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

As Deputy Ó Cuív correctly noted, Comhar na nOileán Teo delivered the programme for the Galway Gaeltacht. A bond is required under the regulations for the payment of advances under the Leader programme. However, it is only required by the Department for administration advances. The bond that was in place until February 2013 also covered project payments. In February 2013, the insurance company gave notice to the Minister that it would no longer provide cover. Its decision appeared to be linked to the liquidation of MFG and a claim made by the Department on the bond. The board of Comhar na nOileán Teo was not agreeable to issuing project payments without a project bond being in place. The Department informed the local development company that it would not accept this position and the company was to issue payments to promoters. I understand that, following negotiations with insurance providers, the local development companies have now sourced a provider for the insurance bond and it is anticipated that this will address the delays with regard to project payments to projects previously approved by Comhar na nOileán Teo.

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