Éamon Ó Cuív (Galway West, Fianna Fail)
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8. To ask the Minister for Environment, Community and Local Government cén uair a íocfar na deontais ar fad a bhí ceadaithe ag MFG Teo. sular leachtaíodh é, cén fáth go bhfuil an oiread sin moille leis na híocaíochtaí seo; agus an ndéanfaidh sé ráiteas ina thaobh. [20459/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Meitheal Forbartha na Gaeltachta, MFG, the group contracted by my Department to deliver axes 3 and 4, which are the Leader elements of the rural development programme in the Gaeltacht areas, went into liquidation on 7 September 2011. Since then my Department has been working with the liquidators and other relevant stakeholders to ensure the winding up process was conducted in an efficient and effective way. In 2012 a new system was put in place whereby the local development companies, LDCs, situated in the geographically contiguous areas were contracted to deliver RDP funds to the Gaeltacht areas.

The liquidation of MFG inevitably caused delays in project payments and approvals. However, the system put in place by my Department has been operational for a number of months and the contracted LDCs continue to facilitate the project payment process for projects in Gaeltacht areas. I understand that issues arose with the companies obtaining the necessary insurance bonds but this matter has been resolved and should no longer be a cause of any delay.

The new companies were required to review the MFG legacy projects to ensure compliance with European regulations and programme rules and this has taken some time. The revised arrangements for the Erris area will be finalised over the coming weeks with the Mayo North East Leader Partnership and the Department. The rebalancing of the RDP is now complete and I expect to be in a position to notify local development companies of their final allocations under the programme shortly. In this regard, I will be ring-fencing an allocation for the former MFG areas and for new projects in these areas. However, my Department has directed the LDCs to pay promptly all contractual commitments properly due and has funded the companies in this regard.

Éamon Ó Cuív (Galway West, Fianna Fail)
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An bhfuil a fhios ag an Aire nach bhfuil íocaíocht dá laghad déanta i gceantar Chonamara atá faoi chúram Comhairle na n-Oileán? Le sampla a thabhairt dó de na fadhbanna atá ag éirí as seo, tá eagraíocht amháin atá ag fanacht le deontas ón samhradh 2011 agus táimid anois i mí na Bealtaine 2013. Tá fiacha ag an eagraíocht leis an chomhar creidmheasa agus tá €14,000 íoctha in ús aici. Níl Comhairle na n-Oileán ag tabhairt leide cén uair a íocfar na tograí seo i gConamara. An féidir leis an Aire Stáit deimhniú cén uair a íocfar na tograí i gConamara, a raibh airgead ceadaithe acu roimh leachtú MFG agus nach bhfuil a gcuid airgead faighte acu fós?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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As Deputy Ó Cuív correctly noted, Comhar na nOileán Teo delivered the programme for the Galway Gaeltacht. A bond is required under the regulations for the payment of advances under the Leader programme. However, it is only required by the Department for administration advances. The bond that was in place until February 2013 also covered project payments. In February 2013, the insurance company gave notice to the Minister that it would no longer provide cover. Its decision appeared to be linked to the liquidation of MFG and a claim made by the Department on the bond. The board of Comhar na nOileán Teo was not agreeable to issuing project payments without a project bond being in place. The Department informed the local development company that it would not accept this position and the company was to issue payments to promoters. I understand that, following negotiations with insurance providers, the local development companies have now sourced a provider for the insurance bond and it is anticipated that this will address the delays with regard to project payments to projects previously approved by Comhar na nOileán Teo.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Mar a dúirt fear liom uair nuair a bhí mé ag déanamh leithscéalta, "Ní leithscéal atá uaim, tá maidí adhmaid uaim." Sa chás seo, séard atá ó na daoine atá ag fanacht ar a gcuid airgead ná airgead. Ní fadhb dóibh siúd plé idir an Roinn agus na comhlachtaí Leader. Cén uair a dhéanfar íocaíocht leis na dreamanna ar fad atá ag fanacht ar íocaíochtaí i gceantar Chonamara ar dheontais a bhí ceadaithe ag MFG? Sin an cheist. Tá siad ag fanacht le freagra ar an cheist sin le bheith in ann a rá leis an dream a thug iasachtaí dóibh cén uair a bheidh siad in ann íocaíocht a dhéanamh orthu siúd. An ndéanfar an íocaíocht sin as seo go ceann coicíse?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I wish we did not have a problem with MFG as this is causing the delays. The liquidation process was far from satisfactory. The Department had to threaten to go to the High Court to extract files from MFG when it was in liquidation, which was highly regrettable.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I agree.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The problem of delays can be traced to those who were charged with responsibility and contracted, on behalf of the Department, to do the work for the Gaeltacht areas. I am sure Deputy Ó Cuív knows a significant number of the individuals in question. I assure him that I have done everything possible, notwithstanding the protracted nature of the process, to get the legal certainty resolved, the contiguous areas involved and the bonds in place in order that payments can be made to the project promoters for job creation purposes.

I cannot provide a day or date on which the payments will be made but it appears everything is in place following negotiations with the insurance providers. The local development companies were reluctant to get involved and the Department had to force the issue to ensure the insurance bond required to allow payments to be made to promoters was put in place. I hope the payments will be made shortly.