John Paul Phelan (Fine Gael)

I welcome the Minister to the House and I thank the Leader for arranging this discussion on the BMW region. The topic was raised by many Senators in recent weeks and I am glad we have the opportunity to discuss with the Minister the issues Senators have with the progress in its development, particularly as it relates to transport and infrastructure.

In his remarks, the Minister placed particular emphasis on competitiveness. We all agree with him that it is vital for the future development of the economy to maintain our competitiveness. However, this is in marked contrast to his antics and those of his Government colleagues in the last general election campaign when, for political expediency, the notion of competitiveness seemed to be cast aside completely in an attempt to gain electoral success. While this was obviously ultimately successful, it saw our competitiveness reduce dramatically when compared with other countries in Europe and the world. Ireland dropped from being in the top five in the world competitiveness league to being somewhere in the 30s in a very short space of time, which obviously happened as a direct result of Government irresponsibility. I am glad that in his new role as Minister for Finance, the Minister seems to be returning to the need to promote our competitiveness, a matter on which he will find no disagreement from this side of the House.

The Minister also referred to the national spatial strategy, about which I have not heard for some time. While many on this side of the House were sceptical as to where the plan stood, in his concluding remarks the Minister made it clear that it still exists. I would be interested to hear the views of other Senators on the different provisions announced in the spatial strategy, many of which appear to have been cast aside since its announcement.

The Minister also referred to the national development plan and suggested that a successor might be introduced on the expiry of the existing plan. I would like to see it continue with special emphasis on infrastructure and particular reference to public transport. To date public transport has not been satisfactorily addressed in Dublin or in the BMW region and its need for the western rail corridor. When establishing a successor to the national development plan, I urge the Minister and his colleagues to place particular emphasis on this area.

The census in 2002 revealed that 18 counties, all outside the eastern region, recorded significant areas of rural population decline. Experts predict that the population of rural Ireland will decline by a further 20% in the next 15 years, which represents a very significant population decline.

The Minister referred to investment in road and rail infrastructure. I would like to discuss a couple of issues in that regard. A report produced by Indecon stated that road investment in the BMW region under the national development plan is well below the expenditure target. The report's finding that less than half of the projected funding for the roads programme in the region in 2002 was spent is most alarming. The Government failed to prioritise a single major roads project in the west of Ireland in 2003.

Seven major roads schemes were started in 2003. Some €1.26 billion was spent by the National Roads Authority on roads and bypasses in that year. Most of the work took place in regions which have already been developed. Some €445 million was spent on roads projects in the Dublin local authority areas in 2003 but funding of just €68 million was provided for such projects in Connacht in the same year. The roads schemes which were commenced in the BMW region in 2004 include many which were intended to be completed by 2006, under the national development plan, but are now significantly behind schedule. According to the Western Development Commission, just €926 million of the €1.5 billion allocated to the BMW region in the first three years of the national development plan was actually spent. Some €644 million that should have been spent under the plan during that time was not spent.

The roads building programme contained in the national development plan is at odds with the national spatial strategy, which was mentioned by the Minister in his opening remarks. The national development plan proposes a radial motorway network, with Dublin as its hub. The development of that network is considered to be of greater importance than the linking of road corridors to form an arc, curving through the south and west from Rosslare to Letterkenny via Waterford, Limerick, Galway and Sligo. The Minister spoke about road building schemes in the west and the BMW region, many of which are behind schedule. The N4 and N6 route between Dublin and Galway is many years behind schedule. We have not yet received a clear indication of when work on three or four separate projects on that route will be completed.

The national rail strategy, known as the strategic rail review, rejects the recommendations and principles of the national spatial strategy. A 20-year programme of investment in this country's railways, at a cost of €8.5 billion, is envisaged in the strategic rail review. That expenditure will be primarily targeted at improving rail services on Dublin-centred routes, to the exclusion of routes that underpin the national spatial strategy. The western rail corridor, which I have already mentioned, is an example of such a route. The reopening of the western line was dismissed as too expensive in the strategic rail review, which costed it at approximately €572 million. West on Track, which was established to investigate the feasibility of reopening the line, has estimated that it would cost €230 million to do so. Mr. Frank Dawson, Galway County Council's director of services, claims that the line could be reopened for €215 million.

The western rail corridor could be used to develop a cross-radial service, as well as commuter services to serve Limerick, Sligo and Galway. It could be used to connect cities, towns and rural communities along its route. The reopening of the western line could facilitate the expansion of the transport of Irish exports to international markets. The Minister mentioned earlier the facilities that are available at ports in the southern and eastern region, such as Rosslare and Waterford, both of which are served by railway lines. While such facilities are not in the BMW region, they could be used for its benefit. The western rail corridor could serve as a vital link between Sligo, Limerick and Waterford ports, which are currently served by substandard roads. Not only would an effective rail link overcome the roads problem, but it would also have the added bonus of taking heavy goods trucks off the roads.

Job creation and population growth in rural areas would be much more feasible if the western rail corridor were reopened. The existing line could be reopened relatively easily if the Government took the initiative by entering into a public private partnership to develop commuter services for towns and cities along the route. It would then be quite feasible to introduce other services along the rest of the line. The western rail corridor should be used to stimulate development in the BMW region, rather than following development into the area. The Government's typical response is to say it will wait until development growth areas along the western corridor have become established before it will consider establishing a rail link.

The recent report of the enterprise strategy group recommended that spending on public transport in the west should be increased. The reopening of the western rail corridor would be in line with that requirement. When one considers that hundreds of million of euro are spent each year on the roads programme and other infrastructural projects, such as the Dublin Port tunnel and Luas, it is clear that the project's estimated cost of €250 million can be met. The Minister for Transport should invest in the western rail line immediately to make it viable, which is a key objective of EU transport policy. He should develop commuter services to Sligo, Galway and Limerick and the Mayo link between Ballina, Castlebar and Westport. The expansion of the rail network to include Knock and Shannon airports is important if we are to ensure their future viability, especially following the recent restructuring of Aer Rianta.

I was somewhat disappointed by some of the Minister's comments, just as I was disappointed about the revelation that the Government has consistently underspent in the BMW region. The Minister mentioned that Opposition Members raised objections some years ago when the country was divided into the BMW and southern and eastern regions for EU funding purposes. The objections raised at that time by those in the south east, which has consistently been the second poorest region in Ireland in recent years, were genuine and legitimate. I come from that area, which is not part of the BMW structure.

The Government has undermined its policy on the BMW region by underspending the funds it announced it would spend in there. The Opposition has particular qualms about the Government's current policy in that regard. I look forward to hearing the contributions of other Senators on the BMW region, which has not been developed to its full potential in recent years.