Diarmuid Wilson (Fianna Fail)
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I formally move the matter raised by Senator Ó Domhnaill.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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In late 2011, the European Commission approved a change in the maximum co-funding rate from 55% to 85% for axes 3 and 4 elements of Ireland's rural development programme 2007-2013. Prior to this, the axes 3 and 4 rural development programme, RDP, measures were co-funded at a rate of 55% by the EU with the remaining 45% coming from national Exchequer sources. The 2011 agreement reduced the national Exchequer input to 15% on a net basis for 2012 and 2013 without a concomitant increase in the amount of funding to be provided by the EU. This resulted in a reduction in the overall programme complement from ¤427 million to approximately ¤314 million on the basis of the programme achieving full spend by the end of 2013.

In this context the original project allocations given to each local development company, LDC, contracted to deliver the Leader elements of the RDP, including the allocation for Gaeltacht areas, required readjustment. The Department is currently carrying out an exercise to determine the level of project commitments across all LDCs and all RDP measures to complete the rebalancing of the programme in as equitable a way as possible. In addition, given the levels of spending by the LDCs from 2009 to date, it is highly unlikely that full spend will be achieved by the end of 2013. The co-funding rate will revert to 55% for all expenditure beyond the end of this year and as a consequence, the overall programme requirement will also change. Until such time as the rebalancing exercise as outlined has been satisfactorily completed, it is not possible to be definitive regarding amounts of funding available for project commitments under axes 3 and 4 of the RDP. I do, however, expect this exercise to be completed shortly.

Meitheal Forbartha na Gaeltachta, the LDC contracted to deliver Leader funding to Gaeltacht areas in 2009, went into liquidation in September 2011. Since then, the Department has been working with the liquidators and other stakeholders to ensure the winding-up process was conducted in an efficient and effective manner. While this took some time and is still ongoing, almost all Gaeltacht areas now have access to Leader funding through the LDC in the geographically contiguous area. My Department is working with these LDCs to determine the fairest and most equitable way to distribute funds to Gaeltacht areas, including the consideration of the provision of a separate allocation for these areas in the future. Such decisions must also be made in the context of the review process outlined above and final decisions on Leader allocations for all rural areas, including Gaeltacht areas, will not be available until this is complete.