James Bannon (Fine Gael)

We are doing better than Galway at the moment.

The BMW region innovation report, which was commissioned by the BMW regional assembly and published in November 2004, points to a significant gap in the level of technological innovation and research and development activity taking place in the BMW region and calls for greater resources to be allocated to this area. The report recommends that there should be greater emphasis on building strong networks of businesses, improving business innovation and investing more in research in the region's third level institutions. In this regard, I acknowledge the benefits brought by Abbott Ireland to the midlands, including County Longford. We look forward to the official opening of its plant in April next, which will provide 800 necessary jobs in the county.

The report also paints a picture of a region that is under-performing in terms of innovation and research activities, business start-up and expansion. A particular concern is the low rate of employment of higher-level graduates. The cathaoirleach of the regional assembly emphasised that the BMW region's heavy reliance on low value-added industries renders it particularly vulnerable in the context of the decline and restructuring of traditional manufacturing, agriculture and primary processing industries. The need to enhance the region's innovative capacity, particularly in knowledge-based and research and development sectors and their attractiveness to high value added industries, therefore becomes even more pressing.

The European Commission must continue to provide transitional EU funding from the Objective One budget to regions that will lose their Objective One status in 2006. The transitional arrangements that currently apply to the southern and eastern region must be applied to the BMW region post 2006.

The Government has presided over a huge fall in the level of farm incomes. The average farm income has declined dramatically in the past ten years. The IFA claims that over 15,000 farm families have incomes of less than €200 per week. There is a flight from the land. Evidence of this includes the fact that since 1997 the number of young farmers claiming installation aid has fallen by around two thirds.

The Government has failed to deliver the RAPID programme. The programme was initiated in February 2001 when it was announced that €2 billion would be pledged for deprived urban areas in Dublin, Galway, Limerick, Dundalk, New Ross, Athy and Carrick-on-Suir. Some 25 areas were named initially, with another 20 areas added before the 2002 general election. In 2002 the Taoiseach promised that €2 billion would be spent on tackling disadvantage in underprivileged areas over the lifetime of RAPID; to date, less than 10% of this money has been allocated.

In June 2003, the ESB announced its decision to close a third of its stores nationwide, citing falling revenue. This is despite the company posting a profit of €250 million and being permitted to increase its prices by 14% in 2003. In the western region, the higher cost of broadband connectivity is a major issue and a disincentive to investment. Roll-out of broadband to smaller towns is not expected to be completed until 2007.