The Local Development Companies (LDCs) are independent companies with their own board of management and memoranda and articles of association. My Department has no role in the internal operations of LDCs and, therefore, does not have a role in relation to staff or employment matters, which are for the Board of the company, as the employer, to manage.
The LDCs deliver both the Local and Community Development Programme (LCDP) and the Rural Development Programme 2007-2013 (RDP) on behalf of my Department. It should be noted that the administrative arrangements for each of these programmes are different reflecting the fact that one is grant based (RDP) and the other (LCDP) is service based.
The contract for LCDP service delivery between Pobal and the LDCs requires them to strive to improve service delivery and at a significantly reduced cost to the public purse. One step to achieving this is the reduction in the administrative costs charged against the LCDP. There is currently a cap of 33% in LDCs on the level of funding allocated towards the LCDP administration costs. It is intended to cap the level of administration costs at 25% of the overall LCDP allocation over the period 2012–2014.
The LCDP budget of LDCs is defined in a manner which clearly differentiates overhead from programme costs and all returns are scrutinised by Pobal to ensure that all savings reported are accurate. The average budgeted CEO salary in 2012 was €84,335 per annum.
There are 35 LDCs also contracted by my Department to deliver the LEADER elements of the Rural Development Programme 2007-2013 (RDP). The running costs for the delivery of the LEADER elements of the RDP are capped at 20% of the total LDC’s programme expenditure over the lifetime of the programme.