Frances Fitzgerald (Dublin Mid West, Fine Gael)

I propose to take Questions Nos. 9, 15 and 21 together.

Axes 3 and 4, Leader, of the Rural Development Programme 2007-13 envisage funding of €427 million being made available for allocation to qualified projects up to the end of 2013, with expenditure under the programme potentially continuing for a further two years up to the end of 2015. In the current programming round, 36 local action groups are contracted, on my Department's behalf, to deliver the programme throughout the country and, as Deputies are aware, those groups are the principal decision-makers on the allocation of project funding. Such decisions are made in the context of the local development strategy of the individual groups and in line with departmental operating rules and EU regulations. The overall nature of the bottom-up approach here ensures that such groups are an integral part of the framework for the implementation of Leader-type activities under the programme. At this time there are no plans to change the implementation framework in the current programming round.

As Deputies are aware, the main objectives of the programme are to improve the quality of life in rural areas and facilitate diversification of the rural economy. The individual measures and indicative allocations are as follows. The amount provided for diversification into non-agricultural activities for farm familiesis €16.66 million. A total of €48.26 million has been allocated as support for business creation and development. A fund of €45.4 million has been allocated to encourage tourism activities. Basic services for the economy and rural population is to get €49.61 million. Village renewal and development has been allocated €54.2 million. The conservation and upgrading of the rural heritage has an allocation of €51.7 million. Training and information on adapted and new skills has received €29.45 million. A total of €10.7 million has been allocated to the implementation of co-operation projects

The programme currently has registered project activity of approximately €102 million, which includes €31 million in firm contractual commitments. A significant portion of these are expected to mature during 2011. Expenditure to date amounts to more than €67 million, which includes funding for a diverse range of projects from support for micro-enterprise in rural areas to the building and maintenance of community infrastructure and the provision of training in a variety of disciplines for rural dwellers. The programme has been allocated €62 million in total for 2011 and, notwithstanding current challenging economic circumstances, project activity is accelerating. I am confident that full spend will be achieved in 2011.

I am pleased with the progress to date under the programme, which continues to facilitate access to significant financial resources for rural communities. This has resulted in the proliferation of innovative and sustainable development projects all over the country, which are providing invaluable support to rural communities in these difficult times.

On the continued provision of funding to the food business, the European Commission recently clarified that projects that involve processing of agrifood products listed on Annex 1 to the Treaty of Rome may only be eligible for support under Axis 1 of the rural development programme, which facilitates funding to improve the competitiveness of the agricultural sector. A significant part of enterprise activity in rural areas focuses on food and food-related businesses and the continued provision of support for these businesses is critical as we look to ways to generate employment in rural areas. My Department is aware of the seriousness of the issue and is proactively working with the European Commission and the Department of Agriculture, Fisheries and Food with a view to ensuring that the matter is resolved in the shortest possible timeframe, thereby allowing for continued support and development of the agrifood sector through the rural development programme.

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