahern asked the Taoiseach if he will make a statement on the Government's position in regard to its proposed action plan for the west. [10223/96]
Ceisteanna — Questions. Oral Answers. - Development of the West.
As the Deputy will no doubt be aware, an action plan to provide a strategic focus for the economic and social development of the west was launched last week in Athenry by the Western Development Partnership Board.
The Government welcomed the action plan and announced a number of important initiatives which I will co-ordinate and which will greatly contribute to the Government's continuing commitment to the development of the west.
The Government responded to the key recommendation of the plan by announcing the establishment of a Western Investment Fund. This fund will provide long-term venture capital for developing businesses in the west which are not currently attracting funding from commercial or State agencies.
A number of other important initiatives have also been agreed by the Government in response to the wide-ranging recommendations of the action plan including the establishment of the Western Development Commission to replace the Western Development Partnership Board when it completes its term of office at the end of the year; the undertaking by the National Economic and Social Council of a study of settlement patterns in the interests of more balanced population distribution; and the establishment of a working group of officials for relevant Departments to develop proposals for more effective agricultural and fisheries policies to support low-intensity family farms and small scale marine enterprises.
It is intended that the action plan for the development of the west will be the subject of statements in the House shortly and a comprehensive statement of the Government's positive response to the plan will be given at that time. This will also give the Deputy an opportunity to go into the matter in further detail.
I welcome the report. Will the Minister of State agree there are contradictions in presenting this report in a week when there is talk of closing more than 70 dole offices in rural areas and more than 22 ESB offices? How does that fit in with the action plan? I know the Minister of State is doing his best to bring forward plans to stem the depopulation of the west but to do that he needs resources and he has outlined to me in recent months that he does not have the necessary resources. Will the Minister of State clarify the areas the Government is proposing to fund over and above what it funded before the plan was launched? What amount of money is available?
The Deputy gave us a prologue about dole offices and ESB offices closing in the west and in other areas. It is not true that dole or ESB offices are closing. There was an agreement between ESB management and unions in regard to certain offices in the west. Because of that union agreement the ESB decided to proceed with this initiative which was part of the overall package.
While I understand the Deputy's concerns about the closure of these offices, private people in the areas affected will provide a commercial outlet for electrical goods. The quality of the service by the ESB in future will measure up to that provided before the offices closed.
As far as the western development fund is concerned, the Government decided to invest £25 million, as asked for in the plan. This will aggregate to approximately £100 million when the European Union, European Investment Bank and private funds are taken into account. If this money is matched, there will be a total capital investment of £200 million in the west. This funding will be for developing businesses which do not currently attract funding from commercial or State agencies. It will be the commission's job to police this aspect.
The Government's commitment to spend an additional £200 million indicates its earnestness to halt population decline and is an effort to give particular opportunities to people in the west who have suffered the greatest population decline of all. The tone of the Deputy's question seems to indicate that he very much regrets that such an investment will be made.
A number of Deputies are offering and I want to facilitate them. Perhaps brevity could be the key note of our proceedings.
The Minister of State should not try to interpret my tone, he should listen to me. Will £200 million be made available? Is the Minister of State saying that in addition to the amount in the subheads in the final Estimates on yesterday's Order Paper, which was printed prior to the launch of the western development fund last week, the Government is providing an extra £100 million and is hoping there will be a matching fund or is it taking money from these various subheads, putting it into a plan with a glossy cover and presenting it as something new? It is either one or the other.
The Deputy was not listening because I already explained how the western development fund will be allocated. The Government made a commitment to give £25 million over six years and that amount is expected to be matched by the European Union, the EIB and private sources. If one adds matching funds in the west, there will be a total sum of £200 million over six years. It is intended to set up the commission on 1 January 1996, whereupon I expect the Government to provide in the Estimates its share of the money.
I thank the Minister of State for clarifying the position, that the Government will spend only £4 million out of the promised £200 million on the plan this year. Is that £4 million additional to the amount in the Book of Estimates, which was printed in its final form yesterday, or is it part of the same money?
This money will be available on 1 January 1997; it does not relate to 1996. This money will be in next year's Book of Estimates. The aim of this plan is to provide additional capital to the west. I have been criticised for this but I am happy that substantial funds have been allocated and that the Government agreed with the thrust of the plan.
I have tried to support the Minister in his attempts to get money over the last few months. However, the £200 million plan announced does not allocate money for 1996 and by my conclusions public expenditure in 1997 will only be £4.1 million? Is that correct?
Yes.
Some £5 a head.
I may have to reconsider my view that other Members should be called.
Deputy Kitt made a derogatory remark. I assume he is also concerned about the west — he asked me a number of questions about it. Any plan that makes £200 million of seed capital available to the people of the west for work in areas about which the Deputy is concerned should be availed of and welcomed in the House, irrespective of how much the Leader of the Opposition tries to downgrade and pour scorn on it.
I am just trying to ascertain the facts.
The allocation of these funds indicates the Government's level of concern for the west.
It would if they had been allocated.
It is £200 million more than Fianna Fáil gave while in Government.
I thank the Minister for his reply.
If the Deputy wants to help the west, he should encourage people to use this investment fund opportunity. For example, he could encourage people from the west living in Dublin to invest in it.
I will do that.
The Minister seems to be confused. Getting £100 million in matching funds has always proved difficult. There is only £4.1 million available. As there are approximately 420 United States companies operating in this country, 16 of them along the Border counties, is the Minister aware of a current Private Members' Bill before the US Congress which if passed — this is of vital concern to the Minister — would allow tax incentives for American companies to set up in Northern Ireland? This would have a devastating effect, not alone on income in the west but in the Border counties.
I want to assist the Deputy to elicit information but he must do so by way of a relevant question and he may not deviate from its subject matter. He has strayed considerably from it. He should put down a separate question in respect of taxation measures and the treatment of Border counties.
This is an important matter. Is the Minister aware of this Bill and will he discuss it with the Minister for Tourism and Trade?
The Deputy must learn the procedure at Question Time.
Is the Minister of State aware that the Western Development Partnership Board stated that only 7 per cent of our population now live in the north-west? Following the announcements about the closures of ESB offices, does it mean more people will have to go to banks to pay their ESB bills?
The closure of ESB offices is a distinct matter worthy of a separate question.
The Western Development Partnership Board produced what I understand was a ten-year plan but the Minister is speaking about an investment of £25 million over six years, the equivalent of £4.1 million per year which is less than £5 per head of population in the west. I welcome any investment in the west but it is much less than is being spent in the east. Will the Minister give an indication of what will happen over the ten-year period and the possibility of the funding being increased? I am disappointed that the funding will be as low as £25 million spread over six years.
I have been at pains to answer this question. The action plan was drawn up by the Western Development Partnership Board, which I inherited as Minister of State. This board was selected by the previous Government. The only two appointments in which I had any influence were the two who came from County Clare, Olivia Loughnane and Eamon Kelly. All the other members had been selected by the outgoing Government. The action plan proposed an investment fund along the lines I have mentioned. The board asked the Government to invest £25 million and the Government has agreed to make that sum available. It also indicated the other sources, the EIB, the EU and private sources. When the Western Development Partnership Board committee this plan to paper it had already established that there were some private sources. It had already been to the United States and had examined private sources. This £100 million will be made available over the six years. The entire fund when matched by the £100 million will amount to £200 million. This is a reasonable start and is much more than was available last year.
A Deputy
Nothing was available last year.
So far as progress on the other aspects of the plan is concerned, all the items will be considered by my Department in conjunction with the budget proposals in the plan. I will be working with the Commission to ensure that as much as possible of the plan is implemented in the short time available to me. I am concerned also about a private members' Bill, mentioned by Deputy McDaid, in the United States Legislature. If the Bill were brought forward by the President or the majority in the Senate I would be concerned. However, I am concerned that such proposals exist and I will be glad to make inquiries through the Minister for Tourism and Trade about the expectation for this legislation and whether there is a need to lobby. I am pleased the Deputy brought the matter to my attention.
When is it anticipated that NESC will commence a study on resettlement patterns and how long is it envisaged that study will take? Will the Minister of State indicate the type of business projects which will be drawing down either £4.1 million, £25 million, £100 million or £200 million? As a Deputy from the west I would sincerely like to get a hold on what money will be available in 1997. If there are such projects pending the people who will be employed would dearly like to know the amount of money available.
The brief to NESC is to commence as quickly as possible. I am glad the Deputy asked that question as it shows he is au fait with the plan and has read it. Settlement and resettlement is a big issue. This is mainly being championed by a private company, Rural Resettlement Ireland, which was set up in County Clare. I would like to see more resettlement taking place in the west. I understand that Rural Resettlement Ireland has approximately 4,000 applications from Dublin Corporation and Cork Corporation areas for migration to the west. The real problem is that Rural Resettlement Ireland does not have the facilities to place all those who are eager to resettle. It is important that the resettlement patterns be studied. As outlined in the NESC report, there are strong towns in the west and in particular counties, but there are also weak and marginal towns which are being swamped by progress in the major centres. The Government is anxious that the resettlement study commence without delay. When I have a firm date I will come back to the Deputy and give him an outline of what is intended.
In regard to the funds available, the guidelines will be similar to those for NADCORP when it was in business. There are some investments which can be for short-term gains. It is not envisaged that money would be left in profitable ventures. The aim would be to turn around profitable ventures, dispose of the asset and invest in another so that it would become a rolling fund. The Western Development Partnership Board deserves support in this House.
I welcome the report and the positive response to it by the Government. Will the Minister of State say whether this investment fund will try to attract money from ordinary people in the west who may have some money put aside? Will he persuade his colleague, the Minister for Social Welfare, to change the rules in relation to means testing of capital so that this money will become available — something for which I have fought for 20 years — for reinvestment in the west and not lie under mattresses and other places? Will the Minister of State agree that regardless of how many action plans there are, we need a change in the criteria under which investment in infrastructure is assessed? So long as investment in infrastructure, particularly at EU level, is assessed on the number of beneficiaries per unit cost, the west will always get the thin edge of the wedge on development money. We have seen this happen in relation to roads, water and sewerage money.
Not in the past 18 months.
I will be calling Deputy Ring.
I hope so.
Will the Minister of State agree there is a need for a radical change in the criteria to ensure that the basic infrastructure needed for successful business is put in place, if we are to make use of the money being provided?
I understand what the Deputy is saying. There was not much concern about the west when the plans for infrastructural development were sent to Europe. It was not the Government of which I am a member but the Government of which the Deputy's party was a member who decided on this system. I have sympathy with the Deputy because if the west is to succeed an infrastructural corridor must be developed.
What is the Minister of State talking about?
I agree that too much emphasis was put on density of population.
Will the Minister change it now?
I will make that point at the mid-term review. Deputy Ó Cuív has a particular interest in the question of means testing capital for social welfare purposes. I will discuss the necessary changes and guidelines in this area with the Minister for Social Welfare. I am not aware of particular difficulties but if the Deputy gives me information that would benefit the west I will be glad to assist him.
Last weekend the people of the west welcomed the plan and complimented the Government on its implementation. I am sure Deputy Ó Cuív attended the big party last week at which Fianna Fáil stated it was 70 years in politics and 50 in power. At one time there were nine seats in Mayo but that has been reduced to five. Will the Minister of State put this plan into practice so that the number of seats in Mayo may increase to six at the next election?
The Deputy is looking for a miracle.
This is due to Fianna Fáil's neglect for the past 50 years.
I am always aware of the strong representations I receive from Mayo Deputies, particularly those from this side of the House.
The Minister of State does not listen to us.
I will promote projects in Mayo as intensively as possible.
After those in Clare.
I welcome the western investment fund and congratulate the Minister of State on his quick reaction to the action plan. At last something practical, rather than talk, is being done for the west.
Will the £25 million be allocated in equal amounts over the six years or in response to demand to match other funds from the west? Does the Minister of State propose to introduce a Supplementary Estimate this year to provide funds for the plan?
At present it is not intended to introduce a Supplementary Estimate. We will hold discussions with the commission to determine how matters should be tackled. The Government decided that not more than £25 million would be allocated over six years. I take it that gives us latitude to draw down funds as demand arises.
Will the Minister of State ask the Minister for Energy, even at this late stage, to ask the ESB to rescind the decision to close offices in local towns? That appears to contradict the Minister of State's proposals. In his plan for the west, does he propose to make the island of Ireland a local call area for telephone charges? Trunk calls and faxes are a heavy cost burden for individuals and small businesses in the west. Why should they subsidise the 01 area in Dublin?
Did the Minister of State request local authorities to provide additional resources for local improvement schemes, such as repairs on roads to small farms and so on? The people of west Cork have been waiting for such improvements for four years.
A cable-car service operates in west Cork to Dursey Island. My colleague, Deputy Sheehan, increased his vote on that island by 100 per cent, from one to two. Consequently my vote there has decreased.
Like the party vote.
In recent times the cable-car service has been withdrawn at weekends and in the evening time. Will the Minister of State ensure that the cable-car service is available to the people of Dursey Island on a full-time basis?
When the Leader of the Opposition asked a question about Dursey Island a few weeks ago I advised him that the people involved should discuss the matter with the Cork Islands Committee. Those who represent Dursey Island and that committee will reach an agreement on the matter which will be submitted to the Department for ratification. I believe this matter will be resolved. I hope so because the representative for Dursey Island is concerned about the matter. I see no reason to prolong the agony.
The decision to close ESB shops in local towns is part of a national strategy agreed between the ESB and the unions. The ESB gave people an opportunity to have local cases reviewed and meetings were held in that regard. People in private electrical businesses can supply the ESB goods when the closures take place. The call-out service is the only service that may be affected. I understand from the ESB that the existing engineering services will not be affected. While I am not responsible for the ESB, I am concerned about the provision of services. The company has assured me that the quality of service that exists prior to office closures will continue when private industry takes over.
The Minister did not reply to my questions about the local improvements schemes and telephone calls.
I made representations about telephone call charges and, while Telecom Éireann is examining the matter, I am not optimistic that the position will change.
I made representations to the Minister about the rate of funding for local improvement schemes and he is considering the matter in conjunction with the voluntary schemes already operated by local authorities. Voluntary schemes may be expanded.