Jerry Cowley (Mayo, Independent)
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Question 210: To ask the Minister for Finance if he will address the injustice which exists within the Border Midland Western region; the way he will address the injustice to the BMW region in the last remaining weeks to make up for the deficit in the underspend under the current national development plan; and if he will make a statement on the matter. [41073/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I cannot accept the Deputy's contention that an injustice exists in the BMW region.

Under the National Development Plan/ Community Support Framework (NDP/CSF) 2000-2006, there has been substantial investment in infrastructure — such as roads, public transport, water and waste services — in health facilities, social housing, education, industry and rural development in Ireland. The most recent information available to my Department indicates that some €48 billion had been spent by the end of June 2006, with €13 billion spent in the BMW region. This represents a sizable investment in the region.

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.

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.

Based on the most recent information available to my Department, I anticipate that by the end of the programme period which under EU Rules, does not actually end at the end of 2006 but rather continues to 2008, the original forecasts for Exchequer and EU spending in the BMW region will largely be met.

Results over the 2000 to mid-2006 period show that, from a slow start up, there has been a steadily improving trend with over €5.8 billion invested in the BMW region under the key Economic and Social Infrastructure programme — of which €1.1 billion was invested in 2005 alone representing 105% of forecast expenditure for that year. Under that programme, almost €1.8 billion was invested in national roads, €2.1 billion on housing, over €850 million on water and waste services and €819 million on health facilities. Under the Employment and Human Resources programme, €4 billion has been invested in the BMW region to end June 2006. The other operational programmes show investment of €2.5 billion under the BMW regional programme, €837 million under the Productive Sector programme and €120 million under the Peace and Technical Assistance programmes.

The Government's commitment to the Region 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: "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 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 an EU Structural Funds allocation of €458 million under the next round of funding for 2007-2013.