I am glad of the opportunity to raise this very important issue about which public representatives in the six southern Border counties are concerned. The retention of Objective I status for the period 2000-06 for the Border region is essential if regional imbalance and disparities in economic performance are to be eliminated. The case for Objective I status is economically and politically justifiable. The infrastructural deficit suffered by the Border region must be addressed. This will only be achieved through the drawing down of the maximum level of Structural Funds.
Structural Funds exercise the minds of public representatives and bodies in the region. At recent meetings in Belfast, Derry and Omagh of the sub-committee of the British-Irish Parliamentary body we learned that this issue is one of key concern for public representatives in the six northern Border counties.
Last Thursday the Minister for Tourism, Sport and Recreation, Deputy McDaid, launched the Border regional report, "The Border Region after 1999: The Case for Special Status". It outlines in a comprehensive manner the numerous valid and cogent arguments for the retention of Objective One status and has been submitted to the Department of Finance. I trust the Minister and Government will be afforded the opportunity of studying it. It outlines the poor performance of the region in socio-economic terms and articulates the region's unique status in the Irish and EU context.
It must be accepted that the prolonged Northern troubles had a devastating effect on the economy of Border counties and the seemingly intractable situation inhibited the normal pace of economic growth and development in the region. The Border created an economic divide, with towns being cut off from their natural hinterland and rural areas being cut off from their natural towns. The area suffered from security problems and from a general lack of development in social and economic terms.
In 1997, 14.7 per cent of the labour force in the Border region was unemployed. This was the highest unemployment rate recorded in any region and well above the national average of 11.8 per cent. Fortunately, employment in the country increased in the period 1993-7 and unemployment fell. However, the Border region's performance again lagged behind that of other regions which meant that fewer new jobs were created and the reduction in unemployment was lower than anywhere else in the country.
Urbanisation is a feature of economic growth and again the Border region is hindered in its potential development due to its largely rural nature. As a region it was unable to achieve the full benefit of Objective I status which the country has enjoyed to date because of the political difficulties in the North.
The region looks forward to the implementation of the British-Irish Agreement. The ongoing peace process must be underpinned by large-scale investment in infrastructure, inward investment and the creation of employment. Now is the time to redress the economic difficulties the region has suffered over a period of almost 30 years.
For the future, the region faces new opportunities arising from the peace process but it also faces a new challenge in being on the exchange rate front-line when Ireland enters EMU without the UK. The region has benefited from Structural Fund expenditure, funds which were successfully negotiated in 1989 and 1992 by Fianna Fáil Governments. However, the Border region did not achieve the success rate the rest of the country did.
The report by the Border Authority clearly outlines why the region should retain full Objective I status. The region is clearly below the 75 per cent of European GDP threshold which determines eligibility for Objective I status; it continues to be remote and peripheral in EU terms; it has a very special status regarding the historic political and economic opportunities arising from the peace process.
I repeat my call to the Government to favourably examine the merits of the case advanced by the Border Authority. I, and my colleague, Deputy O'Hanlon, lend our full support to those arguments. I wish to see our region achieve its potential in economic and social terms and that can only be achieved by large scale and early investment in our roads, water and sewerage services, industrial buildings and telecommunications. The region will only enjoy an increase in employment and a halt to rural depopulation when such investment occurs.