Willie Penrose (Longford-Westmeath, Labour)
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Question 253: To ask the Minister for Public Expenditure and Reform if he will confirm that the introduction of territorial cohesion under the Lisbon treaty is now a core competency of the EU; if he will confirm that same is based on the concept that every region, not state, should be allowed to make the most of its assets and resources and in this context, if an area like the midlands region is not being allowed to take advantage of its resources, which include a sizeable skilled and educated and available workforce, in a central location with an existing transport infrastructure and its proximity to other gateway regions; if in this context, it is appropriate that ministerial actions preclude entrepreneurs in this area from having the freedom to compete because of other considerations being made; and if he will make a statement on the matter. [3731/12]

Brendan Howlin (Wexford, Labour)
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The competence of the European Union in the field of economic, social and territorial cohesion is set out in Article 174 of the Treaty. The purpose of the Union's regional and cohesion policy is to reduce the significant economic, social and territorial disparities that still exist between Europe's regions.

Ireland has been allocated a total of €901m in Structural Funding for the period 2007-13, with €750 million assigned to the Regional Competitiveness and Employment (RCE) objective, and the balance to Territorial Co-operation programmes, including the cross border PEACE programme. In relation to the RCE objective, Ireland was required to put in place a National Strategic Reference Framework (NSRF) which was approved by the European Commission and sets out the strategic context within which funding may be applied. The priorities for the NSRF were selected to complement national investment on the one hand and specific priorities on the other, in line with the EU regulations, regional foresight studies and the extensive consultation process undertaken to develop the strategy. The priorities agreed with the Commission are the promotion and encouragement of innovation, the knowledge economy, enterprise, research & development, upskilling the workforce and increasing the activation and participation of groups outside the workforce.

For the purposes of EU Structural and Cohesion Funds, Ireland is divided into two regions, the Border, Midlands and Western Region and the Southern & Eastern Region. Of the €750 million allocated to Ireland under the RCE objective, €458 million has been allocated to the BMW Region and €292 million to the S&E Region.

The Commission published its proposals for the next round of funding last October. The strategic direction for future policy will be framed by the EU 2020 Strategy, which aims to support growth and competitiveness in the EU, as well as the broader discussion on the EU Budget. As in previous rounds, there will be full consultation with all relevant actors, including the Regional Assemblies and Authorities, before decisions are taken regarding investment priorities for the new round, and proposals which accord with the aims of the 2020 Strategy, support the objectives of jobs and growth and meet the requirements of EU regulations will continue to be considered.