Lorraine Higgins (Labour)
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I welcome the Minister to the House. I wish to raise the need for him to clarify the employment position of Leader and community funded scheme employees. I have concerns that the proposed realignment process his Department is undertaking as part of his local government reform agenda will lead to direct job losses without this group and the loss of economic opportunity in communities throughout Ireland. I would like to outline the importance of these groups to towns such as my own, Athenry, County Galway, where more than 30 people are employed at the Mellows Campus, Galway Rural Development Company Limited, GRD, through the Leader programme and Tús, rural social scheme and other schemes. Athenry has fallen victim to the recession and up to 30 commercial units are vacant. We cannot endure further losses of economic activity in the town. Thirty fewer people frequenting the place could have an adverse effect on local businesses and place them in jeopardy.

However, another worrying matter has been brought to my attention. I understand when the alignment working group sought expressions of interest, it forgot or did not include local action groups in my area as part of this process. Only the county council was requested to participate in the process. This is unfair and it is important that these groups get an opportunity to address some submissions by other parties which may implicate or affect them. The fairest way would be for the country council, GRD and other community funded schemes in County Galway to submit a combined expression of interest. I ask the Minister respectfully to consider this.

I would appreciate it if he would clarify what will happen to the employees in the eventuality of a consolidation of services within the county council structure.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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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.

Lorraine Higgins (Labour)
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I thank the Minister for his detailed response and for clarifying the position on the alignment working group, the expressions of interest which have been sought by it and funding issues. I stress that the security of jobs in Athenry and throughout the country is of paramount importance to the people and the towns and local communities that benefit from the economic activity generated by them. I also welcome the Minister's statement that alignment will not have an impact on funding, although there may be other issues relating to Exchequer funding, as well as his clarification that the suggestion that the closure of the local development companies will result in significant job losses is not accurate.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I am glad to have the opportunity to clarify that the position regarding the 30 people in Athenry and in every other Leader partnership company around the country, including in County Mayo, in which I am sure the Cathaoirleach will have an interest------

Paddy Burke (Fine Gael)
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I am taking a keen interest in this.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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There have been many public meetings in recent times and a great deal of confusion has been generated. I am sure the Cathaoirleach will be in a good position to clarify these issues and give people the true position regarding the fact that the funding for the rural development programme, through which a small number of the total of 1,900 people are employed, is under the greatest pressure.

Of the 30 people employed in Athenry, I suspect approximately five are involved in the rural development programme with the remaining 25 involved in the other programmes. The vast majority of the people employed in Athenry will continue to be employed but, equally, we have to look at the administrative funding and how we can eliminate the duplication of administrative structures to ensure the funding goes to the projects and the front-line services, which is what the funding is all about.