Vol. 569 No. 4
77 Mr. Broughan asked the Minister for Community, Rural and Gaeltacht Affairs the reasons he sanctioned cuts of up to 40% in the 2003 budgets for area partnership companies; the steps he intends to take to save the many valuable job placement, training, local enterprise and stay at home initiatives in disadvantaged areas represented by the partnerships; and if he will make a statement on the matter. [17871/03]
As I have outlined to the House on a number of occasions recently, a sum of €44.6 million has been provided in the Vote of my Department for the local development social inclusion programme this year. This amounts to a decrease of 6% in the amount provided in the Estimates in 2002.
Area Development Management Limited, ADM, manages the programme on behalf of my Department. Allocations from within the budget available for the programme in 2003 were agreed by the board of ADM earlier this year and were subsequently notified to each partnership and community group. ADM must manage the programme from within the budget available in my Department's Vote.
The reductions in available funding for 2003 were managed on a sliding scale, ranging from 4% to 7%, depending on the annual budget of the area partnership company or community group. Northside Partnership was allocated a total of €3,618,753 for the period 2001 to 2003, which equates to an annualised budget of €1,206,251 in each of the three years. As a result of the reduced budget in 2003, the Revised Estimate for 2003 is €1,121,814, a reduction of 7%.
I am aware that some partnerships and community groups had the expectation of carrying over previous years' underspends into 2003. It is important to point out that my Department, as with all Departments, operates on an annual cash basis, not on an accrual basis. Consequently, it is not in a position to facilitate a cumulative carryover of underspends. ADM is working closely with all the bodies concerned to minimise as far as possible the impact of the reductions in funding this year.
I acknowledge once again the work done by partnerships in disadvantaged areas. I have visited the Northside Partnership and seen at first hand the valuable work being undertaken.
I attended a board meeting of Donaghmede parish development group, known as Target, with which the Minister and his colleague might be familiar, which faces closure in its counselling, job placement and other initiatives. All the 38 companies, such as Action South Kildare, Bantry Integrated Development Group, Co-operation Fingal, Tralee Partnership, Northside Partnership, Clondalkin Partnership and Ballyfermot Partnership, are in a similar position.
Groups face closure because the Minister, not ADM, allowed the budget to be slashed last year by €3 million. The Minister said there is no facility for carryover. He knew three-year plans were in place, that agreement had been reached through ADM with his predecessors in different Departments before his was created and that a programme of action had been outlined to continue until the end of next year. Despite the fact that the Minister was aware of this, he allowed the budget in this area to be cut by €3 million. As a result, groups such as the Target group in Donaghmede face closure for the simple reason that key staff will not be paid from major partnership funding. Is it not time for the Minister to ask the Minister for Finance to provide the additional funding necessary to enable critical community groups to survive?
Some Deputies seem to think that repeating the same inaccuracies somehow gives them validity. We give money to ADM and how it disburses it is a matter for an independent board.
The Minister's Department did not exist then.
A Leas-Cheann Comhairle, may I speak without interruption?
The Minister, without interruption.
The amount of money provided since I became Minister is €50.6 million. That comprises the sum of €44.6 million provided for this year and an extra €6 million provided in December 2002. That compares with an allocation of €45.5 million for 2001 and €47.6 million for 2002. Taking the 13 month period since 1 December 2002 to the end of this year, the amount that will be paid to ADM is €50.6 million. I do not understand the great difference from ADM's point of view between paying the money in December 2002 and paying it in January 2003 because this was money over and above the initial Estimate last year.
As I have repeatedly pointed out, there were underspends in previous years and, as every Deputy knows, money not spent returns to the Exchequer. Deputy Broughan is incorrect in what he said. ADM informed me that it understood that there would be no carryovers. It appears to be under no illusion but seems to have some crossed wires with the partnerships. ADM and the Department are ad idem in that they both understand that money cannot be carried forward from one year to another.
The Minister has repeated the same remarks he made a few weeks ago. He lives in a strange world – perhaps he has lost his true vocation and should be writing Harry Potter-type thrillers – where 13 months is suddenly 12 months. How can that be? He knew from his experience before he came to the Department, which was similar to mine and that of other Deputies, that three-year plans were in place and he chose to ignore that. He should obtain the money from the Minister for Finance and prevent communities being destroyed.
The Deputy is incorrect. There are three-year plans with annualised budgets. Therefore, money cannot be carried forward because the financing system does not allow for it. Neither the Deputy's colleague, when he was Minister for Finance, nor any other Minister changed that fundamental position. The Deputy should not try to twist the issue because it will not run.
