Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the committee for the invitation to attend here today to discuss and seek approval for the Revised Estimate for the Department of Rural and Community Development. When I was here very recently for a Supplementary Estimate, I noted how important it is that the Department of Rural and Community Development exists as a stand-alone Department. By taking that decision, the Government has ensured a sustainable focus on rural and community development and the islands.

I am delighted to be here again to bring forward this Estimate, which represents the largest-ever allocation for this Department and will ensure the excellent progress made in recent years continues throughout 2023. Gross expenditure of €429 million is budgeted for 2023, which consists of €198 million in current expenditure and €231 million in capital expenditure.

My Department also has a capital carryover of €14.5 million from 2022 into 2023. With regard to the split across programme areas, €201.6 million is allocated for the rural development and the islands programme area, with €10.5 million of capital carryover also being used to support the rural regeneration and development area; €222.3 million is allocated for the community development programme, with €4 million of the capital carryover being used to support the community centre investment fund; and €5.1 million is allocated for the work of the Charities Regulator. The €201.6 million provided for the rural development programme, including the islands, is made up of €166.7 million in capital funding and €34.9 million in current funding.

Capital funding is of particular importance for the rural development programme, delivering schemes such as LEADER; the rural regeneration and development fund, RRDF; the town and village renewal schemes; the local improvement schemes, LISs, and CLÁR. These schemes are well established and are having a positive impact on towns and villages the length and breadth of the country. They allow for both small-scale support and large-scale strategic investment throughout rural Ireland.

Last year saw the highest ever level of capital investment under the Department’s rural development programme, with more than €150 million in capital funding paid out. This funding is helping to make rural Ireland an even better place to live, ensuring we support rural communities and helping the rural economy to develop and grow. The 2023 provision will ensure this investment continues, funding the strong pipeline of capital projects approved in recent months and years.

I also note the importance of the €34.9 million in current funding for the rural development programme. The current funding helps to support implementation of policies such as Our Rural Future, Towns Centre First, the national outdoor recreation strategy and, indeed, ongoing policy development. It also funds vital schemes and services including the walks scheme, the provision of rural recreation officers, the Western Development Commission and transport services to the islands. Indeed, current funding for islands is increasing from €8.5 million to €9.5 million to ensure the level of service is maintained.

The Minister of State, Deputy Joe O’Brien, is here with me today to discuss the community development programme area. The Revised Estimate will see a funding allocation of €222.3 million for 2023, with €158 million for current funding and €64.3 million in capital funding.

Having achieved strong funding growth for the rural development area in budget 2022, a key focus for us in budget 2023 was to achieve vital increases for the community development area. With regard to current funding, one of our priorities was to increase the allocation for the community services programme, CSP. A new funding model was devised in 2022 which will provide organisations with funding based on need and their ability to raise revenue through their services. The provision for CSP will increase by €3.5 million, from €48.9 million to €52.4 million. This will allow implementation of the new funding model, helping to support employment and community services delivery across the country, for disadvantaged communities in particular. Funding for the social inclusion and community activation programme, SICAP, area is also increasing, with an additional €2.3 million, increasing that allocation to €53.3 million. Of that, €1.3 million is going towards the SICAP programme and €1 million will assist other local community development supports. Other important current funding increases for community development are an additional €1.1 million for volunteering supports, bringing that allocation to €6.5 million; new funding of €1 million under the European Social Fund, ESF, for social innovation supports; and an additional €400,000 for public participation networks, PPNs, bringing that funding to €2.85 million.

With regard to capital funding for community development, we launched the community centre investment fund, CCIF, last year and the response was exceptional. This scheme has brought communities together and will ensure every community can be proud of its local community centre. I announced funding approvals of €45 million last year and funding for this subhead is increasing by €12.5 million to €21 million to facilitate this. I am also using €4 million in carry-forward from 2022 to support the CCIF, meaning at least €20 million in funding will be paid out this year as works are completed. I look forward to seeing the impact of this new scheme in 2023 and beyond.

The Government recently agreed to establish a community recognition fund, which will fund the development of community infrastructure for areas welcoming arrivals from Ukraine and those seeking international protection. This capital fund aims to recognise the contribution of communities to the national response. The total fund is €50 million, with €30 million allocated for 2023. This funding will be allocated to local authorities based on the number of Ukrainian arrivals and international protection applicants in their areas and the number of arrivals relative to the population of the area. The scheme opened for applications on Monday, 24 January and remains open until 15 March. I encourage local authorities to engage with communities to ensure that high-quality proposals are now developed.

This Revised Estimate for 2023 clearly demonstrates the Government’s continued strong commitment to rural and community development. It also sets out the funding necessary to ensure that our schemes and programmes continue to support rural areas and communities across the country. It also shows how responsive this Department is to the needs of communities both in terms of how our rural development programme has evolved over time and how new schemes, such as the community centre investment fund and the community recognition fund, can be quickly established and rolled out across the country. I thank the committee for its time. My colleague, the Minister of State, Deputy Joe O’Brien, and I will be happy to answer any questions members may have.