Leaders of the Irish Co-operative movement were told yesterday that the Government regulations governing the way mergers can be achieved are to be eased.

Currently, Irish co-operatives need a majority of 75 per cent of their member/shareholders to merge with other co-operatives but this figure will be reduced.

The commitment to the change was made by the Tanaiste, Ms Harney, when she gave the opening address at the Irish Co-operative Organisation's annual conference in the Burlington Hotel, Dublin.

She said Ireland was one of the few countries in the EU where such a high majority was required for a merger and she was preparing a change to facilitate the co-ops.

In a wide-ranging address to the 400 delegates, the Tanaiste promised that the National Development Plan which would be published shortly, will demonstrate the Government's commitment to addressing Ireland's infrastructural problems.

She said the national road network was crucial for the proper development of the country as a whole and Ireland needed to bring up its roads to proper international standards.

"We must move away from the by-pass mentality to a direct route philosophy," she said, adding that we have to complete this work very quickly.

"When you remember that in the 1800's a rail link between Dublin and Cork was built with pick and shovel in four years, we must move very fast," she said.

She said that despite progress over recent years, the machinery of central government was still concentrated very heavily in Dublin and that must also change.

She said that in addition to the infrastructural work, there would be a concentration on training and development, and a new question in next year's national census would identify where Irish students come from.

Previous censuses, taken on Sunday nights when students had gone back to colleges, did not pinpoint where our educated young people live and this would be addressed.

Mr Dessie Boylan, the president of the ICOS, said the movement must rationalise to improve efficiency and to meet the challenges of the future.

He said in Denmark, one co-operative handles 90 per cent of that country's milk, and two coops in the Netherlands process 85 per cent of production there.

He said the livestock marts sector also needed to adapt to a tougher business and market environment.