Michael Ring (Mayo, Fine Gael)
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Question 144: To ask the Minister for Finance his views on whether the Government's approach to spending is unbalanced on a regional basis, in view of the apparent underspend in the Border Midland Western region under the National Development; and his plans to address this situation. [40740/06]

Michael Ring (Mayo, Fine Gael)
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Question 148: To ask the Minister for Finance the reason expenditure in the Border Midland Western region is behind the indicative target set out in the National Development Plan; the comparison expenditure figures for all regions and details of their indicative targets for each year from 2000 to date in 2006; the reason for the underspend under the National Development Plan in the BMW region; and his plans to rectify the matter. [40733/06]

Jerry Cowley (Mayo, Independent)
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Question 152: To ask the Minister for Finance the basis of information available to him from monitoring committee reports, including their assessments of continuing spend under the current National Development Plan, that he expects by the end of the programme period in six weeks time (details supplied); and if he will make a statement on the matter. [40759/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 144, 148 and 152 together.

The National Development Plan/Community Support Framework (NDP/ CSF) 2000-2006 is an integrated investment plan and strategy for economic and social development for Ireland. The aim of the plan is to ensure that Ireland remains internationally competitive and that our economic success is shared more equally. There was a commitment of €57 billion of Public, Private and EU funds over the programme period, which under EU Rules, does not actually end in six weeks time but rather continues to 2008. The size of the investment has involved substantial investment in infrastructure — such as roads, public transport, water and waste services — in health services, social housing, education, industry and rural development. The Plan is delivered through seven Operational Programmes each of which has a Monitoring Committee which meets twice yearly to monitor the ongoing implementation of the Programme. There is also an overarching NDP/CSF Monitoring Committee which is chaired by my Department and this Committee also meets at least twice a year.

The most recent information on expenditure is from the October reports of the Monitoring Committees of the Operational Programmes. These indicate that €48 billion had been spent by the end of June 2006. In view of the slow start up in some areas at the beginning of the programme and the relatively disappointing response in certain demand led schemes due mainly to the impact of the slowdown in economic activity in 2000-02, the outbreak of foot and mouth disease and a lower than anticipated take up of financial opportunities by the private sector, this can be considered to be a good implementation rate. However, a fuller picture of expenditure will not be available until the full year expenditure data for 2006 is analysed after the NDP/CSF Monitoring Committee meets in June 2007 and when the co-funded measures under the NDP/CSF achieve their full entitlement to Structural Funds by the end of 2008, the timetable set out in the Regulations.

The Monitoring Committees have also provided to my Department their assessment of the likely spend on the Programmes between July 2006 and the end of 2008. Overall, their assessment is that the original NDP/CSF forecast will largely be met, even though there are likely to be broadly offsetting variances as compared to the original forecasts at individual Operational Programme level. The final Exchequer and EU commitment is actually expected to be ahead of the original forecast generally covering a lower than expected take-up from the private sector.

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 given the reasons as outlined above. The corresponding figure for the S&E region was €30 billion or 108% of forecast Exchequer and EU expenditure. Based on the most recent information available to my Department, I anticipate that by the end of the programme period, the original forecasts for Exchequer and EU spending in the BMW region will largely be met. Details of the annual breakdown of expenditure and forecasts for each region will be available following the December meeting of that Monitoring Committee and I will write to the Deputy with the information then.

The Government's commitment to the Regions under the current NDP/CSF is delivering results. The ESRI carried out a mid-term evaluation of the NDP/CSF 2000-2006 which stated that the BMW region had all but closed the gap with the S&E region in respect of the rate of unemployment and employment growth. The ESRI in its recent ex-ante assessment of investment priorities for NDP 2007-2013 concludes that "The current NDP has greatly enhanced the economic and social infrastructure of the State with major benefits to economic development throughout all regions".

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. An important objective of the next NDP (2007-2013) will be the promotion of balanced regional development in line with the National Spatial Strategy (the NSS). The details of the strategy for regional development will have to await publication of the Plan. I am, nonetheless, confident that the level of ambition in the overall NDP 2007-2013 investment envelope combined with a commitment to utilise this investment to implement the NSS will lead to a better balance in economic development.

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.