Written answers

Thursday, 2 February 2012

Department of Environment, Community and Local Government

Rural Development

5:00 pm

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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Question 41: To ask the Minister for the Environment, Community and Local Government if he will disclose the percentage of the €12.8 million made available to Roscommon Integrated Development Company that has been given out in grant aid to companies in its catchment area; and the number of jobs created by companies funded by the RIDC. [4107/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I presume the question refers to funding awarded to Roscommon Integrated Development Company under the Rural Development Programme. Funding of €427m is available under Axes 3 & 4 (LEADER) of the Rural Development Programme (RDP) 2007-2013 for allocation to qualifying projects up to the end of 2013. In line with European policy the programme is permitted a further two years, to the end of 2015, to realise approved commitments as expenditure.

There are 35 Local Action Groups contracted, on my Department's behalf, to deliver the RDP throughout the country and these groups are the principal decision-makers in relation to the allocation of project funding. Such decisions are made in the context of the individual group's local development strategy and in line with Departmental operating rules and EU regulations.

The main aims and objectives of the Axes 3 & 4 of the RDP are to improve the quality of life in rural areas and to support the diversification of the rural economy. The Programme is broken down into a series of measures under which support can be given by Groups to private individuals and community groups in order to achieve these aims. Three measures provide direct support to projects that increase economic activity and three provide for a broader range of supports for the development of vibrant rural communities. There is also a training and development measure and a measure to facilitate cooperation between RDP groups at both National and International level.

Roscommon Integrated Development Company (RIDC) is the company contracted by my Department to deliver Axes 3 & 4 of the RDP in Co Roscommon with an overall programme allocation of €12,838,021.00. To date RIDC have spent €2,286,223.28 which accounts for 18% of their overall allocation. This can be further broken down to support provided directly to projects that improve economic activity which amounts to €784,971.06 and projects to support community activity which to date amounts to €1,206,989.91. There is a further €976,838.75 of commitments at an advanced stage of development in RIDC and €848,266.53 in the early stages of the project life cycle.

The programme in general does not provide 100% funding for such projects and beneficiaries are required to match the RDP funding with their own resources. I accept that the current economic climate makes it difficult for entrepreneurs and small businesses to access the required level of matched funding and as a result groups, including RIDC, are finding it difficult to bring business start up projects to completion. My Department is currently looking at ways to address areas where groups are having difficulty spending to ensure that the financial resources of the RDP are made available to as many rural dwellers as possible.

RIDC has supported the creation of 8.75 jobs and has also provided and will continue to provide significant financial resources to communities to develop facilities and amenities in their local areas. I believe that community facilities not only promote social cohesion but also have a positive effect on the local rural economy and the provision of support for such facilities can, and does, make a significant contribution to overall economic development, particularly in rural areas. In this context, I am confident that there is significant work being done by RIDC to ensure that the resources available under Axes 3 & 4 of the RDP are being made available to both individuals and community groups in County Roscommon.

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