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Regional Development

Dáil Éireann Debate, Thursday - 17 September 2020

Thursday, 17 September 2020

Ceisteanna (1)

Claire Kerrane

Ceist:

1. Deputy Claire Kerrane asked the Minister for Community and Rural Development and the Islands the steps she will take to address the growing regional inequalities here and specifically in the northern and western region, which has been downgraded by the EU from a developed region to a region in transition; and if she will make a statement on the matter. [24325/20]

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Freagraí ó Béal (6 píosaí cainte)

What steps does the Minister intend to take to address the growing regional inequalities, specifically in the northern and western region, which has been downgraded from a developed region to a region in transition? I know this is not news but with the new funding stream coming from 2021 to 2027, we need to make sure the northern and western region takes full advantage of that funding that will be in place in co-operation with the EU, and our downgraded status needs to be reversed.

I thank the Deputy for raising this issue. The designation of the northern and western region by the EU as a region in transition underscores the importance of achieving balanced regional development as our economy and population continue to grow.

The programme for Government places a strong emphasis on balanced regional development as our economy and population continue to grow and does this through a range of measures. My Department supports this commitment through targeted investment that supports rural regeneration, facilitates new working opportunities and fosters regional enterprise growth. A significant level of support and investment has been provided to the northern and western region by my Department. Since January 2018, 40% of rural regeneration and development funding and 34% of town and village renewal funding have been invested in that region. This investment amounts to more than €80 million on these schemes alone.

In addition to this direct investment, my Department also funds and supports the Western Development Commission, WDC, in its role as an enabler of the development of the western region. Last year, the commission published a new five-year strategy for the western region and continues to provide targeted investment to establish emerging firms through the western investment fund. Since 2019, the WDC has also taken a co-ordinating role in the development of the Atlantic economic corridor initiative, which has significant potential to deliver for the north west. The WDC is also developing a network of digital enterprise and remote working hubs within the northern and western region. The increased shift to remote working in the past six months has given us the opportunity to reimagine the possibilities for a greater regional distribution of jobs and to capitalise on the quality of life which the regions offer.

The north and west of Ireland were not downgraded to the status of a region in transition for no reason. It did not happen by accident and we all know this is the result of decades of underinvestment by previous Governments and this Government in infrastructure west of the Shannon. We are the only region in Ireland that has been downgraded by the EU Commission and that is because we are lagging behind. When one looks at the west and the north west, we are bottom of the table when it comes to Government investment, whether that is in roads, health, jobs or higher education. The proof of that is there to be seen.

The Northern and Western Regional Assembly has done excellent work in the report and plan it has brought forward and I encourage the Minister to engage with it as we go forward, particularly as the new round of regional funding for 2021 to 2027 approaches. According to the EU Commission, we have one of the highest levels of regional inequality in the entire EU and this has to be addressed urgently. We know the impact of Brexit on this region will be major and we also know that the EU Commission has said that the impact of Covid-19 will be especially difficult for the west and the north west. Will the Minister engage with the Northern and Western Regional Assembly on its plan for what needs to happen with regional funding going forward?

I am aware of these matters, being from the northern and western region, as is the Deputy. I have met with the Northern and Western Regional Assembly on two occasions in recent months, most recently at the end of July in Ballaghaderreen. I heard first-hand of its concerns about the new European regional development fund, ERDF, funding and how important it is that it should get the opportunity to administer it, as it did in the past. I have passed those concerns on to my colleague, the Minister for Public Expenditure and Reform, Deputy Michael McGrath.

I want to point out that there has been considerable investment in the region. The national broadband plan represents an investment of €656 million in the northern and western region, and the scale of the Government's commitment to balanced regional development is exemplified by the national development plan and the national planning framework, which will deliver an estimated €116 billion in public investment through several targeted funds over the lifespan of those funds. The rural regeneration and development fund supports renewal for suitable towns, and €22.3 million has been invested in the north west through that fund.

I am glad the Minister has referred to the plans that are being considered by the Department of Public Expenditure and Reform that would essentially see these regional funds being centralised in Dublin. That is an outrageous proposition that should have never come to the desk of any Minister for Public Expenditure and Reform. As I said, we are looking at the impacts of Brexit and at the fact that we are no longer designated as a developed region, which is so serious for our region going forward. The level of investment and infrastructure that is required has not been there and that needs to change. We need a multibillion infrastructural plan specifically for this region. The Northern and Western Regional Assembly has done the work and we need to make sure that regional funding is given to and remains in the regions so that it is spent on what is best. We also need to make sure the regions have the ability to look at how they spend those funds and we need a plan on specific projects to make sure we change the wave on this. We cannot remain a region in transition. People want to live in the west and the north west. At the moment, there is no fair play when it comes to investment and that needs to change urgently.

There has been considerable investment, which is not to take away from the fact that we want to see more investment. Some €5.6 million was invested under the regional enterprise development fund, €22.3 million was invested under the rural regeneration fund and €9.1 million was invested under the urban regeneration and development fund. In my last Department, I established a €28 million Border economic stimulus package and that provided a support of €15 million for projects across the Border counties, which are also in this region.

The counties are Donegal, Leitrim, Sligo, Cavan and Monaghan. This was the first time ever there was a dedicated fund of that nature for a region. Those projects will make a significant difference to the north-west region, which will be particularly impacted by Brexit. Other elements of the Border economic stimulus package include an extra €3 million for the six local enterprise offices, an €8.5 million Brexit transformation fund to enable firms to transform their business and diversify their markets, and €1.5 million for industry fellowships. We need the targeted support, and the Border stimulus package is certainly doing that in the region.

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