Rural Development Programme Funding

Dáil Éireann Debate, Tuesday - 11 June 2013

Tuesday, 11 June 2013

Questions (559, 583, 618, 619, 620, 629)

Michelle Mulherin

Question:

559. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government the criteria that was used to decide the percentage changes in the rural development programme budgets for local development companies around the country; and if he will make a statement on the matter. [27175/13]

Anthony Lawlor

Question:

583. Deputy Anthony Lawlor asked the Minister for the Environment, Community and Local Government if he will provide details of the number of projects in each county awaiting approval from his Department for Leader funding; and if he will make a statement on the matter. [26862/13]

Éamon Ó Cuív

Question:

618. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the initial allocation made to each integrated company under the Leader programme 2007-2013; the revised allocation made recently to each company; the decrease or increase in this allocation; the amount of each allocation divided between administration money and projects; the reason for the change in allocation in each case; and if he will make a statement on the matter. [27650/13]

Éamon Ó Cuív

Question:

619. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the revised project allocation to each integrated company under the Leader Programme; the amount of commitments entered into to date by each company and the expenditure to date; and if he will make a statement on the matter. [27651/13]

Éamon Ó Cuív

Question:

620. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the revised allocation under each measure of the Leader programme; the amount committed to date under each measure; the expenditure under each measure; and if he will make a statement on the matter. [27652/13]

Dara Calleary

Question:

629. Deputy Dara Calleary asked the Minister for the Environment, Community and Local Government in the context of an average 13% reduction in the Leader Rural Development Programme funding, the reason some companies received a reduction of more than the national average and others received substantial increases in their budget; and if he will make a statement on the matter. [27723/13]

Written answers

Minister for the Environment, Community and Local Government

I propose to take Questions Nos. 559, 583, 618 to 620, inclusive, and 629 together.

The LEADER elements of the Rural Development Programme (RDP) 2007–2013 commenced in February 2009 after a delay of more than two years which reduced the time available to allocate funding to less than five years rather than the normal seven. During 2010 and 2011 it became evident that a significant number of Local Development Companies (LDCs) who were contracted to deliver the Programme were not committing funds at the level required to ensure that all the funding would be allocated by the December 2013 deadline in line with EU Regulations. Similarly it became clear that a number of LDCs were more than capable of allocating additional funding if it was made available.

In this regard, in January 2012 my Department notified all LDCs that the original LDC allocations awarded in 2009 were no longer valid and that the Programme was being opened up on a ‘first-come first served’ basis to all LDCs in order to ensure that all the available funding would be allocated to eligible projects within the timeframe allowed. All LDCs were encouraged to maximise the opportunity this created for them. Some companies availed of this more than others.

During 2011, the European Commission approved a change in the maximum co-funding rate from 55% to 85% for the LEADER elements of Ireland’s RDP but only for expenditure incurred in 2012 and 2013. This had the effect of reducing the available funding under the Programme from €427 million to an estimated €370 million which is a 13% reduction.

In addition in late 2012 and early 2013 after repeated requests from many LDCs I agreed to allow significant additional programme funds to be assigned to the Basic Services Measure, over €19 million in total.

In January 2013 in light of all the changes to the Programme outlined above it became necessary to carry out a comprehensive review of the level of commitments and expenditure across the various measures of the Programme in order to apportion the remaining funds among the LDCs taking into account the level of commitments already entered into.

As a first step I released €42 million worth of projects which had been approved by the Boards of the LDCs asking them to progress projects that were in a position to proceed. Unfortunately only €25.5 million in that category had all the necessary approvals in place to proceed to contract.

Using an estimated final programme allocation of €370 million the total spend to date and outstanding commitments (commitments that were under contractual arrangements) under the Programme were established and deducted from the €370m. €6 million was provided for the former MFG legacy files, new Gaeltacht projects and associated administration costs. Funding was also provided for projects that were greater than €150,000 in value that had been submitted to my Department for assessment. The original percentage of the Programme which was awarded to each LDC in 2009 was then applied to apportion the remaining funding among all LDCs. Where an LDC would receive less than 80% of its original allocation (bearing in mind that the overall Programme complement has been reduced by approximately 13%) an adjustment was made to maintain the revised allocation at 80% of the original.

If my Department had not adjusted the allocations to ensure that all LDCs received at least 80% of their original allocation a number of companies would have experienced higher reductions and in that context the allocations were calculated in the fairest possible manner.

Under the European Commission Regulations each LDC is permitted to spend up to a maximum of 20% of the total value of its expenditure on administration costs. My Department has requested that the LDCs should aim to reduce costs where possible in order to spend less than the 20% thereby making more funding available to projects. LDCs have been asked to submit a plan profiling their estimated administration and project expenditure for the Programme as a whole by mid June 2013.

Table 1 below sets out the original allocation, the revised allocation, the increase/decrease and the percentage difference.

Table 2 below shows the total commitments and expenditure by measure at 16 May 2013.

Table 3 below shows the total project payments at 16 May 2013 and total administration/animation claimed by the LDCs up to May 2013. My Department does not have exact figures for the number of projects awaiting approval in each county but the value of these per LDC is detailed.

Table 1

Local Development Company	Original Allocation	Revised RDP Allocation	Difference	Percentage Increase/ Decrease
Avondhu/ Blackwater Partnership Limited	€9,057,810	€7,251,112	-€1,806,698	-20%
Ballyhoura Development Limited	€11,673,519	€18,502,053	€6,828,534	58%
Carlow County Development Partnership Limited	€8,878,177	€7,444,015	-€1,434,162	-16%
Cavan Partnership Ltd. & County Monaghan Area Part.	€12,035,118	€9,923,866	-€2,111,252	-18%
Clare Local Development Company Limited	€14,028,529	€16,175,841	€2,147,312	15%
Comhar na nOileáin Teoranta	€4,624,415	€6,825,171	€2, 182 ,756	48%
Donegal Local Development Company Limited	€12,831,901	€12,775,727	-€56,174	0%
Fingal LEADER Partnership	€7,766,780	€6,217,667	-€1,549,113	-20%
FORUM Connemara	€9,668,965	€7,734,929	-€1,934,036	-20%
Galway Rural Development Company Limited	€15,257,985	€12,211,887	-€3,046,098	-20%
Inishowen Development Partnership	€8,286,143	€7,410,663	-€875,480	-11%
I.R.D. Duhallow	€10,315,943	€12,839,050	€2,523,107	24%
Kildare (Cill Dara ar Aghaidh Teoranta)	€12,282,448	€10,642,073	-€1,640,375	-13%
County Kilkenny LEADER Partnership Limited	€11,523,729	€13,319,465	€1,795,736	16%
Laois Community & Enterprise Development Company	€10,993,608	€9,465,731	-€1,527,877	-14%
Leitrim Integrated Development Company	€10,845,497	€10,257,659	-€587,838	-5%
Longford Community Resources Limited	€8,714,110	€7,026,574	-€1,687,536	-19%
Louth LEADER Partnership	€8,839,815	€7,075,178	-€1,764,637	-20%
Mayo North East LEADER Partnership Company	€10,751,894	€9,535,062	-€1,216,832	-11%
Meath Partnership	€12,748,771	€15,051,583	€2,302,812	18%
North & East Kerry LEADER Partnership Teoranta	€10,558,882	€8,937,452	-€1,621,430	-15%
North Tipperary LEADER Partnership Company	€9,708,008	€12,917,884	€3,209,876	33%
Offaly Integrated Local Development Company	€11,520,489	€10,828,856	-€691,633	-6%
Roscommon Integrated Development Company	€12,838,021	€11,230,957	-€1,607,064	-13%
County Sligo LEADER Partnership Company	€10,888,673	€9,788,645	-€1,100,028	-10%
South East Cork Area Development Limited	€10,641,494	€10,532,187	-€109,307	-1%
South Kerry Development Partnership Limited	€12,370,667	€9,998,740	-€2,371,927	-19%
South Tipperary Local Development Company Limited	€11,106,187	€12,405,282	€1,299,095	12%
South West Mayo Development Company Limited	€12,150,007	€10,361,827	-€1,788,180	-15%
Waterford LEADER Partnership Limited	€10,558,519	€11,177,988	€619,469	6%
West Cork Development Partnership	€14,601,149	€12,465,076	-€2,136,073	-15%
West Limerick Resources	€9,997,751	€9,007,256	-€990,495	-10%
Westmeath Community Development	€10,987,060	€8,798,346	-€2,188,714	-20%
Wexford Local Development	€12,515,565	€11,583,749	-€931,816	-7%
Wicklow Partnership	€11,135,560	€8,908,698	-€2,226,862	-20%

Table 2

Measure	Total Public Commitment (€)	Total Paid (€)	Outstanding Commitments
Basic Services for the Economy and Rural Population	51,170,182.68	32,517,849.83	18,652,332.85
Support for Business Creation and Development	33,373,073.54	16,729,509.18	16,643,564.36
Conservation and Upgrading of the Rural Heritage	22,298,692.98	13,387,479.64	8,911,213.34
Implementing Co-Operation Projects	5,082,695.46	2,209,022.15	2,873,673.31
Diversification Into Non-Agricultural Activities	9,455,618.15	4,694,927.64	4,760,690.51
Measure 123   - Food Products	932,406.36	102,293.65	830,112.71
Skills Acquisition and Animation	7,984,455.06	3,655,078.54	4,329,376.52
Encouragement of Tourism Activities	34,925,468.94	19,351,596.50	15,573,872.44
Training and Information	18,625,945.81	10,818,304.87	7,807,640.94
Village and Countryside Renewal And Development	43,430,399.58	22,732,374.77	20,698,024.81
	227,278,938.56	126,198,436.77	101,080,501.79

Table 3

LAG	Administration/ Animation	Total Project Payments	Outstanding Commitments	Unapproved Project Applications
Avondhu/ Blackwater Partnership Limited	1,264,875	3,528,823	687,858	701,055.40
Ballyhoura Development Limited	2,104,858	5,797,832	8,591,499	3,296,082.52
Carlow County Development Partnership Limited	1,329,953	2,855,211	1,764,530	5,394,591.86
Cavan Partnership Ltd. & County Monaghan Area Partnership	1,636,029	3,159,211	3,237,804	5,378,423.73
Clare Local Development Company Limited	2,052,705	5,605,411	5,580,527	2,119,626.00
Comhar na nOileáin Teoranta	901,696	1,902,511	1,117,154	9,551,066.19
Donegal Local Development Company Limited	1,860,801	4,470,594	2,552,389	6,051,101.40
Fingal LEADER Partnership	924,558	848,526	1,389,000	4,559,229.75
FORUM Connemara	1,069,920	2,028,894	762,039	4,951,184.12
Galway Rural Development Company Limited	1,737,777	4,756,782	2,827,281	5,568,729.75
Inishowen Development Partnership	1,044,744	3,587,865	1,383,380	671,790.46
I.R.D. Duhallow	1,482,010	4,200,966	5,419,756	3,000,613.00
Kildare (Cill Dara ar Aghaidh Teoranta)	1,785,905	2,267,719	3,408,240	8,937,817.24
County Kilkenny LEADER Partnership Limited	1,719,346	4,268,023	2,842,795	9,111,722.32
Laois Community & Enterprise Development Company Limited	1,256,857	2,955,956	3,402,539	2,590,913.00
Leitrim Integrated Development Company	1,484,819	3,469,067	3,101,683	3,973,390.99
Longford Community Resources Limited	1,042,002	2,634,263	1,883,602	3,806,306.04
Louth LEADER Partnership	1,235,852	2,294,140	968,321	3 , 715 , 859.17
Mayo North East LEADER Partnership Company Teoranta	1,363,383	2,809,326	1,209,998	939,450.59
Meath Partnership	2,005,521	3,419,317	6,638,061	4,943,007.27
North & East Kerry LEADER Partnership Teoranta	1,520,904	2,962,894	1,883,262	2,648,342.04
North Tipperary LEADER Partnership Company	1,321,176	4,817,914	4,537,131	3,694,902.46
Offaly Integrated Local Development Company	1,429,446	4,167,731	3,292,619	3,059,511.82
Roscommon Integrated Development Company	1,771,749	3,505,505	3,440,078	6,303,815.40
County Sligo LEADER Partnership Company	1,346,434	4,570,222	2,039,273	5,216,792.14
South East Cork Area Development Limited	1,423,547	3,592,134	2,395,392	6,775,148.78
South Kerry Development Partnership Limited	1,861,505	2,776,881	2,219,256	4,266,727.82
South Tipperary Local Development Company Limited	1,391,293	4,878,232	4,266,429	6,621,244.30
South West Mayo Development Company Limited	1,714,153	4,288,803	1,075,833	7,286,410.34
Waterford LEADER Partnership Limited	1,553,977	4,365,454	2,636,628	4,311,287.08
West Cork Development Partnership	2,058,033	4,664,843	2,898,225	12,086,048.87
West Limerick Resources	1,492,992	3,017,405	2,417,784	3,053,224.98
Westmeath Community Development	1,451,951	2,293,616	1,881,693	3,835,806.91
Wexford Local Development	1,519,607	4,875,460	3,082,137	2,884,071.72
Wicklow Partnership	1,368,822	2,592,862	2,044,743	3,467,267.00
	€53,932,906	€126,198,437	€98,878,938	€164,772,562.50