Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

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.

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