It is now clear that while we may be experiencing a recovery as an economy, we are not experiencing an evenly spread one. Dublin has outpaced all other areas when it comes to generating increased economic activity over the past few years, followed by Cork and Galway. Outside these and some other urban areas, people can see and feel the gulf that is getting wider. Their sense of a rising tide lifting some boats but not all is deepening. They wonder if the Government is doing anything about this economic phenomenon. They know it exists and is becoming more obvious as the weeks go on. The truth is that parts of the country are still in recession or, at best, stagnating economically while other parts recover and achieve elements of economic normality.
Last week, Teagasc published a report on the economic strength of rural towns. The upshot of the report was that rural towns have had a lower focus in national development strategies over the last decade and a half. What has happened over the last few years in particular is that, rightly, the focus has been on regaining our international reputation among outside investors. A good job has been done in that regard so far. However, the recovery has become unbalanced. Through no one's fault, annual investment into Ireland has gone exactly where it is needed least, namely Dublin, Cork and Galway. These are the three urban locations where 82% of foreign direct investment has ended up over the past 20 years.
When I read about the conversion of the NTMA controlled National Pensions Reserve Fund of €6.8 billion into a commercial investment fund to be matched by €6 billion to €7 billion in private investment, it suggested the obvious question of whether anyone had considered earmarking some of the money for the areas worst affected by the recession. The answer I am getting is a resounding "No". I asked the question of the Secretary General of the Department of Public Expenditure and Reform. His answer makes it crystal clear what the story is. He wrote to me that there is no regional angle or perspective to this. He indicated that as far as he was aware there had been no regional impact consideration. Mr. Watt went on to communicate something that really caught my attention. He said that when the Department examines Exchequer funding and our public private partnerships, it has regard to a spread from the political world in terms of which money is allocated. That means money is still being allocated not on the basis of need but on the basis of political influence.
As far as I can see, no account has been taken within Government as to where money has or has not gone in the past and where it should or should not go in future. It is a mistake the Government cannot afford to make. I am already hearing about Ministers telling county managers about money coming down the line from the sale of State assets through particular Departments. The Department of Finance should - and easily could - look at where the investment of State finances has gone in the past ten or 15 years, examine where the unemployment rates are lowest and consider a policy of domestic investment in those areas that need most assistance.
I am not sure if it is a good or bad thing that the Minister of State replying is from the Department of Finance given that he is running in the Dublin area in the European Parliament elections. I look forward to his response.
