asked the Minister for Industry and Commerce the Government's policy with regard to regional development; and whether he proposes to give any specific guidelines to the semi-State agencies involved in industrial promotion in this regard.

22.

asked the Minister for Industry and Commerce the basis on which priority status in relation to industrial development is accorded to towns or areas.

I propose to take Questions Nos. 10 and 22 together.

The Minister for Finance has overall responsibility for national planning including regional development. I have no plans at present to give any specific guidelines to the State industrial promotion agencies in relation to regional development.

Under the Industrial Development Act, 1986 I am empowered, with the consent of the Minister for Finance, to designate certain parts of the country for higher level capital grant assistance as a means of giving special encouragement to the development and location of industry in such areas. At present, 11 counties along the western seaboard plus west Cork and part of County Limerick are designated.

I am surprised at the Minister's answer in one regard. He says that he has issued no instructions with regard to regional development. Is he saying that with the advent of regional application towards the EC and the single market he has no plans even at this stage or no ideas coming forward as to what is to happen in this area? I hope that he has some plans. Would he indicate what they are at this stage?

Of course, there are plans. The question is whether I intended to give specific guidelines and also the basis on which priority status is allocated to various towns. With regard to priority status, the factors taken into account are, for example, factory closures and the effect on the local economy, unemployment, availability of a suitable work force, suitability of town areas for further industrial development and realistic options for achieving industrialisation in the area. Under the Industrial Development Act of 1986 the IDA have been given the role of fostering the national objective of regional industrial development. I am happy that the agencies in the field are taking account of regional development.

Would the Minister not accept that the whole basis of the market is changing at the moment and that there is need for specific guidelines, not to increase bureaucracy but to define where we should be going now rather than waiting for a year or two? Would the Minister accept that there is a need for this?

I accept that completely. The increase in the European Community structural funds and increased access of Ireland to those funds will give us additional scope in the area of regional development. The Government are looking very closely into this matter. One must be very careful also in this regard. A large amount of those funds would obviously be allocated on a project by project basis rather than county by county. Perhaps in many ways the latter might be a more sensible approach to take. The Deputy is quite correct, the ballgame is changing because of the structural funds. I am fully aware of that and we are planning accordingly.

Would the Minister agree that the possible implementation of the NESC and ESRI reports on designation which the Government are considering would represent the most radical ever overhaul of regional policy in the history of this State? Would he indicate when he expects the Government to be in a position to come to a decision on this matter and if it has gone to Cabinet yet for consideration?

The Deputy is probably correct in that the proposals from the NESC and ESRI, as I understand them, would make quite a radical change in the structure of the designated areas. In reply to the last question, there is a memo in course of preparation by the Government.

Is the Minister of State aware that his Minister this time last year gave a commitment that he would put proposals to Government before the autumn of 1987 in relation to the reports to which Deputy Bruton has referred? Is he further aware that Counties Donegal, Louth and Wexford have the highest rates of unemployment and that two of these counties are not designated at all? The current position is that many of the designated counties have the lowest level of unemployment.

I do not have the reference to Minister Reynolds' statement to which the Deputy refers so I cannot comment on that. I am aware of high unemployment in the regions mentioned by the Deputy. There are considerable unemployment difficulties in many other parts of the country also, including Dublin, as mentioned by Deputy Mac Giolla, although, as I said, the unemployment position is improving.

I take it that the Minister and the Minister of State would have a common position on this issue?

We have a common position on all issues.

I should like to be a fly on the wall.