IRELAND National Development Plan 2000-2006 BAILE A´THA CLIATH ARNA FHOILSIU´ AG OIFIG AN tSOLA´THAIR Le ceannach dı´reach o´n OIFIG DHI´OLTA FOILSEACHA´N RIALTAIS, TEACH SUN ALLIANCE, SRA´ID THEACH LAIGHEAN, BAILE A´THA CLIATH 2, no´ trı´d an bpost o´ FOILSEACHA´IN RIALTAIS, AN RANNO´ G POST-TRA´CHTA, 4-5BO´ THAR FHEARCHAIR, BAILE A´THA CLIATH 2, (Teil: 01 - 6476834/35/36/37; Fax: 01 - 4752760) no´ trı´ aon dı´olto´ir leabhar. —————— DUBLIN PUBLISHED BY THE STATIONERY OFFICE To be purchased directly from the GOVERNMENT PUBLICATIONS SALE OFFICE, SUN ALLIANCE HOUSE, MOLESWORTH STREET, DUBLIN 2, or by mail order from GOVERNMENT PUBLICATIONS, POSTAL TRADE SECTION, 4 - 5 HARCOURT ROAD, DUBLIN 2, (Tel: 01 - 6476834/35/36/37; Fax: 01 - 4752760) or through any bookseller. —————— (Pn. 7780) £15.00 \19.05 Table of Contents Foreword by the Minister for Finance 5 Executive Summary 7 Chapter 1 — Economic Background to the National Development Plan 25 Chapter 2 — National Development Strategy and Priorities for 2000-2006 33 Chapter 3 — Regional Development Strategy 39 Chapter 4 — Economic and Social Infrastructure Operational Programme 49 Chapter 5 — Employment and Human Resources Development Operational Programme 83 Chapter 6 — Productive Sector Operational Programme 121 Chapter 7 — Border, Midland and Western Regional Operational Programme 147 Chapter 8 — Southern and Eastern Regional Operational Programme 163 Chapter 9 — Co-operation with Northern Ireland 177 Chapter 10 — Promoting Social Inclusion 187 Chapter 11 — Rural Development 199 Chapter 12 — Management and Implementation of Programmes 209 Chapter 13 — Compliance with Community and National Policies 215 Chapter 14 — Community Initiatives 225 Chapter 15 — Financial Resources and Allocations 237 APPENDICES Appendix 1 — Preparation of the Plan and Consultation Process 261 Appendix 2 — Review of Programming Period, 1994 to 1999 273 Appendix 3 — Maps: 289 Regions 291 Proposed Regional Aid Limits Post 2000 293 Road Improvements 295 Dublin Transportation Blueprint 297 Rail Improvements 299 Appendix 4 — National Development Plan 2000-2006 Pilot Eco-Audit 301 3 Foreword by the Minster for Finance, Mr Charlie McCreevy T.D. The National Development Plan (2000-2006) has been framed after the most extensive consultation process, including with the Social Partners and regional interests. It reflects the broad consensus in the consultation process as to the future development needs of the country. The Plan will lay the foundation for Ireland’s continuing economic and social development into the next Millennium. It sets out an ambitious and coherent development strategy supported by a fully quantified multi-annual investment commitment in the key areas of infrastructural development, education and training, the productive sector and the promotion of social inclusion. The Plan also contains a commitment and accompanying framework for the promotion of more balanced regional development. The vision of the National Development Plan is to ensure that Ireland will remain competitive in the global international marketplace and that the fruits of our economic success will be shared more equally at regional level and throughout society. The Government will seek in the implementation of the Plan to ensure that this vision is realised. 5 Executive Summary Introduction The National Development Plan (2000-2006) (NDP) will involve an investment of £40.588 billion1 in 1999 prices over the period 2000-2006 of Public, EU and Private funds. This publicly funded element (including EU and Public Private Partnership sources) of the investment will be matched by an estimated £6.4 billion of private investment. The £40.588 billion is broken down as follows with the 1999 base figure shown for comparative purposes. Heading2 2000-2006 Annual 1999 % Increase Average Base £ billion £ billion £ billion Economic and Social Infrastructure 20.948 2.992 1.931 54.9 Employment and Human Resources 10.952 1.565 1.560 0.3 Productive Sector 8.588 1.227 1.054 16.4 Peace Programme 100 20* 20 — Total 40.588 5.798 4.565 27.1 *Peace only relates to 2000-2004 Regional Allocations The annual investment in the Plan is broken down by Region in line with the designation of Ireland into two Regions — Southern and Eastern Region (S&E Region) and Border, Midland and Western Region (BMW Region) — for Structural Fund purposes. The breakdown of the overall Plan expenditure on a regional basis is as follows: £ billion Per Capita £ S&E Region 27.026 10,157 BMW Region 13.562 14,051 Total 40.588 11,193 General Strategy This new National Development Plan is designed to underpin the development of a dynamic competitive economy over the period 2000-2006. It aims to build on the unprecedented economic progress of recent years and to strengthen the foundations for further strong and 1 All figures in this Executive Summary are in IR£; figures in the various Chapters of the Plan are primarily in EURO to meet EU requirements. 2 Expenditure under the Regional Operational Programmes is grouped as appropriate under each Heading. 7 sustainable progress in the years ahead. Unlike its two predecessors, this is not a Plan primarily designed to draw down EU Structural and Cohesion Funds. Whilst these Funds will continue to perform a valuable, albeit, declining role as a source of funding, this Plan is based first and foremost on an assessment of the development needs of the country. The central challenge which is addressed in this National Development Plan is the implementation of public policies which will increase the capacity of Ireland’s economy to maintain strong and sustainable output and employment growth. It must prepare the economy for the competitive challenges arising from new and rapidly changing domestic and international economic conditions. In doing this, it will help to ensure that Ireland’s recent economic progress is consolidated and built on in a sustainable way. Crucial associated challenges are the better distribution of the fruits of economic growth both regionally and throughout society and an appropriate balance between the environment and development. The Plan strategy will be complemented by appropriate policies in non-Plan areas of public policy. Specific Objectives and Strategies The following national objectives will underpin the strategy for the National Development Plan (NDP) 2000-2006. • continuing sustainable national economic and employment growth; • consolidating and improving Ireland’s international competitiveness; • fostering balanced Regional Development; • promoting Social Inclusion. The key elements of the strategy to meet these objectives are: • continuation of the stability orientated macroeconomic policies of recent years; • a major investment programme in Economic and Social Infrastructure; • a commitment to a better regional distribution of public and private investment; • the promotion of education and employment training policies attuned to the needs of the labour market and a special focus on those most at risk of unemployment; • a multi-faceted approach to the promotion of Social Inclusion, including targeted interventions aimed at areas and groups affected by poverty and social exclusion throughout the community. Background to NDP 2000-2006 The recent economic transformation has resulted in a vastly changed environment for the preparation of this Plan as compared to that which obtained in 1994. Notwithstanding the investment in Infrastructure under the current Plan, it is clear that Ireland has a significant infrastructural deficit which threatens to inhibit achievement of our economic and employment potential. In the area of human capital, the prospective slowing down in the expansion of the labour force and skills shortage in key areas are emerging as constraints on further economic and employment growth. 8 The pressure on the country’s physical and human resource infrastructure is compounded by lack of sufficient regional balance in our economic development. The infrastructure in large urban areas, especially the Dublin region, is under pressure from the upsurge in commercial and business activity and the increasing population in these areas to serve this activity. By contrast rural and smaller urban areas have lagged behind. In the overall there has been continuing divergence between the economic performances of the S&E and BMW Regions. Not all sectors of society have, however, benefited from the economic transformation. Unacceptable levels of poverty and social exclusion continue to exist in both urban and rural areas. Economic and Budgetary Framework An essential pre-condition for the major level of investment proposed in Plan 2000-2006 is the continuation of stable macroeconomic and budgetary policies. The Government is committed to this fundamental policy position. The fruits of these policies have delivered a level of resources which will allow the Plan investment to be funded notwithstanding the fall in EU Structural and Cohesion Fund receipts over the period. Accordingly, the annual allocations and ultimately the overall NDP commitment, will have to be kept to a level that respects the public expenditure ceilings set by Government, takes account of wider budgetary priorities and accords with the requirements of economic stability. In the context of making prudent provision for future costs the Government’s medium term Budgetary strategy also contains provision for pre-funding against some of the likely additional costs as a result of the prospective ageing profile of the population. Provision for such