Denis Landy (Labour) | Oireachtas source

I welcome the Minister of State at the Department of the Environment, Community and Local Government, Deputy Ann Phelan. I commend her for the work she has done on the issue of rural development since her appointment and the work that has been done to date on the report of the Commission for the Economic Development of Rural Areas, CEDRA. This Commencement matter relates to that issue and it is extremely important that we have clarity on it.

I understand the process so far is based on a model being used across Europe for the allocation of funding. European funds comprise 65% of the funding available, while Exchequer funds comprise the remaining 35%. I also understand expressions of interest were sought from community groups across the country. The closing date for the receipt of expressions of interest was 15 May. How many of the applications have been decided by virtue of the fact that there was just one in each county area? In how many are there multi applications and how will it finally be decided which group will receive funding?

The second issue is the role of local councillors, which is extremely important. In each local community development company, LCDC, there are four elected representatives among the 17 members of the LCDC in each administrative area. I have been contacted by many councillors to seek clarity on what role they should play. As the closing date for the receipt of applications was 15 May, not much work has yet been done as they are awaiting the allocation of funding. They are in limbo as they do not know what they are supposed to be doing. They are also anxious to understand and be informed about the governance procedures in the administration of this funding. Is it the responsibility of the local authority and how will the system operate?

Has any training been provided for the new development companies as entities? I was a member of the first enterprise board set up in County Tipperary in 1991 and there was extensive training provided for the members of the board which was composed of a number of pillars from industry, the community and elected representatives. As there was extensive training provided, we could understand our role and positions as directors of a company. Perhaps the Minister of State might provide clarity on that issue also. These are the questions councillors have been asking me about the process. This is part of the Minister of State's functions in rural development and very important.

In the past five years, in respect of development companies, 4,000 jobs have been created in rural Ireland, a massive amount. I realise unemployment is decreasing, including in rural areas. Councillors are chomping at the bit to get their hands on this money in order that they can play an effective role in the task we all face of bringing down unemployment and creating sustainable jobs. In many cases, they are jobs in small companies, but they last a long time. I have experience of this as a former member of an enterprise board for many years. Many of the jobs created in the early 1990s were sustained throughout the recession. This is proof positive that the money the Exchequer expends on this initiative - €65 million, with a further €153 million coming from the European Union - is money very well spent and gives value for money for the taxpayer. I look forward to the Minister of State's response.