Michael McCarthy (Cork South West, Labour)
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Question 198: To ask the Minister for Agriculture, Food and the Marine the way rural development was provided for in budget 2012; the way this compares to previous budget years; and if he will make a statement on the matter. [2875/12]

Simon Coveney (Cork South Central, Fine Gael)
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The rural development measures operated by my Department are funded through the Rural Development Programme 2007-2013 has a budget of €5.103 billion over a 7-year period of which €2.494 billion will be funded by the European Agricultural Fund for Rural Development (EAFRD) and €2.609 billion by the National Exchequer.

Under Axis 1 of the programme the main measures co-funded are the young farmers' installation aid scheme, early retirement, farm modernisation, TAMS and bio-energy. This Axis promotes competitiveness and innovation. A total of €483.5 million has been allocated to fund these measures.

Under Axis 2 of the programme, which contributes to climate change and the protection of biodiversity, support is given to the LFAs, Natura, REPs and AEOS schemes. An amount of €4.147 billion is allocated to these measures.

Axis 3 of the programme promotes the improvement of the quality of life in rural areas and encourages diversification of economic activity in rural areas including supports for non-agricultural activities. The Department of Environment, Community and Local Government administers and funds the Axis 3 and 4 measures which an amount to €448.6 million over the 7 years of the programme.

Given the difficulties in the public finances and the current budgetary constraints, it has been necessary to reduce the level of commitment resulting in €480 million being budgeted for in 2012 to support the various measures under the Rural Development Programme (RDP). This is down by €62.56 million on the actual expenditure of €542.813 million in 2011 and represents a reduction of €99.891 million when compared with the 2010 outcome of €580.141 million. Changes to schemes will be introduced, subject to Commission approval, to effect savings. Though there has been reductions in the budget allocations in recent years, good progress has been made in the implementation of the RDP. Expenditure under the Programme for the Axes 1 and 2 measures is close on €2.8 billion. This represents 55% of the total value of the Programme of €5.1 billion.