I welcome Dr. Patricia O'Hara, policy manager, Ms Geraldine McLoughlin, investment manager, and Ms Deirdre Frost, policy analyst, Western Development Commission. I draw attention to the fact that while Members of the Oireachtas and the committee have absolute privilege, the same does not apply to witnesses attending the committee. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official by name or in such a way as to make him or her identifiable. I call Dr. O'Hara to make a brief presentation, which will be followed by a question and answer session.
Regional Infrastructure: Discussion with Western Development Commission.
Dr. Patricia O’Hara
On behalf of my colleagues and the commission, I thank the joint committee for inviting us to appear before it. It is a great privilege to address it. Members have received literature from our organisation, including the corporate brochure and our key statistics document which I hope will be helpful.
The commission is responsible for economic and social development in the seven county western region between Donegal and Clare. It is a statutory body since 1999 under the aegis of the Department of Community, Rural and Gaeltacht Affairs. It comprises 12 members and 15 full-time staff.
Our vision for the region is outlined in the next slide. It gives a sense of the geography of the region and our ambition for it. The region has a rich heritage and culture and natural resources. It faces many challenges because of the long history of outward migration and economic challenges during the years relating to the dependence on agriculture and primary production. It is a region of great opportunity but also of considerable challenge.
The organisation has four strategic aims. The first provides the context for this presentation because it is the one that underpins the work done by us in the policy unit of the commission, which is to advance the Government commitment to balanced regional development by providing a regional policy perspective and information based on infrastructure and enterprise issues and the productive sectors generally. Even though we have a remit for economic and social development, we have tended to concentrate largely on economic development because it is regarded as the most pressing issue by the commission.
Our second aim is to promote the benefits of living and working in the west through the www.lookwest.ie promotion campaign. In a sense this depicts a very positive aspect of the west. It has been a very successful campaign which has uncovered for us a great deal of interest in locating to the western region or among people originally from the region who wish to relocate back. This has been important in terms of our understanding of the work we do.
The commission also undertakes a lot of work in rural development because the area is predominantly rural. We work as an agency of stimulation; we do not deliver many projects other than putting people together and working in partnership with them. In that context, we have worked in rural tourism. We were behind the green box initiative which has now spun into a very successful tourism product in the north west. We have also been ahead of the curve in developing the organic agrifood sector, particularly in the north west. We are doing a lot of work in renewable energy, particularly wood energy, but we have also done work on wind energy. We always work in partnership with the relevant bodies and agencies.
Our final strategic aim has to do with the operation of the western development fund, a risk capital fund for SMEs and social enterprises which has resulted in €30.8 million being invested in 78 projects since start-up, of which almost 60% are in rural areas. When one discusses infrastructure, it is important to recognise that much of our work is influenced by the fact that we are involved with businesses in the regions and directly engaged with them. We receive constant feedback about the challenges and difficulties of doing business in the western region.
The policy unit of the commission does a lot of work in the four key infrastructure areas: road, rail and air access; gas; electricity and broadband infrastructure. We look at the challenges faced by the region and highlight and make suggestions about what needs to be done.
I will now deal with the issue of transport because it is the focus of this presentation. I do not think there is any need for me to emphasise to the committee the importance of roads with respect to regional competitiveness and the underpinning of employment growth. Research shows that throughout the world regions tend to be sub-national rather than nation states and the focus for growth in advanced economies. In that context, the regions with the greatest and most up-to-date infrastructure, whether it be energy, transport or broadband, are the most successful. In order for the western region to compete for inward investment or grow indigenous enterprise, it is important that we have good roads. Traditionally, roads have not been good in the region, although we have made remarkable progress in recent years in turning around the decades of under-investment. The impact of having poor roads has been to increase costs and lower productivity levels for companies in the region and also to reduce labour market flexibility and mobility. It has also resulted in a reduction in the quality of life because people have to travel on bad roads or else are sitting in traffic or unable to get to their place of work easily. In some cases, they are unable to access employment because the journey is too long and difficult. In the context of the national spatial strategy, the region has two of the smallest and newest gateways, namely, Sligo and Letterkenny, but it also includes Galway and Shannon as the region extends to County Clare. Roads are very important in accessing and linking gateways and hubs.
I will speak about national road priorities. Since it was established, the commission has been very active in this respect. We regard Transport 21 as being a very good framework. However, we have concerns about the timing of various projects. In our input to the national development plan, we argued strongly that two sets of routes were of great importance. We referred, first, to the radial routes linking Dublin with the region. The major project on the M6 interurban route will be finished on time, as the committee is aware. I will speak in more detail about other roads such as the N5, the N4 and the N2. The N2 is not too bad, but the N5 and the N4 are of particular concern.
The Atlantic corridor is very important. It is the only priority road in the region which is not a radial route from Dublin. It links the north west with the south west. It also links the region's gateways and hubs. The development of the Atlantic corridor is running behind schedule. We said in our national development plan submission that we wanted it to be finished by 2012. Industrial and other interests in the region are anxious for it to be finished as soon as possible. I am aware that progress is being made. Work is being done on the N18, for example. I understand work is about to start on the construction of a dual carriageway between Galway and Tuam, which is very welcome. I emphasise that the Atlantic corridor needs to be finished to dual carriageway standard by 2015, at the latest. We can discuss the other key regional link routes such as the N16, the N60, the N61, the N84 and the N59 in more detail later. Such link routes are crucial for the region.
I have included two maps in my presentation to illustrate the situation as it is. The map showing the national road network was produced to accompany the launch of Transport 21. The other map is taken from the 2007 annual report of the National Roads Authority. In current circumstances, it is hard to see how we will be able to get from the position in 2007, as set out by the NRA, to where we want to be by 2015. We know the major interurban routes will be finished by then, but we are worried about roads which have not received such a designation. We are particularly worried about the road corridor north of Galway. The national secondary routes which are depicted in yellow on the maps I have mentioned are important for the western region. I urge the committee to see them as a significant priority.
I would like to speak about the N5 interurban route in County Mayo. I am sure this is not the first time the committee has heard about the road in question, which is problematic. Approximately 3,000 people are directly employed by the strong cluster of multinational industries based in north Mayo. As a further 6,000 jobs are indirectly linked with the industries in question, up to 10,000 people depend on them in total. The companies in the area have been concerned for a long time about the state of the N5. I am aware of a company which estimates that the poor condition of the surface of the N5 costs it €800,000 per annum. These expenses are associated with higher packaging costs, accelerated depreciation of trucks and increased breakages, etc. It is a serious issue for the company in question.
The presentation I have submitted to the committee contains a quote from a senior vice-president of one of the major multinationals, describing the frustration he experiences when he travels to west Mayo to visit his plant. The committee is probably aware of the repercussions of these difficulties when relocation decisions are being made during times of expansion. Poor roads frustrate those who work in a sector of business that demands regular travel. The Western Development Commission is trying to market the west as a knowledge-based industrial region. This involves trying to persuade knowledge-based businesses to remain in the region, or to relocate to it. The problems I have mentioned are not insignificant in that context. They are of great concern to the commission and business interests in County Mayo.
I will give the committee some details of the sections of the N5 which are causing problems. The road is of a poor quality between Scramogue and Ballaghaderreen and between Bohola and Westport. The connection from Westport to Ballina is also unsatisfactory. We might want to come back to this issue.
Members from the west will know the Western Development Commission has a long history of advocating for improved rail services in the region. We were pleased to see strong commitment to public transport in the national development plan and recognition of the importance of other forms of transport, other than road transport, particularly regarding environmental sustainability. We are very pleased at the great improvements made to western rail lines since 1998. The delegation came to Dublin today by rail and was amazed at how good the service was. Travelling on the Sligo rail line was fairly challenging until this year. We have co-hosted several rail conferences at which we have highlighted the issues of sustainability and the potential for rail freight. Over the years we have made various submissions to the relevant policy discussions around rail.
The western rail corridor is Ireland's newest railway. It is important in its provision of connectivity between Sligo, Galway, Limerick and Cork. It also has the potential of creating commuter services particularly around Galway. Construction of the Athenry to Ennis section of the corridor is under way and services are due to begin in mid-2009. This will include the Galway to Athenry commuter service. The Athenry-Tuam section is due for completion by 2011 while the Tuam-Claremorris section will be completed by 2014. Obviously, the date for the construction of the line between Claremorris to Collooney has not been agreed yet by the Government but the line has been preserved.
I believe the rail corridor will be like the Luas. Once it comes into operation, we will wonder why we did not have it before and see it as a valuable service. However, this is about changing the culture of road usage back to rail usage in a region which has not had the service for some time. The quality, frequency, competitive fare structure, short journey times and comfort of the service will be important. It will also be important to ensure people know of the services available. Experience shows that when a service is provided, the take-up is always higher than anticipated. That has been proved true with the Limerick-Ennis service. The roll-out of the corridor will be a positive development.
The issue of rail freight is related to the western rail corridor. The largest rail freight traffic in Ireland is between Mayo and Waterford Port with up to 900 trains using it each year. This removes approximately 16,000 truckloads from the road network which shows its importance regarding environmental impact. These trains have to be routed through the greater Dublin area. However, it is hoped once the corridor is up and running, it will be much more efficient to route them along it. The committee will be aware the EU is actively promoting rail freight. Ireland is one member state which does not have a rail freight subsidy.
There is a need to consider a subsidy for rail freight, for reasons of congestion as well as safety and sustainability. In many of our submissions we have raised the rail freight issue because as further challenges are faced as regards carbon emissions and more congestion on the roads, it really makes sense. Other European countries seem to be actively engaging in this on the basis that it makes sense to promote the movement of freight by rail. To take one example, Scotland, which currently has a £3 million subsidy for rail freight which is offset by savings of around £1.4 million in carbon taxes. However, these are not the only savings. Other savings take the form of reduced congestion on the roads, a better safety record, a more energy efficient mode of transport which is also more environmentally sustainable. Again, we can return to some of these issues if the committee wishes.
I want to turn to the final area we want to cover as regards transport, namely, the relationship between air access and regional development. I have already made reference to the fact that we are trying to position Ireland as a knowledge economy. The only way that knowledge moves is either in people's head or across the wires. In that context the commission strongly emphasises the importance of having efficient international air access into and out of the regions, as indicated by the multinationals located in the region. It is worth recalling that many of the multinationals I referred to earlier are there because there was a deliberate Government policy to disperse industry in the 1970s out into the regions. They have survived all these years and are very important to the region. However, they are also looking at other parts of the world in terms of competitiveness and access. It is therefore very important that they can get in and out of the region easily and quickly.
International air access is also very important for tourism, as I am sure the committee is aware. The whole trend of tourism packages, in terms of short breaks and so on, has driven the need for tourists to have direct access into destinations. That is very important both for Shannon and Knock. We have always concentrated in the commission on Shannon and Knock because these are the two international points in the region. Each has had to face very significant challenges in its own right. One of the things we strongly emphasise as regards the future of these airports is the importance of having good surface access into and out of them, both in terms of public transport and roads, so that people can have predictable journey times. That will enable these airports to extend their catchments. The N18 between Galway and Shannon will have a very significant impact, for instance, in terms of easy access to that airport. Likewise, when the corridor is built from Galway, through Tuam and on to Claremorris, it will have a major impact on Knock. However, Knock needs to draw its catchment from a much wider area than this, so the other roads I mentioned are pretty important, as is public transport. The western rail corridor will also be important in facilitating access to Knock.
The final point on that slide emphasises that we are obviously very aware that the whole area of international aviation is very tricky, difficult and challenging at the moment, both for Knock and Shannon. Again, we can return to some of those issues if the committee wishes.
The final slide deals with three points which reiterate the points I have been trying to make in this short presentation. We know these are difficult times and that there is a great deal of consideration as regards public expenditure priorities. However, there is universal acceptance based on all the reports done in recent years about economic growth and the positioning of Ireland and its regions as a competitive economy, to the effect that public investment in transport delivers for the regions and will sustain jobs. I have been at pains to point out that businesses in the region are under pressure because of poor access in terms of public transport, roads and air. We can return to some of those points if the committee wishes.
The final point to make is that even though these are challenging times, it is not the time to postpone investment in transport infrastructure. We acknowledge that we have come a long way. The commission would not have been able to present and promote the region as it has, were it not for the very significant investments that have taken place in infrastructure. I travel on the N4 very regularly. Coming off the dual carriageway from Mullingar, one is very conscious of entering a poorer region. Poorer roads can be a marker of a region, in just the same way that poor trains were a marker for such a long time of the Sligo line. The transformation in perception and confidence that good transport infrastructure can bring is evident from the experience of other parts of the country, and is even evident to those us who use Knock Airport. To develop our region and to achieve the Government objective of balanced regional development, now is not the time to stop investing in transport infrastructure.
Without any doubt, the N4 and N5 are the most critical pieces of infrastructure required. We certainly will do our best to try to further the case made by Dr. O'Hara. The comment from the multinational manager is very telling. I am aware of the threat to some of the manufacturing plants in Mayo due to the delays with those two routes, so we would endorse entirely what is being said.
We have two international airports, Knock Airport and Shannon Airport, and a regional airport in Galway, yet we have a limited level of service into all three. Is there need for synergy between those three airports? People in Galway are talking about expanding the airport there. What are Dr. O'Hara's views on the future of access into the western seaboard? How does she feel we can improve accessibility? Michael O'Leary told us some time ago that he was seriously concerned about his losses in Shannon, and threatened that if there were no improvements in the next 12 months, he may have to withdraw 31 routes. This is a serious concern. We know of the situation in Knock where Cityjet decided not proceed with the PSO that was granted, and that economies of scale are a big issues. With the development of the Atlantic corridor, which brings both Knock and Shannon within one hour of Galway, there is a need for clear synergy between the airports, and a co-operative approach as well as a competitive approach between them.
Economies of scale is the one thing that affected counties in Connaught outside of Galway. The ability of Mayo, Sligo, Roscommon and even Donegal to be big enough to attract infrastructural investment has always been an issue. That is why they are behind Galway, which has got the N6. How significant is the Corrib gas development and the ability to generate electricity for the first time in that region? If it is as significant as I think it is, why have there not been positive noises coming out of that region about the desirability of developing the Corrib gas field? I know this is not directly related to transport, but it must surely be the most important single development in the history of the west of Ireland in enabling the build up of a critical mass in industry and development. This will bring with it a much better transport infrastructure than it has now.
Dr. Patricia O’Hara
I was not thinking of Corrib gas in this context, but you are quite right. The Corrib gas find has potentially enormous significance for the region, albeit that the gas is not turned on yet. We have done much work on gas policy, especially gas policy for towns in the region. The methodology being used to decide whether towns were eligible for gas was something we challenged. We criticised some of the bases on which the calculations were made and we engaged with the various players in this policy area. Subsequently, the regulations were changed and many towns in the area have now been declared eligible for gas from the spurs from the pipeline which will run between the Corrib gas field and Galway.
This development is hugely important, particularly for competitiveness because towns in the area will be able to offer an energy source. Clearly, at a time when energy issues in terms of cost are very difficult, this is even more important. In turn, this feeds into the possibility of creating critical mass in terms of stimulating indigenous enterprise or inward investment because of the availability of energy. There have been discussions about the establishment of a gas-fired energy station in the region, although I am not sure at what stage are the various proposals.
There is a certain hesitation because the gas is not yet available and because the project has been controversial. We have not been involved in any of the controversy, so we could not comment on that. To be honest, there is probably a sense of unreality in terms of the region appreciating what the gas could mean for it. The fact it is under the sea and has not yet been brought ashore probably explains the sense of unreality. However, our view and the general view throughout the region is that it could be enormously positive and could transform the region, particularly if this is the first of many finds.
In recent months we have been hearing about other potential finds and, given the relativities of price changes and so on, about how it would become more economically viable to harvest from that area, when this was perhaps not the case hitherto. There is a strong appreciation of the potential but it is seen as something more medium to long-term than immediate. This would account for some of the lack of excitement about it. However, we see it as hugely important and we have worked hard in this regard.
In terms of transportation, it is not easy to make the links because transportation will be driven by what roads and rail lines already exist. What would really stimulate investment in transport infrastructure is population growth.
I am not sure if I have answered all the questions asked.
There was a question on aviation.
Dr. Patricia O’Hara
Perhaps Ms Frost would pick up on the aviation issue as she is our expert on that area.
Ms Deirdre Frost
While I am not sure I am an expert, I will certainly comment on the points raised, which are valid in this context. They are particularly obvious in the current challenging aviation environment, where there is a sense, not just in Ireland but globally, that all airports that are not main international airports are competing to attract airlines. The playing field in aviation and for airlines has changed, which is affecting both regional and international airports in the west.
As Dr. O'Hara said, we have always argued that there is a critical need to improve international air access in the western region. The simple geography is that the west is on the periphery of Europe, so, whether we like it, international air access, despite increasing fuel prices and airline charges, will always be critical to the development of the region. This is why Knock Airport, which has extra-long capacity in the north of our region, is logistically very well located, as is Shannon Airport to the south. These airports have particular difficulties at present, particularly Shannon, given the advent of the open skies policy.
Notwithstanding Michael O'Leary's concerns, the latest reports are that Shannon is working hard to hold passenger numbers steady. Ireland West Airport at Knock has also had some difficulties but its passenger numbers are also holding strong. Every airport in the country is currently finding it difficult but I agree there is need to invest in the transport infrastructure feeding into the airports to allow them to properly serve their natural catchments and hinterlands, which extend geographically farther into the midlands than the area they are actively serving at present.
I welcome the delegates. The Chairman has already asked some of the questions I wished to raise. The delegates are sitting in the seats occupied by Mr. Michael O'Leary and his colleagues some weeks ago when I asked him for his view on the regional airports. He indicated his dismissal with a wave of his hand. None of us on this committee agreed with him on this. However, one is forced to take notice when an individual of his stature within the industry expresses that type of opinion. Everything possible must be done to ensure our network of airports remains intact. This includes measures to improve connectivity to roads and other transport networks. If there are difficulties in accessing regional airports, other modes of transport will be preferred.
The issue of the transportation of freight on the railways has not been discussed for some time. This country has headed in the opposite direction. Have the delegates undertaken any professional studies on the feasibility of a reversal of this trend? Is there any basis for believing we can do so? It is important to take as many heavy goods vehicles as possible off the road, as has been done in Dublin city. The railways offer many advantages in terms of freight transportation. However, are the delegates of the view that the culture of road transport is now so embedded that, irrespective of Government efforts, it will be almost impossible to reverse that trend?
Are the delegates of the view that we in the west are getting our fair share of proposed investment under Transport 21 and other programmes?
The delegates' presentation states that the commission has invested €30.8 million in various projects. What is the county breakdown of these projects? Have there been failures? This is not a trick question. Life would be simple if every endeavour resulted in success. What percentage of the projects has succeeded?
Following on from Deputy Connaughton's point, what is the commission's view on regional airports? Some might contend that this question represents a poisoned chalice politically but I am genuinely interested in the delegates' views. There are two international airports and two regional airports in the western region. Do the delegates envisage Sligo and Galway airports as being capable of offering a sustainable service into the future, given that, as the Chairman observed, each is so close to either Knock or Shannon airports? In the difficult circumstances we face, there may have to be some hard questions asked.
There is little recognition in the submission of the level of investment in the N5, particularly the Mayo end. I accept that the section from Scramogue to Ballaghaderreen remains poor. However, there are major difficulties here because of heritage issues and so on. We are all aware of the minefield in terms of even agreeing a route. This stretch of road is only some 20 miles long. Of the N4, only 20 miles are in question, from the Mullingar bypass to the Longford bypass. No recognition has been given to spending on the Dromod-Roosky bypass, which formed part of the road's overall plan, or the spending west of Carrick-on-Shannon towards the Curlews bypass.
While we are all critical, there is a certain necessity to be constructive regarding what has been spent. Soon, only 40 miles of 140 miles of the Dublin-Sligo road will be inferior, which is not in dispute. Given that I use that road two or three times per week, I know exactly what I am discussing. What are our guests' opinions in this respect?
Dr. Patricia O’Hara
I will address the question on roads before asking my colleagues to answer some of the other questions. I acknowledged how much progress has been made. I would be the first to say that investment in roads has been valuable in the past ten years. It has enabled us to present the west as a desirable place to which to relocate.
I have personal experience of the N4 because I travel it a great deal. I have no difficulty in saying it is one of the finest roads in the country. The Dromod-Roosky section is excellent road. Originally, it was conceived as a two plus one and was subsequently upgraded to a dual carriageway, which has been of significant benefit. For this reason, we did not emphasise the N4. Only one part of it needs serious work.
On the other hand, the N5 is more problematic, particularly its Roscommon stretch. Given that there are archaeological problems, the issue will not be easily addressed. It poses a major problem for access to the west. As long as we have been dealing with the roads issue in the west, progress has been made on almost all of the other radial routes, but very little has been made on the N5 section in question. It is of concern to business people, for which reason we highlighted it.
I would be the first to concede that the N4 is, by and large, an excellent road and that huge progress has been made on many of the region's access routes, particularly radial routes. However, we are always concerned about the area north of Galway because of the region's many considerable challenges, including its roads. I will turn to Ms Frost to address some of the earlier questions and Ms McLoughlin to answer the questions of Senator Ellis and Deputy Connaughton in particular.
Ms Deirdre Frost
On the rail freight issue, Deputy Connaughton is probably aware that the decline in the use of rail to transport freight is evident across Europe, including in countries with a stronger rail freight infrastructure than Ireland's, let alone the west's. EU policy on transport, which is nearly ten years old, advised all member states to promote rail freight heavily for all of the reasons cited. Ireland took the policy on board and it was discussed at length in the strategic rail review.
I argue that we have not been too late. It is evident from the policies of EU member states that the promotion of rail freight has worked. In the past ten years, it has increased from 6% on average to 12%. I can check those statistics for the committee. It should be borne in mind that significant investment in Ireland's rail infrastructure was in decline between the foundation of the State and the 1960s. The environment we considered was not conducive to putting more freight on the railways. After a period of ten years of significant investment, growing both the railway stock and rail freight infrastructure, the possibilities are greater in terms of routing freight. Due to the Celtic tiger, there is more freight to transport. As a facility it is excellent in terms of being able to carry freight and ship it on to mainland Europe.
In respect of the commission's involvement, we have not done any mathematical studies on it. It is quite complex to measure the cost of rail freight relative to road freight because of the many external issues, environmental and safety costs, and so on. Also, the current practice is that if rail freight users in Mayo wish to use the rail network they must justify the cost in terms of using the network and taking carriers. Road haulage firms do not have to do so because the road infrastructure is there already. That is a large part of the mathematics that is required. This is why subsidies have been introduced across Europe. It is recognised that it is not providing an extra subsidy to rail versus road but equalising the relative costs.
Regarding the aviation question, it is not for the commission to decide what State infrastructure should get national support. We recognise the importance of international air access as opposed to access exclusively to Dublin. New public service obligation rules that require member states to have more regard for alternative modes of transport between the capital and regional airports may have an impact on Department of Transport decision making in terms of subsidies for regional airports. This depends on the value of other surface modes of transport and how good they are in improving access between regions and the capital city.
It does not answer the question and I do not expect Ms Frost to answer it.
I call Deputy Feighan.
I had a question with regard to investment.
Ms Geraldine McLoughlin
One of the questions concerned the percentage of €30.8 million invested in each county. It is 3.6% in County Clare, 13.69% Donegal 28% in Galway city, 18% in County Galway, 3% in Leitrim, 22% in Mayo, 5.7% in Roscommon and 5.2% in Sligo. Some figures have been rounded down but it adds up to 100%.
In respect of failures, I do not have figures in money terms but I counted up the number of projects. Some eight projects out of 78 have ceased trading or gone into liquidation, approximately 10%. We invest in terms of equity and loans. A loan is repaid as normal and in equity investment we expect an exit between seven to ten years. This is a little longer than a private sector venture capitalist but we are involved in regional development and it takes a little longer. We have revolved €3.6 million and reinvested it in the regions. This comes from loan repayments and two successful exits from two companies.
On that reply——
The delegation has a time constraint because it must meet a train.
I will not get the opportunity to pose this question again. Some 46% of the investment is in Galway city and County Galway. That was always seen as the most prosperous part — the city more than the rural part of the county — of the region, other than Shannon. It is wrong that Leitrim and Donegal, for instance, have minute investment. These are classed as most severely disadvantaged. The Western Development Commission has failed these counties badly.
That is not a transport question.
I know that.
I thank the delegation for its submission. The Western Development Commission has been a wonderful watchdog for getting balanced regional development.
I refer to the gas coming from the west. It is quite clear that the methodology used was flawed. I congratulate and thank the Western Development Commission for ensuring that the right methodology was used. If we want balanced regional development we must get some form of natural resources into smaller towns.
With regard to railways, it was ironic that the Western Development Commission complimented the investment in the Sligo line. It is significant that representatives of Irish Rail are present and I publicly acknowledge what Irish Rail and Dick Fearn have put into the Sligo line. Of course we need more but any funding provided should be welcomed by this committee.
The N4 was a wonderful road, however it is falling behind. It is almost as quick for me to drive to Athlone from north Roscommon to south Roscommon and go to Kinnegad. It would be as quick if the radial routes were done. We have motorways to Galway, Cork, Limerick, Waterford and Belfast. However, an entire area has been left out. As politicians we need to work with the Western Development Commission to highlight this fact. The NRA has fallen down with regard to the regional link roads. They have been left behind because the national primary routes have been tackled. How do we address roads such as the N61 and the N60?
The Western Development Commission has been a wonderful instrument for supporting development in the west. It has been very positive and I thank it. What can we do as politicians to ensure smaller towns are included with regard to infrastructure? Are there incentives? What type of incentives should the Government introduce to stimulate investment and industry in smaller towns?
The delegation must leave by 5.30 p.m. to catch a train.
I will be brief and I welcome the presentation made. I know my colleagues from the west are au fait with the issues. How successful are the policies of the Western Development Commission, particularly in terms of population shift? The key issue with regard to regional development is that people, particularly young people, continue to live and work in the region instead of drifting to Dublin or other cities. Is the number of young people remaining in the region growing or are they drifting away?
Deputy Paul Connaughton took the Chair.
Dr. Patricia O’Hara
I will reply to Deputy Feighan first and I thank him for his comments. We believe the regional link roads are important and it is a question of constantly emphasising their importance in terms of linking various towns in the region and ensuring they have priority when investment decisions are made.
We have strong views about the importance of towns in our region, which is a region of small market towns. Traditionally, these market towns have grown because of their location or the agricultural hinterland. We feel there is not as much knowledge as there might be of how the economies of these towns work. In other countries policies are in place to promote market towns and which see them in the context of their hinterlands and the wider region of which they are a part.
In some respects, the national spatial strategy has done this in that it has laid out a policy context for how we might promote smaller towns. However, it needs to be updated as it is based on old statistics. Furthermore, the commission believes we must do a lot more work, nationally, on how we target smaller towns, which must be based on a good understanding of how they work. As of now, I do not believe we have that understanding.
Regarding the question asked by Deputy O'Dowd, population growth in the western region was very significant in the last intercensal period. We had a rate of population growth similar to the national average of approximately 8% during the period. However, some parts of the region have experienced exceptional growth, including towns such as Carrick-on-Shannon, Gort and Oranmore. All of the counties have experienced a reversal of population decline. Even counties Leitrim and Roscommon which were always——
The point I am trying to get at relates to young people, aged 18 years and upwards, and the rate of growth of that population cohort.
Dr. Patricia O’Hara
Yes, that is what I was coming to. Population growth happens for two reasons, namely, natural increases and inward migration. The latter has driven the population increase and is accounted for predominantly by younger people. The population has grown because people have come to the region. They have either come to it for the first time or been able to return from elsewhere. That is very important because it is the first time since the Famine that there has been a widespread ability to return to the western region. It has changed the level of confidence in it and the way parents view the future for their children. They now see a future in which their children can live, not only in Ireland, but in the west. However, the share of the national population in the seven counties is now approximately 18% but was much higher in past times. Even as recently as 1961, it was at 22%. In 1901 it was 29%. Therefore, we still have a long way to go to even reclaim the position we held at the turn of the 20th century.
I welcome the members of the commission and warmly commend them on their work. I come from a local development background and have worked for many years on Dublin's north side. I have always been supportive of the commission and its work and wish it well. I am interested to know how it works with the various Leader or partnership companies. Is there an integrated approach? Are such companies part of the organisation?
To refer to a point raised by a colleague, having a number of growth centres or gateways is the key to holding populations. I hope the population of Galway will double or treble in size, with towns such as Castlebar, Sligo, Letterkenny and so forth. Strong growth centres must be the way forward.
I listened with great interest to the presentation and I am grateful for the statistics provided. On behalf of the Labour Party, I wish the commission well and assure it of my party's continuing support.
I will leave the last word to Dr. O'Hara, although I must ask her to be brief.
Dr. Patricia O’Hara
I thank members of the committee for giving so much of their time and posing such challenging and interesting questions. The commission is very small, comprising only 15 staff members. Our links with the bottom are through membership of county development boards. Our links with the Leader and partnership companies lie in our work on rural development, including tourism, organic agri-food and wood energy projects.
As we were established at the very end of the 20th century, we see ourselves as a 21st century organisation. We are very small and slim and like to think we are strategic. Being small gives us an advantage and a position somewhat similar to that of Ireland within the EU. Sometimes being small means one can be quite effective.
We thank the Western Development Commission very sincerely. On behalf of all of us who live and work in the west we hope it is very successful.