The Western Development Commission has accused the Government of underspending €644 million in the Border, Midland and Western region during the first three years of the National Development Plan.
The Commission has called for a "rapid increase" in EU/State expenditure in the second half of the programme, to make up for the fact that only 59 per cent of the total budget for 1999-2002 was spent in the Border, Midlands and Western (BMW) region.
The BMW Assembly's chief executive, Mr Gerry Finn, has confirmed that the WDC's estimate is correct, but says that there were a number of very valid reasons for this and spending is beginning to increase.
The Western Development Commission's (WDC) analysis of spending under the BMW operational programme in the National Development Plan (NDP) to the end of 2002 has found that while some measures reached their target spending, a significant number were well below budget. The programme provides funding for local infrastructure, local enterprise, agriculture and rural development, social inclusion and childcare.
The WDC says that although €1,570 million was budgeted for during the first three years, only €926 million of this was spent. In a submission to the BMW Regional Assembly, which overseas NDP spending under the programme, the WDC says that the region has not benefited as much as expected as a result.
This is not the first time that the WDC has criticised the State's lack of full commitment to the BMW region, which retained Objective One status for EU structural funding to 2006. Two years ago, in July 2001, the WDC's State of the West report said the NDP was not fulfilling its stated aim of reducing economic disparity between east and west and claimed that the imbalance was actually growing.
The WDC attributed this not just to inadequate spending, but to a combination of factors, including a centralised government "mindset" and the adverse impact of deregulation on the power and telecommunications markets in the western region.
The Commission suggests that spending on some local infrastructural measures, including non-national roads and regional airports, could be increased above their initial allocation to help the BMW region to catch up.
"The most recent figures from the Central Statistics Office confirm the huge disparities between the regions," Ms Lisa McAllister, chief executive of the WDC said. Using the measure most often used to describe regional differences - Gross Value Added (GVA) per person - the BMW region still lags behind, she said. CSO data show that GVA in the BMW region is just 72 per cent of the State average, and the region's share of total national GVA is just 19 per cent.
The WDC said "time was running out" for Objective One status. "The BMW operational programme is designed to address inter-regional disparities, but also to spread development throughout the region," Ms McAllister said. Measures in the programme to support rural areas and small towns were vitally needed in areas least able to attract other investment, she added.
Mr Gerry Finn, chief executive of the BMW Assembly, said that expenditure in the agricultural area had been delayed during the foot and mouth crisis. Bad weather immediately after this had delayed spending on infrastructural projects in the region, he said.
"Spending is beginning to increase and we are continuing to work with the implementing agencies," Mr Finn said.
