Dáil debates

Tuesday, 17 June 2014

Ceisteanna - Questions - Priority Questions

Leader Programmes Funding

3:45 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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65. To ask the Minister for Environment, Community and Local Government the total proposed allocation under the Leader programme 2014-2020; and if he will make a statement on the matter. [25606/14]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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My question seeks to find out the amount of money allocated for the Leader programme for the period 2014 to 2020. It is a very straightforward question and I am sure the Minister will have a very straightforward answer.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The overall funding package for the Leader elements of the Rural Development Programme 2014-2020 will be €250 million. While the EU regulations stipulate that a minimum of 5% of the rural development programme is allocated to Leader, Ireland has decided to increase its proportion to 7%. This confirms the Government’s firm commitment to the economic development of rural areas. The €250 million incorporates €15 million for two agrifood measures which will be delivered via Leader. The draft rural development programme will be submitted by the Department of Agriculture, Food and Marine, which is the managing authority for the programme, to the European Commission for consideration and approval in the coming weeks. Following this, my Department will conduct a two-stage process to select local development strategies providing the opportunity to develop partnerships with full and comprehensive consultation, thus maintaining the integrity of a community-led local development approach.

My Department will issue an open call inviting all entities that meet the eligibility criteria to be considered as local action groups to express an interest in being selected to develop local development strategies for the 2014 to 2020 programme. The eligibility criteria will be drawn up in such a way as to ensure that the best local action groups possible are selected to develop strategies, including conformity with EU requirements in terms of local action group make-up, capacity to undertake the work and financial capacity to deliver the programme. It is intended to select a single strategy in each area and therefore in cases where more than one strategy is submitted, the groups involved will be asked to come together in partnership to jointly prepare and agree a single strategy in order to ensure that the most comprehensive and coherent strategies come forward for consideration and approval by my Department. I expect that the programme will be operational in early 2015.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Based on the Minister's reply, I ask him to confirm that it would appear that the allocation for this new Leader programme will be 33% less than the current Leader programme. I ask him to confirm that €100 million remains to be spent on the existing Leader programme and that less than €30 million has been spent this year on that programme. Is there a danger of an underspend occurring under the Leader programme for 2007 to 2013? What steps is he taking to ensure that this does not happen, particularly as I understand that the contracts for some of the delivery companies finish at the end of this year?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The current value of the axis 3 and 4 elements of the Rural Development Programme 2007-2013 is €370 million and it will be €250 million for the next programme. In addition, €5 million has been provided for the axis 1 agrifood measure.

To date, €205.7 million has been spent on projects, €12 million has been spent on animation and €55.2 million has been spent on administration, giving a total of €273 million. A sum of €97 million remains to be allocated. The overall expenditure to date in 2014 is €29.1 million, which I expect to increase steadily in the coming months.

3:55 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The total amount of funding available under the Leader programme is €375 million, which leaves more than €100 million that has not been spent. At the rate at which the funds are being spent, there appears to be a significant risk that the allocation will not be spent in full. Will the Minister outline the steps he proposes to take to ensure it is spent in full? Under the arrangements the Minister introduced for the Leader programme 2014 to 2020, it seems possible that in one area one company could operate the rural social scheme and Tús, a second company could deliver the child care assistance programme, CCAP, and a third company would deliver the Leader programme. Could one have a scenario in which three companies with three separate headquarters deliver three different programmes in one area? The delivery of programmes was rationalised under previous Governments.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I assure the Deputy that the circumstances he describes will not arise. A single strategy will apply in each area and where more than one strategy is submitted, the groups involved will be asked to come together in partnership to agree and prepare jointly a single strategy to ensure the programmes can be delivered in the most cost-effective manner possible. In the event that more than one strategy is submitted, it will be a matter for the evaluation committee to make a determination and recommendation to the Department.

On the steps I will take to ensure money is spent, as the Deputy is aware, in 2013 I asked all the local action groups to indicate which projects would proceed and which would not and to reallocate funding. I am considering the possibility of making a similar request in 2014 to ensure all the money in the programme is spent this year. I expect all the local development companies to indicate to me truthfully which projects will proceed and which will not.