THE Government has approved a new plan for the west of Ireland which hopes to create 15,000 jobs over 10 years through a £200 million investment fund, The Irish Times has learned.
The plan was approved by Cabinet at its meeting yesterday and will be formally announced by the Taoiseach, Mr Bruton, in Athenry, Co Galway, tomorrow. It was drawn up by the Western Development Partnership Board, set up in 1994 following the Developing the West Together initiative supported by the region's Catholic bishops.
It proposes legislation to set a Western Development Commission with executive powers to oversee and co-ordinate the various developmental agencies operating in Connacht and Cos Donegal and Clare. The commission would report to the Department of the Taoiseach.
A key recommendation is the establishment of a Western Investment Fund. This would make medium and long term funds available "to stimulate and foster commercial and social enterprises".
It would grow over four years to reach £100 million, sourced from the Government (25 per cent), the EU (25 per cent), the European Investment Bank (25 per cent) and private depositors (25 per cent).
The plan says this should "leverage" a further £100 million in commercial funding, creating a total investment of £200 million. It would be promoted and guided by the Commission.
The funds would be targeted at small and medium sized ventures which experience hardship in attracting sufficient initial capital. A "small return" is envisaged for the investments.
The plan aims to create the jobs in five strategic areas. Most of them would be in manufacturing (8,000), with 3,000 in information technology and 2,000 each in food production and the tourism/marine sectors.
Further expansion of Knock International Airport with the establishment of a tax free industrial zone is recommended. There are also calls for greater investment in roads, rail and telecommunications.