Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I was stunned yesterday to hear that the closure is imminent of the Inchicore community development project. Obviously, I am aware, as has been publicised since, that there is a criminal investigation into the misappropriation of funds in regard to this project. I wish the Garda well in that because the only person who looks like benefiting from this is the person guilty of the fraud, embezzlement or whatever has occurred. The decision of the Department to advise the community development project in Inchicore that it would not give it any more funding means not only that three people are out of work but also that a community which has already been severely affected by the current crisis, and previous non-investment, will suffer further.

I appeal to the Minister to think again about the decision to withdraw funding, to deal with the misappropriation of funds and to come up with a mechanism to prevent that type of carry-on happening again in the Inchicore community development project or any community development project. He should deal directly with it but he should not withdraw funding from an area which has in recent months been told the entire regeneration of St. Michael's estate will not go ahead. In the past month, it was told that eight of the projects by Dublin City Council have been deferred, some until 2012 at the earliest. This is an area with a new sports hall which cannot run at full capacity because the Government cannot match funding. It has suffered severely for many years because of a drugs crisis and under-investment.

On top of this, the community is now being told that the CDP, in which a great deal of time was invested to build it up to what it is today, will be forced to close due to what I understand are the activities of one person. This is despite the fact that a voluntary board has spent a great deal of time helping to prepare the work programme of the CDP which, in particular, addresses the needs and concerns of the elderly and new communities in Inchicore.

It is suggested that this work will be absorbed by other community groups. However, we are all aware of the problems and restrictions which other community groups work under and they will not have the capacity to absorb the valuable work in which the Inchicore CDP was involved. Even at this late stage, will the Minister of State re-examine addressing this without withdrawing funding and closing Inchicore CDP?

Seán Haughey (Dublin North Central, Fianna Fail)
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I will take this Adjournment matter on behalf of my colleague the Minister of State at the Department of Community, Rural and Gaeltacht Affairs with responsibility for community affairs, Deputy John Curran.

The community development programme was established in 1990 in recognition of the role of community development in tackling the causes and effects of poverty and disadvantage. The programme was the first nationally funded intervention in support of communities that used community development principles and methods. Community development seeks to challenge the underlying causes of disadvantage resulting from the effects of poverty and exclusion. It aims to offer new opportunities for those lacking choice, power and resources. Community development involves members of a community working collectively in assessing needs and identifying the changes necessary to improve conditions and making these changes happen. People use and develop their skills, knowledge, experiences and common purpose to improve the quality of their own lives and the good of their community. The National Development Plan 2007-2013 allows for the continuation of the programme to support the development of communities.

At present, 180 projects are funded under the programme through the Department of Community, Rural and Gaeltacht Affairs. These are located nationwide in recognised urban and rural disadvantaged areas. All projects have an anti-poverty, anti-exclusion focus and are managed by local voluntary management committees. Projects are expected to operate as a resource to the communities in which they are located with their main purpose being to work with the community in identifying and tackling those issues which have resulted in a lack of positive community development.

In general, projects are typically concerned with the needs of women and children, lone parent families, the unemployed, the elderly, young people at risk, Travellers, those with disabilities, new communities and other disadvantaged groups. They provide facilities such as meeting rooms, crèches, office facilities and training or education projects designed to meet the needs of disadvantaged groups in their communities. An allocation of €24.5 million has been provided for the community development programme for 2008.

Inchicore community development project has been funded under the community development programme since 2004. Funding of €30,000 was paid in 2004, €67,400 in 2005, €72,000 in 2006 and €91,880 in 2007 from programme funds to the project. The project was allocated core funding of more than €110,000 for 2008, which has been fully paid to the project.

The difficulties being experienced by Inchicore community development project have not been caused by the recent budgetary situation. It is understood that the voluntary board of management of Inchicore CDP has been advised by its auditors and legal advisers to cease trading. Due to misapplied funding in the project the company is insolvent and to continue to trade would expose the board members personally to penalties and fines under company law, as they would be regarded as trading recklessly. The Department of Community, Rural and Gaeltacht Affairs is not, therefore, in a position to provide further funding to the project on the expiry of the current contractual arrangement with the project at the end of the 2008.

The Department was informed by telephone in September 2008 that the project had reasonable grounds to suspect that there may have been a misapplication of public funds by a member of staff engaged by the project. It was suspected that misapplications of funding had occurred in 2008 and in previous years. The chairperson of the project followed due process and informed An Garda Síochána of the suspected misappropriation.

The Department was informed by telephone by the board of Inchicore CDP Limited that its solicitor had advised it to follow the advice of the auditor to cease trading. The solicitor further advised that to continue trading could expose individual board members to penalties and fines. The board decided at a meeting on the 17 November 2008 to accept this advice and to cease trading.

A number of other companies in Inchicore are conducting community development type activity in the catchment area, including a number of CDPs and partnership companies. In the interest of the local community the Minister of State, Deputy Curran, has asked departmental officials to examine the possibility that one of these groups carries out some of the initiatives previously undertaken by Inchicore CDP.

The Government remains committed to the community development programme and to the communities they serve. The community development programme has made a considerable contribution to the tasks of countering disadvantage and in promoting equality and social and economic inclusion. The high numbers of communities and individuals supported by the programme since its inception is the result of the hard work and commitment of the boards of the community development projects.

The key to the success of many social inclusion projects is due in no small part to the input and commitment from individuals and community groups from all over the country. However, in the current economic environment, there is an ongoing need to ensure that resources are directed in a targeted and effective manner and that we are constantly subjecting our activities to critical appraisal, in this way we can continue to ensure that those we work to assist will receive the maximum benefit.

As with all other Government programmes and initiatives, the amount of funding available for the programmes will be less in 2009 than in recent years. This will present significant challenges in the short term. The programmes will continue to support the mobilisation of local communities to tackle disadvantage. The aim is to improve participation and quality of life for the less well-off in our communities. Projects will continue to be supported to encourage the active voluntary participation and development of community leadership in areas of greatest need.

It is disappointing that the Inchicore project finds itself in this situation. However, in line with good governance procedures and practices, the Department of Community, Rural and Gaeltacht Affairs requires funded companies to be fully compliant with their statutory and regulatory obligations. The Minister of State, Deputy Curran, shares the Deputy's concerns for the community of Inchicore and as I stated his officials are investigating alternative mechanisms for delivering on the project's workplan for 2009 and beyond.