Willie Penrose (Longford-Westmeath, Labour)
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Question 245: To ask the Minister for Community, Rural and Gaeltacht Affairs if his attention has been drawn to the fact that in Budget 2010, the vote for the community service programme was reduced by 9% against the figure allocated in 2009; if his further attention has been drawn to the fact that community service projects were notified that funding for CSP in 2010 was about 8% lower than in 2009; the reason, when individual community service programmes in County Westmeath were notified of their grant allocation, that their reduction for their projects varied between 11% and 14%; if same will be explained in the context of budget 2010 reduction; and if he will make a statement on the matter. [2847/10]

Willie Penrose (Longford-Westmeath, Labour)
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Question 246: To ask the Minister for Community, Rural and Gaeltacht Affairs if his attention has been drawn to the complex review process by way of substantial forms, which community service programme providers have to complete in order to seek a review of their allocations notified for 2010 which is a significant imposition upon the individual projects; if his further attention has been drawn to the impact of the abolition of the non-wage grant, which will represent an onerous imposition upon the projects, where such non-wage expenditure was used to assist in the detailed compliance which such projects had to undertake and which also paid for insurance, licences, staff training, compliance with employment law; if the reduction for each individual project will be reviewed; and if he will make a statement on the matter. [2848/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 245 and 246 together.

Funding of €46m is available under the Community Services Programme (CSP) in 2010 compared with €50.6m in 2009, an overall reduction of some 9%. When account is taken of administrative and related project costs, the reduction in the funding available to directly support CSP projects is generally of the order of 8%. Of the 450 or so organisations approved to deliver services under the CSP, an increase of 80 on the 01/01/2009 position, contracts in respect of some 320 projects expired at the end of 2009. In the current economic climate, I am very keen that the current levels of employment in these organisations is maintained. However, given the reduction in overall funding for the Programme, I can only do this by abolishing the non-wage grant that was previously payable.

In this context, the Deputy should note that I have provided these organisations with an opportunity to apply for an immediate review of their 2010 funding allocation where it has implications for the sustainability of the service being delivered or where the organisation has concerns of its financial viability. It should also be noted that the organisations will have their financial situation and operations more comprehensively examined in the context of being potentially offered three year contracts to the end of 2012. A key requirement of the CSP is that organisations contracted to deliver services undertake to generate a significant level of resources from non-public sources by way of trading, charging fees and fund raising etc. This is unlike many of the other programmes operated across the public sector.

My Department continues to simplify the information and administrative burden on organisations funded by the Programme. I believe that the information required is proportionate to the level and duration of funding offered to the groups involved. The contracts for the 130 or so organisations extending into 2010 are unaffected at this time by the reduction in the non-wage grant.