Midlands group to present submission for continued EU funds for poorer areas

The loss of EU structural funding from 2000 is causing serious concern in the midlands and the west

The loss of EU structural funding from 2000 is causing serious concern in the midlands and the west. The belief is that such areas should continue to receive this vital funding to continue infrastructural development within their regions.

Tomorrow the Midland Regional Authority will make public its submission for structural and cohesion funds for the first six years of the next millennium.

Ireland is likely to lose structural funding because of the strength of the economy in recent years so that it can no longer be regarded as a poor country.

The plan has been sought by the Government from the regions and the social partners to provide it with ammunition to argue for a continuation of the aid.

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The loss of the funding will create a serious problem for the midlands, Border areas and the west where the GDP remains below the 75 per cent European average, the threshold set by the European Commission.

The midlands launch will be attended by the Minister for Public Enterprise, Ms O'Rourke, and the Minister for Health, Mr Cowen.

Many groups, including the farming organisations, have been calling for greater guidance from the Government on how it intends to negotiate a new round of funding.

The Offaly-based chairman of the Irish Farmers' Association, Mr Tom Parlon, called on the Government to make clear how it intends to maximise structural funding transfers to Ireland.

He argued that areas like the midlands must retain their objective 1 status, reflecting their under-developed status which can be easily demonstrated.

He said it had emerged recently that the British government had reached agreement with the EU Commission to change its regional boundaries for objective 1 status.

As a result, Cornwall and west Wales would continue to benefit from the funding after the current round ends in 1999.

He proposed that the Government review the GDP/capita data on a county basis especially those which are clearly below the 75 per cent threshold.

A change to Ireland's objective 1 status had particular implications for agriculture because it also determined the EU co-financing rate for a number of key EU agriculture and rural development measures funded from the CAP budget rather than the structural funds.

Mr Parlon said these measures included the rural environment protection scheme, the early retirement scheme, forestry measures and headage payments to farmers in less favoured areas.