Dáil Éireann Debate, Wednesday - 13 March 2013
142. Deputy Mattie McGrath asked the Minister for the Environment, Community and Local Government when he will release the budget to the local development companies here; and if he will make a statement on the matter. [13288/13]
View answer147. Deputy Emmet Stagg asked the Minister for the Environment, Community and Local Government when the 2013 Leader allocations will be made to the local Leader companies (details supplied). [13369/13]
View answerI propose to take Questions Nos. 142 and 147 together.
My Department is responsible for a range of programmes and initiatives to support communities including the Local and Community Development Programme and the Rural Development Programme 2007-2013.
The Local and Community Development Programme aims to tackle poverty and social exclusion through partnership, and constructive engagement between Government and its agencies, and people in disadvantaged communities. It is a key tool of Government in providing supports for the 'harder to reach' in the most disadvantaged areas in society. The Programme is managed by Pobal on behalf of my Department and delivered at a local level by the nationwide network of Local Development Companies and a small number of alternative delivery structures.
To date, indicative allocations for the year and all first stage payments for 2013 have issued to all Local Development Companies contracted to deliver the Programme.
In late 2011 the European Commission approved a change in the maximum co-funding rate from 55% to 85% for the Axes 3 and 4 elements (LEADER) of Ireland's Rural Development Programme (RDP) 2007-2013, thereby reducing the national exchequer input to 15% on a net basis for 2012 and 2013 without a concomitant increase in the amount of funding to be provided by the EU. This resulted in a reduction in the overall Programme complement from €427m to approximately €314m on the basis of the Programme achieving full spend by the end of 2013.
In this context the original project allocations given to each Local Development Company (LDC) contracted to deliver the LEADER elements of the RDP required readjustment. My Department is carrying out an exercise to determine the level of project commitments across all LDCs and all RDP measures in order to complete the rebalancing of the programme in as equitable a way as possible. In addition, given the levels of spending by the LDCs from 2009 to date it is very unlikely that full spend will be achieved by the end of 2013. The co-funding rate will revert to 55% for all expenditure beyond the end of 2013 and as a consequence of this the overall Programme requirement will also change. Until such time as the rebalancing exercise, as outlined, has been satisfactorily completed, it is not possible to be definitive regarding the remaining funding available for project commitments under Axis 3&4 of the RDP. I expect this exercise to be completed shortly.
