Border region advocating for split of NWRA

Border counties are set to receive less EU funding as a result of the wider region being reclassified.

The European Commission confirmed to the Northern and Western Regional Assembly (NWRA) that the region will move from “transition” to “more developed” status. As a result of the reclassification, EU co-financing for major projects will drop from 60 per cent to 40–50 per cent. Currently, the investment strategy for the region is co-funded by the Government of Ireland and the European Union.

While the extent of the budget cuts has not yet numeralised, the EU has announced an overall 10% cut to the European Regional Development Funds (ERDF). Based on the current funding for the period from 2022 to 2027 of €217M, that would mean the ERDF stimulus would fall just below €200M in the subsequent funding period.

The objective of the NWRA is to support strategic planning and sustainable development in the region, which includes the counties Cavan, Donegal, Galway, Leitrim, Mayo, Monaghan, Roscommon and Sligo. The programmes are focused on boosting regional competitiveness through infrastructure upgrades, research and innovation, and enterprise support.

NWRA investment in Cavan and Monaghan in recent times included the Town Centre First Heritage Revival Scheme. Last January, Monaghan County Council signed a €7M grant agreement with the NWRA for the redevelopment of St Louis Convent Chapel as a performance space and flexible community venue.

The NWRA also funds the Warmer Houses Scheme - home energy upgrades for households in or at risk of energy poverty - run by the SEAI with €65m across the Northern & Western Region. Investments like these could be at risk in the next round from 2028 to 2034.

During the meeting of NWRA members, Monaghan Councillor Seán Conlon (SF) referred to the “breaking news” that had been dropped onto all of them a few days earlier. “We certainly need a detailed response and seek out pathways towards making sure all is not lost.”

The reclassification was prompted by the region’s increased GDP, which has reached 104% of the EU average. But while Galway, Mayo and Roscommon have a GDP per capita at 133% of the EU average; five border counties including Cavan and Monaghan remain at 70 per cent.

“Those figures capture very dramatically the variation within the region,” Cllr Conlon said, adding that these border regions, contrary to the southern counties, were on the bottom of the European regional list.

The members of the NWRA heard that Galway alone made up 16,4 billion of the NWRA’s total economy of 44 billion euro, which prompted the question among members, if splitting the NWRA into southern and border counties would be a more practical approach. Cllr Richard Truell (FG) asked for confirmation that the reclassification would not affect the current funding period, which was verified.

Councillor Áine Smith (FF) for Cavan said, “we have to hit the ground running”, informing the fellow councillors, local authorities, TDs and MEPs of the funding the counties could lose out on.

Cllr Trevor Smith (FG) agreed, saying it’s a “matter of urgency” with the reduction in funding resulting in a lot less projects going ahead.

The assembly agreed to prepare a position paper on this reclassification, the implications and the approach – highlighting the imbalance due to the border region being so far behind the west. The Celt asked the relevant Minister for Public Expenditure and Reform Jack Chambers for a comment on the reclassification and specificially on if he agreed that the combined evaluation of the eight counties is still practical or if he'd be in favour of splitting the NWRA.

A spokesperson for the Minister responded: “While [the rise of GDP per capita to 104%] is still behind other regions in Ireland, this improvement shows the impact of the investments being made across the region are bearing fruit.”