The relative position of regions, in terms of variables such as GDP per head and employment, is a very significant determinant of policy, both at EU and national level. These factors determine the focus of policy on matters such as EU Structural Funds and State aid to enterprise. For example, the maximum approved rate of grants to support new investment in manufacturing and internationally traded service industry in the period 2000 to 2006 for large firms is 40% in the Border, midland and western region and 17.5% in Dublin. The rate in the other four regions in Ireland is around 30% and will be around 20% for the period 2004 to 2006.
Regional emphasis is a strong feature of the various programmes adopted under the National Development Plan 2000 to 2006 and carried out through the Structural Fund operational programmes for that period. It is underpinned by the strong regional emphasis in the work of agencies such as IDA and Enterprise Ireland. The IDA is committed to delivering half of all new greenfield jobs into the Border, midland and western region in the coming years, a target which was achieved in the year 2000. Both agencies have re-focused their resources on regions outside Dublin, and particular account is taken of the needs of the BMW area in matters such as transport, roads and telecommunications infrastructure.
Employment in the client firms of the industrial development agencies – the IDA, Enterprise Ireland, Shannon Development, and Údarás na Gaeltachta – increased by just under 50% in the ten years 1992 to 2001, and by just under 30% in the five years 1997 to 2001. While employment growth was stronger in the Dublin and mid-east regions, employment growth was achieved in all regions. In County Leitrim, the increase for the five years 1997 to 2001 was just under 40%.
Regional development will continue to be a strong focus of policy. This will be facilitated by the development of the national spatial strategy which is under way at present. Regional impact will also be one of the main factors to be considered in the mid-term review of the operational programmes for 2000 to 2006, to be carried out in 2003.
