Government criticised on investment fund delay

Government inaction and delays over plans to develop the west are not new

Government inaction and delays over plans to develop the west are not new. After all, seven years have gone by since a group of farmers in south Galway approached the western bishops with their plea to "save" the region from poverty and depopulation.

A long succession of reports, partnership bodies and recommendations have come and gone in the meantime, but nothing much has happened. The Western Development Commission, which replaced the Western Development Partnership Board when it was set up last year, faces an uphill struggle as it seeks to combat widespread public cynicism prompted by the lack of real action on the ground.

Its task has been made more difficult by last week's publication of the Finance Bill, according to the commission's chief executive, Mr Liam Scollan. He says he is "disappointed" the Bill contains no reference to the proposed Western Investment Fund, the creation of which is one of the commission's key objectives.

"The Government is saying it needs to look into the WIF more fully," he says. "The difficulty we have with that is we were promised the legislation [to set it up] would be drafted by Christmas 1997. It will now be delayed until May or June."

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The idea behind the fund is simple. The money in it will be lent to small and medium-sized enterprises to help them get off the ground or expand, thus creating jobs and stimulating growth. As the funds are repaid the money will be reinvested in new projects.

This revolving-door approach could have a significant impact in peripheral areas. The lack of initial capital funding, and the reluctance of the banks to back unproved projects, is often the biggest stumbling-block people face when they set up new businesses.

The Government has promised to invest £25 million in the fund over a five-year period. Ms Gillian Buckley has recently been appointed fund development manager and is gathering a portfolio of potential projects. It is envisaged the £25 million will "lever" total investments worth £100 million from private and public sources.

According to Mr Scollan, about £4.5 million of investments are waiting for the green light. They will create "at least 100 jobs", but many jobs will be delayed or lost if the fund is not set up quickly.

Apart from the immediate negative impact on job-creation, the delay also undermines the commission's credibility in dealing with potential investors. "It has a much more serious longer-term impact. It is time western issues were regarded with a degree of priority which they are not getting at the moment."

The fund, and the commission itself, have their genesis in a £200 million plan for western development produced in May 1996 and enthusiastically endorsed by the then Taoiseach, Mr John Bruton.

Its optimistic preface said it marked "an end to repeatedly stating and restating the region's problems: emigration, depopulation, unemployment etc. It should, in the short and medium term, represent an end to the need to produce other reports of a similar character. It should represent an end to inaction."

Named The Challenge: A Positive Future Through Action, it called for a clearly-defined regional policy and a 20-year commitment from the Government "to firm and positive action to level the playing field in economic and social development".

Almost two years later there is still no sign of a clearly-defined regional policy at departmental level, although some progress has been made.

Mr Scollan says he is annoyed at the weekly tally of days without action to "save the west", which is published in the Western People. "What the commission has to do is to promote a positive approach to developing the west, and get that positive approach felt up in Dublin, by civil servants in the main, as well as politicians.

"Then we come forward and agree with them concrete proposals which will lead to jobs and investment, and then action begins to happen."