Cabinet's first meeting in west marks commitment to regional development

Today's Cabinet meeting in Ballaghaderreen - a town with a population of 1,250 - is unprecedented in Irish history

Today's Cabinet meeting in Ballaghaderreen - a town with a population of 1,250 - is unprecedented in Irish history. At the start of a new century, will this dramatic initiative herald a new era of prosperity for the west of Ireland?

Is the past century's harsh struggle and continuous emigration set to become a part of folk memory? Is the west finally on the brink of realising the capacity to prosper which for so long seemed elusive?

For those of us engaged daily with the process of development in the west, there are many encouraging possibilities. There is definitely an air of optimism, a feeling that this time we can really get it right and develop the west in a way that allows it to prosper while preserving its much-cherished culture and heritage.

In the context of national economic planning the past year has seen a lively debate about regional planning and development. The division of Ireland into two regions has focused attention on the need to put in place measures to help regions like the west to catch up.

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The retention of entitlement to higher levels of EU assistance for the Border, midlands and west region is augmented by commitments from agencies such as the IDA and Enterprise Ireland to direct 50 per cent of new jobs there.

Investment of £13.6 billion in the BMW region between now and 2006, as set out in the National Development Plan (NDP), can radically improve the infrastructure and the productive sectors in the region. It can also enhance the education and skills levels necessary to achieve economic success here.

The arrival of the Cabinet in Ballaghaderreen marks a new level of engagement by Government with the realities of regional development. The NDP earmarks expenditure of £35 million a week in the region for the next seven years.

In the aftermath of such an investment commitment, the visiting Cabinet members are entitled to feel confident.

This also means that the debate can now move on from the rallying calls for more resources to an equally challenging question: can such a large plan be delivered effectively in the region?

Major questions must now be addressed in relation to infrastructure, for instance. How will the National Roads Authority, local authorities and other bodies deliver on schedule a national economic and social infrastructural programme worth £4.7 billion in seven years?

How will the energy supply and telecommunications infrastructure be deployed across the region so that it can most effectively secure a spread of business and economic development?

With industries hampered by smallness of scale, low productivity (gross output per unit in the west is just 60 per cent of the national level), and scattered rather than concentrated in clusters, there is a need to establish the type of interventions which will increase competitiveness.

FOR instance, lack of so-called agglomeration economies (clusters of small businesses) means there is a real need to address problems of production, marketing, management and distribution. Careful strategic planning will be required to ensure that the investment of £2.7 billion in developing the productive sector in the region is used effectively to overcome these deep-seated structural problems.

The £2.8 billion to be invested in the region in employment and human resources will need to deal with emerging labour market problems. The capacity to match the human resources of the region to development opportunities may be one of the biggest challenges we face.

This will demand a co-ordinated and swift approach in which agencies and social partners work together to match the requirement of those wishing to live and work in the region with the needs of the labour market.

While there is undoubted public policy commitment to greater investment in the region, there is also a need to achieve a balanced spread across it. The WDC's report, Promoting Foreign Direct Investment in the West, showed that over 80 per cent of grants to overseas investors coming into the seven western counties were given to companies locating in Galway.

This is not balanced, regional development. The WDC in the same report suggests how overseas investment can be spread more evenly across the west by focusing on key towns that have the necessary attributes to attract investors.

The achievement of balanced development within regions also needs to be addressed in sectors such as indigenous industry, tourism, marine and natural resources. One of the western commission's priorities is to identify where exactly in the west each one of these sectors can best be developed.

The overall £13.6 billion investment plan for the region will require deliberate and substantial co-ordination if delay and wastage are to be avoided. This will demand a degree of direction and co-ordination at the regional level, backed by strong ongoing Government attention.

There are currently many areas, particularly in the productive sectors and in local development, where duplication is impeding progress.

We have a relatively short time to get things right. We have never had it so good in terms of the amount of EU and Government investment, the buoyancy of the economy and the readiness of investors to come to the west.

However, there is no guarantee that such good times will last forever, and that is why it is crucial that targets and timescales are set for the delivery of the main economic and social programmes in the region.

Liam Scollan is Chief Executive, Western Development Commission