Catherine Connolly (Galway West, Independent)
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113. To ask the Minister for Public Expenditure and Reform the engagement he has had with a group (details supplied) on its call for a stimulus package for the Northern and Western Region, as well as increased capital investment in the region’s infrastructure assets, in view of the classification of the region by EU bodies as a “region in transition” and a “lagging region”; and if he will make a statement on the matter. [10373/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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Cohesion policy is the EU strategy to strengthen economic, social and territorial cohesion of Member States, through measures to reduce disparities in development between regions.  The European Commission classifies regions as Less Developed, Regions in Transition, or More Developed, based on GDP per head of population.  The Northern and Western Region is a Region in Transition with GDP between 75%-100% of the EU27 average, benefitting from a higher EU co-financing rate, at 60% funding for programmes. 

Ireland was allocated €396 million in European Regional Development Funding (ERDF).  The Northern and Western region was initially allocated €110 million, with the Southern, Eastern and Midland Regions (more developed) allocated €286 million. My predecessor, in consultation with all Regional Assemblies, transferred €20 million in ERDF resources from the other Regions to the Northern and Western Region, increasing its allocation to €130 million, which, including Exchequer funding, amounts to €217 million over 2021-27.

There was extensive engagement with the Northern Western Regional Assembly (NWRA) on the 2021-27 programme.   My predecessor appointed the NWRA as Managing Authority of the 2021-27 Northern and Western ERDF Programme, and after three years of collaborative work, Ireland's ERDF programmes were adopted by the Commission on 18th of November 2022.

Balanced regional development is a key priority of this Government and is at the heart of Project Ireland 2040. As Minister for Public Expenditure, NDP Delivery and Reform I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at Departmental level. The responsibility for the management and delivery of individual investment projects, within the allocations agreed under the National Development Plan (NDP), rests with the individual sponsoring Department in each case. My Department therefore allocates expenditure on a departmental basis, not a geographic basis. 

The three Regional Assemblies, including the NWRA, are responsible for co-ordinating, promoting and supporting the strategic planning and sustainable development of their regions, by formulating Regional Spatial and Economic Strategies (RSES). Investment decisions made by Departments are informed by the Regional Spatial and Economic Strategies. 

Regional Reports on the Northern and Western Region have been published for the years 2018, 2019, 2020 and 2021 which give details of the specific regional projects and programmes being delivered in that region as part of the public investment detailed in Project Ireland 2040 - the reports are available on gov.ie/2040.