Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

In late 2011, the European Commission approved a change in the maximum co-funding rate from 55% to 85% for axes 3 and 4 of Ireland’s rural development programme 2007-2013. Prior to this the axes 3 and 4 rural development measures were co-funded at a rate of 55% by the EU, with the remaining 45% coming from national Exchequer resources. The 2011 agreement reduced the national Exchequer input to 15% on a net basis for 2012 and 2013, without a concomitant increase in the amount of funding to be provided by the EU. This resulted in a reduction in the overall programme complement from €427 million to approximately €314 million on the basis of the programme achieving full spend by the end of 2013.

In this context the original project allocations given to each local development company, LDC, contracted to deliver the Leader elements of the rural development programme required readjustment. We are currently carrying out an exercise to determine the level of project commitments across all LDCs and all rural development programme measures in order to complete the rebalancing of the programme in as equitable a way as possible. In addition, given the levels of spending by the LDCs from 2009 to date, it is very unlikely that full spend will be achieved by the end of 2013. The co-funding rate will revert to 55% for all expenditure beyond the end of 2013 and as a consequence of this the overall programme requirement will also change.

Until such time as this careful rebalancing exercise has been satisfactorily completed, it is not possible to be definitive regarding the remaining funding available for project commitments under axis 3 and of the rural development programme. However, I expect this exercise to be completed shortly.

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