"Decentralisation Can Make a Positive Contribution to Redress Regional Imbalances" - Tánaiste "Political Commitment Requires Practical Action" - Harney "Modern Communications Have Removed Limitations of Location"

Dublin's capacity to absorb population growth is limited and, in my view, real and meaningful devolution of public administration to the regions must be seen as a viable and realistic alternative.

We have already given clear evidence of our commitment to balanced regional development. The regionalisation of the country into Objective One and Objective One in Transition areas shows that we are prepared to target incentives at those areas of the country where development is most needed.

In symbolic terms the convening of full cabinet meetings in both Ballaghadreen and Cork shows that we are prepared to bring government outside the Pale. We must translate that symbolic gesture into practical action.

The time has come for a tangible and positive indication of just how far the Government are prepare to carry that commitment to better regional spread of our current economic well being. We cannot continue to urge industrialists, many of them from outside of Ireland, to locate their new and expanding businesses in regional locations unless we, ourselves are equally prepared to consider such an option. Political commitment will not be taken seriously unless it is accompanied by practical action.

Decentralisation is not an end in itself. I believe in decentralisation because I am convinced that it can make a real and positive contribution to addressing some of the very serious regional imbalances which have developed in this country over recent years.

We are confronted now with two very different sets of problems in urban Ireland and rural Ireland. By urban Ireland here I mean the five major population centres; by rural Ireland I mean all places outside of those centres.

All the major cities, but particularly Dublin, are undergoing very rapid expansion. All are seeing explosive growth in population, in employment, in tourism. At the same time they are suffering the effects of excess in demand -excess demand of housing, excess demand for public services, excess demand for scarce roadspace.

This gives rise to a situation where, for many people, incomes are improving but quality of life is disimproving. In Dublin, for instance, we now have a situation where there are more cars than ever but it takes longer than ever to drive anywhere.

But investment in infrastructure should not and cannot be our only response to this dilemma. I believe that we have the opportunity now to make decisions that can contribute to a better quality of life for all our citizens through this century and beyond.

The problem here is not excess demand, but insufficient demand. It is not just that these areas can accommodate more jobs and more people: they need more jobs and more people. They need an injection of vibrancy and energy if they are to achieve their full potential and develop as dynamic communities. And decentralisation has a crucial role to play in this process.

In the past we have decentralised individual offices to areas outside of Dublin. The Patents Office of my Department is, for example, located in Kilkenny. Despite this process, the bulk of Government in the broadest sense continues to operate out of Dublin City Centre. I believe that we must now look at accelerating the process so that in the future we can think in terms of locating a critical mass of different sectors of public administration in regional locations.

Certainly, there is no longer any reason why the vast bulk of our administration system should be based in Dublin. This is particularly true in the information age when data can be switched at the click of a mouse not just from county to county, or even from country to country, but from continent to continent.

Ireland is setting out its stall to be Europe's leader in the field of electronic commerce. If we are serious about electronic commerce let's show that we are serious about electronic government too.

We live in a world where location and distance are decreasing in importance. An American with a problem on his IBM PC rings the helpline. The call may be made in Boston; it is answered in Blanchardstown.

Modern communications have removed the tryanny of distance, the limitaions of location. There is now no reason why a Government office cannot function as efficiently and effectively in Ballaghadereen as in Ballsbridge.

A piecemeal approach to decentralisation will not work: moving small units will never make a real impact. We must be prepared to think big if we want to achieve real results, if we want to use decentralisation as a way of revitalising and rejuvenating whole towns and whole communities.

I envisage a two-fold process. Firstly, we identify functions which can be transferred out of Dublin. Secondly, we identify the locations which are suitable to accommodate them.

I believe that decentralisation is a win-win option for this country. Dublin stands to gain from any reduction in the huge demand and pressures which are placing such a strain on our capital city. Towns and communities of rural Ireland stand to gain not just from an influx of people but from the injection of energy and enthusiasm which those people will bring with them.