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

Meitheal Forbartha na Gaeltachta, MFG, the group contracted by my Department to deliver axes 3 and 4, which are the Leader elements of the rural development programme in the Gaeltacht areas, went into liquidation on 7 September 2011. Since then my Department has been working with the liquidators and other relevant stakeholders to ensure the winding up process was conducted in an efficient and effective way. In 2012 a new system was put in place whereby the local development companies, LDCs, situated in the geographically contiguous areas were contracted to deliver RDP funds to the Gaeltacht areas.

The liquidation of MFG inevitably caused delays in project payments and approvals. However, the system put in place by my Department has been operational for a number of months and the contracted LDCs continue to facilitate the project payment process for projects in Gaeltacht areas. I understand that issues arose with the companies obtaining the necessary insurance bonds but this matter has been resolved and should no longer be a cause of any delay.

The new companies were required to review the MFG legacy projects to ensure compliance with European regulations and programme rules and this has taken some time. The revised arrangements for the Erris area will be finalised over the coming weeks with the Mayo North East Leader Partnership and the Department. The rebalancing of the RDP is now complete and I expect to be in a position to notify local development companies of their final allocations under the programme shortly. In this regard, I will be ring-fencing an allocation for the former MFG areas and for new projects in these areas. However, my Department has directed the LDCs to pay promptly all contractual commitments properly due and has funded the companies in this regard.

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