James Bannon (Longford-Westmeath, Fine Gael)
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I thank the Ceann Comhairle for affording me time to discuss this important issue, namely, the need for the Minister for Social Protection, or the Minister for the Environment, Community and Local Government, to restore funding to Lough Ree Area Development Co-operative under the Pobal community services programme. The loss of the invaluable service the co-operative provides to the community would have a detrimental effect on County Longford and the midlands as a whole. Lough Ree Area Development Co-operative in Lanesborough, County Longford, has had its funding for community development projects withdrawn by Pobal. This grant aid was essential to the running of community-based projects as it paid staff salaries. While youth services and the boxing and bridge clubs are not affected by the decision to withdraw funding, some other services are set to be scaled back. Not only will the projects in question be lost to the community but six members of staff have lost their jobs. Considering that the midlands is experiencing a high level of unemployment, there is little chance that the staff members in question will find alternative employment.

While I am aware that the withdrawal of funding was made on foot of an internal verification visit to the centre, the directors of the co-operative believe the decision to withdraw funding was unreasonable on the basis of the information provided. The main area of contention appears to be the manner in which time keeping was recorded and managed for the audit period. Following the findings of the audit, Lough Ree Area Development Co-operative has made every effort to resolve the problems highlighted. It is essential, given the valuable work the co-operative undertakes on behalf of the local community, that a full review of the audit be carried out. It is surely reasonable in light of the current financial and employment crisis being experienced in County Longford that every effort be made by Pobal to work with the co-operative to iron out any perceived problems.

The termination of funding to an organisation which provides a valuable service to the community, coupled with the loss of six jobs, is a major blow to County Longford. The co-operative will do everything possible to continue to provide services in the short term, although many initiatives have been threatened by the withdrawal of funding. It is almost inevitable, however, that services will have to be scaled back as a result of the withdrawal of funding.

The Lough Ree Area Development Co-operative was established in 1999 to help develop and promote the twin towns of Lanesborough and Ballyleague, which are linked by the River Shannon. It was involved in the establishment of the Lakeside community broadband project, among other valuable initiatives. Speaking at the launch of the project, the then Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, highlighted the valuable work carried out by the co-operative, stating that the "commitment of the Lough Ree Area Development Co-operative to improve the quality of life of the community must be lauded". This commitment on behalf of the community it serves remains as strong as ever and the work undertaken by Lough Ree co-operative is needed more than ever.

The Lough Ree Area Development Co-operative is more than willing to work with Pobal to rectify any perceived difficulties. To date, the board has used every possible means to meet any requirements for the restoration of this essential funding. At a time when every job is vital to the well-being of communities in County Longford, I am sure the Minister of State, Deputy Penrose, who has a seat at the Cabinet table, will recognise the major blow delivered by the loss of funding to Lough Ree co-operative. I have every confidence that he, with the relevant Minister, will do everything possible to have funding restored and get the co-operative up and running again.

Willie Penrose (Longford-Westmeath, Labour)
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I thank Deputy Bannon for raising this matter, which I am taking on behalf of my colleague, the Minister for Social Protection, Deputy Joan Burton.

The community services programme is designed to address locally identified gaps in the provision of services to communities and exploit the potential of community assets and resources already in place in support of the delivery of services to improve community well-being. Responsibility for the programme transferred from the then Department of Community, Equality and Gaeltacht Affairs to the Department of Social Protection in September 2010. A core requirement of the programme is that each service provider generates a significant level of its financial needs from non-public revenue sources such as by charging fees for services delivered, trading or fund-raising. Service providers in contract with the programme must be not-for-profit, social enterprise or community business in nature. The approximately 445 service providers approved for support employ an estimated 2,700 men and women in full and part-time positions.

The day-to-day operational elements of the programme are managed by Pobal on contract from the Department. Pobal is a not-for-profit company that delivers a number of publicly and EU funded programmes on behalf of Departments. As part of the services contracted by the Department, Pobal operates an independent audit and verification function to provide assurance that public funding has been spent for the purposes intended and bodies in receipt of public funds are in compliance with public accountability requirements and EU regulations, as appropriate.

An essential requirement of the community services programme is that each contract holder operates to good practice norms in respect of corporate governance, financial management, employment practices and quality of services delivered to the public. Pobal conducted an audit of Lough Ree Development Co-operative Limited in early 2010. Significant issues were identified in the operations of the co-operative which drew into question a risk to public funds. The issues identified related to corporate governance, poor management practices, inadequate financial control, poor quality record keeping and reliability of reporting. The outcome of this audit was sent directly to board members of the co-operative for their input and comment prior to any decisions being made by Pobal on continuing support from the programme. Following consideration of the audit findings and the responses to it received from Lough Ree Development Co-operative, the board of Pobal determined that the contract should be terminated. Notice of this was issued to the co-operative and an opportunity afforded to have the decision reviewed. A review was subsequently requested and conducted by a board member of Pobal who was not involved in the previous decision. The conclusion of this review was that the decision to discontinue funding was found to be correct and fair and that the process had been properly observed. The board of Pobal subsequently accepted these findings and confirmed its decision to terminate the contract.

The Deputy will agree that it is necessary that the highest standards should apply in respect to how public funds are managed and applied. All parties involved in the finding process must play their part in giving assurances to this House and to members of the public that funds are being properly applied and value is being achieved in return. Failure to do so must have consequences and may ultimately lead to loss of support from this or any other publicly funded programme. I will pass on to the Minister the points raised by Deputy Bannon.