Dáil Éireann díospóireacht -
Thursday, 11 Jun 1998

Vol. 492 No. 3

Written Answers. - EU Funding.

Brendan Smith

Ceist:

51 Mr. B. Smith asked the Minister for Finance if his attention has been drawn to the need for increased investment in the Border region and the need to retain Objective 1 Status in EU Structural Funding after 1999; and if he will make a statement on the matter. [13932/98]

Minister for Finance (Mr. McCreevy)

The Government has consistently supported all initiatives aimed at promoting economic regeneration in the Border counties and the Deputy can be assured that we will be making all reasonable efforts to ensure this region benefits from any additional funds that may become available on foot of the Agreement reached in the northern multiparty talks.

The Border region is already receiving special financial assistance under various programmes related to its situation. These programmes include INTERREG, which provides over £100 million for the region in both EU and domestic funding over the six years from 1994 to 1999, the peace programme, which has provision for approximately £83 million in EU and domestic funds for the Border region for the years 1995 to 1998, and the International Fund for Ireland, which should see a further £21 million in funds being available for the Border region in 1999.

The range of activities I outlined indicates the Government is actively pursuing the economic regeneration of the Border counties, and should demonstrate that we are committed to ensuring that the maximum possible benefit is realised both from these programmes and from the settlement that has now been reached in Northern Ireland.

As regards Structural Funds, the eligibility criterion for Objective 1 status is for a region to have aper capita GDP of below 75 per cent of the EU average. Ireland, currently treated as a single region for Structural Fund purposes, now well exceeds this eligibility figure and will no longer qualify for full Objective 1 status after 1999.

However, the Government is conscious that the recent prosperity achieved by Ireland has not applied uniformly throughout the country. Certain regions have not done as well as the rest of the country in terms of indicators applying at the more localised level in particular, the regions of the Border, the west and the midlands currently have aper capita GDP of less than 75 per cent of the EU average.

In this context one possible strategy to address the development needs of these regions including the Border counties, is to pursue a regionalisation approach to the next round of structural funding, whereby the country would be divided into two new regions of which one, comprising the Border, the west and the midlands regions, would qualify for Objective 1 status.

Ireland cannot unilaterally adopt a regionalisation approach. It would be for the European Commission as a whole to approve a regionalisation approach. It has to be said that indications to date as to the likely response to this option are not positive.

I would, however, reiterate the Government's commitment in the Action Plan for the Millennium to those regions of the country, including the Border region, whose development is lagging behind. It remains to be seen whether this commitment can be best met by a regionalisation approach or by an approach where the best possible terms are secured for Ireland as a single region in transition. This matter is receiving detailed consideration and has been raised with the Commission at political and official levels.