Jerry Cowley (Mayo, Independent)
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Question 131: To ask the Minister for Finance if the €3.9 billion underspend in the Border Midland Western region will be invested thus recognising the fact that this region has never been allowed to reach its full potential; his plans for this region in the coming 12 months; and if he will make a statement on the matter. [16762/06]

Jerry Cowley (Mayo, Independent)
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Question 132: To ask the Minister for Finance his views on the gross underspend in the Border Midland Western region as outlined in the mid-term review of the National Development Plan; and if he will make a statement on the matter. [16763/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 131 and 132 together.

Table 1 sets out the indicative expenditure profiles and the estimated expenditure incurred under each operational programme in the Border, Midland and Western (BMW) Region for the period ending December 2005.

Profiles and Expenditure data includes all NDP sources of funding; Exchequer, EU and Private. Gross expenditure is running some €3.8 billion behind the original profiles for the period. The Exchequer profile and estimated Exchequer expenditure incurred under each operational programme in the BMW Region is set out in Table 2.

The Deputy will note from the data presented in Table 2 that the Exchequer contribution to the BMW Region under the key Economic and Social Infrastructure Operational Programme (ESIOP) has exceeded its target. Performance of the Employment and Human Resource Operational Programme (EHROP) is on course to meet its end 2006 target. Both programmes are likely to achieve the NDP targets for Exchequer expenditure when account is taken of EU co-funded activity in 2007 and 2008.

The performances of the Productive Sector and the BMW Regional Operational Programmes remain disappointing due to the factors I outlined in my reply to Question No. 299 on 21 March 2006. The Deputy should be aware that this level of performance is broadly similar for the Productive Sector and the Regional Operational Programme in the Southern and Eastern Region. It is unlikely that the expenditure targets for these programmes will be achieved for either Region by the end of 2006.

With respect to the Structural Funds, I have asked that priority should be given to expenditure on EU co-funded measures. This will ensure that Ireland's full entitlements to Structural Funds will be drawn down for both regions.

The Deputy may wish to note that the ambitious targets set for private sector investment under the NDP in the BMW Region is estimated to represent approximately €1.3 billion of the overall shortfall in expenditure against the original profiled targets.