Dáil debates

Wednesday, 1 May 2013

Ceisteanna - Questions - Priority Questions

Leader Programme.

1:45 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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4. To ask the Minister for Environment, Community and Local Government the total amount of money provided for projects in the LEADER programme 2007 - 2013 broken down by measures; the amount sanctioned in each measure to date; the amount that remains to be sanctioned; the latest date for sanctioning projects; the total spend to date on projects in the programme; and if he will make a statement on the matter. [20597/13]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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My Department recently completed a full and comprehensive review of commitments under the axes 3 and 4, Leader elements, of the Rural Development Programme 2007-13. Project approvals were suspended during this time. However, on 24 April, as a result of this review, I was able to release the remaining €90 million funding for the Leader elements of the Rural Development Programme.

As a first step, I have allowed the issuing of contracts for approximately €42 million worth of projects that have all the necessary approvals in place.  The Local Development Companies contracted to deliver the Leader elements of the programme have two weeks to notify the Department as to whether all of the projects considered within this €42 million are ready to proceed. Once this exercise is complete my Department will then be in a position to establish how much of the €90 million is remaining and will notify each local development company of its allocation for the remainder of the programme. To date, over €214 million has been committed by the LDCs under the programme with €123 million of this paid and €91 million in outstanding commitments. The measures with the highest commitments are basic services for the economy and rural population with €48 million, village renewal and development with €39 million, encouragement of tourism activities with €33 million and support for business creation and development with €31 million.

Once the LDCs are notified of their final allocation the Department will request a revised financial plan from each LDC, which will detail how their overall allocation is apportioned under the various measures. The national allocation per measure will be based on these returns.

In the context of EU regulatory requirements, project commitments under the Leader elements of the RDP must be approved by the end of 2013, but a further two years are permitted to complete the projects and register the expenditure.

I propose to circulate with the Official Report a tabular statement setting out the information requested.

RDP MeasureCommitted Paid to DateOutstanding CommitmentsAxis 1      Adding Value to agricultural & Forestry €652,491.76 €89,554.07 €562,937.69 Axis 3      Diversification into Non Agricultural Activities €8,737,999.06 €4,649,297.91 €4,088,701.15 Support for Business creation and Development €31,403,610.85 €16,448,988.11 €14,954,622.74 Encouragement of Tourism Activities €33,069,048.76 €18,958,837.08 €14,110,211.68 Basic Services for the economy and rural population €48,819,325.40 €31,983,717.29 €16,835,608.11 Village renewal and development €39,976,287.81 €21,977,607.18 €17,998,680.63 Conservation and upgrading of the rural Heritage €21,615,785.43 €12,922,866.00 €8,692,919.43 Training and Information €17,460,239.27 €10,578,294.23 €6,881,945.04 Skills acquisition and animation €7,805,809.38 €3,435,325.63 €4,370,483.75 Co-operation €5,006,575.90 €2,176,448.89 €2,830,127.01 Total Axis 3€213,894,681.86€123,131,382.32€90,763,299.54Total Axis 1 & 3€214,547,173.62€123,220,936.39€91,326,237.23

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister for that information. However, about six weeks ago during parliamentary questions, he did say that we would have the information in ten days since the companies would be allowed to give approvals.

Will the Minister explain why this did not happen and why it has taken six weeks to come half way? Each company will put in a revised financial plan. Is there any limitation on the Department in respect of swapping money between subheads or is it at the discretion of the Department that if one subhead has a heavy expenditure and another has less expenditure to swap the money around between the subheads?

1:55 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Deputy Ó Cuív is correct that it took longer than anticipated. I am sorry it took so long but we are there now and we have got a comprehensive report from the division in the Department to ensure we have a clear picture of what can be spent under the various axes and the remaining funds in the programme. We have to get approval from the managing authority, in this case the Department of Agriculture, Food and the Marine and the European Commission about changing money from one axis to another. We did that successfully last year. Therefore it is possible to do it. Certainly there is more interest in some of the measures than others, as the Deputy will be aware from his constituency. There is particular pressure on the basic services measure and on the tourism measures which appear to be the most attractive for people in communities seeking to have projects approved. We are conscious of the need to be flexible so far as we can within the guidelines of the Commission and with the approval of the Commission to move money around.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I would not have thought there would be a need to move it between the axes. If memory services me correctly, axis 3 is the project money and axis 4 is the administration money. I presume the administration money will be used for administration which means there will not be much swapping. However, what is required is swapping between the measures. I presume the Department of Agriculture, Food and the Marine will do whatever is necessary. Does the Minister foresee any difficulty with the Commission in swapping money between the measures and reformulating between the measures? When we agreed the process at the beginning I was told there would not be any difficulty in swapping the money within the measures, once it was kept within the correct axis. Perhaps the Minister would confirm if that is still the case. The Minister said a comprehensive analysis was carried out. On the last day I recall the Minister saying that €100 million remained to be allocated, whereas today he said it was €90 million. The difference is not hugely significant, considering that no project was passed in February and March with only a small number in April. Is it possible to give permission for small projects with clear time constraints? For example, festivals, assisted by the Leader programme, which are due to take place in the summer, will not significantly change the arithmetic. Would it be possible to give permission for these events well in advance as it is difficult to plan without knowing whether one will get Leader funding?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am glad to inform Deputy Ó Cuív that the festival money was approved last week and all the various festivals that would have applied for funding would have received their notification in the past ten days.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I am aware of a festival which is to take place in July and it has been told by the Leader company that it cannot approve it as it is not on the list.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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If it was not on the list before the allotted time, perhaps it was not approved. If the Deputy supplies me with the details I will certainly try to assist.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I have put resources into the section in order to speed up the approval process for projects. I am conscious that there is a time limit on these projects. There is often a misunderstanding about the number of large projects in the system. There are only 39 nationally in the system. I can assure the Deputy that I will do everything possible to release money as quickly as possible for the benefit of the projects. In line with precedent for moving money from one axis to the other, which we secured about a year ago, when the basic service measure needed more money we were able to get agreement from the Commission on that issue. I hope for the same flexibility in the future if the demand arises.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister has deep pockets. Will those over €150,000 be paid now?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Some 39 of them will be paid now.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Very quickly.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Yes, once everything is in order, from the next couple of weeks.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister.