Séamus Healy (Tipperary South, Independent)

Currently the new regional aid designations are being considered by the Government and the European Union. The south-east region has made application through its director, Mr. Tom Byrne, by letter dated 29 August 2005 to the Department of Finance for consideration and approval for designation under the draft guidelines on national regional aid for 2007-13. While the regional aid guidelines will be set by the European Commission the qualifying areas will be selected by national governments, in this case the Irish Government. I strongly support the case of the south-east region, including south Tipperary, for designation for regional aid purposes.

The position in the south east is that it has lost out economically in recent times. Unemployment rates in the south east generally are approximately 131% of the national average, which is one of the criteria for designation. In the submission from the south-east region, its director said it is clearly the case that the south-east region meets the unemployment criteria for regional designation, that is to be higher than the national average by 115%. Currently, the region's unemployment rate stands at 131% the average and for the same period in 2004 the region's unemployment rate was 20% higher than the national average. The rate of unemployment in the south east is consistently a percentage point higher than the national average and currently it is 5.4% as against a national average of 4.1%.

A number of unemployment blackspots have been identified by the south-east regional authority in Tipperary, Waterford and Wexford. In the case of my county, Carrick-on-Suir is one of the identified blackspots which has an unemployment rate of 20.6%, five times the national average. I have raised that issue here on a number of occasions. There is a number of unemployment blackspots in Waterford city while the Enniscorthy urban area has an unemployment rate of 20.6%.

On the issue of household income relative to the national average, the south east stands at 92.2% as against 113.4% in Dublin, and 93.9% in the west. The west has already been designated for Category 1 status regional aid. Disposable income per person in south Tipperary at €15,228 lags behind north Tipperary at €16,414. It is even behind counties that already have Category 1 status like Galway, which has €16,094 and Sligo with approximately €15,500 and Louth with €15,900. In the south east 19.7% of the workforce have third level qualifications as against 26% nationally. I ask the Minister to consider the case of the south east seriously. I my view and that of the regional authority it qualifies for designation. The rules for designation give flexibility to the Government and the Minister should seriously consider designating south Tipperary and the south east region for this regional aid.

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