Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank Senator Higgins for raising this important issue and for the opportunity to clarify many issues in the public domain in various communities. Groups have had many meetings in recent months to discuss this issue. Last October, the Government approved Putting People First - Action Programme for Effective Local Government, which included recommendations by an expert alignment steering group for enhancing alignment between local government and local development. The steering group made a number of recommendations aimed at improving co-ordination across the range of local publicly funded programmes, achieving greater efficiency and effectiveness in the delivery of those programmes and, most important, at improving the delivery of services to the citizen and communities.

Principal among these is a recommendation to establish socio-economic committees within each local authority area, with responsibility for strategic oversight and planning for a broad range of local and community development interventions at local level. When established, committee will bring together all relevant local actors in strategic collaboration. They will focus on intended outcomes including, developing a more integrated approach to publicly funded programmes, improved matching of resources to priorities, improved systems for impact measurement and assessment, more sustainable programme administration costs and the use of shared services where appropriate.

Socio-economic committees will be responsible for a broader range of publicly funded programmes and structures than those contracted to local delivery bodies, including local development companies. These companies will continue to have an important role in implementing the programmes for which they are contracted by my Department and others and they will be key partners on the committees. The committees are being advanced in ten pilot areas as agreed by the alignment working group, which includes the Irish Local Development Network that represents local development companies. Correspondence issued to all local authorities, both the ten pilot areas and the other remaining areas, on 18 April. The ten areas for which pilot socio-economic committees are being considered are Dublin City Council, Dún-Laoghaire-Rathdown County Council, South Dublin County Council, Leitrim County Council, Roscommon County Council, Offaly County Council, Mayo County Council, Galway County Council, Limerick County Council and Cork County Council.

Alignment, in itself, is not intended to impact on the funding of local development companies. Programme and administration funding will continue to be provided and any suggestion that alignment will result in either the closure of local development companies or in significant job losses is not an accurate interpretation. The employment levels in local development companies such as the local community development programme, rural social scheme and Tús will depend on Exchequer funding, not EU funding. Of greater concern to the sustainability of local development companies is the reduction in programme funding that has been happening, and is likely to continue, in respect of the two main programmes local development companies deliver for my Department. There have been funding reductions on the local and community development programme and it is likely that Leader funding will be much reduced for the 2014 to 2020 programme period compared to the past seven years. These funding realities are likely to have a more notable impact on local development companies and employment. This adds to the compelling case for reform and for a more streamlined system, which is fit for purpose, eliminates unnecessary duplication and achieves better value for money. I believe the significant reform we are undertaking will place our local development system on a more sustainable footing, retain the expertise and experience of local development companies going forward and ensure the continuing delivery of quality services into our communities.

I ask partnership companies to desist from creating confusion about job losses at meetings and to tell people the true and accurate position. Approximately 1,900 people are employed under all these programmes throughout the State and the only programme for which funding is uncertain is the rural development programme, which employs approximately 250 people. This is due to the funding reduction we face arising from recent decisions by the EU regarding the multi-annual financial framework and the Common Agricultural Policy. There is some uncertainty about how many of the 250 people will be employed in the future based on what will be agreed with the Department of Agriculture, Food and the Marine and the union in the months ahead regarding the rural development programme. However, employment under the remaining programmes is dependent on Exchequer funding and most of that employment is likely to continue.