The food projects funded by Leader under the Rural Development Programme play an important role in promoting food processing businesses in rural areas and in generating employment in these areas. This funding has recently been under discussion with the EU Commission. The Commission takes the view that this type of funding is more appropriate to Axis 1 of the Programme which aims to improve competitiveness and provides funding for processing of agricultural products. All EU funding available under Axis 1 is already committed to my Department's on farm investment schemes.
My Department is working closely with their colleagues in the Department of the Environment, Community and Local Government to resolve this issue bearing in mind the funding constraints. Both Departments are also keeping in touch with the Commission on the issue.