`Debate' on regionalisation despite Cabinet plans

The Dail will tomorrow hold a "debate" on regionalisation, although a Cabinet decision to pursue a policy of splitting the State…

The Dail will tomorrow hold a "debate" on regionalisation, although a Cabinet decision to pursue a policy of splitting the State into separate areas in order to secure maximum EU funding is regarded almost as a fait accompli.

The debate is to take the form of statements led by the Minister for Finance, Mr McCreevy.

The issue of whether Ireland should continue to be treated as one unit for structural-funds purposes, or whether it should be split into regions covering the Border counties, the midlands and the west, has already caused divisions within the major political parties.

It is widely expected that, despite reservations within its own ranks, the Government will next week announce its decision that Ireland would be best served by being split into two regions, Objective 1 and Objective 1 in transition.

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It will argue that, should the State remain as a single unit, it would simply not qualify for assistance after 2006. However, division would allow 13 counties with Objective 1 status to draw down benefits after 2006.

Meanwhile, the counties with Objective 1 in transition status will experience a gradual reduction in EU funding between 2000 and 2006.

Deeply conflicting attitudes to the course of action to be taken will emerge during tomorrow's debate, although the Fianna Fail Parliamentary Party has given the Government the imprimatur to go ahead and secure maximum funding provided disadvantaged areas are looked after.

Labour and Democratic Left will adopt a positively anti-regionalisation stance, with Fine Gael, cognisant of its deputies outside the Objective 1 area, calling for a "project-based approach". Fine Gael's finance spokesman, Mr Michael Noonan, said last night his party would obviously like to continue with the maximum amount of transfers possible from Brussels.

Labour's finance spokesman, Mr Derek McDowell, will tell the House tomorrow that a policy of regionalisation is "a non-runner".