Róisín Shortall (Dublin North West, Labour)

I am responding on behalf of my colleague, the Minister for Environment, Community and Local Government, Deputy Phil Hogan. I thank Deputy Troy for raising the matter.

Axes 3 and 4 of the Rural Development Programme Ireland 2007 - 2013, which are known as the Leader axes, provide substantial support for the diversification of the rural economy and activities to enhance the quality of life in rural Ireland. The rural development programme is designed to address directly many of the challenges facing rural communities, including the need to increase economic activity and stimulate job creation, improve access to basic services for rural dwellers and encourage rural tourism based on sustainable development of natural resources. It is critical for all areas, both rural and urban, to ensure the maintenance of vibrant communities not only for the people living in such communities, but also to create attractive environments where people want to live and work and where enterprise initiatives can thrive.

The rural development programme will see the investment of €427 million in rural areas over its lifetime. In keeping with the bottom up philosophy of the Leader methodology, the local action groups delivering the programme on behalf of the Department of Environment, Community and Local Government are the principal decision makers on the allocation of project funding. In general, an overall ceiling of €150,000 grant aid per project applies to projects under the Leader axes of the programme. In certain circumstances local action groups may award grant aid in excess of €150,000 where they secure the approval of the Department to do so. It is in this context that the Department is examining the projects to which the Deputy referred.

Given the level of funding involved and the need, in our current economic climate, to ensure value for money for every cent spent, I am sure the Deputy will appreciate that a full and detailed assessment of such projects is vital. It must also be remembered that the Leader activities are co-financed by the European Union at a rate of 55% and, accordingly, come within the remit of a strict regulatory regime which requires that each project must be compliant before any funding is awarded.

The assessment of projects usually involves detailed consultations with the relevant local action group. It frequently necessitates the provision of further documentation or clarifications and may in some instances result in modifications to the project proposed to ensure best value for money and compliance with all the necessary regulations, both national and European, governing the activities funded under the programme. These assessments also consider whether the project as proposed addresses the needs of the local community in the best possible way.

Regarding the projects referred to by the Deputy, a number of issues had to be considered internally by the Department of the Environment, Community and Local Government and subsequently queries were raised with the local action group. I assure the Deputy that when all of the required information has been received, a decision will be made on the projects without delay.

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