Michael Ring (Mayo, Fine Gael)
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Question 70: To ask the Minister for Community, Rural and Gaeltacht Affairs the discussions he has had with cohesing Leader groups and partnerships with regard to assets held by groups in order to protect State interests in the context of the programme; and if he will make a statement on the matter. [16849/09]

Éamon Ó Cuív (Galway West, Fianna Fail)
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Officials from my Department are in ongoing contact with the cohesing Leader and partnership companies to ensure State and community interests in assets, either held by the companies or otherwise developed under programmes delivered by them on behalf of the State, are protected either through the transfer of these assets to the relevant local integrated structure or other means as appropriate.

Michael Ring (Mayo, Fine Gael)
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That is a very short answer. I have been raising this with the Minister for a while. The previous Minister asked me to find savings for the Department. This Minister announced the Leader programmes. A number of Leader programmes all over the country have not made applications for the programmes and the Minister has amalgamated a number of groups. There is great concern about this issue. There were four Leader programmes in my county and the Minister has reduced that to two. One did not even apply and the other is in discussions and is part of the process.

What has the Minister done about the State funding put into these Leader programmes? Will these assets return to the Minister, Department and the people of the country, or will they stay with the people who established companies? There is outrage about this issue. What is the amount of assets involved? Which groups have not given the Minister the assets for which the State provided the money? This is a very serious situation. If taxpayers' and European money is given to Leader groups which have property all over the country, and if these groups are no longer taking part in the Leader programme, are those assets returning to the State? What has the Minister done about the new Leader programme to protect us and ensure that this does not happen again?

Éamon Ó Cuív (Galway West, Fianna Fail)
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I will try to answer those questions as speedily and comprehensively as I can. All assets held by cohesing companies and identified under the due diligence process will transfer to the new, integrated company unless other arrangements are specifically agreed by the Department. Capital funding allocated for the development of assets through the programmes administered on behalf of my Department by the companies in question is subject to contractual obligations. These contractual provisions provide for the protection of the State's interest and will not be weakened in any way by the establishment of the new cohesing companies.

My Department is also in discussion with other Government Departments and agencies to ensure that the State's interest is protected regarding funding provided by it through these companies. My officials are in ongoing contact with the various cohesing groups regarding assisting them through the due diligence process. If the Deputy has particular concerns on assets held or developed by any specific company he should contact my Department directly and my officials will be only too happy to help him. That deals with the issues of bringing it forward. There is the legal process of due diligence.

On the new arrangements put in place by the Government, all integrated local development companies and partnerships are required to be compliant with the guidelines and model memorandum of articles of association issued by my Department in October 2007. These provide that: "The income and property of the company shall be applied solely towards the promotion of its main objects as set forth in this memorandum of association and no portion thereof shall be paid or transferred directly or indirectly by way of dividend, bonus or otherwise howsoever by way of profit to members of the [company]." It also gives a very detailed procedure for when a company is wound up and how the assets are dealt with. I can send the Deputy a copy of this because it is very relevant. We have due diligence, which is a legal process in which they must all come over. I do not have the total value of the assets. We are working with that process to ensure they all come over. When we changed into these new structures to protect ourselves, there were very clear provisions in the articles and memorandum to protect all assets now and in the circumstances of a wind-up.

Michael Ring (Mayo, Fine Gael)
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I will try to give the Minister the evidence I have. There is concern that some of these assets are being offered for sale to the private sector, even though State and Leader funding provided the assets. How many Leader companies had not co-operated with the Minister and will he take legal action against them?

Éamon Ó Cuív (Galway West, Fianna Fail)
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If anybody has not complied with the law, legal action will have to be taken. I know the company of concern to Deputy Ring and he knows I know.

Michael Ring (Mayo, Fine Gael)
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There is a number of companies about which I have received information.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The first obligation is on the company to comply with the law. Anywhere one gives a grant the State has a contractual arrangement for clawbacks if, for example, people dispose of assets. All that is provided for and protected in the normal way. However, if the Deputy believes there are people or groups not complying with their legal requirements and if he has information on this about which we are not aware we would appreciate receiving that information on a confidential basis and would follow up the issue.

Michael Ring (Mayo, Fine Gael)
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I have a final point. This is very important on behalf of the State.

Brendan Howlin (Wexford, Labour)
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I do not want to hear——

Michael Ring (Mayo, Fine Gael)
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I will not name any names. I shall put it very simply. Leader programmes equal taxpayers' money equal European money. These people did not get the Leader programme and they have major assets. My information is that these people are holding on to assets which were provided by the State. I wish to know whether the State and Europe are being protected because there is concern among the public that those in question have not handed the assets back to the Minister, namely, to the State, but, as private companies, are keeping them even though taxpayers' money actually provided the assets.

Brendan Howlin (Wexford, Labour)
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A brief reply, Minister.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Under the Leader programme there is a provision whereby a Leader company cannot provide money to itself for building but can provide to other companies. I assure the Deputy that where there are assets belonging to the State everything in our power is done to protect those assets. If it happens, for example, that a Leader company gives a grant to a private individual for an asset such as a community hall, that is perfectly all right. As the Deputy knows, if the person sells the community hall he or she must repay some of the grant, depending on how long it had been held. On the other hand, if the private individual continues to use the place as a community hall or if he or she has a little enterprise he or she then owns the asset. As long as the grant is used for the purpose given the individual has outright ownership of it.

With regard to the asset the Deputy mentioned I cannot judge how it was given and what were the contractual arrangements. I do not have the details here. However, if there are issues of concern about which the Deputy believes I am not aware, if he gives them to us on a confidential basis we will appreciate that and will follow it up.

I wish to put on record that I would be as concerned as the Deputy that every contractual obligation be fulfilled, whoever it may be who gets a grant or any other funding from the State. We are pursuing this with vigour. I know the Deputy is concerned but I am equally so.