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Dáil Éireann díospóireacht -
Tuesday, 21 Jun 1983

Vol. 343 No. 10

Private Members' Business. - Development of Border Region: Motion.

Mr. Leonard

I move:

That Dáil Éireann calls on the Government to recognise the need for the development of the Border region and requests that available EEC funds be used more extensively for this purpose.

I note that the Government have put down an amendment to this motion which states:

To delete all words after "Dáil Eireann" and substitute:—

recognises the need for the development of the Border region and urges the local authorities and other agencies concerned to ensure that full use is made of the opportunities offered by the Special Border Areas Programme for the improvement of the economic and social situation of those areas.

This is a simplistic approach. The Government say they will urge the local authorities and other agencies to be more alert, but it is the Government who have the finger on the purse strings.

This debate will enable us to seek clarification of a number of points concerning the system of allocation of the fund. There is an EEC publication relating to Regulation No. 2165 of 1980 and No. 724 of 1975 which states that the Border areas of Northern Ireland and Ireland are among the most disadvantaged areas of the EEC being characterised by low population density, a labour force highly dependent on agriculture, high unemployment, emigration and low incomes.

We do not seem to be operating the Border Counties Fund satisfactorily. The fund was for £20.5 million and was allocated in 1980. It is time to have a clear look at it. We must set up an operating structure which would ensure that schemes are co-ordinated. When Ireland decided by a massive vote to enter the EEC we all looked forward to the benefits which would accrue from our membership. We thought funds would be made available for the less developed areas. Many people have questioned whether the benefits have been as great as we hoped. I am satisfied that overall our entry has been beneficial. However, we have not made proper use of the funds that are available.

People living in the Border areas looked forward to EEC entry, first of all because it brought both sovereign Governments into the same trading group. In addition it was known that Border areas are of their nature deprived areas. The fact that our Border areas are deprived is an indictment of every Government for the last 50 years. The Border areas have been neglected. There are politicians here who trot out their concern for the region now and again and then conveniently forget all about it.

In the past I made loud protests about EEC funding because it was either insufficient or was not forthcoming. There are funds available now which are not being used and it is only right that I should protest equally loudly. I mentioned the special programme fund for Border areas. It was a fund of £20.5 million which was made available for 1980-85. At the end of the first two years we had only expended £3.4 million. A sum of £2.1 million was not taken up. Those are figures I got in reply to parliamentary questions. In reply to a parliamentary question the Minister for Finance said that as far as the unexpended balance from the EEC special Border area programme fund could be identified on a county by county basis, Donegal received £1.8 million and £1.1 million was unexpended; Cavan spent £500,000 and £606,000 was unexpended; Monaghan spent £398,000 and £191,000 was unexpended; Leitrim spent £391,000 and £34,000 was unexpended; Louth spent £299,000 and £159,000 was not taken up. On glancing at that one could say local authorities had a lot to answer for.

When this fund became available Monaghan County Council drew up a comprehensive list of projects the cost of which were scrutinised by technical and other staff. We came up with the figure in excess of £2 million. On 6 January 1981 I asked the Minister for Finance for a breakdown of the funding which would be available. In a letter the Minister stated that a Council regulation was approved which enabled the non-quota section of the European Regional Development Fund to participate in a special five year programme of measures aimed at the improvement of the economic and social situation of the Border areas of Ireland and Northern Ireland. A tentative allocation of surveys from the special fund has been made as follows: £3.6 million in grants for the development of tourist accommodation; £1 million for the promotion of tourism in the Border counties; £5.3 million for the development of tourist-related amenities; £5.1 million for the improvement of telecommunication services and access to tourist areas, such as improvement of minor roads; £2.2 million for the development of transport activities aimed at providing easier access for tourists to the Border areas; and £3.3 million for grants and marketing aids for craft industries.

Regarding the £191,000 unexpended in Monaghan, I should like the Minister to explain why, we having submitted our annual list of projects in 1982 in respect of which we sought grant aid, we received from the Department of Finance in January 1983 a notification that £40,000 worth of those projects did not qualify on the criteria laid down. There have been projects to the extent of £2 million in value submitted but yet this £191,000 is unexpended. I find it hard to accept that. Last year our allocation in respect of tourist improvements was £105,000 and in respect of minor road improvements it was £95,000. The road improvement allocation was expended. Much more could have been spent under that heading but in 1983 under that same fund from which we expected to get nearly £1 million per year for a five-year period, we received only £80,000.

In respect of tourist-related projects our allocation is £40,000 and for purposes of road widening and the provision of parking areas along scenic routes, the allocation is £40,000 also. Why were the criteria not laid down before the £2 million worth of projects was submitted? We are talking about a Government Department, not about some local club. There is inefficiency in a Department, whether it be the Department of Finance or of the Environment, that hold a project for so long and then throw it out on the basis that it did not meet the criteria laid down.

The last item referred to in the letter we received from the Department relates to an allocation of £3.3 million for grants and marketing aids in respect of craft industries. Having visited the national display at the RDS for a number of years and having seen the displays on the part of the craft industries, both North and South, I concluded that we were weak in this regard in the Border regions. I asked at county council level that the VEC would become involved. I even went so far as to get an application form for one of the Kilworth craft centre courses thinking that in those early years we would involve our youth and that on the expiration of the five-year period we would be in a position to avail of this funding. In February this year Deputy Blaney and I asked by way of parliamentary question what was the position about funding for the craft industries. The Minister replied that a total of £149,934 by way of grants was provided for craft industries in Counties Donegal and Louth, 50 per cent of this being provided by the non-quota section of the Regional Development Fund, that £500,000 had been allocated to Córas Tráchtála, who provided marketing aids for small- and medium-sized industries, including craft industries in all the Border counties. More than three times the £149,000 — £500,000 — was given to Córas Tráchtála. Those of us who are involved in cross-Border development and who are concerned as to the expending of that money are anxious to find out why that amount was allocated to CCT. Is this money being siphoned off in respect of marketing of other industrial development? It is important that money allocated to industries in the Border area be used for that purpose. I should like to know what the attitude in Brussels would be in that regard.

Because the Border area so warranted, we secured from the EEC more than £20 million; but it is a matter of great disappointment to me that all our State agencies—the IDA, county development teams and so on—were not brought together in an effort to produce a programme by which we could avail of the £3.3 million. This is an example of where we fall down in terms of the usage of such funds. It is why I am asking that there be a direct allocation and that we set up a structure in the Border area, be it a board or whatever, with an executive officer to deal with such matters. It is possible that money would be provided by the EEC for such a structure. Perhaps we could have something on the lines of SFADCo. Two-and-a-half years later we are not in a position in the Border area to avail of our allocation. I should like the Minister to explain how the £500,000 was used to market projects to the extent of £149,000 in two of the five counties. It does not make sense to me.

I am satisfied that there is a structural weakness in the operation of this and other funds, control of which rests with Brussels, Dublin, London and Belfast and with a series of committees and of officials and public representatives. The control is so dispersed and bad that one can only be surprised that anything has been done. In order to have the development scheme operate properly an overall controlling presence on the ground in the Border area is required. An experienced organiser with a small back-up staff would be able to turn this scheme into a worthwhile endeavour. This would encourage the provision of other funds, whereas failure to utilise the present position can only inhibit us in terms of other funding.

The sum of £1.1 million has not been taken up, despite the fact that there are about 1.800 unemployed people in County Monaghan and 11,000 in County Donegal. If that £1.1 million were handed to some agency tomorrow and they were told to get people at work in Donegal, before the end of the week there would be 600 or 700 people in jobs which would qualify under the terms of that scheme. The unexpended balance of £191,000 in Monaghan could provide jobs for 30 or 40 men for a full year. The Government are passing the buck by stating in their amendment that they are urging the different agencies and the local authorities to be more effective in their approach.

The record of SFADCo is a prime example of what can be achieved with the right will and leadership and it is an example which could well be studied by councils in the Border region. I would ask the Minister if SFADCo or some other agency could examine the situation with a view to improving it.

Expenditure at the end of two years amounts to 38 per cent of the total available in that period. It is a national scandal that funds should remain unexpended when employment is so badly needed. The massive under-expenditure has not arisen for want of sufficient projects.

A recent occurrence shows yet again that the Government do not recognise the problems of this area. I refer to a letter from the secretary of the Minister for Health sent on his authorisation to the North Eastern Health Board a week ago which stated that the board would have to make a decision on the three hospitals in the area—two in Cavan and one in Monaghan. He wished the board to let him know what proposals they had for the disposal of these hospitals. Monaghan town has had many problems as a result of troubles in the Border region and has had more atrocities, bombings and shootings than anywhere else. Last week a young man who had been married only two months had bullets fired into his chest from a distance of two yards while standing in his bathroom. He suffered six broken ribs and a broken wrist and is now lying in Monaghan hospital. The Minister, without visiting either Cavan or Monaghan, has decided with the flick of a pen to dispose of this hospital. We cannot allow that type of attitude to continue. Such people have no appreciation of the difficulties in the region where there have been so many atrocities.

There have also been many problems in small family-type industries dealing with meat processing, pigs, ducks and broilers. The Government are taking in terms of closing down a basic component of our infrastructure, leaving people with no option but to travel 50 miles for medical attention.

The Minister for Finance also increased the price of petrol and wrecked the economy in the area for several months. It is accepted that there was a loss of 25 per cent or 30 per cent in trade during those months until the relationship between sterling and the punt altered the position, not due to assistance from the Government or any State agency.

On 11 January 1983 the Minister for Finance announced that the Commission of the European Communities had approved the commitment of £14.7 million in Regional Fund aid for Ireland, which represented a partial reimbursement of Exchequer expenditure. He went on to give a list various infrastructural projects but not one penny was to be spent in the five Border counties. The Government and various State agencies are hiding behind this type of allocation saying that there is a special Border counties fund. This is a myth as far as we are concerned and we are to get nothing of that £14.7 million.

Donegal and Leitrim are classified as severely handicapped under the disadvantaged areas scheme and qualify for cattle headage payments. Something like 24 per cent of Monaghan has now been declared severely handicapped and a slightly higher percentage of Cavan is so designated. Both these counties in their entirety should have been declared severely handicapped, but this was not the case. Another review is coming up and submissions will be made to Brussels before the end of the year and it is my hope that the imbalance will be rectified.

According to An Foras Talúntais, 77 per cent of land in Cavan and 44 per cent of the land in Monaghan is marginal, that is, land which is difficult to drain and expensive to maintain. Many schemes, including the western drainage package, have been suspended because finance is not available. We must rectify at the first opportunity the problem whereby a county where 77 per cent of the land is marginal has been declared severely handicapped only to the extent of 30 per cent. The figures giving a comparison of farmers in various regions prove that Counties Monaghan and Cavan should in their entirety be declared severely handicapped.

There seems to be little appreciation by politicians and people in the remainder of the country of the problems of the Border area. The Border area we are talking about constitutes 20 per cent of the total land area of the island and the population there amounts to 15 per cent of the island's total. We are talking about a substantial area and a large population which surveys have shown clearly are at standards below those of the rest of the island. I would like the Minister to take that into consideration. A feature of the entire Border area is the dependency rate, that is the ratio of persons under 15 and over 64 years of age to those in the active age group, which is 75 per cent as against the national average of 70 per cent. Unemployment is above the national average at 20 per cent in every area, and in some parts of the region 50 per cent of the work force are unemployed.

The EEC assessment to which I have referred sets out how underprivileged and neglected the Border region is. A more lengthy and detailed analysis of this position is set out in this report on the Erne catchment which was prepared by a team of consultants, Brady, Shipman & Martin and P. A. Management Consultants Limited. It is in that context of urgent need that we protest about the failure to use these available funds. The Erne catchment study was launched in 1979. The report was presented in 1980 and it was accepted by the sovereign Governments and by the local authorites. Prior to the issue of this report a number of local authorities commissioned management consultants Stokes Kennedy and Crowley to examine the situation in that area, at fairly high cost. The catchment study was carried out by P. A. Management Consultants Limited and Brady Shipman & Martin and presented. Three years afterwards nothing has happened. In 1978 I was in contact with Mr. Giolitti, a Commissioner of the EEC, and I issued an invitation to him to visit the region. The North Eastern Regional Development Organisation visited Brussels in 1980 and they renewed the request. He has not visited the region, and that is a great pity. I wrote to him a few months ago and in March I received a reply. I had pointed out to him our disappointment at the fact that nothing has been carried out regarding the consultants' report.

In the course of his letter he admitted that he was a little perturbed at the implications of the Erne catchment study which was jointly commissioned and financed by the Irish and British Governments and the Commission and that the high hopes raised had not given rise to concrete action. He went on to say that he had received the first progress reports on the Border areas programme covering the period June 1981 to December 1981 and, while it was a relatively short period in which to judge the development of the Community measure, he had noted that certain of the recommendations in respect of tourist accommodation had already been undertaken. The ones undertaken were those I have outlined where we failed to take up the money.

That Erne study should have had terrific benefits for the complete region. It would have been very positive in regard to cross-Border development because it involved all of county Fermanagh, a portion of Tyrone, half of County Monaghan, all of Cavan and portion of Leitrim. It covered a very wide area. Included were the Woodford River, and the Ballymore-Ballyconnell Canal, the complete Erne catchment for drainage, and a spread of tourist facilities and amenities for the development of the area. I made inquiries in Brussels during the early part of this year and it seems that nothing on the ground is being done in this respect.

At the end of last year I was in contact with Mr. Prior, Secretary for State for Northern Ireland. Last September he made a speech in which, according to the press, he cast the blame on the people in the South for the insufficient headway made in cross-Border developments. I wrote to him and received a reply from the British Embassy which stated:

In your letter you mentioned the drainage of the Erne catchment area. The Secretary of State shares your view of the importance of this project and work is now underway: The Department of Agriculture in Northern Ireland in conjunction with the Office of Public Works in the Republic is presently involved in the design of a draft scheme for the Finn-Lackey rivers. Design work on the River Blackwater cross-Border drainage scheme is well advanced and details are expected to be published soon.

You also referred to the Monitoring Group which played an important role on behalf of the Councils on both sides of the border during the Consultants' study of the Erne Catchment Area. As you rightly say the group fell into abeyance after the report of the study was published. But the Northern Ireland Office believe that some members of the Councils involved are now anxious to reactivate the Monitoring Group,

I would ask the Minister to go ahead and try to get that off the ground. It was worthwhile. The initial allocation was £80,000, £40,000 from the EEC and £20,000 each from the two sovereign Governments. I ask that this report be not allowed to gather any more dust.

Given the urgent need of the limited works and the struggle to secure EEC funding for them it might be asked why a large part of the fund has been left unexpended. I believe that we are looking a gift horse in the mouth. Any country getting £1 for £1 at a time like this should go open-armed to collect it. An amendment by the Minister saying that he is going to urge local authorities to do something about it is not good enough. Something positive must be done.

The report I have referred to mentioned telecommunications. That is a laugh. In the area where I live we have still a number of manual exchanges. People are coming into this House about them day after day and I heard a Minister of State in the Department responsible for Posts and Telegraphs claiming that we would have telephones on demand inside a few months. They expect to hand them down like packets of sweets. In the area I have referred to, not alone can we not get telephones for years, but the system has deteriorated since most of the other areas of the country went automatic. We have appealed about this year after year and money is made available for it in the Border Counties Fund.

In that area the roads structure is not good. Research done recently by the technical staff of Monaghan County Council revealed that we would require to get and spend twice the money that we have been spending even to keep our roads passable.

If we are sincere about improving cross-Border co-operation, about building bridges between the people on both sides and improving the climate between both communities we should spend more money on road structures in those areas. The connecting roads between national primary and national secondary roads, North and South, should be improved. The Minister should go to Brussels and get agreement for additional money to improve facilities in those areas. The goodwill exists in Brussels but we are not availing of the handouts. The Minister should ensure that Government agencies responsible for expending EEC funds in Border areas do not fall down in their task.

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute:—

"recognise the need for the development of the Border region and urges the local authorities and other agencies concerned to ensure that full use is made of the opportunities offered by the Special Border Areas Programme for the improvement of the economic and social situation of those areas."

The motion by Deputies Leonard, Conaghan and Kirk asks the Dáil to call on the Government to recognise the need for the development of the Border region and requests that available EEC funds be used more extensively for this purpose. I do not think there is a great necessity for any Member to stress the need that exists in Border areas to secure the greatest possible rate and level of development we can. There is no need for any Member to insist that we should use whatever source of funds that are available to the maximum possible extent.

In approaching the problem we should be conscious of the means that are at our disposal. We should also be conscious of the fact—I am sure Deputy Leonard agrees—that the people aware of what is required in the Border areas are those who live and work there. It was for that reason that I put down the amendment to change slightly the direction of the motion and bring it into closer conformity with present requirements. My amendment urges local authorities, and the other agencies concerned, to ensure that full use is made of the opportunities offered by the Special Border Areas Programme for the improvement of the economic and social situation of those areas. Deputy Leonard spent a lot of time talking about unexpended balances in the fund and asked why that was so. Those remarks, and questions, are very much to the point. It is to get at that point, and highlight it, that I have put forward my amendment.

The fund was set up to deal with a particular problem in Ireland and in the context of the review of the regional development fund which gave rise to what is known as the non-quota section. The measures which the operation of this special section of the fund in Ireland covers are, development of tourist accommodation, tourism promotion, provision of amenities and infrastructure directly linked to the development of tourism, cultural and recreational facilities, improvement of communications giving access to tourist areas, the development of transport activities aimed at providing easier access for tourists to those areas and the establishment and development of craft industries and marketing aids for small and medium-sized undertakings. I read that list out to make it clear what is involved in the operations and to outline the structures that would be appropriate for those activities. When we look at the areas covered by the fund we see that in the case of a number of them we have agencies or structures to deal with such activities and it would be unnecessary to set up a new bureaucracy or organisation to handle the activities of the fund.

We are dealing with a fund which is due to operate over a five-year period and what will happen at the end of that five years is a different matter. We are about half way through that term and we should concentrate on getting the maximum advantages from those resources during that period. My amendment is designed to focus attention on the aspect of local initiative in the operation of the fund. Those who are in the best position to define what is required in the Border areas in respect of the activities covered by the fund are those who live in that region. For example, those involved include local authorities, Bord Fáilte, Udarás na Gaeltachta, CTT and bodies and agencies which need the input and advice from local level to design and pick the projects most required for those areas.

Where does Údarás na Gaeltachta come in?

I will come to that in a few moments.

Is it the Lagan Valley?

In County Donegal. The purpose of the programme is to foster the development of activities in the Border area in the sectors I mentioned. Up to the end of 1982 more than £8 million had been allocated in the Vote from my Department for the purposes covered by the fund but by the end of last year £5.6 million had been drawn by the agencies and local authorities implementing the programme. We still have a balance of £2.4 million not used from the amount allocated up to the end of last year, and in this year's Estimate we have located £2 million for the continuation of the scheme. The amount of money which could be expended this year on projects qualifying under the terms of the fund is £4.4 million, £2.4 million unexpended from the allocation made up to the end of last year and a further £2 million allocated for this year.

It would be a matter of some concern to me, as it is to Deputy Leonard, that the resources available are used in those areas. I am anxious that the funds available are used. It is difficult to make sure that the funds are expended for the purposes covered by the fund if we do not have coming forward the projects in the numbers and size that are justified by the resources we have at our disposal.

Some backsides should be kicked at that rate.

The Deputy has said, perhaps, what needs to be done. That is a reflection that should be brought back.

Mr. Leonard

If the Minister wants volunteers to do the kicking there are plenty of us available.

I consider this Government and the previous Government have carried out their proper function in relation to the activities covered by this fund by making the funds available and by expediting the examination and the authorisation of payments for the projects put forward. There is an area here which we need to explore. If we have unexpended balances which are not being taken up we need to go back to the local authorities and the agencies in question to find out what the reasons are.

Quite honestly I do not believe—nor do I believe Deputy Leonard believes— that the reason projects are not coming forward is that they do not exist or cannot be developed. Deputy Leonard has pointed out some of the needs of the Border areas. Even when we speak only of the six types of activities are covered by the fund. I am quite sure we are a long way from having satisfied all of the needs of the Border counties in those activities when we get to the allocation for this year alone. We must ensure that the projects put forward and assisted are worthwhile projects that will have a lasting effect on the economy of the areas concerned and on the development of those areas. I know Deputies on all sides of the House will agree with me that there are a number of very good examples from projects that have already been carried out or in some cases initiated. I have a long list of them here which I do not propose to read out. All of our colleagues from Border counties will be familiar with a number of these projects where extremely useful work has been done and in many cases where very useful facilities have been made available with the assistance of those funds.

The particular questions raised by Deputy Leonard are very much to the point and need fairly close examination in relation to the overall question of whether the fund is operating as we want it to and whether it is generating the kind of projects that are envisaged. We should remember the way in which the Regional Fund actually operates. Under the present rules governing the Regional Fund there is no case in which a decision is made on the basis of a direct application by a group, agency or authority in any area of the Community to the Regional Fund authorities in the Commission. This is for a number of reasons which it would be inappropriate to examine here during the course of this discussion. All of the applications for assistance from the Regional Fund and all of the funding made available through the fund are channelled through the national exchequers. There are very good reasons for that which we will not go into here.

I do not believe that in the context of a five-year programme covering the kind of areas we have been talking about it would be appropriate to set up a new procedure at EEC level for dealing with projects of that kind. I do not believe either that a case has been made that would allow us to draw the conclusion that we should set up a new structure here mainly for the reason I have already put forward: that we have existing agencies dealing with the kind of areas covered by the fund.

The operating structures need more review in terms of how the agencies produce the proposals for the projects. In that connection there can be no fixed procedure for developing projects. The regional tourism organisations have in a number of cases taken the initiative. Certain activities covered by the fund are of such a nature that individual initiative is needed. For example, as far as the fund concerns marketing needs for small and medium-sized industries, obviously the initiative must come from an individual who approaches the agency concerned which then processes the application through. I believe that interposing another structure, either between the local level and the agencies or between the agencies and the central level would gum up the works by adding an unnecessary layer of bureaucracy and of processing to the whole business. I do not believe that setting up a new agency would in any way help to generate ideas for new projects covered by the fund.

Deputy Leonard asked if some of the £3.3 million allocated for marketing aids for craft industries is being creamed off into some other use. That opens up another area of discussion to which we should give some thought. The first point I would like to make is that the list of different uses provided in the letter of 1981 from the Department of Finance, from which Deputy Leonard quoted, was the original list of the possible uses to which it was felt funds from this source could be put. The original list was an indicative list. I am sure everybody agrees that it is very difficult to say at the beginning of a five-year period that we will spend exactly so much money on the kind of activity we are talking about here, that we will spend exactly so much money on helping craft industries, that we will spend so much on tourism infrastructure and we will spend so much on any one of the other activities covered. It was an indicative list which set out broadly the kind of pattern that was expected from the use of the fund.

I am making that point deliberately because I want to make it quite clear that there is no compelling reason why we should always stick with that particular balance. If we find, within the kind of criteria laid down for the assessment of projects that come forward in the general areas covered by the fund, that there is a good case in any year for adjusting the weight of effort as between different uses, I would not object to that. If we find, for example, that there is a good case in a particular year for increasing the amount to be spent on the development of tourist facilities and reducing the amount being spent somewhere else, we could look at that and I would not rigorously exclude any rebalancing of the use of the funds available.

With regard to the question raised by Deputy Leonard about whether any of the money which was indicatively allocated for marketing aids is being creamed off for another use the answer is no. We have the same problem there as arises in other connections in this fund, that is, that some balance of the moneys which have been allocated up to now has not yet been spent, again because the projects have not come forward. On this point, in relation to the assistance for marketing for small and medium-sized industries, I might refer Deputy Leonard to the first annual progress report on the Special Border Areas Programme which was sent to the Commission at the end of last year. It covers the operations in 1981. If the Deputy has not already got a copy of this report, I shall be very glad to make it available to him.

Is it in the Library?

I cannot say "yes" directly to the Deputy, but if it is not in the Library it will certainly be made available there immediately. In any case, as I have said, I shall be very glad to make it available to Deputies. The report gives a fairly comprehensive account of what was done during 1981. We are required to produce an annual report on what has been carried out. One of the particular values of the report is that it sets out the kinds of projects and activities undertaken under each one of the headings covered by the fund. In relation to action on small and medium-sized undertakings, there is a listing here of the kinds of things that were undertaken with the assistance of the fund. For those who are interested and involved in Border areas themselves with the development of projects and forwarding them for approval reference to this report would be of assistance to them in showing how the thing has developed so far.

When will the 1982 report be out?

That is something I could not say just at present; I am not in a position yet to make a full report in relation to 1982. I would like to get it done fairly quickly so that we can keep track of what is going on under each one of the different headings in the scheme. This will enable us to ensure, firstly, that we keep up to target in relation to the use of the fund and, secondly, that we can identify whether or not there is a case emerging for a different balance in the use of the funds that are made available.

I come now to the question of the use of the funds so far made available. With the indulgence of Deputies, I shall give a few figures to illustrate the expenditure that has taken place to date. Then I want to talk a little about the unexpended balances, as they are and the allocation for this year. Under the heading of the development of tourist accommodation, expenditure to 31 December last came to £1.129 million; on tourist promotion, again expenditure to the end of last December came to £340,000; for the provision of amenities and infrastructure linked directly to the development of tourism, cultural and recreational facilities £2.280 million were spent up to the end of last year. For improvement of communications giving access to tourist areas the expenditure was £925,000. For the development of transport activities aimed at providing easier access to tourist areas, £235,000 and for the establishment and development of craft industries and marketing aids for small and medium-sized industries a figure of £680,000. That is the total expended up to the end of December last.

In fact that is a full report for 1982 as well, if one subtracts 1981 from it?

Of course, as far as the total figures are concerned.

The question of the unexpended balance comes up. As I have said, £2.4 million remain unexpended. To go through the headings rather quickly — I seem to have used up a lot of time so far — the unexpended balances are as follows for the various agencies involved here: Bord Fáilte, £427,000; local authorities, £620,000; the IDA £240,000. Údarás na Gaeltachta and the Arts Council have used fully the allocations that have been made to them. The office of Public Works, £390,000; Roinn na Gaeltachta, £50,000; Department of Transport, £367,000; Department of Fisheries and Forestry, £345,000; and Córas Tráchtála have used in full the allocation made to them. It is that unexpended balance, together with the £2 million allocated for the year, on which we should concentrate and examine the development of projects that will come properly within the scope of the fund so that we reap the benefit of that full amount.

To reply to one point of detail in relation to a question asked by Deputy Leonard — he mentioned the difference between a figure of £500,000 allocated for marketing aids and a figure of £149,000 which he understood to have been spent on marketing aids — the £149,000 was for craft industries only, the £500,000 is for marketing aids for small and medium-sized industries generally. Again, on that front there is no reason to fear that funds are not being used for the purposes for which they were intended.

Mr. Leonard

By way of clarification I should say I was reading a letter I received from the Department of Finance. As the Minister said himself, they were the initial regulations and did not cover marketing aids. It mentioned only the manufacture and sale of crafts. Seemingly the criteria were changed later.

The basic point is that none of the funds that have not been used so far have been diverted to any purpose for which they were not intended.

I appreciate the reason the motion was put down. I hope Deputy Leonard now appreciates the reason I proposed the amendment. It was intended to focus attention more clearly on where it appears the difficulty arises. I want to assure the House that any assistance I or my Department can give in order to assist in the business of bringing forward suitable projects will be given. However, in response to something Deputy Leonard said, I must make the point that we do have to be careful to ensure that projects put forward conform to the criteria laid down. It is understandable that Deputy Leonard was somewhat scandalised by the fact that at a time when not all of the fund was expended projects were turned down because they did not conform to the criteria. It is important that we ensure that the projects do conform to the criteria — and they are fairly wide — because we want to make sure, first of all, that we get the kind of value intended from the fund and secondly that the funds continue to be made available. As Deputy Leonard said, half of the funding is made available from EEC sources. We do not want to endanger that. Thirdly, we must ensure that the kinds of projects for which we use the money make a lasting impression on the areas in which they are located.

Those are the comments I wanted to make and the replies I want to give Deputy Leonard. I would urge Deputy Leonard to reconsider his view of the amendment and agree with me that it is one that will allow us focus attention on where the real problem seems to be. I would ask the House to accept my assurance that in dealing with that problem I shall be only too glad to give any assistance required from my Department so that we can get value for money from this scheme.

I welcome the opportunity to contribute to this debate on the motion in the names of Deputy Leonard myself and Deputy Kirk.

I disagree with the Minister when he claimed at the outset that there was no necessity, as he saw it, for bringing forward this motion.

I did not say that.

Well, the Minister said he did not see the necessity for bringing forward the motion, that the reasons were self-explanatory and that there was common ground between the first speaker and himself in relation to those reasons. There is a grave necessity to bring a motion like this to the attention of the Minister and the Government. I am a Deputy from a county with a border extending from Moville in North Donegal down to Pettigo. The Border which has existed for the past 60 years has created problems for the community which were never dealt with by successive Governments here or by the administration in the Six Counties and it is an unfortunate reflection on the two administrations that an elected representative has to make such an admission. I hold the belief that people in the border areas, particularly in Donegal, were not considered by the two administrations. We know how the people in power in the Six Counties operated in relation to the share-out of industry west of the Bann and the other side of the coin was the fact that we were west of the Shannon.

In the limited time available to me I hope to make a case for special consideration for the whole border region. Donegal, in particular, suffered grievously through the setting up of the Border in the first instance. The whole economy of the county has been affected because we were completely cut-off from the rest of the country. Prior to the establishment of this State our natural outlets were Derry and Belfast. Unfortunately due recognition of the special problems which the Border posed for us was never given.

I hold that as a result of our entry to the EEC we were in a position to get some benefits from the Regional Fund in order to relieve the problems of the region. When the communications study was undertaken by our Government and the British Government and supported by Brussels our hopes were raised. It highlighted the difficulties with regard to communications in the area but unfortunately, after eight years I do not think the programme is on target. I do not deny that we got some benefits as a result of the study. Telecommunications have improved reasonably well and we are getting some moneys for road development work. However, the pace is too slow. Donegal, Cavan and Monaghan were not compensated for the loss of the railways. In turn, our roads structure completely deteriorated and until we got money from the Regional Fund we were totally neglected. I contend that when EEC moneys became available the share we should have got from central government was cut.

I put it to the Minister that the Border region should be considered in isolation, that a special case should be made for it and an in-depth study should be made. The Border region has difficulties to contend with which the rest of the country have never experienced. Business people in Donegal must cross the Border frequently to do their work. There are difficulties with regard to customs procedures and there is also the problem of road blocks and the closure of roads. All of these add to production costs but no account is taken of them. Although many studies have been carried out, there has never been an in-depth study of the economic problems facing the Border region. It is time that the Government carried out such a study. If they did this they would find out that there was a justifiable argument for special consideration for the area.

Let us consider the region of Innishowen, Derry and Strabane. That has been designated "The Black Triangle" by the EEC. Figures released some time ago show that almost one in every three in the north-west depends on social welfare and hand-outs from Governments on both sides of the Border for survival. Two-thirds of Donegal's population of 126,000 are covered by the medical card scheme because the people cannot afford to pay for medical services. One in every four workers has not got a job. The Innishowen Peninsula is the most northerly point of the country and the most cut-off area primarily because of the unnatural border that exists there. In that area 2,800 people are claiming State assistance and when one takes account of their dependants it means that 11,200 people in Innishowen are dependent on assistance out of a total population of 24,000.

We cannot take this argument in isolation from Derry and Strabane. We must cross to the other side because one area affects the other. Strabane is the worst unemployment black spot in Europe. A staggering 38 per cent of the work force is out of work. Unemployment in Derry in the past few years has doubled and the figure now almost reaches 12,000. In County Donegal the figure is 10,500 unemployed out of a work force of 45,000. This is twice the national average, not taking into consideration the number of secondary school-going children in the region. There are almost 18,000 secondary pupils in that area and their prospects for a future are grim.

I was disappointed with the Minister tonight. I do not intend to go into the arguments put forward by Deputy Leonard who put his case so well in relation to how this fund is operated and how it has been applied. There is a wide issue here but I do not think that the fund as it operates at present is dealing with the problems in the Border area. It will not solve the problem there. We have a special case and special consideration should be given to the entire Border region. It is time that Deputies from that region banded themselves together to get their just claim and to have remedies applied to the poverty and the deprivation of the people along the Border. This has existed in the last 60 years and no Government have come to grips with it.

This job must be tackled and the regional fund is not doing it. It is only tinkering with a position which needs drastic remedies. Particularly in the Six County area the problems are being aggravated by unemployment which will mean that a desperate situation will exist in the future. The sovereign Governments here and in London must seriously look at that entire region and try to ensure a future for the children there by providing the necessary industries and the infrastructure which is very bad.

There is a strong argument particularly for action in relation to the Derry-Donegal Border area. The Social Affairs Committee of the EEC did a study of the northwest and their report verifies what I have said, that that area is the most impoverished in the EEC. Therefore, it is incumbent on the powers that be to try to get some action on that report to relieve the chronic problems that exist there. There should be a project for the Donegal-Derry area that would straddle the Border. Both Governments should build there the attractions for industrialists to come in to develop the area and to generate employment.

Lough Swilly provides a massive port with the deepest waters in Europe. It contributed greatly to the British economy when Britain had full control in this country. It was one of the safest anchorages for her mighty fleet when she was queen of the waves. It lies there now idle. Surely the Departments concerned should come up with an argument for development of that port, particularly considering the congestion that prevails in European waters. This has been commented on elsewhere by various public representatives and I invite the Minister's comments on it as well.

In regard to the non-quota section of the EEC fund, the Minister clearly indicated that a lot of that money has been left unspent. In the Border region we have the worst communications system in the country. We have no railways and we have no real road transport system. We have no air service. We have been trying to get an airport developed. The current estimated cost of the airport project is £2.8 million. Both the regional development organisation and Donegal County Council were given to understand that the project would be funded entirely at national level but that the running costs of the facility would be a matter for Donegal County Council together with other appropriate interests. It was understood that the finance to provide the facility was being made available from the Special Border Area Programme of the Non-Quota Section of the European Regional Development Fund.

The present position in relation to the project is that Donegal County Council have carried out all the necessary work to identify and acquire a site for the facility and to design and prepare a feasible scheme. The council encouraged substantial expenditure and entered into major financial commitments. The basis of the council's actions was a clear commitment by the Government, reiterated on a number of occasions and copperfastened by such decisions as confirmation of the CPO, formal consents under the Navigation Acts and so on. It is imperative, therefore, that the necessary financial allocations be made by the Government to the council to enable them to meet their financial commitments up to the present and to put the necessary work in hands. An appropriate decision is all the more urgent because the present Special Border Area Programme will cease in 1985, and every effort should be made to ensure that the allocation for this project from that source will not be lost.

We earnestly request the Minister to review this project fully and arrange for the necessary allocation to Donegal County Council to proceed with the work now and so avoid the additional cost which will inevitably arise from any further delay. A sum of £1.6 million has been earmarked for that project and it seems odd that with the commitment and the financial constraints at present on Donegal County Council we are faced with having to raise a loan to relieve our responsibility. There is the £1.6 million in the non-quota section which should be made available to get that programme off the ground and to give us our just entitlement, an air service. That would give some hope of getting people coming into Dublin a transport service to the north west. Now when they look at the map and inquire how they can get there they are told there is nothing but CIE buses. We in the Border region must band ourselves together, make our case, stick by it and ensure that every avenue will be pursued to give us our entitlement to ease the problems that have been there for 60 years. It is a situation that would not be tolerated elsewhere in the country.

Debate adjourned.
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