Seanad Éireann debate -
Tuesday, 17 Nov 1998

Vol. 157 No. 3

Western Development Commission Bill, 1998: Second Stage.

Question proposed: "That the Bill be now read a Second Time."

Minister of State at the Department of Agriculture and Food (Mr. Davern)

This important Bill provides for the establishment of the Western Development Commission on a statutory basis and for the administration by the commission of the western investment fund. The establishment of the commission on a statutory basis is a significant initiative and a clear indication of the Government's ongoing commitment and determination to promote the economic and social development of the west.

The commission, as Senators will be aware, has its origins in the "Developing the West Together" initiative which produced a report in 1994 in relation to the economic and social situation in the west of Ireland. Subsequently, a Government task force which was established to examine the report, identified the need for a "strategic focus which provides direction to the activities of the various agencies operating in the region, in partnership with the efforts of local communities".

In its report the task force recommended the establishment of a Western Development Partnership Board, which was subsequently established in October 1994. The board was requested to produce an action plan for the economic and social development of the region with the objective of "achieving population stability before the end of the decade at 1991 Census levels on a county basis". The partnership board launched its action plan The Challenge: a Positive Future Through Action in May 1995. Among its key recommendations were the establishment of a Western Development Commission and a western investment fund. Throughout the review and analysis of the situation and in the various reports adopted, the western region was defined as counties Clare, Donegal, Galway, Leitrim, Mayo, Roscommon and Sligo. This clear geographic delimitation was pivotal when determining both the nature and operation of the commission and the investment fund.

On 14 May 1996, the previous Government approved the establishment of the Western Development Commission. A western investment fund was also approved. Subsequently, the commission was established by the Government with effect from 1 January 1997 and its board appointed. Its central function is to promote the economic and social development of the region as defined. It will realise this through collaborating with the existing statutory and non-statutory agencies working in the region as well as by promoting and facilitating strategic alliances. I believe that the mandate assigned to the commission represents an important innovation in the approach to regional development. Focusing as it does on co-operation with, and the development of strategic alliances between, the various social and economic actors within the region, it will both facilitate and underpin the articulation of a regional approach to specific regional problems. This objective will be further pursued by the commission through its operation of the western investment fund which will provide financial support for social and economic projects being implemented in the western region.

Before turning to the text of the Bill itself I would like to comment briefly on the commission's relationship with other developmental agencies operating within its geographic area of operation. I am particularly conscious of, and commend, the work being done by existing statutory and non-statutory bodies in promoting the region's economic and social development. Consequently, in the drafting of the legislation I was determined to ensure that any possible duplication or competition with the activities of these agencies was avoided. The commission, I would emphasise, is being established to enhance and not to undermine or dilute the developmental activities of these other agencies. In this regard the emphasis of the commission will be on promoting and facilitating close co-operation with other bodies in complementing and underpinning their developmental activities. The commission's functions as provided for in section 8 have been drafted to ensure such complementarity is achieved and that duplication is avoided. In the case of the western investment fund, the commission will provide support for suitable projects in the form of equity and loans which will complement rather than compete with the activities of grant giving agencies.

I would like to turn to the text of the Bill itself. I do not propose to discuss all sections in detail but will focus only on those which I consider as important.

Part I contains a standard provision relating to the short title interpretation of the main terms used, penalties arising from disclosure by members or staff of the commission and provision for expenses incurred in administering the Bill which will be from voted money. I believe these are self-explanatory and do not require further comment.

Part II of the Bill deals with a range of matters relating to the establishment, organisation, procedures and functions of the commission. Section 7 establishes the commission on a statutory basis with the legal status of a body corporate. The general functions of the commission are set out in section 8. These include promoting, securing the promotion of, fostering, encouraging and assisting in the economic and social development of the western region. In particular, they involve developing an overall strategy for achieving the commission's primary objective of economic and social development; working closely with Departments and agencies to co-ordinate and seek to refocus as necessary their priorities and programmes in support of the commission's primary functions and working closely with the private sector and representative business organisations to create the conditions to encourage investment in enterprise and job creation.

It will be apparent that the establishment of effective collaborative and co-operative structures is essential if the commission is to be successful in implementing its mandate. Structures have been established to ensure this co-operation and collaboration.

At national level a national liaison network and the Forum of Western Ministers have been established. The liaison network, comprising representatives of Departments and State agencies, serves as a direct link between the Western Development Commission and the Departments and agencies. It provides a forum for policy discussion and the definition of targets which will contribute to the elaboration of a more co-ordinated approach to regional development.

The Forum of Western Ministers formalises contact between myself and my ministerial colleagues from the west on issues raised by the commission. This is important as Ministers from the region have an important role to play in the policy response in helping the commission to promote the regeneration of the west.

At regional and county level the commission is liaising with a wide range of bodies and interests, including county strategy groups, local development bodies — groups, area partnerships and county enterprise boards — as well as community and enterprise groups to facilitate co-ordination of objectives and activity at county level. Furthermore, meetings have been held with all seven county councils and the regional authorities with a view to improving co-operation and co-ordination. The commission also proposes to invite the private sector, through its representative organisations, to collaborate with the State and semi-State agencies through these national, regional and county co-ordinating mechanisms. The establishment of effective co-ordinating fora will contribute to the formulation and articulation of a coherent regional strategy and ensure the avoidance of duplication.

Section 8 also provides that the financial assistance provided by the commission will be in the form of the purchase of shares and the provision of loans in suitable investments. Funding will be provided from the western investment fund and will be focused on strategically important investment projects, on business start-up, growth oriented small and medium sized enterprises and on community based developments aimed at encouraging enterprise establishment.

Sections 9 to 13 deal with the appointment and remuneration of the commission. Provision is made for 11 ordinary members and a chairperson. A board of this size is appropriate allowing geographic and sectoral representation without becoming too large. I will be appointing additional ordinary members over the coming weeks in line with the proposals in the Bill.

The commission will be assisted by a number of sectoral development councils in ensuring the development and implementation of a coherent regional policy and the development of key strategic sectors. These are provided for in section 19. So far five of these advisory councils have been established covering natural resources, marine and fisheries, tourism, arts and heritage, communications and information technology and manufacturing and services.

These committees comprise representatives from a broad cross section of society, including State agencies, third level institutions, local development organisations and the private sector. The Bill allows for the establishment of further such committees as considered appropriate. Apart from supporting the implementation of coherent sectoral policies, their very existence will also help to ensure improved co-operation and cohesion between the various economic and social sectors operating in the region. Apart from supporting the implementation of coherent sectoral policies, their very existence will also help ensure improved co-operation and cohesion between the various economic and social actors operating in the region.

Part III of the Bill relates to finance and staffing. Section 20 provides for the establishment of a western investment fund to be operated by the commission. The fund will operate as a funding mechanism to support investment in developing companies in the west in support of the commission's function of promoting and encouraging investment by the public and private sectors. Some £25 million is being provided from Exchequer resources for the fund, beginning with £5 million in each of the years 1999 and 2000. A review of the operation of the fund will commence in late 1999.

The commission is required, in accordance with section 22, to keep all accounts and to submit them to the Comptroller and Auditor General for audit, not later than three months after the end of the accounting period to which they relate. Copies of the accounts will be laid before each House of the Oireachtas. Section 23 also requires that the commission submits a report as regards its activities in the preceding year on or before 31 March each year. Again, this report will be laid before each House of the Oireachtas.

Sections 26 and 27 deal with the staffing of the commission, including their terms and conditions, remuneration and allowances. A staffing complement of nine has been sanctioned for the commission. This staffing provision, which I consider appropriate, will provide the commission with the staffing resources necessary to implement its mandate. The administrative costs of the commission are funded from an annual grant in aid from my Department.

The commission is being established to deal with the particular problems of the region encompassed within the geographic mandate of the commission. Its mandate is based on an analysis of the area and on the specific recommendations of the Western Development Partnership Board. The commission will provide a platform which will facilitate co-operation and collaboration between the various national, regional and local State, semi-State and private bodies. This will maximise the benefit to the west and help to regenerate a new spirit of optimism and enterprise.

I believe that in its efforts to date the Western Development Commission has demonstrated that it can make a useful contribution to economic and social developments in the region. I welcome this innovative Bill which I can honestly recommend to the House.

Mr. Connor

I particularly welcome this legislation, coming as I do from the western region which the Bill directly affects. I pay tribute to the bishops' initiative, which became Developing the West Together, the work of the Government led by Deputy Albert Reynolds and the crucial work done by the Government led by my party leader, Deputy John Bruton, who ensured the headquarters of the Western Development Commission would be located in Ballaghaderreen, County Roscommon, for which we are very grateful.

It is very appropriate that the headquarters will be located in the home of the late James Dillon, who was a doyen of the other House for many years and a very distinguished Minister for Agriculture. He was the son of a very distinguished parliamentarian and the grandson of a famous Irish patriot. The patriotism of those people, especially his father and grandfather, was air-brushed out of Irish history for some time but one of the better aspects of revisionism, as we call it nowadays, is that we can now examine the true worth of the role of these people. It is a fitting tribute to the Dillon family for the headquarters of this very important Government agency to be located in their house. Ballaghaderreen is a particularly appropriate location for it as it is one of the most disadvantaged and peripheral areas in the European Union.

This initiative covers three Border counties — Donegal, Sligo and Leitrim — and four western counties — Mayo, Galway, Roscommon and Clare. Mayo, Galway and Roscommon constitute the western region. We have a good deal of data on the economic situation in that region. It becomes more difficult when one considers Donegal, Sligo and Leitrim because one must take them out of the Border region where they form part of a larger region with other counties. There is also some difficulty with Clare as it comprises part of the mid-west region with Tipperary, Limerick and other counties. We can take it that, generally speaking, the western region — namely, the counties of Mayo, Galway and Roscommon — are typical of the others I have mentioned. There is a mix of a large city and smaller towns in the region. County Roscommon is the least urbanised county in the country and is very characteristic of the region.

Almost 22 per cent of employment in the region is in the agriculture sector while the overall figure for agricultural employment in the country is 10 per cent. Dependency on agriculture for employment purposes in the region is, therefore, twice the national level but the income generated by agriculture is much lower than the national average.

Only 48 per cent of the workforce in the west is employed in the services industry. Every modern economy works towards the development of its services industry. Old fashioned, heavy industry is in decline all over the world as is agricultural employment, given the level of technological advances. The services sector is the only area worldwide in which employment is on the increase but only 48 per cent of the total workforce in the seven western counties is employed in the services sector, whereas more than 70 per cent is employed in the sector in Dublin, Wicklow, Meath and Kildare. One can see that a great disparity exists in this regard.

Only 30 per cent of the population in the seven western counties is urbanised; the figure includes Galway which is one of the largest cities in the country. There is a greater density of employment in urbanised areas, although greater problems exist in these areas also. The dependency ratio — which refers to the section of the population 15 years and under and 65 years and over — in the western counties is very high, averaging approximately 62 per cent throughout the seven counties whereas the national average is of the order of slightly more than 50 per cent — that is certainly the case in Dublin and the mid-east region. Here again we see a major disparity in regard to crucial economic structures.

I welcome the establishment of the commission which will be independent and have its own board of directors and professional employees. They will evaluate various enterprises which seek assistance from the commission in terms of loans, direct grants or equity. The equity market in the west is starved. Such a market simply does not exist because of the lack of enterprise in the area. I welcome the fact that the Western Development Commission has the right to take out shares in an enterprise as that could affect whether a company succeeds or fails. Many small or medium sized companies in areas which are far removed from the marketplace experience major difficulties in terms of the cashflow needed to make an enterprise viable.

My criticism is that the amount of money is not adequate. The Minister said £25 million would be made available but did not say over what period — he said £2 million would be available for the remainder of 1998 and £5 million in 1999 and 2000, but when the range of activity includes giving grant aids and loans to enterprises or taking equity stakes in a company, that sum is not enough, and the Minister will discover this as time goes on. Perhaps it will be a measure of the commission's success that £5 million will not be enough for 1999 or 2000. The Minister said this would be re-examined before the end of 2000 but before the House passes the Bill — which I hope we can do this evening, because we need to have the commission up and running and its officials working in situ in Ballaghaderreen — we should increase the funding allocations for the next two years. Over what period will the £25 million be spent? It appears that by the end of 2000 the commission will have spent only £12 million.

When examining the difficulties of the west we must look at how far the region has slipped economically because of neglect by all parties — none of us is without sin in this matter but those who were longest in office are most to blame. An enormous amount of good work is being done in assessing the economic conditions of regions and counties, people's attitudes to economic development, and the optimism or pessimism which exists among those who carries these policies forward.

A rural household survey in County Roscommon was commissioned, professionally conducted and published last August. It collected primary data from 194 farm households and 86 non-farm households across four district electoral divisions, which straddled the length of the county, covering all economic strands within it. The key findings of the study are interesting and I will outline them for the benefit of the House because it will inform us, the Minister and his officials about how people are thinking and reacting to the laudable proposals made today.

The study stated that, in 1997, almost half of the farm households had a gross household income below the average industrial wage in Roscommon. Over 50 per cent of farm households were earning less than £5,000 from family farm income. Direct payments amounted to more than 100 per cent of farm income in beef and mixed grazing livestock enterprises, which is the vast majority of farm enterprises in the county. The level of direct payments rose in tandem with higher family farm income and gross household income levels, the implication being that better off families had higher levels of direct payments from EU sources. Almost 40 per cent of the sample had an off-farm job income, which could come from social welfare or part-time or full-time employment. The majority of off-farm jobs were in the public service while there were few job opportunities in industry, which relates to the point I made earlier. The majority of the non-farm sample was either retired or unemployed, indicating the lack of job opportunities in this rural county. Only 34 per cent of respondents to this survey would be willing to borrow to finance farm development for diversification, which is an interesting finding. Approximately 45.4 per cent of the sample was categorised as viable in terms of household structure and gross household income while 32 per cent was categorised as potentially viable. It would appear that the remaining percentage would have to be written off as entirely non-viable. Only five of 194 farmers had an alternative enterprise on the farm.

Lack of information on farm schemes and diversification is a barrier to participation in various off-farm schemes. There is a high level of interest in participating in the rural environment protection scheme in the future, but fears regarding the cost of pollution control, which hopefully the Government will do something to alleviate, fencing and labour constraints deter people from entering the scheme. The level of contact with Teagasc was approximately 50 per cent of the sample. These are just some of the key findings. I would like the Minister and his officials to note them as in a sense they tell their own story. They tell us about economic conditions and the social outlook of people, including their optimism or otherwise for the future.

I unreservedly welcome the Bill. The Minister spoke about a Forum for Western Ministers which is a very good idea. I do not wish to denigrate the role of Ministers of State, but the pity is that there are only two Cabinet Ministers in the region, namely, the Minister for Arts, Heritage, Gaeltacht and the Islands and the Minister for Tourism and Sport. The last Administration had two Cabinet Ministers from the region and far more people with a voice in Government than the current Administration. While I welcome the forum, I would be much happier if there were more Ministers eligible or entitled to attend it and a better geographic spread of Ministers. It is a pity there is no Cabinet Minister from Counties Roscommon, Mayo, Galway or Sligo as it is a long way from Clare to Donegal.

I also welcome the appointment to ensure co-ordination between all Departments; such a provision is badly needed. Departments are very slow to co-operate with each other because of the culture which has developed since we inherited the Civil Service system from the British almost 80 years ago.

I unreservedly welcome the Bill and congratulate the Minister. It took a little time and I expected it to come before us much sooner, but better late than never. I sincerely hope we can discuss all its provisions this evening so that in a week's time Mr. Liam Scallan and his staff at Ballaghaderreen can commence their good work.

Mr. Chambers

I am glad of the opportunity to welcome the Bill. There is a very strong view in the west that the problems there will never be addressed until there is a statutory body with finance and a committed focus on establishing needs and providing initiative. It is very clear from the establishment of the Western Development Commission that geographic delineations were pivotal in determining its nature and operation and the associated investment fund. It sets out a clearly defined area which includes counties Clare, Donegal, Galway, Leitrim, Roscommon and Sligo and recognises specific needs. I have been involved in local and rural development all my life and it is fair to say that there is a need for this statutory authority in the west, funded and controlled by the State with power to determine what should be put in place.

I welcome the provision outlining the number of people who will form the commission so that it is not unwieldy or too large. The commission will be responsible to the Government and the State, as will its accounts. I also welcome the fact that it must stand on the merits of the development plan it puts in place.

Much effort on the part of church and State was put into bringing about the commission. The work included identifying the genuine needs which must be addressed. While some people might feel we are looking for something to which we are not entitled, a sociological analysis clearly defines the areas of real socio-economic need in the west and the problems which exist, including a decline in population and a reduction in the number of schools, churches and post offices. The Government has recognised these problems.

While there may be criticism of the size of the investment fund, the principle has been established and I believe, as outlined in the introduction to the Bill, that the Government will recognise the work of the commission if it gets on with the business it is obliged to do in terms of worthwhile projects. I am satisfied the Minister, in his responsibilities for rural development and the Western Development Commission, and the Government will look positively at worthwhile development and investment.

The terms of reference of the commission are to underpin the articulation of a regional approach to specific regional problems and to avoid any duplication or competition within the activities of other agencies, something into which much work has been put. The House is aware that there are many agencies, including county enterprise boards, partnership boards, etc., which have an active role to play in development. The Government and the Minister have been careful in outlining the specific role of the Western Development Commission. It has a substantial remit and a responsibility to function in a very structured and effective manner. There is much rivalry between development agencies, something the Minister is attempting to address. The more simplified things are the better the end result for the public and the State. I welcome the terms as set out by the Minister.

The western development fund provides opportunity within the commission. It reminds me of the recent opening of the Geesala Hotel in north Mayo in which Údarás na Gaeltachta took a share capital interest. Such development is welcome as it develops the tourism product and is very necessary. It provides support to private and State investment. There is an opportunity here for the commission to work with county councils, which are becoming development agencies in their own right. Funding can be put together to set down development proposals that have been identified as necessary.

I note that the Bill suggests close interaction between the private sector and representative business organisations to create conditions for and to encourage investment in job creation and enterprise, which are also very necessary. The sub-committees set up to advise the commission have a very wide remit and I see great potential here, particularly on the western seaboard. The State has not addressed this issue as it affects that area; for example, there is potential for job creation in west Mayo in the seaweed industry. The commission will have a responsibility here in the natural resources area and the State can provide jobs that will help keep families in the region. The commission, the development agencies and the Government can make substantial progress with targeted investment in these areas.

Recently 67 representatives of European Leader groups visited the west but only seven came via Knock Airport. We are discussing sustainable development and long-term investment, but unless the Government develops infrastructural facilities, such as airports, we will not be able to sustain substantial developments. We must get people into these areas and show what we have to offer in order to reduce the imbalance in the State. This commission provides a great opportunity to do this.

The remuneration of the commission's staff is set down in the Bill. The commission will be administered by the Department of Agriculture and Food and will be included in the Estimates. The costing and administration of the commission is taken away from the body itself, which gives it the specific mandate of working within the strategic plan and to be effective as soon as the finance is available.

The Leader groups have undertaken substantial work in rural areas and they are to be complimented on the value for money they are giving the State. Their investments are extremely worthwhile. They started off with a low base but they have become a very valuable investment for the Department of Agriculture and Food. In my county they have given a great thrust to community development and provided a great educational process. With other groups they have also addressed social disadvantage and made community groups aware of their own potential. Very few investments have given a return to the Exchequer in such a human way. There may have been some failures, but the bottom up approach has been a very positive initiative. I welcome the recent announcement in the Estimates of £40 million for the last phase of Leader 2. That is welcome and worthwhile.

Senators have referred to Objective One status. It is important to welcome the Government's genuine interest in this matter and in addressing the need for regionalisation. It is in the country's best interests to deal with social disadvantage. If it is not dealt with now it will be compounded later. I take it that regionalisation will be the option taken; that is a welcome step. It is positive and addresses the situation that has been established by National Economic and Social Forum reports and will help to address the imbalance in our development. I welcome the Bill.

Mr. O'Toole

I welcome the Minister of State and his initiative in producing this Bill. I also pay tribute to his predecessor, Deputy Donal Carey. I remind Members that it was a very tight vote in this House four or five years ago, amid much anger, that supported the idea of a Minister with responsibility for western areas. I am glad there is a consensus now. This is good legislation that will be welcomed in the west.

There are certain matters regarding the commission's relationships with other bodies of which I am unaware. I know this is speculation but, in the event of some arrangement being made on regionalisation for Objective One status which would need an internalised administrative structure, can the Minister of State tell us how those matters will relate to each other? There should not be overlapping; bodies should complement each other. The Bill is very clear on how it should relate to local bodies but it also mentions national bodies. I am not sure if international money is mentioned, but Members will know what I mean.

Rud eile ná Údarás na Gaeltachta atá freagrach as a lán den chuid sin den tír agus tá a gcóras riaracháin féin acu. Cén sort comhnasc nó gaol a bheidh ann idir an tÚdarás agus an western development fund? Caithfidh siad a bheith ag obair le chéile nó an mbeidh ceann amháin i gcoinne an chinn eile? Cén sórt achmhainní a chuirfear ar fáil do chúrsaí Gaeltachta? Nó an mbeidh sórt overlap idir obair an Údaráis agus obair an Commission?

I do not expect precise answers from the Minister of State. I recognise that there needs to be a period when these bodies work together to decide what interaction there should be. The Minister of State might give an idea of how these bodies may work together.

It is crucial that we deal with infrastructure in the west.

Senator Chambers provided a good example of the hotel in Geesala, which is being developed using this approach, and that is hugely important. That area is poorly served having been excluded from tax incentives, unlike such towns as West-port. What tax incentives or initiatives could be developed in this area? People in the west are prepared to put their money where their mouths are and invest in development.

One section in the Bill deals with an investment fund. It is envisaged that it will be used by the Western Development Commission but people could also invest profitably in various developments covered under the Bill. The people might be prepared to say that developments do not need to be completely State funded. People may be prepared to buy shares in hotels, etc.

Some so-called tax loopholes have been correctly and justifiably closed off by the previous two or three budgets because they were abused, particularly by people in business expansion schemes who put money into non-risk investments in Dublin city. They could be loosened again for the west and there are great opportunities to do that.

Castlebar has shown in recent years what a small town in the west can do in terms of investment in information technology given the right type of initiative, planning and local commitment. It can place itself at the centre of the commercial world through the Internet. The development of tele-working in different parts of the globe lends itself very much to the west because many of those who choose that lifestyle like to be in a remote location but centrally located in terms of communication. It is important that there is complete infrastructural investment in ISDN lines and satellite locations. They are not huge expenses but new companies will need to look at them. If a person is working on Inishturk he should be able to video-conference with New York at the push of a button and be connected to the rest of the world with little difficulty.

I support Senator Chambers' points regarding the development of airports. I appeal to the Minister of State as a man of the world, who, like the rest of us, can spend money easily and get value for it, to tell the Minister for Finance not to dare misuse, abuse or misdirect our money by paying off the national debt. This money can be spent on Ireland's rail, road, airport and IT infrastructure. I was aghast at the television news last night when it was reported that the Government had announced a new initiative for the fishing industry; it worked out at less than 5 per cent of the investment that will be required to help it. I can only think of the £1 billion that is available for use while the fishing industry falls apart. Greater investment is required, especially in the west which has lost out over the years.

The west loses in the most simple ways. I am interested in boating and sailing and there is no decent marina along the west coast. There is no marina between Kilrush, County Clare, and Malin Head, County Donegal. There are piers and jetties where one can pull in but only one marina is being developed in Galway city which would be described as such in any other European country. There should be one every 25 miles along the coast. Sailing is a huge international industry which brings a great deal of money to many small, remote areas and we need to introduce this type of investment in terms of environmentally friendly tourism.

I will provide an example of the need to develop infrastructure in terms of the rail network. There has been a long debate in recent years about the establishment of a third level college in Castlebar. Much of the support for that has come from the need for people to be able to receive an education in their home area. Their motivation was not the need to have a third level institution in Castlebar but to have their young people educated as close to home as possible. Certain strides have been made but they will never get what they want.

Hand in hand with the development of a third level institution in the area could be the development of the rail network. Castlebar is only 155 miles from Dublin. In European rail terms the journey would take one and a half hours. There is no reason somebody from Castlebar should live in Dublin just because he or she attends college there. Our thinking has gone completely daft. We are governed by the views of Victorian times when travelling from Castlebar to Dublin took a week. There is no reason, if the proper rail infrastructure is in place, that people could not get up in the morning, catch a 7.30 a.m. train to Dublin from Castlebar, be in Dublin for 9 a.m, college for 9.30 a.m., spend eight or nine hours in college, catch a return train to Castlebar and arrive there at 8 p.m. The advantage is that people would retain their roots and friendships in their home place and want to return there. The illustration I used for the rail network could be applied to the traffic crisis in Dublin and the housing needs in major metropolitan areas. We should look at our infrastructure so that people are at least given their own space and do not have to leave in order to get jobs in the city.

Something different must be done in terms of education for remote areas. It is not right, for instance, in terms of the appointment of teachers that the rules which apply in urban areas also apply in Inishturk, Inishbofin, Achill Island, Tory Island or the Aran Islands. If we want to protect those communities we need to look at providing them with better resources. We must just put our money where our mouths are and make sure they get that support.

Ireland's unemployment figure is under 10 per cent and people will argue about whether that is the correct figure but it is the lowest it has been for some years. A huge number of people who are currently unemployed have literacy and numeracy problems and will be very difficult to employ in the future. In the old days they were able to get menial jobs which did not require the added value of education. Those jobs are gone and we must ensure that everybody going through the education system has a qualification and can use it to harness opportunities in everyday life. If small schools in the west are not supported, a further problem will be created in the future.

I refer again to the question of na Gaeltachtaí in terms of culture. Tugann na heagraíochtaí Gaeilge — iad siúd a bhfuil ainm in áirde acu, whether they be Comhdháil or Conradh nó eagraíochtaí mar iad — an-thacaíocht ar fad don teanga.

The problem for those in the Gaeltachtaí is that the revival of the language, athbheochan na Gaeilge — is of very little use to them in terms of getting jobs. They want a living language in their communities where they work and are educated. That is not happening and the western development commission should look at the precise cultural needs of Gaeltachtaí na tíre seo i dtreo is go mbeadh tacaíocht acu, go mbeadh gach seans acu fanacht sna Gaeltachtaí, obair a fháil sa Ghaeltacht agus dul ar aghaidh len a saol ansin.

Tá an-tacaíocht ann ón Rialtas seo agus ó gach Rialtas go dtí seo d'athbheochan na Gaeilge ach maidir le muintir na Gaeltachta de ní chaitheann siad an lá ar fad ag caint faoi athbheochan na Gaeilge. They think about normal work and every day things such as where they can get a job. Can they get a job in their area? Must their children leave? So, therefore an sórt tacaíochta atá ag teastáil ó na Gaeltachtaí ná the type of infrastructural support which would be available in any other place. We should not be diverted from that aspect. There is no point having Gaeltachtaí where people have perfect Irish but cannot get work. Nuair a bhí Cearta Sibhialta na Gaeltachta ann na blianta ó shin bhíodar san soiléir ar an méid a bhí ag teastáil uathu and that was that people could have a normal life as members of the Gaeltachtaí.

It is crucially important that issues, such as the relationship between the west and European changes, for example, in energy resources is examined. One of the first wind farms is in north Mayo. A huge debate is ongoing at present on whether such farms are appropriate. One aspect which must be examined is whether wind farms should be near the sea. The wind is a natural resource off the west coast and it could be harnessed in a way which would be environmentally unnoticeable.

Similarly, the development of tourism in terms of hill walking, angling, sea angling, fisheries, mountain climbing and adventure sports facilities must be considered. I was glad to note recently that one of the main adventure centres in Mayo was advertising for more staff. This shows that this area is developing well. However, we lose out badly if the man who is making prize winning sausages in Newport cannot get them to Superquinn in Dublin for sale or the man importing fish through Rossaveal cannot get them quickly by truck to the Paris market because of road or rail deficiencies. These are small examples to illustrate the point.

I welcome the Bill and congratulate the Minister for introducing it. The legislation will be well received and supported. However, the Minister of State should put the boot in at Cabinet and ask it to spend some of the money which is at the Government's disposal.

Mr. Connor

Full marks for trying, Senator.

Mr. Callanan

There appears to be unanimity with regard to the Bill. I welcome the Minister of State, Deputy Davern, who always brings good news and does things well. The Bill is a credit to him and the Government.

I welcome the Bill which places the commission on a statutory basis. The commission was initiated by the previous Government, but it did not put it on a statutory basis. It is also fair to acknowledge the role of the Catholic bishops in the west. I remember when we learned many years ago in Cork that the bishops had called a meeting with public representatives and local communities to try to overcome difficulties in the west and to stimulate a debate which would lead to development. It is fair to acknowledge their role.

It would be wrong to paint a picture of a region which is in terminal decline. The west has much of which it can be proud, such as outstanding and scenic beauty similar to the area of the country from which I come, west Cork. The west also has its heritage, a clean environment, an extensive coastline, its attractiveness as a place to live and its existing industrial base. All these offer considerable potential for development. Not all the land in the west is of poor quality. There is much good agricultural land in the region. There are similarities between it, my area of Cork and the general south coast in that regard. It is a pity that the commission's work did not extend southwards beyond County Clare.

There is much success in the west and a great deal of physical evidence of achievement and wealth. Obviously it is not being shared equally and this is an issue which the commission must examine. Even the population drain has been halted. In the seven counties covered by the remit of the commission, statistics show that six experienced population increases between 1991 and 1996. The population of County Clare increased by 3.4 per cent while the population of County Galway grew by 4.7 per cent. Only lovely County Leitrim showed continuing depopulation in that period.

However, this does not make up for the substantial decline experienced in earlier decades which continues to have a negative impact on the region and which has distorted the demography of many areas in the west. Rural poverty tends to be less visible than its urban counterpart. While poverty in the cities tends to be concentrated in highly visible urban blackspots, poverty in rural Ireland is often hidden down boreens or on the sides of mountains and hills. It is often represented by elderly people living on their own. The poverty is exacerbated by isolation and remoteness from services.

We should not make the mistake of equating rural poverty solely with farming, notwithstanding the real difficulties currently facing agriculture. Virtually all studies show that the percentage of farmers identified as being at risk from poverty has declined steadily. Perhaps they have exited from farming, but this is what the statistics show. For example, the national anti-poverty strategy produced by the previous Government showed that when income was combined with the basic deprivation indicator, farmers made up only 3 per cent of those at risk of poverty in 1994 compared to 6 per cent in 1987.

Agriculture is and will remain a key element in the economic life of the west, but farming on its own will not be able to give the region the lift it needs. That requires a wide range of social, economic and infrastructural initiatives. This is recognised by the wide range of functions of the commission set out in section 8. I acknowledge the Minister of State's role in introducing the Bill. It is appropriate that the Department of Agriculture and Food is sponsoring the legislation.

Earlier the Minister of State set out the terms of the Bill, the need for it and the demarcations in terms of other agencies. He said he is particularly conscious of and commends the work done by existing statutory and non-statutory bodies in promoting the region's economic and social development. Consequently, in the drafting of the legislation, the Minister of State said he was determined to ensure that any possible duplication or competition with the activities of other agencies was avoided. The Minister of State emphasised that the commission is being established to enhance and not to undermine or dilute the developmental activities of those other agencies. In this regard the emphasis by the commission will be on promoting facilities and close co-operation with other bodies in complementing and underpinning developmental activities.

The Minister of State carries his responsibility for rural development well. Many years ago local authorities had sole responsibility for development in counties. Over the years we have witnessed a diminution of the role of local authorities. Many of their facets were removed and transferred to other agencies. There are now county enterprise boards, Leader programmes, county strategy groups and area partnerships. There used to be a range of committees dealing with agriculture, health and other areas. Responsibility lay with local government. Perhaps it would be appropriate when the Minister for the Environment and Local Government is examining the role of local government to reconsider this area and to reinstate local authorities as the developmental agencies in the various counties.

Perhaps many of the areas and developmental roles which have been given to other agencies should be brought back under the aegis of local government. This would be a better day's work and I ask that consideration be given to this aspect. What has been taken from the people and local government has been given to other bodies which in many instances, are made up of non-elected people. Is that good for local democracy and local development? If committees comprise non-elected members to whom do they answer? There cannot be a higher adjudicator than the public. The role of local government, including its role as a developmental agency, should be closely examined. If the Government does this there would be a stronger and better local agency.

The Minister of State said that at regional and county levels the commission is liaising with a wide range of bodies and interests, including county strategy groups, local development bodies, Leader groups, area partnerships and county enterprise boards. These are the groups with whom I am concerned. They could be under the guidance and control of elected people. I welcome the Bill and congratulate the Minister of State on what he is doing.

Mr. Coghlan

I welcome the Bill. I hope there will shortly be news from the Government on the regionalisation issue. I await the views of the Minister of State on how the Bill will be adapted to meet possible developments. As it stands the Bill deals with a number of counties. While the concept is right, we must find a way of incorporating the entire western seaboard. Residing as we do among the most peripheral regions of the country, many of us recognise the serious handicaps and disadvantages under which we must work. In view of this it is logical that the western seaboard in its entirety be encompassed within a western development commission.

I read with interest the Minister of State's speech. Unfortunately I was not in attendance when he made it. He is among the most genial of men. We fully subscribe to the determination to promote the social and economic development of the west. These are laudable objectives, including Developing the West Together and providing the strategic focus to give direction to the various agencies operating in the region in partnership with the efforts of local communities.

We must strengthen and increase the funding of groups such as Leader. However, I have concerns — I am sure the Minister of State shares them — about the interaction and co-ordination roles between the various bodies and agencies. There must be worries about overlap. We do not want to end up with talkshops. We need something that is strategically focused to make the right decisions and to get the right projects funded throughout the west.

Despite my reservations I support the concept and design of a western investment fund and the other matters provided for in the Bill. I hope they will be properly worked. However, Charlie Haughey type figures are needed at the top of these agencies who will be able to give direction. We do not want paper compilers and shufflers. Given the number of bodies involved there is a danger this may happen. In his speech the Minster of State expressed his determination to ensure that any duplication of work by the agencies involved, including competition between them, will be avoided.

Referring in his speech to assisting in the economic and social development of the western region, the Minister of State spoke of developing a strategy for achieving the commission's primary objective of economic and social development, including working closely with Departments and agencies, co-ordinating and refocusing as necessary to have priorities and programmes in support of the commission's primary functions and working closely with private sector representative business organisations to create the conditions to encourage investment in enterprise and job creation. This is laudable.

However, one of the problems here arises because we are so good at defending our own turf, both politically and within the Civil Service. Indeed, the Unionists are not in the same league, despite "no surrender" and "not an inch". While the Minster of State intends well in proposing to establish a national liaison network and a Forum of Western Ministers, I am increasingly worried about the layers of bureaucracy that will ensue. While much of it will be necessary initially, the number of bodies involved, including county strategy groups, local development bodies, Leader groups, area partnerships and county enterprise boards, will create problems.

There is no doubt that, in terms of the west, the funding envisaged is badly needed but it needs to be focused on strategic problems, investment projects, business start-ups, growth oriented small and medium sized enterprises and community based development aimed at encouraging enterprise establishment. The Bill also allows for the establishment of further such committees as are considered appropriate. I would prefer to see fewer committees and more action and output on getting money invested in the right projects.

There are great projects along the western seaboard, from County Donegal to County Kerry, especially in County Kerry. I am a great believer in the western seaboard. As far back as 1981 County Kerry was included; indeed it never left it.

Mr. Davern

The Senator is rewriting geography.

Mr. Coghlan

I am not. However, I was greatly surprised and disappointed that the recent proposal by the National Roads Authority for a western corridor, or western crescent route as Deputy Dukes termed it, did not include County Kerry. It was as if we were deleted from the map. It was proposed to extend one branch of the corridor to Limerick and the other to Cork. Senator Callanan shared my sense of outrage when we debated the proposal in the House.

If we are serious about the import of this Bill all the counties along the western seaboard must be included for Objective One status. This is widely rumoured to be the case. We must wait another ten minutes for an announcement. In this new regionalisation arrangement, good as the efforts of the Bill are, we will have to address the new regions which will encompass the Border counties and those of the entire western seaboard. The Taoiseach and the Tánaiste and Minister for Enterprise, Trade and Employment, recently said we should not be divisive on this issue. The rest of the country will not lose out because it will be in transition. It is only proper and logical that the entire western seaboard, which is the most peripheral region, the furthest from the capital and the least well served as regards infrastructure, particularly roads, is included. I have much more to say which I am sure the Minister would like to hear but sadly my time is up. I look forward to hearing his reply, particularly what he has to say about the incorporation of the other counties in conjunction with the announcement to be made in the next ten minutes.

Mr. O'Brien

For many decades, particularly in recent years, we have all become aware of the problems of the western counties. They have lost many of their young people who left for a better life in the larger cities or abroad in England or America. This left the area without its greatest asset — people, especially young people. Many areas became depopulated and older people became isolated in remote areas and this led to many attacks and an increase in crime.

As our main cities grew and expanded each year, western areas became neglected and underdeveloped with their enormous potential for development totally forgotten. This Bill which will establish the Western Development Commission on a statutory basis is one of the most important initiatives by a Government for the western counties of Donegal, Sligo, Leitrim, Roscommon, Mayo, Galway and Clare and will bring together all the agencies concerned with the economic and social development of the region in a co-ordinated way to work for the improvement of the area, to bring employment and to ensure people remain in their native areas while being able to provide a modern lifestyle for themselves and their families in an active local community.

While Governments and the agencies were aware of the problems of the west, the report of the "Developing the West Together" initiative in 1994 presented the problems clearly and identified some solutions. Its greatest legacy was the setting up of the process which will be placed on a statutory basis.

With a number of reports and action plans available for consideration, the commission has an important role to play in the future of the west in co-ordinating development programmes in the economic and social areas of the region. The financial assistance available from the western development fund, which will be operated by the commission, in a particular way will assist the work of the development and create much needed employment.

As I examined the reports of the various bodies involved in western development and the problems of the region which this Bill addresses, I saw many of the same problems in my constituency of Cavan-Monaghan and in the Border areas which for 25 years were underdeveloped due to the Northern Ireland troubles. There was also a lack of cross-Border co-operation. Thankfully, the troubles are behind us and I hope we will not see a return to the terrible past. The great work of this Government, especially our Taoiseach, Deputy Bertie Ahern, in bringing about the British-Irish Agreement offers a new future of opportunity for us all — north, south, east and west and especially the Border counties where co-operation will bring enormous benefits.

Many of the problems in my county are like those in the west, including the lack of inward investment and infrastructural problems. In the past year, however, our road structure has improved greatly and I compliment the Minister for the Environment and Local Government, Deputy Dempsey, in assisting Cavan County Council and Monaghan County Council to resolve the pot hole problem. I am confident that by the time this current plan is completed our roads will be in good condition.

It is unfortunate that at a time when the Government is giving great assistance to western areas and to rural development generally, farmers' incomes are facing a major crisis. Farming is the backbone of the rural economy. The Western Development Commission has clear objectives which will greatly assist it in its work developing an overall strategy for achieving its main goal of economic and social development in close consultation with Departments and agencies and in assisting the private sector and local communities to create the conditions to encourage investment in enterprise and job creation. The western investment fund will provide the main source of funding for small and medium sized enterprises in the west. As I said, jobs keep people in the local area.

I compliment the Minister on the Bill and urge the House to support it. It establishes on a statutory basis a body to co-ordinate development in the west by bringing Departments and agencies together with the local community to focus policies on the specific needs of the region and to assist the great work being done by so many programmes and plans which must have financial assistance. The western development fund will provide the necessary money for the projects to succeed. I wish all involved every success in the future and hope this Bill will bring employment and happiness to many families in the west.

Mr. Quinn

As a long time champion of the west in this House and elsewhere I welcome this Bill unreservedly. I welcome the Minister to the House and the work he has done to explain the Bill.

It is a long overdue attempt to correct the imbalance which has tended to place all economic development in the east and south of the State rather than in the west. I welcome the fact that the Minister made mention of the idea of Developing the West Together. Senator Callanan reminded us that it was the bishops who got together and published their report in 1994.

The Western Development Commission will not solve all the problems in correcting the balance but it is a step in the right direction and for that reason it should be welcomed enthusiastically. I want to make two comments at this stage. The first concerns the commission itself and the other concerns more general problems which give rise to the commission's existence.

As far as the commission is concerned, it is important that its presence is a net addition to the equation. It must add something apart from a new name and being a new talking shop. How can we ensure that? Before bringing this commission into being there are already 60 bodies concerned with industrial development. That is an enormous number. Is it too much? It is not, provided the functions of each body are carefully dovetailed with the others and do not overlap and duplicate. If they compete with each other it is bureaucracy gone mad. Some of the bodies operate at national level, some at regional level and others at county level or below. How will they all work together? We should consider this carefully at this stage and the Minister is giving it serious attention.

Here we add yet another organisation to the pile through the subsidiarity principle which we have learned from Brussels. I do not simply mean that local matters are dealt with at local level and regional matters at a regional level. The subsidiarity principle is far more profound. It says that things should happen at the lowest level and only be passed up when there is clear benefit in doing so. Subsidiarity is a fancy word to describe a bottom-up approach. There is no doubt in my mind that when we look at success stories a huge number of them have come from the bottom.

Paddy Keaveney is a man for whom I have great admiration. I remember he was given a challenge and blossomed with it, achieving success which others had not imagined because he was given the challenge and ran with it. Those at the top had not even thought about how to handle it. It seems that the more we challenge, empower and delegate responsibility to people, the more people blossom when they get that challenge. Empowerment is the opposite of what used to happen. A committee would be set up to examine a problem and the first thing it did would be to send a delegation to Dublin to have the problem solved. It is the opposite to that. We are talking about getting things done in the local area rather than asking someone in Dublin to do it.

If we are to take a major step forward we must do more than just set up this commission. We must change the way we have approached regional industrial development. I fear some may feel that the setting up of the commission will be enough. Instead of the exclusively top-down approach which we have favoured until now, I would like to see a better balance between top-down and bottom-up approaches.

I was in France recently and as we came to a level crossing there was no barrier, only warning lights. There was a sign which read "Un train peut encacher une autre”— a train may hide one coming from the other direction. As a train goes past in one direction you may be ready as the lights change to go straight ahead without realising that there is another coming from the other direction. What does that have to do with this? There are trends in different directions and we must make sure that because of the trend in one direction we do not ignore the trend in the other direction at the same time.

I would like to see the bottom-up approach dominate industrial development in the regions. I would like to see the Western Development Commission imbued with that spirit. Last week, I met a man who has a factory and employs 38 people. He remarked that we should encourage small factories to take on one or two more people. There must be hundreds such companies. We spend so much effort looking for one factory to take on 2,000 people. We must do both.

I am not sure that the bottom-up approach is reflected in the legislation before us. This Bill is in the old mould. The truth is that our industrial development over the past 40 years has been carried out overwhelmingly according to the top-down principle. It is rigidly controlled and directed from the centre subject only to whatever slight course corrections have been forced on the process by intensive lobbying from different areas.

In some ways this approach has been a complete success. I would be the first to say that this State has been more successful than most of our competitors in deciding a specific long-term strategy and sticking to it through thick and thin. The fact that the State is so well established in certain key areas — electronics, computer hard and software, pharmaceuticals and health care — is entirely due to many brave strategic decisions taken a generation ago. These were backed up by later decisions which have brought us into the world of international services in the financial and tele-marketing areas. That is the good side of the top-down approach.

The bad side is that the regional aspect of industrial development has not experienced the same success. It has been full of problems and mistakes. The key problem was that those in charge of the top-down approach thought they could buck the market by forcing industrial development and investment to go where it did not want to. Common sense should have told us that was not a good business decision. We set out to attract inward investment and, having attracted it, we then tried to bribe it to go where it did not want to.

There was a time in the 1970s when the IDA was building up advance factories in every parish in the State and some of them were never occupied. Others were occupied by no hope enterprises which could not build a viable business in that location. I brought visitors to this House a couple of years ago who were being pushed to put industry into the wrong place. They had to deliver to Milan the next day and were told that if they were to deliver then they should go the periphery. It was the wrong place.

It was a fundamental mistake to treat the whole State as if it was the same. If we want to develop the west properly we must face up to the fact that the country is not all one. In spite of all the money poured into the roads there are some businesses which are not best suited to the west. We should be concentrating on those businesses best suited to the west.

We have talked about tourism, education, entertainment and so many other services which can be handled through telecommunications. Instead of limiting our thinking to the idea that there is market of five million people on this island, we should think that somebody on the top of a mountain in the west with good communications could have a market of 500 million people. Ten or 20 years ago that could not have been done.

We must identify the tasks that can succeed. A man cannot succeed in business if he goes into a competitive arena with one hand tied behind his back. We must identify the businesses which can succeed in the west. These are businesses which are not burdened by the disadvantage of being on the periphery. The investment in telecommunications in Ireland over the past ten or 20 years means we can give the west the opportunity to do that. I hope, as a result of establishing this commission, we will see emerging from the west a bold new strategy which turns its back on the past and focuses on realising the immense future potential of that part of the country. I will cheer all the way if that happens.

Mr. McGowan

I wish to share my time with Senator Cox.

Acting Chairman (Mr. R. Kiely)

Is that agreed? Agreed.

Mr. McGowan

I support the Bill. I am probably one of the only people in this House who has met the Commissioner for Regional Policies. I met her in Brussels with a cross-Border group and had an opportunity, with two MEPs, Pat the Cope Gallagher and John Hume, to put forward the full case for the Border counties and western development. Commissioner Wulf-Mathies was very simple and clear. We met her on 18 July 1995 so I am not playing politics. She stated that regional development is a matter for Government and that the Commission had no difficulty with it but we had to persuade our Government of the need for regionalisation in Ireland. The Commission recognises that need.

The Economic and Social Committee of the European Community in 1993 undertook a study of the Border regions and the region south of the Border. It recommended that £180 million be spent in the Border and western region. We were left with no doubt about how the Commissioner for Regional Policies felt. She was very critical of the political structures in Ireland. In public, with two MEPs and a delegation of more than 20 people from a north-south cross-Border group present, she stated that Irish politicians are very good ring fencers.

This is very important for us. I cannot understand those who are far removed, especially those in the Labour Party, who say that we should not have regionalisation. We are starting from the premise that we have been disadvantaged. The Government and the Commissioner for Regional Policies should now recognise that we have a problem and that we have ground to make up.

Deputy McGinley asked a parliamentary question a couple of years ago. The reply stated that after the IDA provided jobs in 1996 and 1997, there was a net loss of 11 jobs in County Donegal alone and that was before there were problems in Fruit of the Loom.

The west has had a difficult time. I believe this stems from one factor. The European Community spent £1,100 million in providing national gas from Kinsale. The entire north-west region was put at a permanent disadvantage. Mr. Ray MacSharry told me he recognised this but the money from the Regional Development Fund was committed to provide natural gas. This put the entire western region, including the Border counties, at a permanent disadvantage. Industrialists with high energy costs which enter Ireland now cannot afford to consider the west.

It is so important to say this to those who have been trying to block the regional policy on which we are anxiously waiting. We have kept our heads down for 25 years. It was not politically prudent to raise it because people across the Border were being killed. We could not make a case. We are not going to keep quiet now when working conditions and jobs are at stake in the west and in the Border counties. I ask the Minister not to be deterred by those who believe it is expedient to oppose this Bill. This is vital for the west. There is no point complaining about farmers leaving farms and going to concrete jungles in Dublin where their rent has to be subsidised and jobs must be provided. There is no future for them there. I ask the Minister to do his job with commitment.

Ms Cox

I am sure the Minister knows that people in the west are a wily people. By necessity they are innovative, strong, determined and committed. They are committed to living in their country which is on the periphery of Europe. They face the threat of this peripherality daily. I welcome this Bill and the establishment of the Western Development Commission on a statutory basis.

People who leave Clifden are only half way to Dublin when they reach Ballinasloe. It is only when we recognise the huge geographical challenges which face people on a daily basis that we begin to understand something about the west. Those who do not know it do not understand it. They do not understand what those in the west put up with daily to survive. The land is bad, the roads need major improvements and industry must be nourished and encouraged. Tourism must be developed and nurtured and the west must develop its niche in the overall development of Ireland and Europe. The commission will assist us in doing that. However it is important that the commission is very clear about its role. The legislation addresses this and will ensure a regional focus by national authorities. That is vitally important. It is recognised that this is missing.

The great east-west divide is certainly there. Those who live in the west see that daily in the infrastructure and the investment in infrastructure and industry on both sides. The commission will foster enterprise at local level which is vital for the sustainable development of the west. If we do not foster enterprise and job creation and encourage people to stay at home to work and create their own opportunities, Ireland and particularly the west will not survive and will slowly sink into the Atlantic Ocean never to be seen again.

It is also important that the commission coordinates the work of other public and private agencies in the west. We must recognise there are many enterprises and agencies and the co-ordination role is very important. I would like to see a one-stop-shop with the commission directing people in the ways and places they should seek funding, assistance and advice. The future of the west is in sustainable development — development that suits our environment, our people and overcomes the traditional barriers of location, bad roads — telemarketing and technological services and outsourcing of services in remote regions where there is an advanced telecommunications system. One of the great assets of the west of Ireland is the beautiful scenery and the fact that the region has been virtually untouched by large developments. There are beautiful mountains, lakes and rivers in the west.

There has been a major change in Galway and the west in terms of cultural development. Films and television programmes are being made in the region. There must be an inter-agency and departmental approach to various issues, such as post-production zones and so on which will be vital for the development of Galway.

The objective of the commission must be balance — population balance, balance in the standard of living for those who live in the west, partnership balance and a developmental balance. I believe this can be done with the support of the commission. I wish the commission and the Minister well. The success of the commission will be the success of the people of the west.

Mr. McDonagh

I do not know whether it is by coincidence or design but as I speak I am delighted to see the Gallery adorned by the maroon colours of Galway. As I was coming into the House to speak on this Bill it was appropriate that the rain was falling because on the western seaboard we get storms blowing in from the Atlantic Ocean. We are all familiar with the phrase, "We will all be ruined said Hanrahan if this rain don't stop." This year the farmers of the west of Ireland are crying out this famous cliché. Someone said to me today that 1798 will be remembered for historic reasons but 1998 will be remembered for the wrong reasons.

The people of the west are resilient. It is now four years since the bishops of Connaught and Donegal established an organisation called Developing the West Together based on a report "A Crusade for Survival". This highlighted the problems of the region and began the process of identifying the solutions. A mission statement was produced stating that the west as a region was recognised internationally for having overcome its traditional patterns of emigration and dependency. At that particular time the Rainbow Government under the leadership of the then Taoiseach, John Bruton, responded in a positive vein to the cries for help for the west by stating that, for the first time in the history of the State, a Minister for the West would be appointed. In the context of the discussions here today we must recognise that this was the first time there was a positive response to the problems of the west. On 16 May 1996 Deputy Bruton stated as follows:

I believe there is a valid case for a regional policy for the west — its particular economic and social problems, its peripherality, its community sense of isolation from decision-making — the concentration of small agricultural holdings and lower standard of infrastructure all demand a particular response tailored to the unique situation of the needs of the community in the west.

Today we all hope that the west will be accorded the deserved Objective One status. The people of the west are pinning their hopes on the decision of this Government in this regard. It is a pity it has taken so long to bring the great work of the former Minister of State, Deputy Carey, to fruition by the Government. However, I am very pleased and happy that at last this legislation is finally before us, better late than never.

I hope that, in the context of the new legislation, further support will be afforded to the many excellent training programmes which are currently being utilised in the west. Senator Callanan spoke about the importance of involving local authorities in the commission. I wish to refer to the work being done by vocational education committees, particularly adult education organisers who are involved in various programmes from Donegal to Clare and throughout the country. I hope that when the board of the new commission is set up a member of the Adult Education Organisers Association will be nominated to the board. I say this as an adult education organiser for a VEC for many years. As a Member of the Oireachtas I cannot be appointed to the board but I have excellent colleagues who are in touch with the people and do wonderful work on the ground. These people, who are involved in Youthreach and VTOS programmes, adult literacy schemes and so on, get very little recognition. There should be a place reserved on the board of the commission for these people. If given that place they will make a fine contribution to the further development of the programmes inherent in the legislation.

I hope the legislation will lead to badly needed employment in the west and that we can overcome our peripherality and gain further access to the European market and investments. It is vital that the infrastructure of the west is improved and that roads such as the N63 leading from Galway city towards Roscommon and ultimately to Belfast, will be upgraded and afforded national primary status. A strong infrastructure is vitally important for any area.

There is a lot of work to be done. The people of the west have the will to get involved — where there is a will there is a way. I hope that, following the late arrival of this legislation, the Government will continue to support the development of the west. There will be all party support for the Government in this area and I hope the legislation will contribute to the further development of the western seaboard.

Mr. Bonner

The introduction of this Bill is due to the coming together in 1994 of Bishop Kirby and the western bishops to set up the task force which recommended the establishment of a western development partnership board with the direction to produce an action plan for the economic and social development of the west of Ireland. Initially my own county of Donegal was not considered but I am pleased it is included together with the other western counties. The task force action plan, "The Challenge, A Positive Future Through Action", was published in 1995 and forms the basis of the Bill. The objective was to achieve population stability at 1991 census levels before the end of the decade on a county basis. We are now at the end of the decade, which shows how slowly matters have moved in the meantime. I know from various meetings we had with Marion Harkin and her group that they were very disappointed at how slowly matters were moving. However, I am delighted this Bill will be passed very shortly, which will allow the Western Development Commission to be set up on a statutory basis.

The funding to be provided is £25 million over a period of years, with £5 million in the coming year and £5 million in 2000. However, when £5 million per annum is divided between the seven counties involved, they will receive approximately £700,000 each, a figure similar to the level of funding provided to each county enterprise board. The £700,000 is intended to be used for investment in shares and for loans to individuals who wish to set up in business in the area.

According to the terms of reference of the commission, its central function is to promote the economic and social development of the region. It is to achieve this objective by collaborating with the existing statutory and community based agencies which are working in the region and to complement and advise the activities of these organisations.

However, many of the State agencies already operating in the region have failed dismally to develop the west and keep people in the area. I hope and trust that this agency will not end up as another talking shop due to a lack of funding. Much of the funding for many of the small State agencies in the west has been used up on administrative and related costs, leaving no proper funding available for investment.

This is a great opportunity to assist in the development of small indigenous industry in the western counties, all of which have similar problems. Donegal and Mayo have very few large urban areas; they are rural counties with very sparse populations.

I am delighted that two members of the executive are from my county of Donegal. I welcome the chairman of the Western Development Commission, Seán Tighe, who is the Visitors' Gallery. I have known Seán for a while and he is a very successful businessman. He told me he came to Donegal to do a liquidation. I hope——

Acting Chairman

It is not in order for the Senator to refer to people in the Visitors' Gallery.

Mr. Bonner

Our county manager is also a member of the executive. He has turned Donegal around through his efforts; he has developed various schemes within the county and is in the process of decentralising the county council offices. He was the first local man to be appointed as Donegal county manager and has great loyalty to the county. I know from the work he has done in the county council that his abilities will be of great benefit to the commission.

The level of unemployment in Donegal is approximately 23 per cent, almost three times the national average, and shows the need for something drastic to be done there. We have very poor infrastructure. A recent report drawn up by the county council showed that we to invest up to £100 million in roads and up to £90 million in sewerage and water schemes.

The recent IDA report showed that in 1997 Donegal achieved only 279 extra jobs out of a national total of 15,000. Very little employment has been created in Donegal by the IDA — most of the new employment in Donegal has been created by the smaller State agency, Údarás na Gaeltachta. There has been no industrial investment in large towns such as Ballyshannon and Ballybofey for many years. I hope the commission will be given sufficient resources to stop the years of neglect in Donegal.

There is great hope for the future and all is not lost. For example, a white fish renewal scheme was announced yesterday by the Minister for the Marine and Natural Resources, Deputy Woods. I compliment the Minister, his officials and BIM on the work they have done over the past two years to get this scheme up and running. More than 50 per cent of the applicants for that scheme came from Donegal. There were 16 successful applicants who were prepared to put up £29 million to improve the white fish fleet, a section of the fishing industry which was totally neglected over the past 20 years, and particularly in the past 15 years since the Common Fisheries Policy was introduced. Drastic changes must be made to that policy. The Leader of the Opposition referred today to the changes which are needed in the CAP. I hope the Common Fisheries Policy will also be examined.

I have great hope for the future. I wish the members of the Western Development Commission well. I hope proper funding will be made available and that we will have a brighter future in the west.

Ms O'Meara

It is quite apposite that we are discussing this Bill at a time when the whole issue of Government policy on regionalisation and how the regions will cope with reduced Structural Funds is so current. Speakers, especially those from the counties covered by the Western Development Commission, spoke very much about peripherality, isolation and the perception that the west was left behind as the rest of the country galloped ahead in development terms.

When the bishops began their very effective lobbying for extra Government attention for the west, the economy was quite different to how it is today; while it is only four years since 1994, the economic development climate has changed. Despite that, I agree with the underlying principles of the Bill, which are to set up a development commission to tackle obvious inadequacies identified in areas, and to tackle the inequality between the western region and the other regions.

However, if the principles underlying the establishment of this commission are good, why do they not apply to other parts of the country? If, as we have heard in recent days, counties Clare and Kerry are so badly off, why do they not have development commissions? Are they not also suffering from this disease of peripherality and isolation which has so infected the west that it requires this legislation?

The establishment of commissions such as this is not a bad thing. In the mid-west region, part of which I represent, Shannon Development, which was established a number of decades ago as a one-off, has shown itself to be very dynamic, innovative and creative in developing products, particularly tourism products, designed to enhance the economy of the region and it has been quite successful in that context. I do not, therefore, have a problem with the establishment of a one-off western commission, particularly this one.

However, we should ask ourselves whether existing agencies are carrying out their functions well enough and, if not, what can be done to improve their functions. Will we create a better system by adding yet another layer to the increasing number of agencies being established to tackle one social or economic problem or another? The economy of the mid-west region has changed since this lobby began. The Government's approach to Structural Funds and regionalisation is, it would appear, becoming more ragged by the day. Having decided that regionalisation is the way forward for Ireland, it appears additional criteria will now apply to ensure that politically sensitive counties such as Kerry are included in the shake-up.

There seems to be a great lack of reality in the Government's approach to this issue. How can the Government expect other EU member states to believe us when we come begging for more funds when, in the past two weeks, the Minister for Finance banked £1 billion towards the national debt? How can we argue a case for ourselves when our economy is the best performing in Europe and when the German economy is suffering a much higher rate of unemployment than we are? How can we argue our case in light of the imminent arrival of countries such as Poland in which there are more poor farmers than in all the other member states combined? How can we make a case for Objective One status for any part of the country in that context? I wish the Government well in that regard but I would like to see an element of reality being introduced into the debate.

It seems that the adding on of additional criteria to include politically sensitive counties could completely backfire on the Government and totally scupper any chances we might have of securing additional funds for the country and persuading our European partners that our cap in hand approach is the best one.

Any debate on regionalisation — even though debate on the matter is quite artificial in the context of Structural Funds — is welcome, as is this one today. In 1994, I travelled throughout the country with the then Minister of State at the Department of Finance to visit the regional authorities which had just been set up and to discuss with them how the current round of Structural

Funds would be spent. It was quite clear that some of those regional authorities made no geographic sense and were totally at odds as to what their functions were. The only regional authority which seemed to have any sense of itself was the Dublin one; clearly the close proximity of the counties involved and the local representatives who served on the regional authority meant it had a geographical sense. It appeared to have great potential in the sense of being able to achieve something for the region.

Even within the Dublin region, there are boom and doom spots. This has been one of the central problems associated with the adoption of a regionalised approach to Structural Funds. Senator Cox will be aware that Galway city is booming. Similarly, Limerick, Ennis and Shannon which comprise part of the mid-west region are doing extremely well. The report prepared by Coopers & Lybrand on the submission made by the mid-west regional authority makes it clear that the region is one of the best performing in the country. The figures for increased productivity, output and employment growth in the Limerick, Shannon and Ennis hub of the region create the impression that the region overall is doing very well. However, north Tipperary, which is part of the region, does not currently share in that economic success. As a result, north Tipperary, while considered to be a prospering county, is not living up to its potential. The most recent employment figures available show that unemployment is actually on the rise in the area, which is a cause of considerable concern given the widespread economic prosperity and boom being experienced by the majority of the rest of the country.

There are areas within regions which require resources and energies to be targeted effectively. It is simply not sufficient to create a dynamic city — such as Galway or Limerick — within a region because they have a magnet effect and create increased urbanisation. Limerick is expanding outwards while the population of north Tipperary is barely stabilising.

In most regions, the average participation in agriculture is approximately 10 per cent but it stands at 15 per cent in the mid-west region. That means our exposure to any downturn in the agricultural sector will hit us harder than it will hit other regions. The Minister of State will be aware of that from his own county. Business people who deal with farmers and farming families do not anticipate that this Christmas will be as good as previous ones.

It struck me as ironic when I heard this morning that counties Clare and Kerry were being included in the Government's proposal in regard to Objective One status because of lobbying carried out by Ministers from the constituencies and obviously by Deputy Healy-Rae who holds a powerful position in the Government. The Minister for Justice, Equality and Law Reform, Deputy O'Donoghue, will not be slow to take some credit for Kerry's inclusion, nor will the Minister for Arts, Heritage, Gaeltacht and the Islands, Deputy de Valera, be slow to take some credit for Clare's inclusion. Coming from a county with a Minister at the Cabinet table, I am not the only one who is completely taken aback at the fact that nobody at Government level is speaking up for north Tipperary. That is a serious matter which I have stated publicly in the county and which I intend to pursue. The figures show that north Tipperary is, in effect, being squashed out as Limerick, Shannon and Ennis develop. The Minister's voice is obviously not being heard at the Cabinet table and I would like to know why.

I welcome the Bill generally. It has been a long time coming and I applaud all of those involved in the very effective and successful lobby to have their voices heard and to find a mechanism for directing resources towards their own areas. I look forward to Committee Stage.

Minister of State at the Department of Agriculture and Food (Mr. Davern)

I thank all those who contributed to, and welcomed, this Bill. The Government has decided to opt for regionalisation which, on the basis of the available facts and figures, is the correct approach. There is a feeling that other counties will lose out as a result of this; I heard arguments being made on the radio in this regard today and Senator O'Meara raised the issue also. Objective One funding in transition will be available for six years. I heard the same negative attitudes when Mr. Haughey and Deputy Reynolds, as Taoisigh, said they would get £7 billion; they were laughed at but they got the money.

Ms O'Meara

I hope we will get it too.

Mr. Davern

On the radio at 1 p.m. the Labour Party spokesperson gave the impression that areas which did not retain Objective One status would get no money. It is clear that the midland, Border and western counties need money urgently; the road and rail infrastructure needs aid if this Bill is to make a difference. The population devastation in the west is evident. I was in Belmullet last week and while local efforts have improved matters tremendously the devastation of the area has been great and no one would begrudge it Objective One status.

Senator O'Toole mentioned collaboration and co-operation. The chairman and members of the board are aware that we will strictly insist on this. There will be a settling down period for the different agencies but we are arranging for the chairman, chief executive and members of the commission to meet the principal officers and assistant secretaries of the relevant Department. One person will be the contact for every issue and co-ordination will be achieved in that way. There will be no overlapping.

This is unique legislation which is geared to a market which does not exist at present. Senator Connor said not enough money was provided but this money is additional to IDA moneys, Leader and county enterprise board funding, and funding by the other agencies in the area. Given the lending criteria, it is important the commission can take an equity stake in a firm. That has not been done before in the west except by Údarás na Gaeltachta in Geesala. Banks are not inclined to back a company without a written guarantee that they will get back not only their money but huge profits — they want ten times as much security for a loan. This is unfair to young, enterprising, skilled people with new ideas and innovations, who have to put up their homes to raise money. The western commission will help them raise money. I would never allow anyone to put up his or her home as security for a loan and I do not think the banks should accept it — they should be in the risk business like everyone else.

Senator O'Toole mentioned the tax incentives and there are a number of those, such as the seaside towns scheme. The upper Shannon basin scheme will be run as a pilot scheme but unfortunately they are waiting for clearance from Europe and hope it will be settled quickly. If that scheme is successful it can be used in other areas, particularly for rural renewal. We are also awaiting EU clearance for the urban renewal scheme. It is examining the rates aspect of the issue, which would not affect it too badly so long as the tax incentive remained.

I welcome back Senator McGowan after a long illness. He is still fighting for Donegal in every area.

Senator McDonagh mentioned the long delay. The previous Government agreed to this in January 1997 but nothing was done until the present Government came to power — no funds were allocated and no legislation was drafted, not even the heads of a Bill. Drafting the Bill caused problems because it is new, innovative and crosses barriers. It was brought forward as quickly as possible. I thank both Houses for their co-operation and for the speedy manner in which it was discussed.

Senator Coghlan asked why Kerry was not included — I did not want to leapfrog over Limerick to include this county. His constituency colleagues, the former Minister of State, Deputy Deenihan, and the former Tánaiste and Labour Party leader, Deputy Spring, did not see fit to include Kerry when their Government originally nominated counties for inclusion.

Senator Callanan mentioned county councillors. Those who are successful in the next local elections will have a new and more full-time role and they will be far busier. We recognise this as a result of the task force. In the last two days I have written to the chairman of every Leader board to ask them to appoint a minimum of two county councillors to each board — I have suggested that three councillors be appointed.

Mr. Callanan

Will the county councils nominate which councillors should be appointed, rather than the Leader boards?

Mr. Davern

Yes, I made clear that the invitation was to be extended to the chairperson of the county council or the county manager — the chairperson of the council is the more appropriate person. This is one of the task force's recommendations and we are putting it in place. Senator Quinn said this was an old-fashioned Bill but I could not understand that comment because it is innovative. It is an example of how agencies can work in a region where there is a problem.

Many people thanked the bishops of the west for their initiative but it was begun by a group of small farmers from Loughrea. They went to the bishops; it was the farmers who started it and they should not be forgotten. I am delighted that the status designation has gone to the west and, before Senator O'Meara goes on local radio tomorrow, I said that long ago. I was committed to getting this for the west and believed it had to happen.

A number of Senators wondered whether there would be overlapping of different bodies. Under section 8, the commission is empowered to consult State agencies and Departments in the identification of regional authorities within its area of operation. This allows an input into the appropriate agency and into Department policy formalisation procedures. That gives the commission a statutory basis for talking to different regional bodies as an equal partner and I know it will do so with sensitivity and co-operatively, making a unique contribution to the progress of the western region.

Question put and agreed to.

Acting Chairman

When is it proposed to take Committee Stage?

Mr. T. Fitzgerald

It was agreed this morning that we would continue with the Bill if we had time. My understanding is that it is agreed to take all Stages today.

Mr. Connor

Yes, we are most anxious to have the Bill passed.

Agreed to take remaining Stages now.