The chief executive of IDA Ireland has backed the Government's plan to divide the State in two in order to maximise European funding.
In a letter, seen by The Irish Times, to the Council for the West, Mr Kieran McGowan expressed concern at the loss of Objective 1 status for the west, the Border areas and the midlands.
"The loss of Objective 1 status will impact on Ireland's attractiveness as a location for inward investment by significantly reducing the maximum grant level which can be offered," he wrote. He indicated that it would be better to have Objective 1 status for at least part of the State than to be categorised in whole as a developed region with difficulties.
"Within Ireland, loss of Objective 1 status will reduce IDA Ireland's ability to influence new investment to locate in areas such as the west because our ability to offer significant grant differentials in favour of the west will be reduced as a consequence of the much reduced grant limit," Mr McGowan said. "For these reasons, it will be more difficult for IDA to secure new overseas investment for the western area."
He wished the council success in achieving its objectives.
