Written answers

Wednesday, 3 November 2010

Department of Community, Rural and Gaeltacht Affairs

Departmental Programmes

9:00 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 86: To ask the Minister for Community, Equality and Gaeltacht Affairs the meetings he has had with other Ministers or his Department with other Departments in relation to amalgamating or transferring funding from the Leader to county enterprise programmes; and if he will make a statement on the matter. [39296/10]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 89: To ask the Minister for Community, Equality and Gaeltacht Affairs the steps he is taking to support local enterprise start ups; and if he will make a statement on the matter. [38983/10]

Photo of Pat CareyPat Carey (Dublin North West, Fianna Fail)
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I propose to take Questions Nos. 86 and 89 together.

The main objectives of the Rural Development Programme (RDP) are to improve the quality of life in rural areas and facilitate the diversification of the rural economy. The individual measures under the Programme, including indicative allocations, are as follows: Diversification into non-agricultural activities for farm families - €16.66m e.g. Development of niche tourism and educational services such as arts and crafts, speciality food provision, open farms etc Support for business creation and development - €48.26m e.g. Support to start a new business or expand an existing enterprise including the adoption of new technologies. Encouragement of tourism activities - €45.4m e.g. Maintenance of vernacular features in a way that protects the heritage of the features such as disused railway lines and canal towpaths. Basic services for the economy and rural population - €49.61m e.g. Identification and provision of appropriate cultural and leisure facilities to local communities, not otherwise available to them. Village renewal and development - €54.2m e.g. Farmers Markets Conservation and upgrading of the rural heritage - €51.7m e.g. Alternative or renewable energy actions addressing suitability of new technologies to meet community energy needs. Training and information on adapted and new skills - €29.45m e.g. Development of training facilities in rural areas (fixed or mobile) Implementing co-operation projects – €10.7m Skills acquisition and animation - €34.63m

Details of the expenditure to date under each programme measure is set out in the table. I am pleased with the progress to date under the RDP, which continues to facilitate access to significant financial resources for rural communities. This has resulted in the proliferation of innovative and sustainable development projects around the country, which are providing invaluable support to rural communities in these difficult times, and there is no question of funds being diverted away from the RDP.

Indirect and direct support to start up enterprise is critical for the achievement of the aims of the RDP. The main body of direct funding for enterprise creation is under the Business Creation and Development measure, which has a programme allocation of €48.26 million. This measure provides for a range of assistance types for start-up enterprises and the expansion of existing enterprises. Funding under the measure has already provided direct start-up and development support to rural microenterprises in such diverse sectors as Renewable Energies, Food Processing and Audio & Video production.

Direct support for enterprise development can also be provided through the Diversification into Non-Agricultural Activity Measure (€16.66m) and Encouragement of Tourism Activities Measure (€45.4m). These measures are aimed directly at providing support for the creation of on-farm employment opportunities in non-agricultural activities and services and the provision of support for rural tourism initiatives, respectively. Other measures of the programme are designed to provide indirect support to start up enterprises, including a training measure which aims to develop the capacity of rural dwellers to allow them to avail of funding opportunities under the programme. This includes training to facilitate the development of enterprise ideas into viable business opportunities. Further measures of the programme provide for the development and maintenance of the social, cultural and economic infrastructure to facilitate the creation of vibrant rural communities, which are necessary for the sustainable economic development of rural Ireland.

The RDP currently has registered project activity of €73 million, with almost €55 million at an advanced stage of development. This activity has the potential to leverage in excess of €43m in private matched funding, with €33m of this linked with the most advanced projects. Expenditure to date amounts to almost €27.7 million, which includes funding for a diverse range of projects from support for micro-enterprise in rural areas to the building and maintenance of community infrastructure and the provision of training in a variety of disciplines for rural dwellers. I am confident that all of the activity funded under the RDP to date is contributing to the creation of the right conditions for the generation of sustainable, long-term job opportunities in rural areas.

I can assure the Deputy that I work closely with my Cabinet colleagues, particularly Minister for Enterprise, Trade and Innovation, Mr Batt O'Keeffe, T.D., to promote increased co-operation between groups promoting LEADER and other agencies either directly or indirectly involved in supporting enterprise - specifically the County Enterprise Boards. Our aim is to ensure that we maximise the impact of all of the funding available and support enterprise and job creation in rural areas to the greatest extent possible, while at the same time ensuring that no unnecessary or inefficient overlaps or duplication occur. TABLE 1: Expenditure to date under each RDP programme measure

RDP MeasureProject Expenditure to Date
Diversification into non-agricultural activities€790,235.25
Business creation and development€4,136,944.22
Encouragement of tourism activities€3,665,205.35
Basic services for the economy and rural population€12,315,137.43
Village renewal and development€2,758,422.22
Conservation and upgrading of the rural heritage€1,961,569.54
Training and information€1,944,052.97
Skills acquisition, animation and implementation of local development strategies€28,255.07
Implementing co-operation projects€162,709.74
Total€27,762,531.79

My Department further supports enterprise through Údarás na Gaeltachta, which has a primary aim of reversing the downward employment trend in the Gaeltacht and seeking to effect the transition from a declining manufacturing sector to employment in services, including Irish-language centred employment. The organisation also provides supports for community-based projects in the areas of language development, childcare, youth services and rural development.

A total of €30 million has been allocated to Údarás na Gaeltachta from my Department's Vote for the year 2010. It is worth noting also that extra funding of €2m was provided as an additional support to the organization at the end of 2009, bringing the overall allocation for 2009 to €39.6 million. Thus, over the two year period, 2009-2010, an tÚdarás will have received almost €70 million from my Department's Vote in order to allow it to pursue its objectives.

In addition to Exchequer voted funding, An tÚdarás also has access to other sources of income that enable it to promote and stimulate employment creating initiatives, for example, income generated from schemes, such as the Community Employment Scheme and the Rural Social Scheme and income from dividends, fees and the sale and lease of assets. Funding is also made available to An tÚdarás by the Department of Enterprise, Trade and Innovation through the Employment Subsidy Scheme and the Enterprise Stabilization Fund. These supports are important to businesses in the Gaeltacht and help them to continue trading and to protect jobs. Last year, for example, these two schemes safeguarded 605 jobs.

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