The Irish government has announced plans to invest €425m into the development of rural areas in the country.

The figure, announced yesterday by Minister for Rural Affairs Eammoin O'Cuiv, is almost three times more that the amount provided in the 2000 rural development programme.

Money will be distributed to local action groups in the Republic under the revised programme.

Key areas where capital will be employed is in the creation of new businesses, maximising tourism potential, the conservation of rural heritage, as well as a number of other development projects.

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According to the report "economic and social development of rural areas is no longer synonymous with agricultural development, enhancement of the wider rural economy is now seen as essential to the maintenance of many family farms".

The programme has recognised the major dilemmas facing the farming industry: "As a small open economy, Ireland, and its rural areas in particular, are both sensitive and vulnerable to international economic and cultural developments and influences."

"Globalisation of production, changing markets, intensified competition, rapid changes in technology and changing consumer demand together with a growing public awareness of environmental issues all impact on the organisation of economic activity and on the patterns of social integration and settlement."

It is because of this, according to the report, the majority of economic and social change originate from outside rural communities.

(PR)