Jerry Cowley (Mayo, Independent)
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Question 243: To ask the Minister for Finance when the underspend in the Border Midland Western region will be made up by the Government; his views on whether funding is urgently needed in the region; and if he will make a statement on the matter. [38480/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Investments under the National Development Plan/Community Support Framework (NDP/ CSF) 2000-2006 are delivered through seven Operational Programmes (OPs) which are directly managed and implemented by Government Departments, the Regional Assemblies and other Agencies. My main concern is to ensure that the available funds are allocated in a manner that meets the Government's objectives and secures full draw-down of Ireland's entitlement of Structural Funds. I am anxious to ensure that both regions secure the EU and Exchequer funding available to them under the National Plan. In this regard, I have written to my ministerial colleagues asking them to ensure that the investment objectives for the Border, Midlands and Western (BMW) region are appropriately prioritised to ensure that outcome.

The House will be aware of the general state of play in relation to expenditure in the BMW region from previous debates and questions on this issue. The figures reported at the recent Monitoring Committee meetings indicate that some €11.1 billion or 82% of forecast Exchequer and EU expenditure had been incurred by the end of June 2006. This is a healthy implementation rate in view of the slow start up in some areas at the very beginning, the relatively disappointing response in certain demand led schemes and the fact that Exchequer spending in relation to Structural Fund Measures for the 2000-2006 period will in fact continue up to 2008 in accordance with EU Regulations. Based on the most recent information available to me from Monitoring Committee reports including their assessments of continuing spend under the current NDP, I expect that by the end of the programme period, the original forecasts for Exchequer and EU spending in the BMW region will have been realised in full.

The Government's commitment to the BMW region does not cease when the current funding round draws to a close. Investment to achieve more balanced regional development is a key Government priority. This has been underscored by the publication the National Spatial Strategy (NSS). The implementation of the NSS will be a central element of the next NDP (2007-2013). The new NDP 2007-2013, currently being finalised, will build on the achievements already taking place under the current Plan and will continue progress towards ensuring a more balanced distribution of development in the country. In addition, the BMW region will also receive Structural Funds allocation of €458 million under the next round of funding for 2007-2013. In that context, my Department is also preparing the National Strategic Reference Framework which will set out the strategic orientation of the Structural Funds and link the European Community's priorities with the national and regional priorities, and which in turn will assist in the preparation of the relevant Operational Programmes.