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EU Funding

Dáil Éireann Debate, Thursday - 11 May 2023

Thursday, 11 May 2023

Questions (1)

Rose Conway-Walsh

Question:

1. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the reason the north west has been allocated less funding under the European Regional Development Fund, ERDF, programme despite the purpose of the fund being to address regional inequality and the north west, it being the only region in the State not classified as a more developed region; and if he will make a statement on the matter. [22172/23]

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Oral answers (6 contributions)

I want to ask the Minister of State the reason the north west has been allocated less funding under the ERDF programme despite the purpose of the fund being to address regional inequality and the north west being the only region in the State not classified as a more developed region. The European Regional Development Fund is specifically intended to address regional imbalances between and within countries.

I thank Deputy Conway-Walsh. I apologise for the Minister, Deputy Donohoe, who is overseas. The total resources available at Union level for the ERDF were determined as part of the overall negotiations of the multi-annual financial framework for the period from 2021 to 2027. The resources allocated to each member state were based on the amounts calculated for each of the individual regions by the Commission using averaged Eurostat data from the relevant reference years, in this case 2015 to 2017. A methodology for allocation among different categories of regions and the criteria for determining these categories were agreed among member states. While the weightings and amounts used in the calculations vary according to the category of region, the allocations for transition regions and more developed regions are established by taking account of population, relative GDP per capita, level of unemployment, level of youth unemployment, level of education attainment, level of greenhouse gas emissions, level of net migration from outside the European Union and, in the case of more developed regions, population density.

It was on the basis of this agreed methodology that Ireland was allocated €396 million in ERDF funding. From this allocation, the northern and western region, Ireland's only region in transition, was allocated €110 million and the southern and the eastern and midland regions, deemed more developed regions, were allocated €285 million. These allocations reflected the above variables for the regions.

Subsequently, in recognition of the region in transition status of the northern and western region, it was decided to transfer €20 million in ERDF resources from the two more developed regions to the northern and western region. The Department, in conjunction with the regional assemblies, then engaged with the Commission on this matter and secured its agreement on this use of ERDF funds. This increased the allocation in the northern and western region to more than €130 million. This meant that the allocation per capita, including matching Exchequer funding, in the northern and western region was approximately €320 as opposed to approximately €160 per capita in the south and east. The regions differ significantly with regard to population. The southern and eastern regions have a far greater population.

The northern and western region is also able to avail of other supports. The new EU co-funded PEACEPLUS programme for 2021 to 2027 will invest in excess of €1.1 billion in projects to build peace and prosperity in Northern Ireland and the Border counties of Ireland.

Ireland was allocated €396 million in the EU funding for the ERDF programme. When the national co-financing is included, it allows spending and investment of more than €850 million across the State. The northern and western region is classified as disadvantaged compared with the southern region or the eastern and midlands region. The north west is the only region of the State not to be classified as more developed. This reflects the regional inequality in the State. The fund is supposed to address those inequalities. I hear what the Minister of State is saying, but the benefit of the lower classification is that the EU provides a larger share of funding. That is 60% of funding for any of those projects. Instead of the Government seeing this as an opportunity, it appears that the northern and western region has received less than half of the Exchequer funding allocated to the two other regions. The problem is that it is being driven by population, which really is not going to address what we need to address.

I thank the Deputy. As I said at the outset, the metrics are set out by parameters from places other than the Department of Public Expenditure, National Development Plan Delivery and Reform.

I will finish where I was with regard to PEACEPLUS. The northern and western region is also able to avail of other supports. The new EU co-financed PEACEPLUS programme for 2021 to 2027 will invest in excess of €1.1 billion to build peace and prosperity in the counties that I mentioned. The Border counties in the north west have benefited greatly from predecessor programmes, and the Minister would like to encourage organisations in the area to engage with PEACEPLUS. The first calls for applications will open this summer. PEACEPLUS will provide funding for both larger strategic projects and smaller projects catering to community and other groups. In addition, the national development plan has supported and continues to support a range of projects in the north west, including enabling and main works on Sligo acute mental health services, the interim emergency department to facilitate service continuity, University Hospital Galway, the completed construction of 14 residential care homes, and a range of other projects across the region.

I thank the Minister of State. I welcome the PEACEPLUS programme and look forward to it opening so it can be availed of. The west and north west of Ireland has been downgraded to a lagging region by the European Commission after becoming significantly poorer relative to the European average.

The region's GDP per head of population has fallen from 82% of the EU average between 2015 and 2017 to an estimated 71%. The region, which covers Mayo, Galway, Roscommon, Leitrim, Sligo, Donegal, Monaghan and Mayo, was downgraded from being a more developed region to being a transition region and a lagging region, making it the only part of Ireland to receive this classification. The European Commission warned that regional disparities in Ireland were among the highest in the EU. It warned that, if left unchecked, the trend of growing inequalities between regions would have a damaging impact on the economic and social well-being of all the regions of Ireland. Sadly, this is not something that those of us living in the west do not already know. We have had these multiple warnings and I think we need to examine further how we will address this gap.

On top of the metrics I have already outlined, their rationale and the fact that there is a per capita double payment in the region versus the other two regions, the region also received significant funding from other Departments, including that specifically set up to deal with this issue, which is the Department of Rural and Community Development. Some examples of recent allocations in the region include €4 million for Killybegs town centre, €2 million for Ballinamore and €1.8 million for regeneration in Manorhamilton in Leitrim, and €10 million approved in total in 2022 for projects in Mayo, including Ballinrobe community arts and amenity centre and for regeneration in Newport among others. As Deputy Conway-Walsh knows, the Department of Public Expenditure, National Development Plan Delivery and Reform and the Department with responsibility for the Gaeltacht and Údarás na Gaeltachta are making significant investment in counties Donegal, Mayo and Galway. In Sligo, €1 million was approved for the Strandhill national surf centre. On top of the funding coming from the European Commission, a significant amount of money is also going into the region from the Exchequer.

Question No. 2 taken after Question No. 3.
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