Robert Troy (Longford-Westmeath, Fianna Fail)
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294. To ask the Minister for Environment, Community and Local Government the reason County Longford has received a 17.7% cut in rural development funding. [28636/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The LEADER elements of the Rural Development Programme 2007 – 2013 commenced in February 2009 after a delay of more than two years which reduced the time available to allocate funding to less than five years rather than the original seven. Two main issues have impacted on the revised allocations recently notified to Local Development Companies (LDCs).

The first relates to overall Programme performance. During 2010 and 2011 it became evident that a significant number of LDCs who were contracted to deliver the Programme were not committing funds at the level required, to ensure that all the funding would be allocated by the December 2013 deadline. Similarly it became clear that a number of LDCs were more than capable of allocating additional funding if it was made available.

In this regard, in January 2012 my Department notified all LDCs that the original allocations awarded in 2009 were no longer valid and that the Programme was being opened up on a ‘first-come first served’ basis to all LDCs in order to ensure that all the available funding would be allocated to eligible projects within the timeframe allowed. All LDCs were encouraged to maximise the opportunity this created for them. All LDCs had an equal opportunity to maximise funding in their respective areas, and some companies availed of this more than others.

The second issue relates to the change in co-financing rates. During 2011, the European Commission approved a change in the maximum co-funding rate from 55% to 85% for the LEADER elements of Ireland’s RDP but only for expenditure incurred in 2012 and 2013. This had the effect of reducing the available funding under the Programme from €427 million to an estimated €370 million.

In January 2013 in light of all the changes to the Programme it became necessary to carry out a comprehensive review of the level of commitments and expenditure across the various measures of the Programme in order to apportion the remaining funds among the LDCs, taking into account the level of commitments already entered into.

Using an estimated final programme allocation of €370 million the total spend to date and outstanding contractual commitments under the Programme were established and deducted from the €370 million. €6 million was provided for the former MFG legacy files, new Gaeltacht projects and associated administration costs. Funding was also provided for projects that were greater than €150,000 in value that had been submitted to my Department for assessment. The original percentage of the Programme which was awarded to each LDC in 2009 was then applied to apportion the remaining funding. Where an LDC would receive less than 80% of its original allocation, an adjustment was made to bring the revised allocation up to 80% of the original.

In the case of Longford Community Resources the revised allocation represents a decrease of 19% from their original allocation. The redistribution of available funding was conducted in as fair and equitable a manner as was possible with many LDCs experiencing similar reductions.

I am committed to the continued monitoring of this situation and my Department will conduct another formal review of commitments and expenditure levels at the end of August 2013. If LDCs are not performing with regard to the Programme commitment levels, allocations will again be revised in the context of maximizing commitments to the end of the Programme by December 2013.