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Dáil Éireann debate -
Thursday, 8 Jun 1995

Vol. 454 No. 2

Adjournment Debate. - Leader II Funding.

I wish to share my time with Deputy O'Leary. I wish to raise the disappointing allocation of funding under Leader II to the south Kerry area. Under Leader I, some 16 areas were designated and £35 million was allocated over a two year period. Under Leader II, some 35 areas were designated and £77 million has been designated over a five year period. Under Leader 1, £17.5 million was allocated to 16 areas per year whereas under Leader II, £15.4 million per year was allocated to 35 separate groups. It is regrettable that the Minister allocated £21 million from his budget to Leader II. The reimposition of centralised control is disappointing.

The Minister of State, Deputy Deenihan, was quoted in The Kerryman on 5 May, 1995 as stating that the allocation to groups was made on the basis of population. The programme has been diluted to the point where the level of resources will make little or no difference to the scale of the problem in areas suffering a decline in population. The population of south Kerry can anticipate a fourfold reduction in the level of resources from £3.06 per person per annum under Leader I to 81p per person per annum under Leader II.

As the Minister is only two well aware the biggest problem experienced in rural Ireland is depopulation. The direct linking of resources under Leader II to population base flies in the face of logic if the programme is to have any hope of addressing the real needs in rural areas. It appears that the Minister has made a disastrous error in reducing the amount of funding available, increasing the areas and extending the duration of the disbursement of the funds.

The programme appears to be little more than a political cosmetic exercise. The previous programme was a resounding success in south Kerry. It is extremely disappointing that the level of funding has been reduced to the stage where the allocation will only be 81p per person per annum in the Leader area of south Kerry. I very much welcome the expansion of the area but I deeply regret the decision not to increase the funding and the extension of the duration of the disbursement of the moneys to five years. In excess of 20 per cent of the amount allocated will have to be spent on administration. It is fair to say that the group in south Kerry managed to provide real assistance at grassroots level and created as much economic activity as possible in a very brief period. The dilution of the funding means that once again people in south Kerry, in the Minister's constituency of north Kerry and other constituencies, will be scratching the surface.

I was surprised and shocked to learn of the meagre allocation for the Leader programme over the next five years. Last winter meetings were held in community centres in every parish in south Kerry and the groups were very encouraged by the promises given by the Minister of State both prior to and immediately after Christmas. The management plan for south Kerry which was estimated to cost £8.5 million will have to be reduced dramatically. I ask the Minister and the Minister of State to secure extra funding in the same way as other Minister secured extra funding for problems which arose in their Departments.

This issue has been further compounded by the announcement of the closure of the Pretty Polly plant in Killarney with the loss of 152 jobs. This closure will affect the Killarney and mid-Kerry catchment areas. I ask the Minister of State to do everything in his power to secure additional funding to back up the funding from the EU and to ensure that the committees set up in every parish in south Kerry are adequately financed and are in a position to spend the money wisely, to create badly needed jobs and to help the local community.

I thank the Deputies for raising this matter. I wish to join with Deputy O'Leary in expressing my disappointment at the closure of the Pretty Polly plant in Killarney. I hope the IDA can find a replacement industry as soon as possible as this closure impacts not only on Killarney but also in the areas in south Kerry and Castleisland.

In reply to Deputy O'Donoghue, unfortunately the flexibility clause was abused in some cases under Leader I and as a result this very successful scheme was discredited. The Deputy has only to read the Comptroller and Auditor General's report to see confirmation of this. The funding under Leader II was in line with all other Government schemes and I will do my best during the review of Structural Funds to ensure that more money is allocated for this programme which is very important for rural areas.

On the question of confining Leader II to the pilot areas already in existence, I am sure thousands of communities would be very disappointed if the Government pursued that course of action. I would not like to see communities which need money and help being excluded.

On a point of order. I did not say that.

That is exactly what the Deputy said.

No, it is not.

The Deputy should read what he said.

I said that the expansion should be in line with the expansion of the areas.

Read the facts.

The Minister of State should read the record.

Allocations have been made to the Tuaithe Ciarraí group which covers the areas around Scartaglin. Cordal and other areas in the south Kerry constituency, Meitheal Forbairt na Gaeltachta which includes the area from Camp to Slea Head and Ballinskelligs and the Duhallow Leader group which includes the areas around Rathmore and Gneevegulla. When these allocations are taken into consideration the allocation per head will be increased considerably.

Leader is the EU initiative for rural development and it provides an opportunity for rural communities to involve themselves directly in their own development. Leader I ended in December 1994 and the Government recently selected the groups to implement Leader II. The group selected to operate the programme in south Kerry has been approved for funding of £1.761 million. This figure was based on an independent assessment by consultants and on recommendation made by the officials in the Department of Agriculture, Food and Forestry. It was not tampered with by a political person. I relied totally on the advice of the consultants and the experience of the officials to make the decison. I will not take any credit for allocations with which people are pleased and neither will I take the blame for allocations with which they are not pleased.

Leader is designed to complement other programmes and measures which are being funded by the EU under the Community Support Framework 1994-1999. The programme is not intended as a response to all of the problems or potential for development in rural areas and the allocation of funds to the programme and to individual groups must be seen in that context.

Virtually every operational programme under the Community Support Framework has an impact in rural areas, including south Kerry. All of the State agencies and mainline programmes of grant aid such as the supports for industry, tourism and the provision of infrastructures apply throughout the country. In this context, I would mention two measures in particular which are co-financed by the EU under the Operational Programme for Local Urban and Rural Development and which will have an impact in south Kerry and other areas. These are the county enterprise board and the area based partnership company which are established to support integrated social and economic development with particular reference to the disadvantaged. The approved Leader group in south Kerry is also the structure for delivering the area board partnership approach in the area. Both of these programmes will provide significant funding for local development.

Such is the range of measures and sources of funding available in most areas that we are very concerned to encourage co-operation between Leader groups and official agencies so as to ensure a co-ordinated approach to local development. It is a formal requirment on Leader II groups, therefore, that they demonstrate a close and harmonious working relationship with all other agencies in their area in order to avoid overlap and duplication of effort.

The unique feature of Leader compared with other programmes is of course the bottom-up concept of engaging communities directly in the local development process. Given our background of community, voluntary and cooperative involvement this is a feature of Leader I which was particularly successful. The independent evaluation of Leader I found that one of the most valuable aspects of the programme was the enormous commitment of the board members, support structures and local communities.

The independent evaluation also found that the activities of Leader groups in stimulating and facilitating development through animation and capacity building was an essential feature of Leader I which distinguished it from other programmes. We are emphasising this activitity under Leader II and it is not acceptable that groups operate as purely grant giving agents. Under Leader II there is a formal requirement on groups to engage in animation and capacity building in order to assist the local communities to help identify potential for development, to establish suitable community structures to work towards local objectives and to advise, guide and otherwise assist, including where appropriate offer financial assistance in achieving local aspirations; and advise, guide, support and facilitate individuals or small enterprises with worthwhile ideas for development.

In many cases, the role of the group will be to support and facilitate the community or individual project promoter to the point where the project reaches the development stage. I have already indicated that sources of funding are available to support a broad range of development projects and it is not necessary to provide the Leader group with funding for each and every project idea. A comment I frequently hear is that there are considerable resources available to support projects but that in many rural areas a more basic problem is the lack of sufficient human capital at community and individual level to generate ideas and identify and encourage entrepreneurs with potential to create employment and additional incomes. We are encouraging Leader groups to fulfil that role.

Total funding for Leader II is £77 million — £54 million from the EU and £23 million in national funding. This is a substantial increase on the Leader I funding of £35 million. Given the benefits that can accrue to communities and the willingness of communities to participate in the programme, the Government was determined that Leader II would apply to all rural areas and this will be the case.

The allocation under Leader II for the group approved in south Kerry is £1.76 million. While this represents a reduction from the group's Leader I allocation, I am satisfied that it is substantial funding given the size and population of the area and the background of other sources of funding that I have outlined. In view of the south Kerry group's experience of Leader I and the expertise it has accumulated, I am confident that the funding available will enable it to make a very useful and worthwhile contribution to local development in the area over the next four to five years.

The Dáil adjourned at 4.45 p.m. until 2.30 p.m. on Tuesday, 13 June 1995.

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