The Minister for Community, Rural and Gaeltacht Affairs, Mr Ó Cuív, said he is "concerned" about the €644 million shortfall in National Development Plan spending in the Border, Midlands and Western region, writes Lorna Siggins, Western Correspondent.
He said there was "no quick fix" to the underspend, which was highlighted last week by the Western Development Commission (WDC).
However, the Minister said he hoped that the Government would "narrow the gap, if not close it" between now and the end of the plan's lifespan in 2006.
A new strategy announced by Mr Ó Cuív yesterday in Sligo is aimed at closing the gap, and matching infrastructure with development in the western region.
Speaking at the publication of the WDC's annual report at Sligo Folk Park in Riverstown, he said he had asked the commission to draw up a strategy for towns on radial routes in the west.
The strategy aims to co-ordinate and expedite development in the seven western counties which the WDC represents - Donegal, Sligo, Leitrim, Roscommon, Mayo, Galway and Clare - and will involve "cross-Border" co-operation between local authorities and agencies.
He said it was "vital that infrastructure and development go together - that each should make the other happen."
The WDC has welcomed the Minister's initiative, and said it was well placed to co-ordinate a planned approach to spatial development.
"We have a good track record in developing blueprints that are coherent, realistic and practical, and that build on the west's considerable resources," Ms Lisa McAllister, the WDC's chief executive, said.
"Our work in rural tourism is a good example. We have consistently emphasised the role of smaller towns in regional development.
"People want to work close to where they live, and not have to commute long distances."
Mr Michael Farrell, the WDC chairman, said the report showed how active it had been in highlighting transport, telecommunications and power infrastructure needs in the region.
Last year, the WDC expressed concern about the slippage in the NDP's road programme, and a submission which it made to the Government's strategic rail study recommended replacement of rolling stock, additional services and better timetabling on inter-city services to the west.
The WDC said the proposed western rail corridor and commuter lines for Galway and Sligo merited "serious investigation".
The report says that projects approved or disbursed last year had the potential to create or sustain more than 450 jobs, and the fund levered some €13.2 million in additional support for projects.