Jerry Cowley (Mayo, Independent)
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Question 3: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if, in view of the fact that west and north Mayo is the most socio-economically affected area of Ireland according to the previous census, she will take steps to rectify the situation and ensure survival of the area into the next century; and if she will make a statement on the matter. [18154/04]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Much of the area referred to in this question falls outside my remit as it is part of the remit of Údarás na Gaeltachta. However, in so far as my area of responsibility is concerned, the State development agencies under the aegis of my Department — IDA Ireland, Enterprise Ireland and Mayo County Enterprise Board — continue to promote the establishment and expansion of enterprises in north and west Mayo. These areas come within the Border, midlands and west region, which is eligible for a more favourable incentive package compared with the rest of the country.

IDA Ireland has made substantial progress with regard to the proportion of new greenfield jobs locating in the BMW region and is fully committed to achieving a target of 50% of all new greenfield projects over the 2000 to 2006 period. This is consistent with the regional policy objectives set out in the national development plan.

Enterprise Ireland has concentrated much of its attention on providing community enterprise centres in County Mayo and, as a result, Mayo has a greater number of such centres than any other county in the western region. A total of ten county enterprise centres have been approved to date in the county.

Mayo County Enterprise Board is also working with the other development agencies in promoting enterprise in the area generally. Where appropriate, the county enterprise board provides grant support to eligible enterprises.

The services of FÁS are also available, if required, to assist workers to find alternative employment if the need arises. Placement officers from FÁS have met employees who have been made redundant in recent years to discuss other career opportunities or further training.

I am satisfied that a combined agency approach, together with the involvement of local and community interests, will assist in the ongoing development of north and west Mayo in the future.

Jerry Cowley (Mayo, Independent)
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I thank the Tánaiste for her reply. When I asked the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, about this the other day, he said it was the responsibility of another Department. It must be somebody's responsibility. At a time of unparalleled growth, north-west Mayo has lost 1,600 of its population in six years. If that area had shared in the growth that occurred everywhere else, north-west Mayo would have doubled its population. It is the largest area of country which is in such a crisis, as shown by the 2002 census. If that level of depopulation continues into the future, north and west Mayo, from Killala to Newport, will be deserted by the end of the century. If any other species was declining in that region at the rate of homo sapiens, there would be an outcry.

What specific plans does the Tánaiste have in mind to arrest the population decline that is occurring in Mayo? I am not making these figures up; they are real. What special incentives will be given to the region, which is larger than many counties? Is the Tánaiste considering a special tax incentive scheme? Will she stop IDA grants to the east coast and the south until the west, particularly the north-west Mayo area, can achieve balanced regional development?

Promises have been made to supply natural gas to Mayo, but will that happen? I would be interested to hear the Tánaiste's reply. Two hotels have already closed in the Achill area, along with three flagship restaurants and dozens of bed and breakfast establishments, because insurance costs have quadrupled. The summer season is down to only four weeks at its peak, so how can hotels compete when they face the same overheads as establishments in Dublin, including rates, heating and insurance? The Tánaiste should explain what is going to happen in this respect.

Mary Harney (Dublin Mid West, Progressive Democrats)
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According to last year's census, there were 12,184 more people working in County Mayo than when the 1996 census was published. The population of Mayo has risen by 5.3% to 117,466. Last year alone, I issued 788 work permits to companies in Mayo because they could not find local employees. Some 1,431 new houses were built in Mayo over the past year, which represents an increase of 41%. For example, 401 Mayo people were treated under the treatment purchase fund.

Many positive things are happening in Mayo but, as with other counties, the towns are doing better than the more peripheral regions to which the Deputy has referred. We must be realistic because it will not be easy to get economic activity to the some of the more remote places in north Mayo. The focus is around places like Ballina, Castlebar and Westport, as well as Knock Airport where some decentralisation will take place.

These places will do best but it is to be hoped the whole county will benefit as a result of the economic activity which will be generated there.

In regard to the IDA not giving any money to the west coast, when the Good Friday Agreement was being negotiated, it was suggested that we should have a single agency for inward investment for the island which would operate on the basis that, for every two projects we gained for the South, one would have to go to the North. In theory, this sounds fair but the reality is that if we gained two projects for the South and could not get one for the North, we could not progress the existing projects. Some things do not work in reality.

The €1.6 billion Intel plant which we recently negotiated will benefit the entire country, including the revenue base and education system. We must be realistic. The target is for 50% of the new greenfield jobs to be located in the BMW region. Now that the IDA pipeline is so good, we believe we can reach that target by 2006.

Jerry Cowley (Mayo, Independent)
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I am not talking about rural areas but rather an area of Mayo which comprises half the county and is larger than many counties. I am not referring to urban centres alone but rather half of County Mayo where the population has dropped significantly.

Central Statistics Office figures indicate that disposable income in the west was 7.8% below the State average. In Mayo and Roscommon the figures were, respectively, 15.5% and 14.7% below the national average. When the 2000 figures are compared with five years earlier, Galway has improved but Mayo and Roscommon are slipping all the time. When one examines the gross value added of goods and service, GVA, in the CSO data, the average output level per person in the west is significantly below the national average at 23.8%, an increase of 0.3% over the 1996 level. This is further evidence that the western region is not attracting its share of high value growth employment.

Some 62% of our graduates must find work in Dublin, Kildare, Meath and Wicklow. Would it not be better to end supports for the high population areas, which already have so many people that they are travelling at the pace of an ass and cart, and instead invest in Mayo, particularly north-west Mayo, which needs it? The Tánaiste referred to Shannon Development. In that context, why can we not have a Shannon Development-type scheme for north-west Mayo? Otherwise, no one will be left there by the end of the century. It is not only I who state this fact. The census figures prove it.

Mary Harney (Dublin Mid West, Progressive Democrats)
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I referred to the ten enterprise centres, some of which are in north-west Mayo, as the Deputy knows. There is also an institute of technology in Castlebar which is helping to get companies interested in investing in the area. However, the investment will be in the larger towns because that is where we have acquired the land and have installed technology facilities. We could put bricks and mortar into some of the places the Deputy suggests, but if we do not get an occupant, it is a waste of public money. The population of Mayo is rising and the numbers at work are rising too.