Cuirim fáilte roimh an Aire Gnothaí Pobail, Tuaithe agus Gaeltachta, an Teachta Éamon Ó Cuív, agus a fhoireann atá anseo leis na Meastacháin a phlé.
Estimates for Public Services 2003.
Vote 42 - Department of Community, Rural and Gaeltacht Affairs (Supplementary).
Tá áthas orm deis a bheith agam ar maidin na Meastacháin forlíonta a chur faoi bhráid an choiste don fhreastal ar riachtanais mhéadaithe Chiste Infheistíochta an Iarthair, a mhaoinítear trí dheontas a ghabháil faoi fó-mhírcheann N2 de Vóta 42. Íocfar as an gcaiteachas méadaithe ar an bhfó-mhírcheann seo trí shábháil ar an ndeontas Uiscebhealaí Éireann faoi fhó-mhírcheann M den Vóta. Tá athchoimriú faighte ag comhaltaí an choiste cheana a léirigh conas a sheasann an scéal maidir leis an dá fó-mhírcheann faoi chaibidil.
I am pleased to meet this morning to discuss a supplementary Estimate to meet the increased requirements of the western investment fund that is funded by means of a grant-in-aid under subhead N2 of Vote 42. This will be covered by savings on the grant to Waterways Ireland under subhead M of the Vote and this explains the €1 subhead. Members have already received briefing material outlining the position on the two subheads concerned.
As members are aware, the western investment fund is run by the Western Development Commission, WDC, set up in 1999 and based in Ballaghaderreen, County Roscommon. The functions of the WDC is to promote, foster and encourage economic and social development in counties Donegal, Leitrim, Sligo, Mayo, Roscommon, Galway and Clare. The western investment fund, WIF, is a key element of the commission's strategy for accelerating the economic and social development of the western region. It is a unique funding mechanism providing risk capital by way of loans and equity, but not grants, on a commercial basis to a wide variety of projects. Since 2000, some €5.5 million in support has been provided from the WIF to 34 projects. The WDC estimates that these projects have the potential to create nearly 1,000 jobs. Projects supported under the WIF range from software and biomedical developments such as those undertaken by Propylon in Sligo and Proxy Biomedical in Galway, to tourism projects such as Kilkee Waterworld and to local development projects such as the Bee Park Resource Centre in Manorhamilton.
There was a slow start to the activities of the western investment fund due in large part to delays in getting the necessary approvals under the EU state aid rules. This was reflected in a spend of €1.157 million on the fund in 2002 and in the original provision of €2.013 million in the Estimates for 2003. However, I am pleased to advise the committee that the fund has established itself more firmly in 2003. The greater profile it has achieved has been due in part to a promotional campaign undertaken by the WDC in the autumn of 2002. This resulted in a big rise in enquiries and to a significant increase in the number of applications received. In turn, this led to the emergence of a greater number of suitable projects. The cost of meeting this extra demand in the current year is €1.5 million. As Minister for Community, Rural and Gaeltacht Affairs, I am most anxious to facilitate these developments in the western counties.
The committee will also be pleased to note that this increased level of activity is expected to continue next year. Accordingly, a provision of €4.05 million has been included in the 2004 Estimates for the WIF. As already advised to the committee, it is proposed that the additional expenditure be funded from savings arising on the grant to Waterways Ireland under subhead M of the Department's Vote. Waterways Ireland is a cross-Border implementation body, established under the British-Irish Act 1999. Its functions are the management, maintenance, development and restoration of the inland navigable waterway system throughout the island, principally for recreational purposes.
Significant savings have arisen in 2003 due to delays in the provision of a headquarters building and other required accommodation, delays in their capital programme of works due to planning issues, as well as delays in the recruitment of the full complement of personnel. While I look forward to progress on these matters during 2004, I am satisfied that the use of these savings to support the welcome increase in activity under the western investment fund represents a sound use of public funds.
In conclusion, approval of the provision of an extra €1.5 million to the western investment fund, funded from savings arising in Waterways Ireland, is sought. I am happy to address any issues that Deputies may wish to raise in this regard.
If one group cannot spend the money and the other can, it is important that the funds be diverted. The western investment fund took a long time to take off. I am glad to see it is beginning to roll positively.
I apologise for the absence of Deputy O'Dowd, who asked me to substitute for him. I have no problem with the Minister's proposal. It is only right that where there are savings, the money should be utilised. I welcome the fact that the western investment board has got off the ground. As the Chairman said, it got off to a slow start and we questioned it last year. The only problem is that it does not include Cavan or Monaghan. The basis of the proposal is sound. Anything that will improve the viability of jobs and organisations in that region is welcome. In that context, I support the change-over.
This is not the sole answer to the problems in the west. As was stated in the Dáil during the Estimates debate, the shortfall of €644 million of a spend on the BMW region, which includes this sector, is worrying. It means the infrastructure, roads, broadband and so on are not being introduced in the time scale we would like to see. I know the Minister is as committed as I am to these developments. I travelled on the M1 this morning from Ardee to Dublin. It is a great road and presents a great opportunity. Investors getting off a plane at Dublin Airport who see a field somewhere along the road are more likely to invest there than in Connemara or anywhere else. It is important that we retain this money in the western region rather than allowing it to go into projects in the Dublin area.
I have some interest in Waterways Ireland and I am worried that money should come out of it. However, as long as we can, in the not too distant future, get a little money back toward the Ulster Canal, which is a truly cross-Border project, I am happy to see it utilised now rather than going back into the Exchequer. This shows the length of time it takes to get a body off the ground. While there were great announcements of jobs moving to the regions in the decentralisation programme, it cannot be done within the suggested time scale of three years. That is a fact.
We do not oppose this issue. There is no money involved as far as Exchequer costs are concerned. I am sure we could all spend the €1 in two seconds outside the door. I am glad to see some money being spent on the western programme and my party colleagues and I will continue to work with the Minister to get as much into that area as possible.
Tá áthas orm seans a fháil labhairt sa díospóireacht tábhachtach seo. I will not be opposing this Supplementary Estimate. The investment is welcome and when money cannot be spent under one heading, applying it productively under another is the road to take. In regard to the provision of the headquarters building for Waterways Ireland and other required accommodation, what is the update on the headquarters building?
In regard to the money which we are providing here - €1.5 million - for the western development fund, how many projects are there and what is the nature of the projects which will be funded? Which counties are involved? Will there be a spread of projects or are they concentrated in a couple of areas?
I would like clarification on the Minister's statement that since 2000, some €5.5 million has been provided in support from the western investment fund for 34 projects, which have the potential to create 1,000 jobs. How many jobs have they created as distinct from their potential to create jobs? There is an impressive range of projects which have been approved under the fund. The concept is one which we support. The idea of providing equity and loans as distinct from grants is one which tests the commitment and dedication of promoters and is more likely to bring good and lasting results. I await the Minister's response to the issues I raised.
I thank the Minister for this report. We are fortunate we have a Minister who is truly committed to the west, which he has proven since he took over this portfolio. What are his views on a possible conflict of interest between Shannon development and the western commission in regard to different projects in the area?
I thank Deputies for their comments and the commitment to agree to this Estimate. In regard to NDP spend, in my own Department the BMW spend is up to target and we do not have a problem. The national underspend is of major concern to me. I have always described this as being like trying to turn a huge boat because when there is a huge underspend, part of the problem is that spending decisions cannot be made suddenly. They must be planned. The Minister for Finance stated recently in a reply to a parliamentary question that he hoped spending in the BMW region would be up to target by 2006. I have said time and again that is also my target. It is the Government's aim to increase spending and we are moving in that direction. The BMW is a wide region, encompassing not only the west and Ulster but also a large area of the midlands. One of the effects of this, as the Deputy probably realises, can be demonstrated by the example of the M1. The M1 is of advantage to Monaghan, but it will really make a difference when Carrickmacross, Castleblayney and Monaghan are bypassed. That will be a major boon for the area. We will be able to tell anyone who proposes to set up a business in Monaghan that it will be provided with top-class access all the way to Dublin city or airport.
It will also provide access to Donegal.
That is true. I am sure the Chairman has an interest in that road up to the Border and from Lifford to Letterkenny and as far as Moville and Buncrana. We should recognise, however, that on the western route, as we move into Meath, Westmeath and Kinnegad, we are moving westward, southward and northward - that is important.
I am disappointed about the underspend in Waterways Ireland. There have been difficulties with planning and with the North-South process, which has not been working with the same vigour as it would have if there had not been political difficulties in the North. However, I am still an optimistic person. It is a pity there have been problems in the short-term but if we look at the bigger picture, what we are working for is so important that we must all try to edge things forward. I will be driving the Waterways Ireland agenda, which is very much a cross-community agenda, as best I can.
Things are a bit more certain when it comes to the budget for the Ulster Canal over the next five years. As members are probably aware, in the budget the Minister announced the introduction of five-year envelopes, which allows us better space to plan. Unfortunately, in the case of Waterways Ireland, expenditure we had hoped to have this year has been pushed back. At least we can consider matters with a bit more certainty. The other side of the coin is that any project of a cross-Border nature will need matching funds from the North and we are not yet certain of that. I will be advancing matters on our side, however. We have had fruitful discussions about this. I thank the Deputy for his commitment to understanding how we can proceed with this on a reasonable - if necessary phased - basis.
Deputy O'Shea asked about the delay in the proposed construction of the Waterways Ireland headquarters in Enniskillen and one of the regional offices at Scariff. The delays are related to the overall political situation in the North. My Department will pay for the construction of the regional office at Scariff and Carrick-on-Shannon and make a contribution to the cost of constructing the headquarters. The costs involved amount to approximately €20 million, including €13 million for the headquarters. It is proposed that both North and South provide funding of about €10 million, with the Department of Community, Rural and Gaeltacht Affairs funding the two regional offices and making a contribution of €3 million towards the headquarters. Our contribution to the headquarters, even though it is in Northern Ireland, is a once-off arrangement - other than that we are each responsible for the capital spend in our own jurisdiction. Since it was an all-Ireland headquarters we were right to offer a contribution towards that building. I do not think anyone in the House would say that was the wrong decision.
Tenders have been received for the Scariff project and it is ready to proceed when clearance comes through. The Carrick-on-Shannon project is at design stage. There were also some planning delays - a small number of relatively large projects in the South have been subject to appeal during 2003, including the proposal to create breakwaters and install 285 metres of floating moorings at Garrykennedy, County Tipperary. Planning permission was received on 24 November 2002, subject to 12 conditions but planning has been delayed throughout 2003 by requests for additional information. Waterways Ireland will now put forward its proposals to comply with the specified conditions and commence work once the agreement has been made. In other words, planning permission was received but there was an endless series of other requirements to be complied with. One must keep plodding away to solve these problems.
A question was asked about the Western Development Commission and the number of jobs that were created. I stated earlier that €1.5 million was spent in 2001 and we are now to spend a total of €3.5 million in 2003. Some €2 million of this has been dispersed and the remaining €1.5 million cannot be dispersed until we receive the Supplementary Estimate. This means that most of the spend in the WDC is of very recent vintage and the jobs have not been created in most cases. This year's spend will probably exceed the total spend from the fund to date. I do not have figures but the Deputy can take it they will be very small compared to the total amount we hope to create.
The ten projects due to be dispersed before the end of 2003 are Sídheán Teoranta, Spiddal, County Galway; Cora Tine Teoranta, Falcarragh, County Donegal; Parcom, second tranche, Convoy, County Donegal; Shoebox, second tranche, Galway city; Kilmaley Day Centre, County Clare; Glenties Enterprise Centre, County Donegal; MASSN Medical, Castlebar, County Mayo; Hookable Media, Sligo IT; Children's Discovery Museum, Ballybritt, County Galway; and Eirnet Technologies, Glenties, County Donegal.
Deputy Breen raised a valid question, which I also raised in the context of the Gaeltacht. There should be no overlap between Údarás na Gaeltachta and Shannon Development. The WDC should not be doing things the existing local agencies could do. I am assured, in any case, that there is consultation with local agencies to see whether funding is recommended. The instruments in the case of the WDC are sometimes different.
The Western Development Commission is there to support the west, but I would be worried if I saw a disproportionate amount of projects going to urbanised areas. I am not begrudging these areas jobs but Galway city, Shannon and Ennis are growing rapidly, as are Sligo and Castlebar. The WDC must focus on the areas of decline within the west. Not all of the west is in decline, thank God - much of it is growing. We must try to support the areas of slowest growth and greatest population losses. This fund proves what I have always believed - that for major developments people will be available. I have been involved in helping to set up industries in areas with a lack of infrastructure and other severe difficulties.
We are talking about an amount of €3.5 million. Without the back-up of critical mass development, all the venture funds in the world will not attract venture capital. We know that the banks and Enterprise Ireland have good venture funds, but the pick-up in the west is not there because we have not yet got the infrastructure, business critical mass and so on that is required. That is a massive challenge. Every business in these areas helps to create critical mass. We must redouble our efforts. One of the most important aspects of decentralisation is the building of critical mass in areas where it did not previously exist. The arrival of a State institution in an area gives great encouragement to private investment to follow. I hope, for example, in the case of Claremorris and Knock, that these projects are not seen as stand-alone. These would not be seen as stand-alone projects. I would like to see Knock Airport developing in the same way as Shannon Airport managed to do in much more difficult times in the 1930s, 1940s and 1950s. I have had this dream for a long time. Shannon Airport underwent further great development in the 1960s, 1970s, 1980s and 1990s. It is a huge complex. I hope that, given the kick-start which Knock Airport is getting today, we will see plenty of mobile business at the cross-roads of Connacht and on adjacent railway lines. I also hope this development will kick-start a massive growth in that area which, in time, will replicate what happened in Shannon. People had vision and were willing to support development at Shannon when western development was not high on the agenda.
Will the Minister outline the position of Waterways Ireland? How will the new situation in Northern Ireland impinge on that? Can it go ahead? Are British Ministers filling in for local politicians?
Plans are in place for development of the M2. Some people say money could not be spent because the relevant plans were not in place. That is not true. We were told we did not have to decide a location in this regard. I know that is irrelevant to this meeting but it is relevant to infrastructure and BMW funding. We were also told that all projects could go ahead as soon as plans were ready. We are fortunate that Carrickmacross has been chosen.
Carrickmacross, Castleblayney and Monaghan. We will have to continue to work in co-operation with the Minister.
The Minister is a Member of the Cabinet. It is not true that plans are not in place for the BMW region.
It is not now true. I am pressing for the go ahead for any location where the plans are ready. The planning process must keep going forward. The first thing I do every year is get a copy of total spend, route by route, from the NRA. I examine what is being built on all routes, the N17 and N18 along the west coast right up to Donegal and Letterkenny, and check where the action is taking place in terms of planning. I am hopeful when it continues; when it stops I get very down hearted. If progress is made every year we will get there.
We currently have €1.2 billion to spend. We are ready to deal with Carrickmacross and if plans are ready for Castleblayney and Monaghan developments will move at a fast pace. A number of projects around Dublin were proceeded with in the first half of the year, in particular the port tunnel and the M50, including the Luas light rail project. There is no point leaving those projects half finished. We have to wait to find out today whether the project at Carrickmines goes ahead. When finished, there must be a rapid re-balance for the remaining three years for all other plans that are ready. It is important that the planning process goes ahead. Plans are not ready in some places and were not ready when work on the M50 or N1 commenced. It is important to note that.
We have worked with Ministers like Angela Smith, MP, and she has been helpful in progressing matters. It is a lot different having on board somebody who thought they would be involved in driving something for three or six months. We meet because we feel we will drive matters more when they are local. I would much prefer - as would those in Britain and Northern Ireland - that local people drive this process. I do not care from what community they come or who sits opposite me. If the person sitting opposite me is from Northern Ireland he or she is there because he or she was elected by the people in a particular area.
Nothing happens in politics by automatic pilot; we all have to drive projects forward. I am not casting any aspersions on the good co-operation we have received up to now, but many agree it was not in the best interests of local communities that things continue this way. During the 30 years of direct rule, people had to depend on the local electorate. Deputies look after matters in their relevant counties because they know they have to face their constituents. That is what drives politics. I hope that will come into the system some time this year. I am an eternal optimist. I hope all those with an electoral mandate will sit around the table and resolve the outstanding problems.
Driving forward Waterways Ireland will depend on North-South co-operation. The Minister referred to Angela Smith, MP. The percentage of spend announced by her when broken down on an east-west basis in the North was as bad as we consider the east-west divide to be here.
Given that Waterways Ireland is a cross-Border body, we are confident members will work with whoever is involved in advancing the issues pertinent to the west. There is no point in completing the road to Monaghan or Aughnacloy and not being able to get to Donegal.
I wish to correct a figure I referred to earlier. I mentioned a figure of €1 which should, of course, have been €1,000.
Gabhaim buíochas leis an Aire agus a fhoireann as ucht theacht don chruinniú.