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

The rationale behind the alignment of community projects and local government is to reduce administrative costs and provide more money for front-line services and projects for individuals and communities. I am sure the Deputy shares my objective in doing this. Some €32 million has been requested by local development companies out of a total of €90 million to be allocated this year and next year.

That amounts to 30% of all moneys available. It is an enormous amount of money in administrative funding and I would love to see some of it diverted to ensure local development company projects in Galway could be considered. Such a heavy administrative burden is not sustainable when CAP funding is being reduced, the rural development aspect will be reduced and we are trying to give as much money as possible from the Exchequer to local development companies. Becauseof this administrative burden projects and communities are being deprived of necessary funding.

About 2,000 people are employed in the various programmes in the community sector. A total of 250 people are employed under the rural development programme. It is only the administrative part that is affected by this alignment. There will be no change in employment for local community development projects, Tús and rural social schemes. What is at issue is how we can maximise the opportunity for the rural development programme under the CAP. The Minister for Agriculture, Food and the Marine will have a role to play in that regard by the end of the month.

I understand and accept the frustration of local development companies at the reduction in the rural development programme allocation, as the overall size of the programme has reduced by approximately 13%. As a result of this and in the manner I have outlined, I did my best to ensure the Galway Leader companies and other companies such as Comhairle Ceantar na nOileán and FORUM Connemara would be underpinned. If the Galway Leader companies had heeded my request in January 2012 when the scheme was opened up on a first come, first served basis, like so many other companies, they could have gained access to more funding, but they chose not to do so. Therefore, I have rewarded the companies that did and have had to cut back for companies that did not subscribe to the letter sent in January 2012.

We have received approval from the European Union for the alignment of community development and local government to streamline our structures and maximise the opportunities for projects. We have provided that opportunity in the context of a working committee in place to implement that decision. At the end of August I will review the available funding again. I am monitoring on a weekly basis the funds coming in and how we can secure the maximum drawdown. I have an interesting figure for the Deputy. Of the moneys committed to date since 2009, only 43% has been drawn down by the Leader development companies and project promoters. There are only six months left between now and end of the year; therefore, I have to question what people have been doing in the past four years in committing and drawing down funds to ensure the sum of €370 million is actually spent. The last thing we want to do is to allow money to remain in the fund to be handed back to the European Commission. That is not our objective. In taking this decisive course of action we are maximising the opportunity to spend. If money is not drawn down, the Galway rural development company and other Leader companies will have an opportunity at the end of August to have it reallocated. The drawdown has been disappointing. I ask the companies involved to work more constructively with the Department to ensure the full amount will be committed by the end of the year and that the moneys can be drawn down as quickly as possible thereafter.

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