Michael Finneran (Longford-Roscommon, Fianna Fail)

I call on the Minister for Finance to extend the rural renewal scheme to coincide with the period of Objective One status in that region. For the past six years, the rural renewal scheme has had a major impact on the upper Shannon region of north and west Roscommon. The scheme has achieved some of its goals in encouraging more people to stay and settle in the area, as well as stimulating economic activity generally. In north Roscommon, it is felt that a further extension of the scheme is necessary to allow us to build on the success of the scheme and arrest population decline in the upper Shannon area once and for all.

Sixteen sewerage and water schemes in the north and west of the county are substantially supporting further residential and commercial development. Planning applications refused on environmental grounds before the schemes were established will now be eligible. An opportunity will be lost if the sewerage and water schemes are not used to their full potential to support sustainable residential and commercial development. Large parts of north and west Roscommon were initially slow to take up the rural renewal scheme because they were so deprived economically. Evidence of growth resulting from the rural renewal proposals is now being found. Some people were unable to take advantage of the scheme because of delays in achieving planning permission for sewerage and water schemes in some designated areas. Hindrances to building houses and developing businesses contributed to the slow uptake of the scheme in such areas. We should take advantage of the recent infrastructural investment.

The Objective One status of the BMW region ends in December 2006 and eligible expenditure will have to be completed by 31 December 2008. The relevant areas would continue to benefit if the rural renewal scheme were extended to coincide with the dates I mentioned. The national spatial strategy has been published since the commencement of the scheme in 1998. Regional planning guidelines have been adopted to provide a more planned framework for regional development. The rural renewal scheme is consistent with the region's policy of distributing population in rural areas to support small towns and villages outlined in its planning guidelines.

There has been a drop in the population of rural district electoral divisions in north and west Roscommon. The population of Boyle decreased by 2% between 1996 and 2002. Such reductions in population constitute a serious threat to the viability of the county's villages and towns. The extension of the scheme would act as a protective mechanism to ensure that the populations of the district electoral divisions in the north and west of the county can be maintained and possibly increased. There is a high concentration of older people, a significant proportion of whom live alone, in north and west Roscommon. There is a low concentration of young people in the north and west Roscommon area, which has a high economic dependency ratio and low labour force participation. Extension of the rural renewal scheme would be a poverty-proofing mechanism to target the most marginalised part of County Roscommon.

Agriculture is the most important industry in County Roscommon. As a result of the farm restructuring system and the Fischler proposals, there is a growing emphasis on encouraging good environmental practice in rural areas, lowering stock numbers and facilitating rural diversification. Extension of the rural renewal scheme would help to sustain County Roscommon's farming and rural population in the north and west of the county. North Roscommon is considered to be a structurally weak area. The housing aspects of the rural renewal scheme would comply with the sustainable development initiative. Structurally weak areas need to accommodate any demand for permanent residential development. Extension of the rural renewal scheme would facilitate a greater uptake and give a greater benefit to structurally weak areas.

The future of employment creation in County Roscommon will involve entrepreneurs and small and medium sized enterprises. Major employers, such as Glanbia in Rooskey, have been lost in north and west Roscommon. The extension of the rural renewal scheme is essential if we are to support job creation in that part of the county. Small and medium sized enterprises are likely to be established in ancillary buildings at the homes of entrepreneurs. An incentive such as the rural renewal scheme would act as a business incentive as much as a residential incentive. The modernisation and rationalisation of the ESB power station at Lanesborough will lead to reduced employment opportunities in Bord na Móna for people in County Roscommon. Similar problems are encountered in respect of Shannonbridge power station.

Roscommon County Council and the county manager, Mr. John Tiernan, suggested that the area south of the N6 route between Athlone and Galway should be included in the rural renewal scheme. The Minister of State, Deputy Parlon, may see merit in the suggestion that areas further east, for example in County Offaly, should be considered.

I am glad the Minister of State is present to listen to my arguments in favour of the extension of the rural renewal scheme. I ask him to ignore those who suggest that the scheme is lining the pockets of millionaires. It is helping to bring people back to the upper Shannon region, specifically the rural areas of north and west Roscommon. Those who claim that it is helping millionaires do not know anything about the lifestyles of the people of the region. They travel through the area once a year as they travel to the west on holidays. They know nothing about the benefits brought to the region by the rural renewal scheme. I ask the Government to ignore the Opposition's calls in this regard and to proceed with the extension of the renewal scheme in the best interests of the further development of the rural areas of north and west Roscommon, and the upper Shannon region as a whole.

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