I am very pleased to be present here, with you all this morning, to have the opportunity to address this Conference, to record the achievements of STEP-UP, a project, aimed at assisting companies in the border regions. This project is especially beneficial, as it has provided opportunities for small companies to avail of the advances, that have been made recently, in information technology and telecommunications.

The Step-Up project, is part funded, under the Northern Ireland/Ireland Interreg 11 Programme. Interreg is a European Union Initiative, with which I have been personally involved, for many years. It is specifically designed to address and reverse, the particular economic problems of border regions, both internal and external, right across Europe. It was created to redress the tendency for economic activity, to move towards centres of large population, which already have infrastructure and access to the services, which are essential for business.

As you are probably aware, the Interreg Initiative aims to achieve its objective in two ways. Firstly, it encourages and supports networks of cross border co-operation and necessary contacts. Secondly, it provides important financial assistance, for a range of economic activities, which will help counter the disadvantage of the relative isolation, of border areas, irrespective of their geographical location.

The INTERREG Programme provides funding for a wide range of measures, in support of economic development, in both Northern Ireland and in the six border counties of the Republic of Ireland, including support for infrastructural investments. Considerable progress has been made in both the allocation and spending of this funding. To date, the Programme has attracted over 1,300 applications, of which 830 were cross-border, in nature. Almost 75% of the 700 projects approved to date, are cross-border, in nature.

The Step-Up Project, is a prime example of an Interreg Project, in that it has fostered close co-operation, between many organisations - British Telecom (B.T.), Telecom Eireann (T.E.), Enterprise Ireland (E.I.), Udarás na Gaeltachta (U.N.G.), LEDU - Northern Ireland's Local Economic Development Unit, the North West Institute of Further and Higher Education, Western Connect, GCOM Teoranta, NISTAR and MSL.

At the commencement of this Initiative, about 500 small companies, from both sides of the border, North and South, were invited to participate in awareness raising workshops, which were held in Derry and Newry, here in the North and in Donegal, Sligo and Monaghan; just across the border in the South. Those companies, which it was felt could best benefit from the Programme were then encouraged to go on to the next stage of the Programme.

Following detailed analysis and scrutiny 27 companies were selected for progression to the Implementation Stage, of the Project. The criteria for deciding which of the companies should be selected included the following:

• a need to communicate more efficiently with both customers and suppliers,
• involved in cross border trade, or have international customers or suppliers, and
• regard was also had, to technology and business audits, which were prepared by one of the regional co-ordinators, who has expertise in this area.

Step-Up's main focus was to encourage companies in the border regions to work together share experiences and explore the benefits that modern day technologies could bring to their Businesses.

Four company groups were established in the following sectors:

• Construction;
• Manufacturing;
• Craft and Design; and
• Tradable Services.

Participants in the Project, found this co-operative approach extremely useful, as it enabled them to establish a network of contacts for the purpose of sharing both knowledge and experience. In particular some of the larger companies which have sophisticated IT systems were able to act as mentors to smaller businesses, in the same industry sector.

A key objective was to introduce systems into firms which demonstrated the many benefits of advanced information technology and telecommunications.

For many, the introduction of electronic mail (e-mail) and internet access, has improved efficiency by enabling companies to provide a better service to their various customers.

It has also created marketing opportunities on the world wide web. Others have implemented much more advanced systems, including computer aided design, ISDN lines and file transfer software. This has allowed companies, to improve their service, as they are able to change designs on-line and reduce costs, by not having to pay for couriers.

Step-Up has been a major success because of the well managed streamlined Project approach, with clearly defined objectives. However, a key element of the success was the absolute commitment of all of the companies and their dedicated staffs.

Without this commitment to move forward and embrace the technology, success could not have been achieved.

The number of joint projects submitted and approved, reflects a keen awareness of both the opportunities and possibilities, arising from cross-border trade and development within this region, across all sectors of the Programme. While some of this may be attributable to normal business acumen and the filtering effect of the Programme requirements, there has also been a significant effort by bodies on both sides of the border, to appraise and meet local needs.

Despite the absence of the more formal structures and greater administrative resources, which are available in some of the more densely populated border regions, in mainland Europe. You have been able to come up with innovative and effective Projects, to promote regional and local development.

Projects such as Step-up, which combine local expertise with European funding, complement and enhance the existing and ongoing State and EU aids for industry and infrastructure, applicable on both sides.

The European Commission Communication on Cohesion and the Information Society, states that "the uptake of Information and Communication Technology affects a Region's ability to exploit and develop their Human Resources, Infrastructure and the like, thus determining a Region's Development potential". This is very important especially for SME's, which represent the backbone of regional economic structures, particularly in less favoured regions".

By assisting its clients to optimise the use of these technologies, to develop their businesses, the Step-up Project has contributed to their competitiveness, not just at local or national levels, but also in a global context, thus helping to secure the future prosperity of this Region.

The contribution of European Programmes, to all of the people, on the island of Ireland, over the past quarter of a century, has been invaluable.

These vital Programmes have been the catalyst for the creation of a modern island economy. They have given us new systems, new goals, additional resources, and commercial opportunities, which previously did not exist and a sense of achievement, along with a new confidence and vision, in an ever-growing European market, which is the International route to other global markets, which if exploited carefully and practically, will ensure that all of us, constantly working together, North and South, as a collective cohesive economic unit, will maintain and improve the standard of living required and deserved, by all of the people, on the island of Ireland.