Mark Daly (Fianna Fail)
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I welcome the Minister of State, Deputy Jan O'Sullivan, to the House. We had an interesting discussion while we were waiting.

Denis O'Donovan (Fianna Fail)
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Does that mean the Senator is dismissing the matter?

Mark Daly (Fianna Fail)
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We could dispense with the debate, but it will be held in public none the less. It was an entirely different topic we were talking about. My question was about the need for the Minister with responsibility for local government to clarify, with regard to the interim report of the local government and local development alignment steering group, whether he seeks closer amalgamation or co-operation of local development companies with local authorities or integration of the development companies into local authorities. This is an important question because there is a large amount of funding available to Leader groups at the moment. It is important that the local development companies have autonomy and independence in respect of local authorities, and that local authorities do not have undue influence or control over the Leader groups, especially in light of the finding of the EU Court of Auditors in 2010 regarding the Leader approach to rural development, which found: "The potential added value of a partnership approach was not achieved in [local action groups] where the decision-making was dominated by the local authorities". It also states: "One of the key features of the Leader approach is that decisions should be made not by public authorities but by a wider local partnership, where the local government is included but does not have a majority vote". The clear point is that the Court of Auditors has said we are doing it the right way and that local groups should have the final say. The input from local authorities is very important but if they have the majority this funding will be directed more towards local authority concerns and initiatives than those of the local partnerships and organisations.

There are 52 local development companies throughout the country, which include members of local authorities, but they do not have a majority at the moment. I ask the Minister of State to let us know her views on this. Closer co-operation is important, and there is close co-operation, but if the local authorities get their hands on the funding - which this year, I believe, is something like €92 million, having risen by nearly €40 million - the local communities that normally decide where the funding goes will lose that power. The money would be seen to be going to public representatives, but the staff and the county manager would actually have an enormous input if the local authorities were to take over the running of the Leader groups. We have seen already that the local authorities have an input in the county development boards. The Leader groups do a great job and they should be allowed to continue to do that in a manner than has been pointed to by Europe as one that works.

Jan O'Sullivan (Limerick City, Labour)
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I thank Senator Daly for the opportunity to discuss this issue and for his concerns about the alignment of local communities and local government.

The programme for Government has committed to a review of local governance structures with a view to improving delivery of services to the citizen. As part of giving effect to this commitment, the Minister for the Environment, Community and Local Government, Deputy Hogan, established a high-level steering group last September to discuss enhancing the alignment between local government and the local development sector. The Minister set out on a course of alignment rather than integration - I assure Senator Daly in that regard - and I know he is still thinking in those terms.

The steering group was given a broad remit to review the roles of local development and local government, to identify the scope for greater synergies between the sectors, and to provide recommendations on how we might deliver simplified, cost-effective and efficient services for the citizen in a way that allows for local oversight and democratic accountability. The group has consulted extensively with stakeholders in order to receive input from all those involved in the area of local and community development, and I understand this input has proved valuable to the group in its work towards developing recommendations for greater alignment of the sectors. The steering group presented an interim report to the Minister in early December, outlining some preliminary conclusions vis-À-vis the existing arrangements and the respective roles of local authorities and the local and community development sector in the provision of local and community development services. The group reaffirmed the need for a more coherent approach to local service provision. It sees the need for a more central role for local government in planning, decision-making and oversight of local development programmes. The group also acknowledged the importance of retaining the developmental bottom-up approach to local development, with its focus on targeting those most in need and facilitating meaningful community participation. It recommended that this valuable approach be embedded as an integral part of the planning and decision-making process for the delivery of services at local level.

In the past two decades, certain gaps in service provision at local level have been filled successfully by local development companies. They now have a proven track record when it comes to supporting local communities. The Minister is aware that the local development companies have unique strengths, skills and experiences, and he will expect them to continue to play a pivotal role in the implementation of local development actions. The Minister has an equally strong belief in the central role that local government has in the lives of our communities. Local government should exercise local leadership. As part of that, local authorities give coherent and strategic direction to the delivery of community and local development interventions at a local level.

A key focus, therefore, of this alignment process is to harness the strengths and experiences of the local government and local development sectors. This is a great opportunity to bring greater coherence to the provision of services and maximise the benefits for our communities, especially when resources are scarce and services are very much needed. The Minister, Deputy Hogan, is confident that local government and local development can work in partnership to deliver efficient, sustainable, joined-up and easy-to-access services for people locally.

Senator Daly raised the issue of the European Court of Auditors report on the implementation of the Leader approach. I recognise that it contained a number of recommendations to ensure the values of the Leader approach are retained. There is a strong record in Ireland with regard to the Leader programme and we will not introduce measures that will damage our standing in this regard. I am confident that any recommendations the steering group proposes will fully respect the findings in the ECA report and will not breach the Leader requirements with regard to the composition and decision-making process of local action groups as defined in the EU regulations. I understand the steering group will present its final report to the Minister in the coming weeks. Its recommendations will inform our plans with regard to the overall local government reform agenda and will be subject to careful consideration in that context. I again thank Senator Daly for raising this matter.