Dara Calleary (Mayo, Fianna Fail)
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54. To ask the Minister for Rural and Community Development the amount spent to date under the 2014 to 2020 LEADER programme between project and administration costs; the amount spent to date on projects by each local action group, LAG; and if he will make a statement on the matter. [15596/19]

Dara Calleary (Mayo, Fianna Fail)
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This is my regular question. Unfortunately, the situation is not improving despite the Minister's work and effort. I want to know the breakdown between project costs and administration costs. In addition, we are still not really breaking the back in terms of LEADER expenditure. The figures for the end of quarter 1 of 2019 do not show any major improvement in terms of project expenditure. I want to flesh that out and see the Minister's plans for 2019.

Michael Ring (Mayo, Fine Gael)
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LEADER is a multi-annual programme with a total budget of €250 million over the period 2014-20.  Some €220 million of this funding has been allocated to the local action groups, LAGs, for project and administration costs. The remaining €30 million is available for schemes to be delivered at a national level and is allocated as projects are approved. A total of 1,800 projects have been approved for funding by the LAGs, with a combined value of €62.2 million.  A further 377 projects with a value of over €23.4 million are at an earlier stage in the approvals process.

Total expenditure to date by the LAGs on the LEADER programme is €44.2 million and almost €17 million has been paid out to over 650 LEADER projects.  However, project payments will increase substantially as approved works are completed and project promoters submit claims for payment.  The amount of project expenditure in the first quarter of 2019 was €3.8 million, which is double the level of project expenditure incurred in the first quarter of 2018.  This clearly demonstrates the rise in project payments, which will increase substantially during 2019.

Some €27.2 million has been paid in respect of the administration costs of the LAGs, including their engagement with promoters to develop projects. LEADER administration costs are always higher at the start of the programme period when the LAGs are working with promoters in this way. However, administration costs cannot exceed 25% of the LAGs budget over the lifetime of the programme, and project expenditure will exceed administration costs as the programme progresses.

The table which accompanies my reply provides details of core project approvals and expenditure in each LAG area to date. The figures do not include expenditure under national-level schemes. 

LEADER Project approvals and payments as at 31st March 2019

Dara Calleary (Mayo, Fianna Fail)
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There are a number of difficulties. First, there are changes to this particular roll-out of LEADER which the feedback from the ground suggests are making it harder to draw down project expenditure. The Minister made some changes when he came into office. Have those changes made any difference with regard to expenditure? Second, the area I want to focus on is the inconsistency in LEADER areas around the country. The average percentage of allocation spend is 20% but there are 16 counties below that average. At this stage in the programme, there is one company which has only an 11% spend and one with only a 12% spend, whereas the spend in Waterford is 33%. Why are there such inconsistences around the country? What is the Department doing to iron out those inconsistencies and to ensure the money actually gets spent in communities, which is where we all want it spent?

Michael Ring (Mayo, Fine Gael)
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I agree with the Deputy. I have done everything possible to make changes in order to make it simpler for people, in particular those in the LEADER companies, to administer the scheme. Since I came into office, I have made more than 32 changes. The Deputy is correct that the inconsistency around the country is unbelievable. Yesterday, when I was going through these questions, I looked at this issue of inconsistency. The Deputy is correct that some counties have to be complimented because they are dealing with the projects, paying out funding and doing very well. I have asked my officials to go through every LEADER company, and where LEADER companies are not spending their money, I am going to start reallocating that money. That message will go out loud and clear from this House today. The Deputy referred to the administration costs, which are 25% of the overall cost of the programme. It is a lot of money but we are paying people to do the job. I have made the changes and I cannot do any more.

Dara Calleary (Mayo, Fianna Fail)
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We are in year six of a seven-year programme and I know there will be an extension at the end of it to draw down funding. However, the reality is that €10 million more is spent on administration than on project expenditure, which is a figure that has to be kept in mind. As we go into the renegotiation of a new Common Agricultural Policy programme, along with a new LEADER programme, we have to be able to show the importance of LEADER. It is the only show in terms of community development for many communities. We cannot afford to lose European funding for it or to lose it as a scheme, given it has achieved huge things. However, we cannot allow an inconsistency in expenditure to damage it and we cannot allow this kind of spending. The Minister has to be certain in this regard. Can he give me a guarantee that by year-end, the project level of expenditure will be higher than administration?

Michael Ring (Mayo, Fine Gael)
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No, I cannot give that guarantee. What I can guarantee is that I am putting pressure on the LEADER companies. As the Deputy knows, given we have LEADER programmes in our county, I can only do so much. With regard to administration costs, these people are getting paid to do the job. To be fair, there are LEADER companies doing very well under the scheme. When I look at this, I see that some have 18 or 21 projects, which is not acceptable. It is not acceptable to me or the Department, and is not good enough for the LEADER programme. We want the money and the money has been given by the Government. It would be a different ball game if the Deputy was coming here to complain to me that the money was not there. I spent last year, with my officials, trying to encourage LEADER companies and we made the changes they required. As I said, I cannot do any more. They now have to do their job. What I need to do, and will do, is look at every LEADER company in the country. When I start taking money off them, I know I will have plenty of Deputies complaining in this House because I am taking from one county and giving to another. Too bad. If they do not perform, I will take the money off them.