Pearse Doherty (Donegal South West, Sinn Fein)
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Question 102: To ask the Minister for the Environment, Community and Local Government the concerns received by him from the European Commission on the basis of Article 28 of Regulation 1698/2005 in relation to the rural development programme for projects (details supplied); his views on these concerns; if the concerns relate to specific applications or to the general operation of the rural development programme; the action he will take following these concerns; and if he will make a statement on the matter. [14018/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Rural Development Programme (RDP) 2007-2013 is divided into four axes. Axis 1 deals with competitiveness of the agricultural sector, Axis 2 aims to improve the countryside and environment and the objectives of Axis 3 are to support the diversification of the rural economy and improve the quality of life in rural areas.

Axis 4 or the LEADER Axis provides support for the use of a "bottom up" approach to development which ensures that local people are involved in the decision making thereby facilitating sustainable development in a more inclusive way. In Ireland the LEADER approach is used to implement Axis 3 measures.

The programme is designed to address directly many of the challenges facing rural communities including the need to increase economic activity and stimulate job creation; improve access to basic services for rural dwellers and encourage rural tourism based on sustainable development of natural resources. In January 2011 the EU raised concerns regarding certain types of projects being funded under Axis 3 of the RDP and informed the Irish authorities that support/grant aid for adding value to products listed on Annex 1 to the EC Treaty may only be supported under Axis 1 of the current RDP.

Basic agricultural products are listed in Annex 1 to the EC Treaty and are commonly called Annex 1 products. Under the main Rural Development Regulation 1698/2005 support/grant aid for adding value to Annex 1 products is facilitated under Axis 1 of the programme. In this context the Commission pointed out that the resolution of the issue is a matter for the member state.

The project referred to in the question falls into the category of supporting Annex 1 products and therefore cannot be supported at this time. My Department and the Department of Agriculture, Fisheries and Food are currently working together with the support of the European Commission to resolve the issue. Negotiations are currently ongoing with a view to reaching a solution as soon as possible.