Dáil debates
Wednesday, 12 March 2014
Ceisteanna - Questions - Priority Questions
Leader Programmes Expenditure
9:50 am
Éamon 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 available under the Leader programme from 2007 to 2014 for expenditure on projects; the amount spent to date; the amount spent since the beginning of 2014; and if he will make a statement on the matter. [12008/14]
Éamon Ó Cuív (Galway West, Fianna Fail)
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This is a very simple question. I wish to know the spend on the Leader programme because we must ensure full spend on the programme before the end of 2015.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The current value of the axes 3 and 4 Leader elements of the Rural Development Programme 2007-2013 is €370 million. In addition, €5 million has been provided for an axis 1 agrifood measure. Of this, up to a maximum of 20% may be spent on administration costs, leaving a minimum of 80% of the funding available for projects and animation expenses.
Of the potential €300 million available for projects and animation, to date €190 million has been spent on projects and €12 million on animation expenses, with €52 million spent on administration. This gives total expenditure under the programme of €254 million or 68%. The spend to date in 2014 is €9.58 million and I expect this to increase steadily over the coming months.
Under EU regulations, expenditure can continue under the programme up to the end of 2015. However, I anticipate that most local development companies will complete their expenditure by the end of 2014 with a small number completing in early 2015.
The rural development programme has provided significant financial resources to rural communities throughout Ireland. It has provided assistance to 6,744 enterprises, supported 2,189 new tourism initiatives and led to the creation of 2,930 full-time jobs. In the current economic climate the value of this level of support for indigenous microenterprises in rural Ireland should not be underestimated. Along with direct support for economic activity in rural areas, the programme has increasingly provided support for community activity which ensures the maintenance of vibrant communities that are a critical component of a healthy rural economy.
Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minister gave me many figures.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy asked for them.
Éamon Ó Cuív (Galway West, Fianna Fail)
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I asked for some of them and not others. My calculation is that approximately €110 million has yet to be spent on projects. The Minister seemed to indicate that €9.58 million has been spent after two months, which would work out at an annual spend of €57 million. On the other hand, the Minister also indicated all the money will be spent by the end of the year. Does he accept it is likely that as the year progresses word will come back, as happens in all schemes, that projects will not go ahead and therefore the Minister needs to have more projects lined up in case this happens? As an example, spend on the capital sports grant is never more than 90% of the money sanctioned. It is very important that whatever happens we ensure all the money is used. Will the Minister outline the contingency plans put in place for alternative projects if projects do not proceed?
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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As Deputy Ó Cuív knows I made every effort in 2013 and put enormous pressure on the local development companies to give us the necessary and true information on projects sanctioned from 2009 to 2012 and let us know whether they will not go ahead in order that we could examine reallocating the money. This process will be continued to ensure we have the maximum spend which is essential as part of the programme. I will contact the companies again shortly for an update on all the projects since the start of the scheme in 2009 to establish once and for all whether there can be further reallocation of the money to projects in the pipeline to ensure they are allowed go ahead.
Éamon Ó Cuív (Galway West, Fianna Fail)
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I welcome this and I will certainly support the Minister in ensuring this happens. It is important the money is reallocated from non-performing projects or companies. Does the Minister have any white smoke with regard to co-funding, as his colleague at the Department of Agriculture, Food and the Marine did? I know these programmes never run for the full seven years and there is always a delay in their establishment. It will probably be 2015 before we see the new Leader programme. Does the Minister have any white smoke on co-funding for the next round of the Leader programme?
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not believe Deputy Ó Cuív expects the type of smoke he got from the Minister from Agriculture, Food and the Marine on co-funding for the Common Agricultural Policy.
Éamon Ó Cuív (Galway West, Fianna Fail)
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I expect much better from the Minister. He is even closer to the Taoiseach.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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When Deputy Ó Cuív was the Minister he obtained 5% from the Department of Agriculture, Food and the Marine and I obtained 7% as a good start, which is €153 million.
Éamon Ó Cuív (Galway West, Fianna Fail)
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I got a lot more money.
Barry Cowen (Laois-Offaly, Fianna Fail)
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The Minister has only a few months left to make it up.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I know that, but there was much more money to spend. In fairness to Deputy Ó Cuív, he had so much money he solved every problem by throwing money at it. The Minister for Justice, Equality and Law Reform at the time, Michael McDowell, stated we did not need stamp duty. That was another era and I am in a different place, but I am working with the Minister for Public Expenditure and Reform, Deputy Howlin, to resolve the issue by the middle of the year.