Regions are ‘not spending EU cash’

CASH-STARVED West of Ireland is not spending all the money it has been granted by the EU, according to MEP Joe McCartin.

The Border, Midlands and Western (BMW) region has been designated less well off than the eastern part of the country and was given additional money from the EU.

Its budget for the seven year programme is €4,094 million.

However, it has spent €600 million less than it has been allowed during the first three years of the six-year programme, while the eastern part of the country has overspent by the same amount, according to Mr McCartin.

“This money is to build up the infrastructure of the poorer region of the country which badly needs it.

“But for some reason or other the money is not being invested as fast as it should be,” said the Fine Gael MEP.

If the current slow rate of spending is maintained then the BMW region will have under-spent by €1,200 million by the end of the current programme in 2006.

“There will be a further two years during which the money can be drawn down, so it is not lost yet, but we should be concerned about the situation now,” said Mr McCartin.

He has tabled a question in the European Parliament to the European Commission on the failure of the public capital programme in the BMW region.

The European Commission is aware of the under-spending and has warned the Government about it.