The Government's decision today on whether to divide the State in terms of classification for EU funding would depend on what ensured a maximisation of funds from Europe, the Minister for the Environment, Mr Dempsey, said yesterday.
The Cabinet would hear a report which would identify the best option and he would then make his views known. There was no question of urban blackspots being overlooked. Mr Dempsey confirmed he was pushing for the introduction of "meaningful green taxes" in the 1999 Budget. He said the well-being of the Irish economy will not be maintained if substantial investment in water supply, sewage treatment facilities and roads, is allowed to falter. The Government had agreed that private industry will be allowed to become involved in "certain key investment projects". Some £2 billion was required for waste water treatment within six years, and significant further investment immediately needed in roads, transport and solid waste projects if Ireland was to meet EU standards.
EU cohesion funds had promoted sustainable development in Ireland, but there would be a continuing requirement for a high level of support from Europe after 1999. The national roads network remained seriously underdeveloped with £6 billion needed over 20 years.
With a reduction in EU funding inevitable, however, the investment shortfall could be made up by using "public private partnerships". Additional funding for infrastructural development "must also be mobilised through charges for services" including "use-related charging systems", he said.