Cabinet will bow to pressure over EU region aid
Ministers are set to adopt a policy of regionalisation which will see the country divided into two main areas in a bid to secure the greatest amount of EU cash. Three main regions, the Border, Midlands and West comprising thirteen counties have been idenified for Objective 1 funds, or maximum EU grants, in the round of Structural Funds.
However, in recent weeks the Government has come under intense pressure from Deputy Healy-Rae to have Kerry and Clare included.
The two counties do not currently qualify for Objective 1 because they are not part of the three sub-regions that will form the core of the government's application to the EU for funding. The Cabinet is expected to finalise the application today. In addition to the three regions it will ask the EU to consider including Kerry and Clare.
Officials are still working on statistical assessments for the two counties. According to sources it would appear, at this stage, if they were included it would not increase the GDP-per capita threshold above the qualifying level of 75pc of EU average. Government sources indicated there is no reason to believe the bid to include Kerry and Clare could put the application for the three regions at risk.
The final decision on whether the two counties will eventually be accepted will lie with the EU.
Only a week ago Mr Healy-Rae made clear he wanted Kerry included in the list and he was putting huge pressure on the government to achieve this.
Tanaiste, Mary Harney, last night said she expected the cabinet to finally approve the controversial sub-division plan in efforts to retain priority aid Objective 1 status for the west, midlands and border counties.
But she could not say whether ministers will back a belated idea to include the two south-western counties.
Speaking in Brussels, after EU industry ministers approved tough new rules to police state aids to industry, Ms Harney defended the so-called regionalisation plan based on data which shows these counties are still poor enough to be eligible.
- BRIAN DOWLING and JOHN DOWNING
