Dáil debates

Tuesday, 7 October 2008

Priority Questions

Rural Development Schemes.

3:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 127: To ask the Minister for Community, Rural and Gaeltacht Affairs if he is satisfied that policy initiatives designed to bring growth and prosperity to rural regions are succeeding in developing economic growth and stability; and if he will make a statement on the matter. [33568/08]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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My Department operates a range of initiatives, schemes and programmes that support the social and economic development of rural areas and the growth of rural business and enterprise. Relevant schemes include the rural development programme, the CLÁR programme, the rural social scheme, the enterprise scheme for non-Gaeltacht offshore islands and the community services programme and rural recreation schemes.

The Leader element of the Rural Development Programme 2007-13 includes specific measures on rural enterprise development. The overall aim of the new Leader programme is to improve the quality of life in rural areas and promote the diversification of the rural economy, which I believe is key to achieving sustainable economic growth and stability in rural regions. The Deputy will be aware that I launched the programme earlier this year and I expect it to be open to applications from local project promoters shortly. The funding available for the delivery of Leader activities under the rural development programme will amount to €425.4 million, which is almost treble the €150 million made available for the 2000-06 period. The new programme will also complement the other rural development measures operated by my Department.

In addition to the schemes and programmes operated directly by my Department, the Deputy will also be aware that responsibility for the creation of employment in Gaeltacht areas rests with Údarás na Gaeltachta, a body that comes within the ambit of my Department. The work of this body includes the development of rural enterprises. Information on assistance provided by Údarás na Gaeltachta is published in that organisation's annual report and accounts, which under sections 18 and 19 of the Údarás na Gaeltachta Act 1979 are laid annually before each of the Houses of the Oireachtas. Information is also available on its website at www.udaras.ie.

Finally, the Deputy should note that the Western Development Commission, WDC, another body that comes within the ambit of my Department, has responsibility for fostering and promoting economic and social development, including rural enterprise and job creation in the western region. Information on the support provided by the WDC is published in that organisation's annual report and accounts, which are also laid annually before each of the Houses of the Oireachtas. Information is also available on its website at www.wdc.ie.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Particular concerns have arisen in rural areas regarding job losses. The announcement by Aer Lingus of 1,500 job cuts will have an effect on the Shannon region, there are concerns in the Limerick region for the future of Dell and today 14 jobs were lost at Knock airport.

What is the Department's current position in respect of decentralisation? Has approval to proceed been received from the Minister for Finance and has a site been bought? When can we expect work to commence on the project?

Has the Minister entered discussions with his colleagues on fostering new ideas for job creation in rural areas? Has he held discussions with the Minister for Communications, Energy and Natural Resources regarding broadband? The European average for broadband availability is 20% but this country is only at 17%. Many rural areas cannot access broadband services and I want to know what discussions have been held on addressing that so that employment can be developed.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Although the Deputy's supplementary inquiry on decentralisation is at a remove from his original question, I will be benign and supply him with the information he sought. The Deputy will possibly be aware that 101 of the projected 140 staff have already relocated to Tubercurry. I understand the OPW is pursuing matters in regard to the purchase of the site and, when these negotiations are complete, the final decision will be subject to the approval of the Department of Finance.

In regard to broadband, my colleague, the Minister for Communications, Energy and Natural Resources, is proceeding with the national broadband scheme and according to the information I have received from his Department, it is hoped an announcement will be made on the matter within the next month.

The main issue arising on my agenda in respect of rural jobs is the €425 million being made available under the Leader programme.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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That is my next question.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Deputy's last question pertained to this programme, which represents a significant fillip. The investment by my Department in rural recreation is also creating jobs. A lot is happening and more is planned.

The project introduced under the CLÁR programme to provide three phase electricity to small businesses was a major step in the right direction because many businesses in rural areas found their expansion plans stymied by single phase power.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The Minister has responsibility for rural employment. What is his view on the Government's decentralisation policies for transferring jobs from major centres to rural areas? Why did he allow the closure of 500 rural post offices? The country now has 1,200 post offices. How can he stand by while Teagasc closes an office from Crossmolina, a rural area, and reopens it in a town? How can he accept the closure of rural courthouses proposed by the Minister for Justice, Equality and Law Reform?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Minister is not responsible for all those issues. The Deputy should pursue them with the relevant line Ministers.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Is the Minister discussing these issues with his colleagues or does he follow a different policy from them?

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I am answering Minister's questions, not questions for the Government. I can only speak about my Department's programmes and, as I explained to the Deputy, we have implemented the rural development programme. We have been closely engaged with the decentralisation programme and have transferred ten out of ten staff to Furbo, 101 out of 140 to Tubercurry, 25 out of 40 to Clifden and, despite a number of delays, are now making progress on Foras na Gaeilge. We have been creating jobs on the ground.

The rural development programme is my responsibility. I do not have general responsibility for rural enterprise, which falls to the Minister for Enterprise, Trade and Employment, except for those elements addressed by the Leader programme. I hope to be able to make a decision on the scheme by the end of this month and roll it out in the following months.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 128: To ask the Minister for Community, Rural and Gaeltacht Affairs the position regarding the roll-out of the Leader element of the Rural Development Programme 2007-13, with details of the local action groups' selection process; the timescale on the delivery of funding under this scheme; and if he will make a statement on the matter. [33535/08]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Deputy may be aware that the process for selecting local action groups to deliver the Leader elements of the Rural Development Programme 2007-13 is at an advanced stage. I expect to announce the selection of the groups to implement the programme and the allocation of funding later this month. I anticipate the programme will be open to applications from the local action groups for funding shortly thereafter.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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We need to see the roll-out of the Leader programme. Last week, I tabled a parliamentary question on Leader companies and was told a new company was being appointed to ensure EU regulations are observed. The name of this company is Mazars but I would call it a massager because it will receive plenty of State money. I understood it is now Government policy to get rid of these massagers. Does the Minister not have sufficient staff in his Department to ensure that Leader companies implement EU regulations? In regard to jobs, some of these companies will be amalgamated. Can the Minister guarantee these jobs will be open to competition and, if jobs will be lost, will the companies be amalgamated and the jobs retained even though sufficient work may not be available?

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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These are all independent companies. They are not semi-State agencies. Their boards are appointed in a certain way but the employees of these companies are not employed by the State. At the end of the day, these are private companies and, therefore, it is incumbent on them to comply with both EU and national law in regard to employment policy. They raised issues with regard to the cohesion process and bringing together staff in different organisations, and asked for expert advice, which is not available in my Department. To facilitate the process, we appointed consultants to give advice to these groups to make sure we facilitate them in complying, in their actions, with the law. The obligation is on them to comply with the law.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The Minister used the word "shortly" in his reply. When does he expect to announce the programme and provide the funding so that advertising can take place? It is important because we are losing jobs by the day in rural Ireland. Anything that can stimulate job creation is important. This programme should be rolled out. Already people are asking me and other elected representatives when the programme will be launched, when they can apply and what the scheme is about. We need to know this now and we need the scheme to be launched immediately.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I concur with the Deputy. I will not go back over what happened. As the Deputy knows, the cohesion process, which is a rationalisation process that in time will pay dividends, was difficult. There were delays and an issue was raised in Brussels, on which the European Union, thankfully, upheld the Department's position. I then found that some of the companies, despite all the time they had been given, had not set up their boards according to the direction of the Department, had not appointed chairpersons and so on. I had to take firm action at the beginning of the summer to try to get this process to move along. That seems to have happened. If I may say so, it is a case of "money talks". I am now hopeful that by the end of this month I will be able to announce the successful bidders. After that, of course, they must be awarded contracts. I hope they will be in a position to accept applications for the programme very shortly.

The good thing is that all of the €425 million is still there. The fact that the roll-out of the programme has been slightly slower than I anticipated in no way affects the amount of money involved. It just means more money will be spent over a slightly contracted period.