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

I thank Senator Reilly for the opportunity to clarify some the matters that have been in the ether, as it were, and providing a great deal of misinformation to communities. I do not know by whom this has been done.

The proposals I am pursuing regarding enhanced alignment between local government and local development are part of the document, "Putting People First - Action Programme for Effective Local Government". All the concerns the Senator has raised are misinformed and untrue. Local communities will continue to be involved in a bottom-up approach to local development, in conjunction with local authorities. Otherwise, we will not qualify for funding from the European Union under its specific programmes. Local authorities are more efficient than local communities, some of which are spending in excess of 30% on administration. Second, the representation on the socioeconomic committees and the terms of reference of the SECs are the subject of discussion with a working group at present, which is composed of all stakeholders including the community groups. It is making excellent progress and I hope it will be able to conclude the terms of reference at a meeting next week.

I established an expert alignment steering group to look at this area, and its recommendations aim to improve co-ordination of local publicly-funded programmes, improve their efficiency and effectiveness and improve the services for citizens and communities.

These entities are not set up for the benefit of people who are employed, rather, they are set up for those who are unemployed and need services at local level. The implementation of these proposals is happening in a collaborative manner. An alignment working group has been established to assist in their implementation. It has had representations from the Irish Local Development Network, which is the national representative body of Ireland's 50 local development companies, as well as the City and County Managers Association, Pobal and my Department.

The working group is focusing on the practical arrangements to give effect to the new local structures. Pilot committees will initially be established in up to ten local authority areas, and across the remaining areas towards the end of 2013. These committees will have responsibility for oversight and planning for a range of local and community development interventions at local level and will bring local actors together to work in strategic collaboration. They will develop a more integrated approach to publicly funded programmes, and an enhanced focus on getting the right outcomes and matching resources to priorities.

I also intend that they should look at more sustainable programme administration costs and the use of shared services. 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; Roscommon; Offaly; Mayo; Galway County Council; Limerick County Council, and Cork County Council. Given the tightening of budgets, the collaboration that socio-economic committees will bring will be very important as we work to get the most from available funding. Local authority and local development interests are all involved in the establishment of these pilot programmes.

My Department is also working with colleagues across Government to achieve a coherent, whole-of-government approach to the planning, management and delivery of programmes. Like any change process, I appreciate that change is not easy - I am sure Senator Reilly is also getting representations - and the reforms present challenges for all concerned. About 1,900 people are employed in local development companies, such as Leader, local community development groups, Tús and rural social schemes. The current difficult financial model arises from the multiannual financial framework from the EU in respect of CAP, which provides money for the rural development programme. It is under pressure, and employs 250 people. The programme will continue, but the efforts to make sure we get the same level of funding as we did over the past seven years will be difficult, in light of what I said. We have not achieved the same level of funding through the rural development programme under CAP as we did on the last occasion because from 2007 to 2013 the Governments of the day, with the money available in the country, gave a top-up of 5%.

The one thing we do know is that the status quowill not hold. The funding available, in particular for the administration of programmes, will remain constrained. Therefore, we need a fresh approach based not on preserving structures for the sake of it, but on locally based co-operation, to get the most from our funding for the benefit of communities.