CHAPTER 16: THE DYNAMICS OF REGIONS (1) – AN IRISH PERIPHERAL REGION
economic crisis.Many schemes were stopped, postponed or reduced in size because the government could no longer afford to pay for them. Anew plan, ‘Infrastructure Investment Priorities 2010- 2016’, was launched in 2010. It will spend just €39 billion on vital infrastructure across the country. The main cutbacks were in housing, roads, healthcare and education. The government’s decentralisation programme was also severely reduced. Many Transport 21 projects were cut back. For example the completion of the Western Rail corridor linking Galway to Limerick has been postponed.
Despite the economic downturn the government continues to promote inward
investment to Ireland. The IDA is promoting Ireland in the areas of technology, research and development. Currently 8 of the world’s top 10 technology firms are based in Ireland. The expansion in 2010 of the European headquarters of food giant Kellogg’s and Google proves to the global investor community that Ireland can outperform competitors in attracting and retaining multinational companies.
IMPACT OF ECONOMIC RECESSION ON NDP SPENDING NDP expenditure
Revised NDP Sector
Transport Enterprise Agriculture Housing Education
planned for 2007 to 2013 (billion euro)
32.9 3.22 8.28
21.2 25.7
expenditure 2010 to 2016 (billion euro)
11.74 3.79 1.63 4.4 4.2
-64% 14% -79% -79% -83%
% change
Fig. 26 The IDA promotes Ireland in the areas of technology, research and development. Letterkenny is a gateway town.