Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Question 4: To ask the Minister for Community, Rural and Gaeltacht Affairs if local action groups have been selected to deliver the Leader element of the rural development programme for 2007-13; and if he will make a statement on the matter. [18916/08]

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

The new rural development programme for 2007-13 was adopted in July 2007 and will be delivered by my Department and the Department of Agriculture, Fisheries and Food. This programme will see an almost threefold increase in funding available for Leader-type activity in Ireland to €425 million over the lifetime of the programme. My Department is responsible for the delivery of Axes 3 and 4 of the programme. Axis 3 focuses on the quality of life in rural areas and diversification of the rural economy, while Axis 4 provides for the implementation of the Leader approach to rural development through local action groups who will deliver the measures in Axis 3.

The measures to be funded under the new programme include diversification into non-agricultural activities for farm families; support for business creation and development; encouragement of tourism activities; basic services for economic and rural population; village renewal and development; conservation and upgrading of rural heritage; and training and information on adapted and new skills. The selection process for the local action groups that will deliver the Leader part of the rural development programme will commence in the immediate future. I intend to put advertisements in newspapers next week.

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

I am glad that the Minister is to make the announcement next week. Many people in the Leader programme are very anxious that it gets up and running. Some Leader groups got funding from the Minister on a temporary basis to keep them afloat between January and June of this year. Some of them will be approved for the Leader programme, but they will find themselves in difficulty in paying their staff and in keeping their programmes going. Will the Minister make funding available for the period between the making of the application and the approval of such an application by the Department?

There is uncertainty about jobs in many of these companies. The companies will not be able to pay the staff unless they get temporary funding from the Minister. I am glad that the Minister is going ahead with the programme as it is very important for rural Ireland. The delay has been too long, but I am glad to see that the situation in Cavan and Monaghan has been resolved.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

If we could sort out Mayo, we would be——

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

I will talk to the Minister about that later.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I will be more than willing to listen. We are continuing to pay interim funding and we can do so for up to two years. This is because the Department is still paying out on the last programme. As long as the companies are still carrying out significant work, it is within our power to pay them. In 2007, nearly €6 million was made available to Leader groups for additional project funding.

The continuation of interim administrative funding is reviewed on an ongoing basis by my Department in the context of the completion of the work and the roll-out of the new rural development programme. There was a delay, but it was better to go through the process. I got a letter from the EU, through its permanent representative, clearly stating that our departmental procedures were fine. We are now proceeding on that basis. I am also delighted that the cohesion process is now going ahead in Cavan and Monaghan.

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Will the Minister provide temporary funding for the companies until the programme is up and running? Some of them have great difficulty in paying their staff. I do not want a situation where the staff are laid off and taken on later.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

The Deputy can take it that they will have funding as long as we can sort out the remaining problem. I know of no Leader company——

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

I do because some of them have contacted me.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I think they told the Deputy that the funding would have come to an end if we had not been able to get the new programme up and running.

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

My understanding was that these schemes will be——

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Nobody wrote to me stating that a company was short of money. It may be the case that they knew there would be a shortage of money if we got into an indefinite impasse, but I do not think the EU would have left it that way. EU officials replied to the query raised in Cavan and Monaghan in a very satisfactory way.