Edward Nealon
Ceist:1 Mr. Nealon asked the Taoiseach when he intends to make an announcement regarding the location of the headquarters of the new Western Development Commission; and if he will make a statement on the matter. [1178/97]
Ceisteanna — Questions. Oral Answers. - Western Development Commission.
Michael P. Kitt
Ceist:2 Mr. M. Kitt asked the Taoiseach if he will reconsider the constitution of the Western Development Commission. [1382/97]
Michael P. Kitt
Ceist:3 Mr. M. Kitt asked the Taoiseach the projects which will be funded by the Western Development Commission in 1997 in the region; if infrastructure will be improved with the funding; the location of the headquarters and other offices for the commission; and if he will make a statement on the matter. [1559/97]
Bertie Ahern
Ceist:4 Mr. B. Ahern asked the Taoiseach whether notifications of grant-aid assistance under the Western Development Fund have issued for 1997; and, if so, if he will give details in this regard. [2764/97]
I propose to take Questions Nos. 1 to 4, inclusive, together.
The formal establishment of the Western Development Commission was announced by the Government on 23 December last. The new Western Development Commission will build on the important achievements of the former Western Development Partnership Board which prepared an action plan for the economic and social development of the western region. The central function of the new commission will be to complement and add value to the activities of the State agencies and local development bodies which currently operate in the region in the interests of the people of the region.
A number of locations in the western region are currently being considered for use as offices for the Western Development Commission. A decision on this matter will be taken in consultation with the Western Development Commission and will be announced in due course.
The commission as constituted reflects a dynamic and focused approach to the regeneration of the west and best ensures the success of its objectives. I do not propose any reconstitution since the membership has only been announced in the past few weeks.
As the Deputies are aware, the purpose of the Western Investment Fund will be to provide long-term risk capital for developing business projects in the region not currently attracting funding from commercial or State agencies. The Government has committed £25 million over the next six years towards this niche venture capital fund.
It is expected the demands on the fund will grow gradually in its first year of operation as projects for investment are identified and matching funding, particularly from the private sector, is put in place. The Western Development Commission will have an important role in this regard over the coming months. One of its central functions will be the promotion and management of the fund in accordance with arrangements currently being settled with my Department.
The commission will hold its inaugural meeting tomorrow and I expect it will start to develop its work plan and priorities, including the Western Investment Fund, as a matter of urgency.
I will call the Deputies in the order in which their questions appear on the Order Paper.
As the Minister of State is aware, I recently announced I will not seek re-election to this House. As a parting gesture to myself and, more importantly, as an incentive to my successor, will the Minister of State agree that Sligo is the ideal base for the new commission because of its geographical location, communications facilities and because it is the location of the temporary partnership board? Will he assure me all of these considerations will be given full weight when the time comes to make the decision? As the Minister of State will be responsible for the decision, will he assure me Sligo is the favoured location for this important institution?
The Office of Public Works is currently examining alternative sites in the west. As Deputy Nealon correctly stated, the temporary headquarters is located in Sligo which I suppose gives that county a slight edge. However, many considerations must be taken into account before a decision is made on the location for a headquarters.
Will the Minister of State indicate the location of tomorrow's inaugural meeting?
The inaugural meeting will be held in Ballaghaderreen.
Can I take it from the Minister's reply that the headquarters might possibly be located in Ballaghaderreen?
The people of Ballaghaderreen made strong representations to my Department to have the headquarters located there, as did people in Sligo and Mayo.
The Minister of State will disappoint somebody.
Where will the second meeting be held?
Will the Minister of State consider other areas like Sligo and Galway for the location of sub-offices. In regard to the constitution of the commission, it should be remembered that it was small farmers in south Galway who approached the bishops concerning its establishment, and the farming organisations and the co-operative movement are disappointed they will not be represented on the commission. Of the £2 million investment, will money be made available to people, as was proposed, for the promotion of projects? I refer in particular to the problem of the proposed curtailment of the two freight lines in the western region. Will funding be provided to address that problem in liaison with the State agencies?
On the question of the meetings, the first informal meeting of the commission was held in Knock and was successful. The commission decided to hold the second meeting in Ballaghaderreen; perhaps they will hold the third in Sligo. Formal headquarters have not yet been established.
Keep them dangling until the election.
With regard to the constitution of the commission, the Western Development Partnership Board recommended a figure of 21 in its plan. In considering the matter, however, the Government wanted to encourage dynamism on the commission and it felt that a compact group of seven people was more suitable. The commission is made up of two businessmen, representatives of the trade unions, the county managers, the county council and the Department of the Taoiseach. In addition, there is provision for sectoral committees as recommended by the Western Development Partnership Board in its plan. A sectoral committee will deal with natural resources and will focus mainly on agricultural policies for the west. That is necessary to prepare for the possible sub-regional division of the country when the west may seek objective 1 status following the depletion of Structural Funds.
We prepared well for this, but I am disappointed the co-operatives did not know exactly what was included in the plan produced by the Western Development Partnership Board. They wanted a discussion on natural resources and a special group is being set up to deal with that matter. We have appointed a dynamic, energetic and tightly focused group of people with proven management abilities and a focus on enterprise. Above all, there will be fresh thinking and a new approach to the problems of the west. As there have been many casualties, even on the venture capital side — the most notable being NAD-CORP — I believe the correct decision has been taken and I stand by it.
The Minister of State, Deputy Mitchell, who took questions on western development on 17 December said the commission will develop close working relations with regional and local authorities and agencies engaged in local development in the western region. As a large number of bodies draw down significant funding from Government and the European Union, is the Minister confident the commission will not duplicate some of the work already being done? Does he envisage the commission co-ordinating existing projects and programmes? If not, does he agree co-ordination must be considered at this stage? I am raising this matter before the commission holds its first meeting, otherwise there could be a great deal of confusion because of all the programmes involved. Irrespective of the good work done under those programmes, if the commission does not co-ordinate all the activities at the outset, it will not be successful.
When the Government published the terms of reference of the Western Development Commission it said its central function would be to complement and add value to the activities of State agencies and local development bodies currently operating in the region. Most counties in the west have established county strategy groups and devised strategic plans. The expertise of those on the commission will ensure that a co-ordinated approach is adopted. The appointment of the Donegal county manager is a clear indication of the Government's intention to ensure there is not duplication of activities and that strategic plans are put in place for the west.
I and the late Deputy Blaney were the only Members who attended the meeting that acted as the catalyst for the bishops' movement which resulted in the establishment of this commission. Does the Minister of State believe the commission can be dynamic and act in an effective and focused manner when the funding allocated to it will be only a little more than £4 million per annum for the next six years? In view of the area to be covered and the difficulties that will arise in terms of demarcation lines and co-ordination, does he believe the commission can achieve anything dynamic or worthwhile with such a paltry sum of money? Will he clarify the counties that will be included under the work of the commission?
It is a pity Deputy Molloy, who has an interest in the west, has not read the documents that have been published since last May, in which the counties to be included were outlined. Counties Donegal, Sligo, Leitrim, Mayo, Roscommon, Galway and Clare will be included and the amount of money involved will be much more than £4 million. I fail to understand why Deputy Molloy persists in talking things down. In ringfencing projects for the west I have ensured that £100 million will be made available over the next six years. While the initial sum may be somewhat modest, as a former Minister, Deputy Molloy should know that projects do not develop overnight. On another occasion he criticised me for not utilising moneys allocated for the islands when the projects were not in order. Capital projects take some time to develop. I am disappointed the Deputy is trying to talk down a special effort that is being made for the west.
I am confident that three flagship projects for the west will emerge from the Western Development Fund and the commission in the coming year. Deputy Bertie Ahern was helpful in highlighting problems that might arise with duplication and co-ordination. It will be the job of the commission and myself to ensure there is no duplication of activities. A successful businessman from County Galway, who has done a great deal for indigenous industry in the region, is a member of the board. Rather than trying to find fault with this development, I expected Members from the west to make helpful suggestions to improve the position of the west.
I am only trying to get behind the hype.
Does the Minister of State accept the Western Development Commission could not get a commitment from Government to deal with problems that will cost money? As usual, rather than focusing on the real problems, its answer was to set up another body that will duplicate work already being done. Does the Minister of State accept the Government's contribution to the commission will not touch the tip of the iceberg in regard to the problems facing the west, such as lack of infrastructure and services and a total degeneration of rural communities through decreasing population? Does the remit of the commission cover Gaeltacht areas? If so, does that mean another body has been set up to tease those who have been already driven crazy by a multitude of agencies and groups? Does the Minister accept this is a kneejerk rather than a serious response to the problems of the west?
It is regrettable Deputy Ó Cuív finds it necessary to criticise the plan of the Western Development Partnership Board which was drawn up by people nominated by a Fianna Fáilled Government. They produced the plan, sought the establishment of a commission and called for the setting up of a western development fund. There was no political difference on the matter. I have been successful in persuading the Government to ring-fence £100 million — which could increase to £200 million — especially for the west. I fail to understand why Deputy Ó Cuív finds it necessary to decry that achievement. Surely we should encourage people to invest in the west. In so far as jobs are concerned, I thought Deputy Ó Cuív would be modest enough to praise Údarás na Gaeltachta for its great work in the past two years in increasing the numbers employed in Gaeltacht areas, but he appears to be negative about that also.
The Minister of State is missing the point.
I am satisfied there is confidence in the west and that the commission will be successful. Despite what Deputy Molloy said about hype, I did not invite the media to the preliminary meeting in Knock.
The Minister of State is happy to invite the media here.
I am entitled to do so, especially when I am attacked in such negative terms by the Deputy.
The Minister of State is a member of a Dublin centred Government.
The ideas originated with four small farmers from the west who were disappointed with the politicians, agencies and structures in their region. They continued to be disappointed following the publication of the partnership board plan because of its failure to produce a radical plan for agriculture.
The farmers started the process, yet they were excluded from it.
I understand that Dillon House in Ballaghaderreen, one of the more historic heritage houses in the country, has been looked at as a possible headquarters for the Western Development Commission. Has the Minister of State received a report from the Office of Public Works or any other source on the suitability of the house and does he wish to make a statement on the matter?
The Office of Public Works was asked to look at Dillon House with a view to making proposals. I am awaiting them.
It will be a Fine Gael memorial.
The Minister of State will be aware that my colleague, Deputy Pat the Cope Gallagher, has decided to relinquish his seat at the next general election and to continue serving as an MEP for the constituency of Connaught-Ulster. While the country overall will lose its Objective 1 status for EU funding from 1999, this does not apply to any part of Connaught-Ulster. Will the Minister of State assure the House that the Western Development Board will treat this region as a priority? Is the Government considering the possibility of ensuring that the region enjoys positive discrimination in this regard?
I have asked an interdepartmental committee to consider Objective 1 status for the west with a view to preparing a submission to Government regarding income levels in the region. The Western Development Partnership Board plan dealt with the five major sectors and those involved will be given the opportunity to study sectoral policy. In the compilation of this policy they will also assess information on income which will form the basis for proving that the west and the north-west should continue to have Objective 1 status.
Those in the region know they are under the 75 per cent threshold.
I met a delegation representing the three regional authorities, the north-west, the western and the mid-western, to formulate proposals for the area. Each of them is developing plans. I am reasonably up to date with the preparation of the essential documents to make a subregional claim.
The subregional aspect should have been tackled long ago. Regrettably, the west was left out of the previous application for EU Structural Funds. Major infrastructural plans, including parallel road, railway and industry structures should have been included.
Will the Minister of State clarify his concept of the role of the commission? Does he consider that it should be an exclusively grant giving, grant co-ordinating organisation, or should it generate new ideas, policies and dynamics for the west and pursue them with the Government and the EU?
It is the terms of reference in which the Deputy is interested. The central function of the commission will be to complement and add value to the activities to the State agencies and local development bodies which currently operate in the western region. The commission will approach the economic and social development of the region and the interests of the people there. It will achieve this in collaboration with the existing statutory and community based agencies who are working in the region. This relates to the question raised some time ago by Deputy Bertie Ahern.
It will prepare a strategic plan and agree targets with regard to economic and social development, monitor progress and establish, promote and operate the pilot initiative. It will also support and promote the local enterprise network, LENS, and will act as a regional resource and support of local development initiatives. In addition, it will prepare and publish an annual report on developments in the western region and on the activities of the commission.
The national development plan for EU Structural Funds was compiled on the basis of the regions submitting their plans. This was the basis on which the sum of almost £8 billion was negotiated. It is factually incorrect, therefore, to say that an area was not covered.
Will the Minister of State agree there is a serious imbalance in the distribution of IDA jobs and employment generally? The area for which he is responsible, Connaught and the Border region, showed a net increase of 100 jobs last year at a time of economic growth of approximately 6 per cent and the deployment of large amounts of EU Structural Funds.
That excludes Galway city.
By comparison, over 7,000 jobs were created in his own province. The evidence makes clear that the Government has reneged on its economic policies in the west.
Let us not tend towards debate. I call the Minister of State.
I am disappointed to hear the Deputy say that people in the west are not being looked after; he knows they are.
Only 100 net new jobs were created.
The Deputy saw no reason for a Minister for the west even though the Western Development Partnership Board, which was established by the Deputy when Minister for Finance and the then Taoiseach, Deputy Reynolds, called for a ministry for the west. We supported this call, despite the Deputy's announcement on a visit to County Mayo that he would abolish it. This was not widely publicised.
I will have a Minister for the west.
With regard to growth and employment, the county enterprise boards in the west have created approximately 2,000 jobs per annum over the past three years. The Deputy excluded this from his figures. In addition, figures from Forbairt indicate that there has been a substantial increase in employment in the west. Furthermore, figures published recently by Údarás na Gaeltachta auger well for the region. Most communities are becoming involved in the Leader programmes or in ADM. There is confidence in the region.
The Minister of State should travel to my constituency.
When a political decision is to be made on a choice of Government I am sure those in the west will affirm their support for the Government in view of the work it has done and the confidence it has provided.
I want to bring these questions to finality. I will call Deputy Michael Kitt and Deputy Ring and will then proceed to other questions.
On the question of infrastructure, I understand that the pilot programme referred to by the Minister of State would involve people working with the State agencies. Will the Minister outline his role in helping to ensure the continuation of the Limerick-Claremorris railway freight line? It is still in danger of closure and it requires approximately £0.25 million. What is the Minister's role with the State agencies in trying to avert the closure and promote business for the line?
The matter raised by the Deputy is worthy of a separate question.
The Minister is derailed.
Deputy Kitt has an interest in the railway line. Over the years, when it looked bleak for the line, he showed a particular interest in that type of development in the west and I applaud him for it.
The Minister is puffing on.
I am glad to tell Deputy Kitt that I met the managing director of Iarnrod Éireann. He is considering a joint venture project for the Limerick-Claremorris line and I put the proposal to the western commission, which will have a project officer before the end of the month. When the officer reports on the project, I am sure it will be referred to the western investment fund as one of the flagship projects I mentioned earlier.
It is also important to note that the EU will help to fund the project officer to ensure a proper examination of projects. There will be no fly-by-night projects but long-term venture capital investments, which are required in the western area.
I welcome the new commission and I am sick and tired of the negativity about this matter.
The Deputy should ask a question.
I compliment the Minister and the Government because it is the first fresh approach to the west in 50 years. The Minister is correct that, when Fianna Fáil gets back into Government, it will abolish the Minister's office. However, it will be some time before that happens because we intend to hold on to office for many years.
The Deputy is whistling past the graveyard.
Will the Minister consider establishing a sub-committee structure to give all the interested parties, including the tourism and farming sectors, the bishops and all those who were involved in the formation of the commission, an opportunity to contribute? I compliment the Minister because people like this fresh approach. He is the first Minister of State in many years to take action with regard to the islands. The Opposition talked about them but the Government delivered on them and will deliver on the west.
The Deputy is making a Second Stage speech.
Does the Deputy want the headquarters?
A Fine Gael Minister will be in office for many years. The Opposition appears to be negative about everything positive for the west, even the pilot schemes. I urge the Minister to keep up the good work and to ignore the negativity. The west is happy with him and we will ensure he is in office for many years.
The Deputy is an apologist. That should be worth a grant or two.
What was the Deputy's question?
The policy areas which will be examined in subgroups will involve all the interested parties. I am disappointed in the approach taken by the co-ops on this matter. The co-ops in the west have a contribution to make to a radical agricultural plan which will be required if sufficient numbers of people in rural Ireland are to be retained. I have not yet heard the western co-ops' radical plan because, unfortunately, it will require sacrifices by agricultural people throughout the country. The four farmers from Loughrea set a challenge for politicians, the establishment and the church in the west. The western development board had an opportunity to develop a radical plan. The Opposition may think it is radical but I do not agree. I fully support the solid idea put forward by the four farmers.