Phil Hogan (Carlow-Kilkenny, Fine Gael)

As did Senator Brennan, I acknowledge the contribution of the volunteer sector. The OECD did a study some time ago on citizen participation and volunteering. Ireland is the second highest placed in the OECD for citizens volunteering, giving time or money or helping a stranger, with, on average, 60% having done so in the month previous to the carrying out of the survey. The European average is 39%. We have a higher recognition on the part of the general public of the need to volunteer and the generous way in which people do so is reflected in that survey.

In 2007 there was a task force on active citizenship arising from which 22 volunteer centres were established around the country. These are funded by my Department. Core funding is given to Volunteer Ireland, which used to be two organisations, Volunteer Centres of Ireland and Volunteering Ireland, but they merged into one in 2010 and are now focused on the work. Volunteer Ireland is involved in advocacy, facilitating volunteering for groups that seek community volunteers and supporting the volunteer strategy, and is part of the national co-ordinating body for the European Year of Volunteering in 2011. It is the host for the 2012 international association of voluntary effort world conference. Apart from the work it does on the ground, Volunteer Ireland does a great deal of co-ordination work.

Some 55% of Leader funding comes from the European Union which also has a say in how the money is spent. One would expect any body that puts forward 55% would have some input. Every Member present knows the European Commission is currently reviewing the rules and regulations concerning Leader funding; I am involved in that. We will have more certainty in regard to the level of re-fund and also, one hopes, more flexibility regarding the various programmes Leader delivers. At the moment, when one gets tied into a certain axis it is very hard for one to come out of it. I am sure every Member of this House can give examples of this problem, particularly in the food sector.

Senator Kelly asked about Meitheal Forbartha na Gaeltachta, MFG. Senator Ó Clochartaigh will be interested in this. I was anticipating that I would be asked about it. Meitheal Forbartha na Gaeltachta Teoranta is an independent company with its own board of management and memorandum and articles of association. Under company law, the board has responsibility for the proper stewardship of the company. It has been confirmed that the board of MFG, on examination of the company's financial situation, took a decision to cease trading as of 4 p.m. on 7 September 2011 on the basis of insolvency. The company is now in liquidation. MFG was contracted by my Department to deliver two main programmes - axis 3 and 4 of the rural development programme and the local and community development programme. It also implemented other programmes on behalf of other Departments.

The recent dissolution of the company is causing difficulties for project promoters in Gaeltacht areas. I am trying to resolve those difficulties by considering the structures that can be put in place instead of MFG. I will examine whether existing structures are able to deal with some of the projects that require payment. Complex legal issues and contractual obligations have to be resolved by the Department. I am conscious of the need to speed up the process and provide for early delivery on behalf of the people who have made applications for projects. I am also conscious of the rights of the staff of MFG under company law. Although my Department does not have a direct role in or responsibility for this matter, we are monitoring it closely. A new structure will have to be established to ensure programmes that are vital to communities are delivered as quickly as possible.