Most regions below EU income average

SIX of the eight regions in Ireland had per-capita income below 75 per cent of the EU average in 1991, according to figures published by the Central Statistics Office.

The first set of regional accounts published for the economy show, that five years ago Dublin was the richest region in the State, with income per capita 27 per cent above the State average, but still 3.2 per cent below the EU average.

The mid-East region of Kildare Meath and Wicklow were the poorest, with income per capita of 73.1 per cent of the State average. However this gives a misleading impression, according to the CSO, because the measure of income they use - Gross Value Added per capita - depends on goods and services produced in the various regions and the mid-East measure is lower because most of its citizens work in Dublin.

The next poorest region is the Midlands with 78.1 per cent of the State average.

The regional income calculations are relevant because of the debate, about Ireland's continued qualification for EU structural funding after 1999. Because of rising national income, the State will no longer qualify as a so-called "Objective 1" region with national income less than 75 per cent of the EU average, which may threaten funding levels.

One option being examined by the Government is to break Ireland up into regions for the purpose of application for EU funds.

However commenting on the regional accounts, the Minister for Finance Mr Quinn said it would be premature to make any judgment on the distribution of the structural funds after 1999 as the criteria would not be decided until early 1998. He also pointed out that far fewer regions, perhaps only two or three - would be below 75 per cent of the EU average.

It is understood that, at this stage, the Government is encouraged by signals from the EU Commission about the continuation of finding after 1999 and is reluctant to split up the State into regions.

A statement from Mr Quinn pointed to comment from the EU Commissioner for Regional Policy, Ms Monika Wulf-Mathies, who said, recently that "we have to have transitional periods which help the member state to accommodate to the new situation of being rather a richer country".