John O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting this topic. It is necessary to raise the issue because the approval of projects under the Leader element of the rural development programme has been suspended at the Mayo North East Leader Partnership Company. This follows an ongoing investigation into the Mayo North East Leader Partnership Company.

Leader funding has played an important function in the economic and social development of rural Ireland in the lifetime of the funding. It supports hundreds of jobs, some 300 jobs in the case of the Mayo North East Leader Partnership Company. It sustains communities and it is needed now more than ever because of the difficult times. We hear a good deal about how rural communities are suffering and about services being withdrawn. Leader funding is crucial in this regard. The funding comes from Europe but the tap has been turned off and there has been a detrimental effect on various applications in the north and east Mayo areas. I am aware of a grant that has been approved for a youth cafe in Ballyhaunis, while applications relating to the Seosamh Mac Gabhann summer school in Kilmovee, the John Healy weekend in Charlestown and a community centre in Kilkelly have been delayed. This week I was contacted by Ballina Town Council, which expressed its concern at the suspension of funding. There is a mystery or cloud about it and it is important that clarity is provided. This is the reason I am raising the matter today. In addition, rumour and innuendo have been doing the rounds about why the investigation was requested, by whom and why it is taking so long. This is really why I need clarity today.

The big issue is funding. Projects worth almost €2 million are either in the pipeline or ready to be applied for in this region. Approved projects must be paid out while others must be applied for, approved and allocated before the end of 2013. The important thing is that funding is not lost to the region. Everyone understands that there must be strict rules and guidelines and that these must be transparent and above board. The whole affair has dragged on. I am keen to know when the investigation will be completed or, if it is complete, what was the outcome and when will funding be restored to the projects that have been approved.

Fergus O'Dowd (Louth, Fine Gael)
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Funding of €314 million is available under the Leader elements of the rural development programme for allocation to qualifying projects up to the end of 2013. There are 35 local action groups or Leader companies contracted on behalf of the Department of the Environment, Community and Local Government to deliver the rural development programme throughout the country. These groups are the principal decision-makers in respect of the allocation of this funding. Such decisions are made in the context of the local development strategy of the individual groups and in line with the operating rules and EU guidelines.

Currently, Leader activities are co-financed by the European Union at a rate of 85% and, accordingly, come within the remit of a strict regulatory regime which requires that each project must be compliant before any funding is awarded by the Leader companies and that the conduct of these companies must be shown to be beyond reproach. Furthermore, the conduct and constitution of the companies must be in accordance with the corporate governance guidelines. These guidelines are designed to assist the companies, sectors and pillars that are involved in supporting and promoting social, enterprise and community development at local level. The provision of public funding to such companies imposes national and EU obligations on the Department to ensure that there is transparency in the receipt, administration and disbursement of such funds. It is essential that the companies are governed by appropriate standards which provide the companies, their directors and other stakeholders, such as the public, the Department and the EU, with a reasonable assurance with regard to the governance arrangements in place.

Mayo North East Leader Partnership Company is the local action group contracted by the Department to deliver both the rural development programme and the local community development programme to the north Mayo area. On foot of correspondence received in 2011 by the Minister for the Environment, Community and Local Government, Deputy Hogan, regarding a possible governance issue at Mayo North East Leader Partnership Company, the Minister directed his Department to investigate the matter. This investigation is complex and pending its completion the authority for Mayo North East Leader Partnership Company to approve projects under the Leader elements of the rural development programme was suspended in early March 2012. This will remain the position for the time being. Regretfully, since the required processes relating to the investigation report are ongoing I cannot comment further on the matter at this stage.

John O'Mahony (Mayo, Fine Gael)
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I thank the Minister of State for the answer but the problem I have is that there is no timeline. The basic question that required an answer was whether the backlog would be cleared and whether new applications would be opened up soon in order that all the money that can be drawn down is made available. It is important that this issue is clarified for the sake of confidence in the Leader programme and for the sake of the new projects and the communities in the region. I understand Cabinet meetings are under way today and I thank the Minister for State for taking the debate, but I am keen to know when clarification will be published.

Have other investigations like this taken place elsewhere in the country? If so, have they taken as long as this? It is important that everything is absolutely above board but it is also important that allocated funding is made available and can be applied for. Communities are depending on this.

I noted earlier that innuendo has been flying around about who was responsible for whistleblowing and so on.

While the Minister of State may not be able to clarify the matter now, it is important it is clarified because some of the rumours I have heard are untrue. It is important that the truth is established and that the funding is made available as soon as possible. I ask the Minister of State to seek answers to my questions and to revert to me at a later stage if possible.

Fergus O'Dowd (Louth, Fine Gael)
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I thank Deputy O'Mahony for the manner in which he has raised this matter. The Deputy has raised some important issues, which I will bring to the attention of the Minister, Deputy Hogan, for direct reply to him.

It is important that the Minister ensures that the funding programmes are delivered in an efficient and effective manner and in compliance with EU and national requirements. When an issue is identified, a comprehensive process of investigation is required to determine whether the programme is being delivered in the appropriate manner. Obviously, investigations such as this cannot be rushed and must be thorough and complete. They must be seen to be fair and to get to the truth of the matter. I assure the Deputy that the Department of the Environment, Community and Local Government will act on the recommendation of the investigation as soon as possible and will support the local area and continue to provide resources through the rural development programme into the future. Programmes were suspended in March 2012. This remains the position for the time being. However, as the required processes relating to the investigation board are ongoing, I cannot give any further commitment or comment further at this time. I assure the Deputy that the Minister, Deputy Hogan, will be made aware of his comments.