Mr. Jim Deane:

The Deputy's questions are quite technical but basically, for cohesion purposes, countries are divided into what are called NUTS 2 regions. Member states can apply to have the categories redefined but it is a complicated process and it would probably take two or three years of negotiations with the EU Commission for that to happen. The problem is that if we redefined the regions, we would probably have a smaller area that may qualify for "less developed" status but because the population is so small it would not result in much of an increase for that particular area. We would be decreasing the population covered and population is a key factor in determining the size of the allocation to a region. We do not envisage looking at the NUTS 2 regions in this context at this time. However, we will have to look at them in the context of the local government reform agenda and the changes suggested by the Minister for the Environment, Heritage and Local Government to the way the administration of local government is structured. Nonetheless, at this point in time and in the context of these negotiations, we do not consider it to be a runner. We are trying to focus our energies on maximising BMW draw down through seeking special allocations and examining other criteria. Success will depend on the negotiations and we must factor in the fact that other regions throughout Europe are in a similar position. Basically, the EU is taking money from certain areas and giving it to others. There is only one pot of money there and the question centres on how it is divided up. We are looking to maximise the BMW draw down but we are also looking to maximise the Irish draw down. These are the factors we are taking into account but we are trying to address the issue through the talks process.