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Leader Programmes Funding

Dáil Éireann Debate, Tuesday - 26 March 2013

Tuesday, 26 March 2013

Questions (390, 391)

Timmy Dooley

Question:

390. Deputy Timmy Dooley asked the Minister for the Environment, Community and Local Government the status of Leader funding; and if he will make a statement on the matter. [15195/13]

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Éamon Ó Cuív

Question:

391. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government when the integrated companies will once again be allowed to approve projects following the suspension of this permission on 29 January 2013; the total amount of project money remaining to be approved under each heading of the programme; and if he will make a statement on the matter. [15210/13]

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Written answers

I propose to take Questions Nos. 390 and 391 together.

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. Prior to this the LEADER elements were co-funded at a rate of 55% by the EU, with the remaining 45% coming from national exchequer sources. The 2011 agreement reduced 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.

However, given the levels of spending by the Local Development Companies (LDCs) from 2009 to date, it is very unlikely that full spend will be achieved by the end of 2013, at which time the co-funding rate will revert to 55% for all expenditure beyond that date. As a consequence of this the overall Programme requirement will change. In the context of these changes to the co-funding rate the original project allocations given to each LDC contracted to deliver the LEADER elements of the RDP require readjustment. An exercise is currently being carried out to determine the level of project commitments across all LDCs and all RDP measures in order to rebalance the programme in as equitable a way as possible.  It will not be possible to be definitive regarding the remaining funding available for project commitments until such time as this rebalancing exercise has been satisfactorily completed. I expect this exercise to be completed shortly.

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