Dáil debates

Wednesday, 3 April 2019

Ceisteanna Eile - Other Questions

LEADER Programmes

11:40 am

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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69. To ask the Minister for Rural and Community Development the steps he plans to take to speed up the roll out of the LEADER programme; and if he will make a statement on the matter. [15416/19]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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We are still at a snail's pace with the LEADER programme.

The Minister kindly provided figures last night in respect of the total number of projects approved and the value of the spend. Officially, all projects have to be approved by the end of 2020 because that is when the programme comes to an end. Projects then have two further years in which to spend the money. What is going to be done to simplify it, to speed up the approval of the projects and streamline the process?

11:50 am

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The current LEADER programme effectively became operational in the second half of 2016, following the signing of funding agreements with most of the local action groups who deliver the programme.

As the Deputy is aware, LEADER is a multi-annual programme and expenditure typically ramps up over the course of the programming period.

While concerns were initially raised regarding the procedures applying to this LEADER programme, I introduced 31 specific improvements to tackle all aspects of the programme’s administration.

The pace of project approvals has increased substantially as a result of these improvements.  In total, 1,800 projects have now been approved for funding of over €62.2 million under LEADER.  This represents a threefold increase in project approvals since December 2017.

A further 377 projects with a value of over €23.4 million are at earlier stages of the approvals process and I expect to see the approvals figures rise substantially more by the end of this year.

Project expenditure will increase as approved works are completed and claims are submitted to my Department for payment. The level of project payments for the first quarter of 2019 was €3.8 million - double the amount for the first quarter of 2018.

Overall, programme expenditure to the end of March was in excess of €44 million.

We are now making good progress in the delivery of the LEADER programme.  The pace of delivery is ultimately determined at local level by the local action groups. However, I will continue to closely monitor project approvals and expenditure to ensure that the programme budget is fully utilised.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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With only 21 months until the expiry of the programme, the approvals in place amount to €62 million out of a total budget of approximately €160 million. We are not even halfway there in terms of approvals. Even if €160 million of approvals for projects was granted it would be impossible to achieve that level of spend, meaning that approvals should be in the region of €170 million. Would the Minister consider going to the Department of Public Expenditure and Reform and asking it to raise the thresholds for e-tenders in order that smaller projects could go a three-estimate basis, as was the case in the past? This is one of the main reasons community groups are reluctant to come forward with smaller projects. Would the Minister consider taking such action?

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The Deputy knows that I have made every effort to try to improve the LEADER programme. I include in that a 55% reduction in the amount of paperwork required from the local action groups, standardised applications for those groups to assist in streamlining the process, revised and clarified procedure and new procurement arrangements for projects. I have made 31 improvements and a number of other changes as well. Projects do not have to go to Pobal by the end of the year in order to obtain approval for funding.

The Deputy asked a question, but I would ask him why some LEADER companies are able to have projects approved while others are not? I have some figures here which show that there are approvals in Carlow worth €4.797 million, including some 27 projects to the value of €1.721 million. In east Galway, there are 41 projects but only €38,000 has been spent. In west Galway, an amount of €143,000 has been spent. I have to question why some LEADER companies can do it and others cannot.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister has asked a fair question. One of the explanations is that, for reasons of which he is well aware, east and west Galway got going much later than the rest of the country. We should park that issue.

I asked a very simple question, namely, whether the Minister will go to the Minister for Public Expenditure and Reform to ask that the threshold for the requirement for e-tenders be raised. This can be done under EU law. It would save a great deal of the money that is currently being spent on consultants preparing e-tenders instead of on the programme. One of the biggest problems at the moment is that much of the money being provided is going to consultants rather than communities groups. It is not being spent on bricks and mortar or on getting the job done. The Minister knows that as well as I do. I am putting a practical proposal to him. He should go to the Minister for Public Expenditure and Reform and get the threshold for the requirement for e-tenders increased and the level of bureaucracy reduced. I asked a simple question and he might provide a simple answer to it.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The procurement process is being reviewed. I do not have any difficulty going to the Department of Public Expenditure and Reform. I am happy to try anything that will make the LEADER programme work better. As Minister, I have made more than 31 changes to the programme and it is beginning to work. If there is anything else I can do to simplify it, I will do so. I will speak to the Department of Public Expenditure and Reform about what can be done about the smaller projects. We have to be careful, however. I am accountable to the Dáil and I am spending taxpayers' money. We have had difficulties with LEADER programmes in the past. We are also accountable to Europe, as the Deputy knows. If there are any problems with the LEADER programme we have to pay money back to Europe. We provide a certain amount of funding for it, as does the European Union.

The Deputy asked a question about a particular matter. It is something at which I will look. We have made a lot of changes already. I will also ask my officials to look at some of the LEADER companies. I know that the Deputy and everyone else will have problems when I take money from Galway and other places that are not using it. However, I do so because the available money will be spent. The Deputy mentioned 2020. It is true that the programme will finish then, but projects will have three years to reach completion after that.