Seanad debates

Thursday, 11 June 2015

Commencement Matters

Leader Programmes Administration

10:30 am

Photo of Denis LandyDenis Landy (Labour)
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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.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I understand the Senator's interest in this issue which is extremely important.

The new local government structures and the role of councillors are hugely important. In the process we are trying to carry out with Leader funding and the LCDC as the implementer of the funding available, my main objective is not to get too caught up in the process in order that it becomes an entity in itself but to get the money to those on the ground. That is my first priority. I will outline the current position on the process.

The selection process for Leader local development strategies is not yet complete, which means that I cannot comment on the final outcome. In this context, no contract has yet been awarded to any entity to deliver the Leader elements of the rural development programme 2014-20. My Department is working to ensure the selection process will be completed as soon as possible and I am optimistic that the first contracts will be awarded and the strategies operational in the autumn. That is my main priority. I am aware that people are preparing their local development strategies. In cases where the local development strategies are approved by the independent evaluation committee there is no reason for delay. There will be a period in which contracts will have to be awarded, but my priority is to get the money to where it needs to be spent to support communities.

Ireland is conducting a two-stage process for the selection of Leader local development strategies and both stages will be assessed by an independent selection committee. The first stage, expressions of interest, was open to any local group with an interest in supporting the delivery of Leader funding at a local level. A total of 45 expressions of interest were submitted by the closing date in respect of the 28 sub-regional areas specified in the expressions of interest documentation. In areas where multiple expressions of interest were received my Department has given an undertaking to facilitate discussions between the relevant entities with a view to engaging all parties and, if possible, reaching an agreement to develop one coherent local development strategy for their area. These meetings commenced last week and will continue for as long as is required. In the meantime, I expect all expressions of interest to be presented to the independent selection committee for assessment and decision by late June. Following this, preparatory support will be made available to all local action groups selected by the committee. That is where the support will be provided.

Entities successful on stage 1 will be invited to move to stage 2, the local development strategy, LDS, development phase.They will be allowed a minimum of six months to develop their strategies but some of them will have their strategies completed much earlier because they are all working at getting them in place.

Technical support for the process of selection of local development strategies will be provided to the selection committee by Pobal. That is another area where there will be support. The system of governance and management in place for the new programme will be documented in the Department's Operating Rules for the Rural Development Programme 2014-2020. These rules are influenced by the EU regulations governing the programme, with all the checks and balances in the EU regulations incorporated into the operating rules. My Department is currently drafting these rules with a view to having an outline version available for stage 2 of the selection process.

I assure the Deputy that I do not see any reason for delay. Some counties may not have their strategy developed as quickly as others but this Leader process is quite different from the previous one. It was only when everything was ready that the last Leader roll-out could go ahead. In this case, counties that are ready to go will be allowed to go. If somebody has their strategy developed there is no reason they cannot get up and running with it.

Photo of Denis LandyDenis Landy (Labour)
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I thank the Minister of State. Most of the questions in my Commencement matter were answered in the reply. I am pleased there will be support, both technical and in terms of training, for the people on the board, which is very important.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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It is.

Photo of Denis LandyDenis Landy (Labour)
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I am aware that in some counties, including my own, there is not just one application made. In that regard I hope people can come together, not hold up the process and reach a compromise. I spoke to councillors across the country in recent days in preparation for this and in some counties they have one application. Limerick is an example where three different groups came together and made one application, and they will be ready to draw down the funding. It is important that people are sensible about this and as the Minister of State said, everybody wants to get this process up and running. I hope common sense will prevail to ensure that the applications will be submitted.

In terms of rules, etc., I am pleased that there will be an application in regard to governance because that is extremely important. In the early 1990s, governance was a major issue in an area not too far from me in respect of a similar type of enterprise.

I thank the Minister of State. I wish her the best of luck with the continuing work she is doing in rural development. She came up through that process, as did I, and it is critical that we continue that work. I look forward to working with her on this and other issues.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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Keeping a partnership approach is desirable. It is an open and transparent process, and that is what everybody would want.

I take the point about governance. Governance is very important and under the local government process, and the new alignment process, increased powers have been given to county councillors. It is very important that the councillors are at a level that is close to the community in terms of how they represent their areas and draw down funding for those areas, albeit that they are in the local development strategy. The Department will be providing training.

The moneys for each county have already been decided on, and the Senator's common sense approach would be welcome. I hope that common sense will prevail. My interest lies in helping communities that need this rural development money get it in the smoothest and quickest way because it is very important that disadvantaged areas get their slice of the cake in that regard.

Sitting suspended at 11.25 a.m. and resumed at 11.30 a.m.