`High-growth' region needs £8.4bn - report

THE Border, west and midland areas would be regarded as having a boom economy if they were not linked to the national Celtic …

THE Border, west and midland areas would be regarded as having a boom economy if they were not linked to the national Celtic Tiger, according to the draft development plan for the region.

Output in the region grew by 61 per cent in 1991-96 and the trend would be regarded as very high by international and Irish historical standards, the study says.

The draft document, which recommends an £8.4 billion investment in the region between 2000 and 2006, was presented to the western and midland regional authorities in Castlebar, Co Mayo, and Tullamore, Co Offaly, yesterday and will be presented today to Border region representatives.

Compiled by Fitzpatrick and Associates, Dublin consultants, the draft is one of two strategies aimed at making the most of the next round of EU structural funds.

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The two plans - the second being a £5 billion strategy for the eastern and southern regions - will form the basis of a submission by the eight national regional authorities to a revised national development plan drawn up by the Government later this year.

The submission was sought by the Minister for Finance, and the authorities' approach was based on 15 counties retaining EU Objective One status - a proposal already rejected by Eurostat in Brussels due to the inclusion of Clare and Kerry.

As negotiations continue before a decisive EU leaders' summit in Berlin in a fortnight, the Government has mounted a final effort to save the sub-division plans amid predictions that Ireland's share of aid could fall by up to 75 per cent.

The study notes that about one-third of the labour force lives in the Border, midlands and western region, with two-thirds in the southern and eastern areas.

Some 45 per cent of the population in the region achieved either third-level or upper second-level educational qualifications, compared with 52 per cent in the south and east. But only 13 per cent of graduates were employed in the region.

Comparing skills and employment levels, the study notes a high level of part-time employment in the region and emphasises the need to develop urban centres to provide alternative employment. It says that any effective local development strategy will depend on development of dynamic urban centres. It also acknowledges the isolating effect the Border has had on certain towns.

While the Buchanan Report - the last major regional development planning strategy, published in 1968 - favoured a "growth pole" centralised approach, models of regional development have become more sophisticated, the study says.

"It is no longer a case of urban versus rural, but urban and rural each supporting the other. A balance must be struck between the needs of centralisation and decentralisation, and between concentration and dispersal," it states.

The draft strategy recommends that the model of Galway as a regional growth centre should be matched by Sligo and Athlone, through doubling existing population levels to 30,000-40,000 and improving infrastructure. Institutes of technology in both towns should be upgraded to university status.

It also recommends that Castlebar in Co Mayo, Letterkenny in Co Donegal and Tralee in Co Kerry be targeted for development as regional centres.

Investment in road, rail and telecommunications, and development of a western corridor route from Sligo to Limerick are urged. It proposes that a network of business and enterprise centres be established in smaller towns, to provide a "soft support" for local initiatives.

The strategy refers to indigenous enterprise, but makes only brief references to opportunities in aquaculture. Last week, a study published by Bord Iascaigh Mhara made the case for doubling structural fund and State investment in the marine sector, thus increasing employment by 20 per cent in peripheral areas with limited job opportunities.

The plan costs investment in improved infrastructure at £3.36 billion, human resources at £2.25 billion, production investment including agriculture at £2.1 billion and local development at £0.42 billion.

Lorna Siggins

Lorna Siggins

Lorna Siggins is the former western and marine correspondent of The Irish Times