Brendan Griffin (Kerry South, Fine Gael)
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474. To ask the Minister for Environment, Community and Local Government if there is any decision regarding administration of LEADER funding in the former MFG areas; and if he will make a statement on the matter. [25427/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Meitheal Forbartha na Gaeltachta (MFG), the group contracted by my Department to deliver Axes 3 & 4 (the LEADER elements) of the Rural Development Programme (RDP) in the Gaeltacht areas, went into liquidation on 7 September 2011. Since then my Department has been working with the liquidators and other relevant stakeholders to ensure the winding up process was conducted in an efficient and effective way.

In 2012 a new system was put in place whereby the Local Development Companies (LDCs) situated in the geographically contiguous areas were contracted to deliver RDP funds to the Gaeltacht areas. The liquidation of MFG inevitably caused delays in project payments and approvals. However, the system which my Department put in place is now operational for a number of months and the contracted LDCs continue to facilitate the project payment process for projects in Gaeltacht areas.

The new companies were required to review the MFG ‘legacy projects’ which they received to ensure compliance with the European Regulation and Programme rules, and this has taken some time. The revised arrangements for the Erris area will be finalised over the coming weeks with the Mayo North East Leader Partnership and my Department. The rebalancing of the RDP is now complete and individual Local Development Companies were notified of their final allocations under the Programme on 20 May 2013 . I have ring - fenced €6 million for the former MFG areas and for new projects in these areas. At all times, my Department has directed the LDCs to pay promptly all MFG contractual commitments properly due and has funded the companies in this regard.