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

My Department recently completed a full and comprehensive review of commitments under the axes 3 and 4, Leader elements, of the Rural Development Programme 2007-13. Project approvals were suspended during this time. However, on 24 April, as a result of this review, I was able to release the remaining €90 million funding for the Leader elements of the Rural Development Programme.

As a first step, I have allowed the issuing of contracts for approximately €42 million worth of projects that have all the necessary approvals in place.  The Local Development Companies contracted to deliver the Leader elements of the programme have two weeks to notify the Department as to whether all of the projects considered within this €42 million are ready to proceed. Once this exercise is complete my Department will then be in a position to establish how much of the €90 million is remaining and will notify each local development company of its allocation for the remainder of the programme. To date, over €214 million has been committed by the LDCs under the programme with €123 million of this paid and €91 million in outstanding commitments. The measures with the highest commitments are basic services for the economy and rural population with €48 million, village renewal and development with €39 million, encouragement of tourism activities with €33 million and support for business creation and development with €31 million.

Once the LDCs are notified of their final allocation the Department will request a revised financial plan from each LDC, which will detail how their overall allocation is apportioned under the various measures. The national allocation per measure will be based on these returns.

In the context of EU regulatory requirements, project commitments under the Leader elements of the RDP must be approved by the end of 2013, but a further two years are permitted to complete the projects and register the expenditure.

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