Denis O'Donovan (Fianna Fail)
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Cuirim fáilte roimh an Aire Stáit. The Minister of State, Deputy O'Donovan, is my namesake. I call Senator Gallagher who has four minutes.

Robbie Gallagher (Fianna Fail)
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Go raibh maith agat. Ba mhaith liom fáilte a chur raibh an Aire-Stáit go dtí an Teach seo. I thank the Minister of State for taking time out of his schedule to be here. As he knows, the Border, midlands and western, BMW, region has now moved back from what is called a developed region to a region in transition. This reflects the two-tier economy on the island of Ireland. Dublin, the east and Munster are growing while the west and the north flatten. I will be interested to hear what plans the Government has to address this. After 2020, the BMW region will be recategorised as a region in transition while the southern and eastern part of the country will continue to be described as developed.

EUROSTAT has confirmed that funding to this country will continue under three categories of region in the post-2020 period. These are less developed, transition and more developed. That certainly is good news. The European Regional Development Fund, ERDF, has been delivering on providing funding to the regions in Ireland since as far back as 1999. It was also important that there was regional representation at both national and EU level.

However, the regions have taken a backward step over the past number of years. That is proved by this recategorisation backwards from what is called a developed region to a region in transition. The EU has stated and confirmed what we have been saying in this part of the world for a long time. The BMW region has been left behind in recent years. It is no surprise to anybody living there. People living in the Border region are at a greater risk of poverty compared with the rest of the country. A recent report from the Central Statistics Office, CSO, showed that 25.7% of the residents in counties Monaghan, Cavan, Donegal and Leitrim struggled financially in 2017. The report also outlined that several counties within the Border region suffer compared with other parts of the country regarding access to broadband, transport, disposable income and housing vacancies.

The good news, however, is that the EU has recognised this. Our recategorisation means there is an opportunity for increased funding from the EU to address this underinvestment in the region. This is a serious opportunity for us to address that underinvestment and I will be interested to hear the Minister of State's plans to address that particular issue. There is also an opportunity for the regional assembly to address the legacy of underinvestment and increased EU Exchequer funding post-2020. It is vitally important that the regions take, and continue to have, control over the allocation of funds to their regions.

Brexit is staring us in the face. People wonder why the British community decided to make the decision it did. I suppose some people may feel disconnected and distant from Europe. It is important that the EU has a connection with people on the ground, so that no matter what part of the world or this country they live in, it is possible to see a tangible connection with the EU. From that point of view, I understand the Minister of State's Department is conducting a review of the delivery of European investment funds to the regions with a view to, perhaps, removing responsibility from the regional assemblies to a centralised system. That would be a serious backward step. I hope he will confirm that will not be the case.

Patrick O'Donovan (Limerick County, Fine Gael)
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I apologise at the outset on behalf of my colleague, the Minister for Public Expenditure and Reform, Deputy Donohoe. I am taking this Commencement matter on his behalf. The BMW region is one of Ireland’s two regions for the purposes of EU funding. During the 2014-2020 period, the ERDF alone will deliver more than €320 million worth of investment to the region. This investment is concentrated primarily on research and innovation, information and communication technologies, ICT, small and medium-sized enterprises, SMEs, and promoting a low-carbon economy.

These are the types of investments that can make a difference to inclusive growth and regional development. The region also receives support through a range of other EU programmes including the European Social Fund, ESF, the European Agricultural Fund for Rural Development, EAFRD, and the European Maritime and Fisheries Fund, EMFF.I agree with the Senator on the importance of achieving balanced regional development and I note the recent data released by EUROSTAT regarding levels of GDP per head for the regions of Ireland. The development of all of the regions of the country is something that this Government takes very seriously. In 2018 the Government launched Project Ireland 2040, an ambitious, strategic vision for Ireland’s investment in critical infrastructure in the future. It consists of two core elements: a national planning framework and the investment of €116 billion over a ten-year period. For each regional assembly area, regional, spatial and economic strategies are being developed to support the implementation of the national planning framework and the economic policies and objectives of the Government by providing a long-term strategic planning and economic framework for the development of the regions. The national development plan envisages investment across a range of areas aimed at delivering public infrastructure over the coming years including increased investment in broadband, roads, tourism and agriculture and an investment of €4.5 billion in our regional and local roads.

The year 2018 saw the launch of the rural regeneration and development fund. With a total budget of €1 billion over the period to 2027, the fund will promote rural renewal in order to enable towns, villages and outlying rural areas to grow sustainably as vibrant places in which to live and work. The first call for proposals under the fund was launched in July 2018. Some 84 projects have been announced with a total value of €117 million. The newly-established Department of Rural and Community Development has made considerable progress with €237 million invested across a package of supports to strengthen our rural economies and communities. By promoting development in all regions we can bring new life back into towns and villages which were previously neglected.

Given the potential impact on rural and Border areas of this country arising from the departure of the United Kingdom from the European Union, a Brexit resilience package of €78 million was announced for the agrifood sector for 2019 in the last budget. This includes a range of measures to support farmers and industry against the background of the challenges that lie ahead. I also acknowledge the special role of the PEACE and INTERREG programmes in the Border region. Ireland and the United Kingdom are currently partners in two EU-funded cross-Border co-operation programmes which incorporate the Border counties with a total value of €550 million over the period up to 2020.

In conclusion, the Government is extremely committed to balanced, sustainable development in all regions, including the Border, midland and western region. This is demonstrated by investment in sectoral strategies. It is underpinned by the national development plan which will deliver modern public infrastructure over the coming years which, it is to be hoped, will improve the lives of people throughout the country and allow our companies and economy to continue to thrive in a globalised world. I will bring the points the Senator has raised to the attention of the Minister, Deputy Donohoe.

Robbie Gallagher (Fianna Fail)
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I thank the Minister of State for the response. I appreciate that this is not a matter for his Department, but the increased EU funding of 55% for any particular project is a serious opportunity for Government to invest in the region. I ask the Minister of State to stress to his colleague that it is vitally important that the regions should be responsible for the allocation of that funding and that the system should not be centralised. Perhaps the Minister of State could get a response to that question for me. I thank him for his time here this morning.

Patrick O'Donovan (Limerick County, Fine Gael)
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I am a Minister of State in the Department of Public Expenditure and Reform, so it is my Department that looks at this issue. With regard to the areas to which the Senator has primarily referred in respect of economic development, it is important to point out that unemployment in all of the regions, particularly in those outside Dublin, has fallen. That needs to be recognised. Every labour exchange, as we previously called them, across the regions has noted a huge drop in unemployment from the high point in 2012 and 2013 to where we are now.

There is a role for local authorities with regard to some of the investment that is available to access. We all need to examine our individual local authorities and their county managers to see whether they are putting projects forward for the various funding streams. In the last round there were massive disparities in respect of the projects allocated funding. It really calls into question what our local authorities are putting forward. The money is there and the schemes are there. I am a former local authority member, as are some Members of the House. We need to scrutinise what our local authorities are putting forward.

A number of different Departments have a role in the matter to which the Senator is referring. The Minister, Deputy Donohoe, is very important as the keeper of the purse, but others are involved in respect of the regional strategies that have been outlined, for example the Minister, Deputy Eoghan Murphy. With regard to the economic throughput, the Ministers, Deputies Ring and Humphreys, are also involved. This has been taken as a whole-of-Government issue and it is being taken very seriously. A more co-ordinated investment by Government is already being seen in all of the regions in parallel with the drop in unemployment across the country but there is always more that needs to be done. We are very cognisant of that. That is why we are going to continue on the path we are on.

Denis O'Donovan (Fianna Fail)
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I thank the Minister of State for his very expansive response.