Local representatives and interest groups in the north west have accused those opposed to regionalisation of selfishness and short-sightedness as TDs prepare to discuss maximising EU structural funding this week. If, as is likely, the Government opts for regionalisation, 13 counties in the west, midlands and Border regions will retain their Objective 1 status while the rest of the State becomes an "Objective 1 in transition" area for the period 2000 to 2006.
A total of 350 billion ecu is available for structural funds for this period. Of this, 122 billion ecu goes to Objective 1 regions, while just 63 billion goes to regions outside this category.
Mr Frank Dawson of the Sligo County Enterprise Board said there has been a false argument in the debate so far, as it was not a question of one part of the State taking money from the other.
The north west has fallen badly behind other parts of the State in attracting investment. Retaining Objective 1 status would be crucial in this regard as EU regulations allow startup grant aid of 40 per cent in these regions while the limit permitted elsewhere is 20 per cent, he said.
"If the market is not enticing industry up to our neck of the woods then double the incentives might start to entice them up," Mr Charlie Byrne, special programmes manager with Donegal County Council, said.
Donegal is now a priority area for the IDA. Unemployment rates are some 10 points above the national average and the county's over-dependence on three vulnerable sectors - textiles, fishing and farming - is a cause for concern.
"We reckon our unemployment figures will rise from 19 per cent to 29 per cent over the next five years if there isn't serious intervention," Mr Byrne said. The task force set up by the Tanaiste, Ms Harney, to counter expected job losses at Fruit of the Loom has estimated that to bring infrastructure in Donegal up to national standards, £130 million is needed for road projects and £90 million for water and sewerage schemes.
Mr Pat the Cope Gallagher MEP said statistics proved the area west of the Shannon did not receive a fair share of EU funding between 1994 and 1999. Regionalisation could help redress this.
"Those who are opposed to the regionalisation of the country are being grotesquely selfish because they will not suffer as a result," he said.