Barry Cowen (Laois-Offaly, Fianna Fail)
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56. To ask the Minister for Environment, Community and Local Government the total amount of money provided for projects in the Leader programme 2007-2013; the amount sanctioned in each measure to date; the amount that remains to be sanctioned; the total spend to date on projects in the programme; and if he will make a statement on the matter. [33957/13]

Jan O'Sullivan (Limerick City, Labour)
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The Leader elements of the Rural Development Programme 2007-2013, RDP, commenced in February 2009 after a delay of more than two years. This reduced the time available to allocate funding to less than five years, rather than the original seven.

Following the reduction of funding available under the programme due to the increased co-funding rate from the European Commission for 2012 and 2013 and the opening of the programme on a "first come first served" basis in 2012, the local development companies, LDCs, were issued with revised programme allocations in May 2013 on the basis of an estimated programme value of €370 million. The final programme value will not be known until the end of 2013 when the precise value of programme expenditure that can be reclaimed from the Commission at 85% can be established. All programme expenditure after the end of 2013 will be refunded at the original co-funding rate of 55%.

Expenditure to date under the programme has been slow, with €19.6 million spent in 2009, €44.2 million in 2010, €47.5 million in 2011 and €53.2 million in 2012. My Department is monitoring commitments and expenditure on an ongoing basis and has given a commitment to examine all unallocated funding at 31 August with a view to reallocating funding to other qualifying projects. The final date for approvals under the programme is December 2013.

The total expenditure to date under the programme is €189 million, which includes administration costs of €42.7 million. The value of outstanding contractual commitments is €101 million, leaving a balance of approximately €80 million to be allocated to new projects and for administration costs. While up to 20% of each LDC's total programme expenditure can be spent on administration costs, all LDCs have been advised they should aim to spend substantially less than the maximum 20% allowed.

The European Commission has allowed Ireland to spend its programme in line with demand rather than on specific allocations under each measure of the programme. A revised financial plan will be submitted to the Commission by the end of 2013. My Department has requested that all LDCs submit financial plans indicating and detailing their estimated monthly administration and project expenditure in order to conclude the programme during 2014. As soon as these plans can be agreed, the LDC contracts will be extended accordingly.

I propose to circulate in the Official Report a tabular statement setting out the information requested at measure level.

Additional information not given on the floor of the House

Table 1: RDP Expenditure Information by Measure

Barry Cowen (Laois-Offaly, Fianna Fail)
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I look forward to the tabular details of the funding, as requested in the question. It could be construed and may appear that the Government could be on course to underspend significantly on this programme due to failure to plan effectively. This being the case, at this juncture would the Government not allow immediately Leader companies to approve additional projects, based on the fact that no additional funding can be allocated after March 2015? Based on previous years, there is a 10% rate of non-take-up and consequently, would it not be appropriate, prudent or effective for the Government to allow Leader companies to put in place a qualified list and qualified commitments? This could be done rather than maintaining the hard and fast rules in which the Government seeks to establish the position after the horse has bolted by virtue of what commitments were made, what was spent at the end of 2013, an examination of those figures with a view to making a decision on how this might meet the demand in the following year and so on. Would it not be a lot easier to allow for companies to make qualified commitments, which are understood by those who may be in receipt of them, should the opportunity arise, on the basis of the failures of others, to maximise the potential or the use approved to the latter in the initial allocations?

Jan O'Sullivan (Limerick City, Labour)
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First, the Department is monitoring the position carefully and, as I indicated in my initial reply, a commitment exists to examine all unallocated funding at 31 August with a view to reallocating money. Consequently, the Minister would consider it prudent financial management to ensure he does not ask them to enter into contractual arrangements that could not be honoured. The intention is to monitor carefully, at 31 August to reallocate money that apparently will not be spent and to impress upon all the various bodies and local development companies that in the first instance, they should ensure they allocate fully and second, they should ensure full expenditure.

Barry Cowen (Laois-Offaly, Fianna Fail)
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As I stated, my fear is based on the possibility to construe that there has been a failure to plan effectively in this regard. The Minister of State obviously will contradict that, which is her right and is understandable as long as she can back it up with factual figures bearing out the point. Can the Minister of State give an absolute commitment to Members, to Leader companies nationwide and, by association, the public who can derive benefits from such funds that can have the positive impact the programme was meant to have in the areas for which it is designed, that there will be no loss in funding by the State with regard to the allocation that comes towards the Leader programme in its entirety?

Olivia Mitchell (Dublin South, Fine Gael)
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The Minister of State to respond, briefly.

Jan O'Sullivan (Limerick City, Labour)
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The local development companies must ensure they play their part as well. This is the reason there is ongoing communication with such companies and it is being impressed on them they must be accurate and must give the Department the correct information as to what they can allocate and spend. They have a responsibility to ensure this happens, the allocations are accurate and the expenditure is carried through fully. However, the Minister is determined that Ireland will get every bit of the money to which we are entitled.

Barry Cowen (Laois-Offaly, Fianna Fail)
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The Minister of State is convinced.

Olivia Mitchell (Dublin South, Fine Gael)
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Thank you, Deputy.

Barry Cowen (Laois-Offaly, Fianna Fail)
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It is okay, it is on the record.