More than half of the derelict houses coming on to the market in Cos Leitrim and Roscommon are being bought as holiday homes or by retired people. Meanwhile, half the primary schools in north Roscommon are in danger of losing a teacher due to falling numbers.
The area is in desperate need of people, yet a tax incentive scheme, being finalised by the Government, will do nothing to encourage owner-occupancy, but will assist developers who build for the rental market.
The Western Development Commission and the Heritage Council have now appealed to the Department of Finance to make urgent changes to the Upper Shannon Rural Renewal Scheme because of concerns over the likely impact of tax incentives being considered.
The area affected covers all of Leitrim and Longford and parts of Sligo, Roscommon and Cavan.
The Government submitted the scheme to the European Commission for approval last September after a delay of nine months from when it was promised in the Budget of December 1997.
It has not yet been finalised as Brussels has sought clarification. This delay has been criticised by the Western Development Commission, which has estimated that investment of some £30 million is being lost as potential investors wait for a decision.
The chief executive of the WDC, Mr Liam Scollan, has now urged the Government to make amendments to parts of the scheme which do not require EU approval.
In a seven-point submission to the Department of Finance, the WDC called for tax supports to encourage people to refurbish derelict and listed houses and live in them.
The submission also pointed out the need for a "robust planning framework" to safeguard the sensitive environment of the Upper Shannon region.
Mr Scollan said existing planning controls would not be sufficient to protect the area.
Mr Paddy Matthews, of the Heritage Council, has raised the council's concerns with the Department of Finance. He said that even though this was a pilot scheme and essentially the first of its kind, it was important that the Government learned lessons from mistakes made in the past with similar schemes.
The council was concerned that no single Government Department or agency had been charged with administering, monitoring and evaluating the scheme. It appeared to be operating in a "strategic vacuum".
The council has also sought provisions to encourage owner-occupancy, saying the scheme is directed towards residential rental accommodation. It has also called for amendments to particular aspects concerning the size of eligible residential developments which it states would encourage the sub-division of larger country houses or the building of new houses rather than the restoration of existing buildings.
In its submission, the Heritage Council argues for a task force to devise an integrated area plan. The task force would include representatives of relevant Government Departments, local authorities, the WDC and the Heritage Council.
Mr Matthews said a lead should also be taken from other European countries where such plans are assessed environmentally. The Heritage Council has already engaged consultants to devise a methodology for a "heritage appraisal", which will be made available to all planning authorities as a systematic way to assess the impact of development plans.