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Local Development Companies Funding

Dáil Éireann Debate, Tuesday - 5 November 2013

Tuesday, 5 November 2013

Questions (642)

Billy Kelleher

Question:

642. Deputy Billy Kelleher asked the Minister for the Environment, Community and Local Government if he will restore the substantial cut in allocation to the West Cork Area Partnership for 2013; and if he will make a statement on the matter. [46110/13]

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Written answers

The West Cork Area Partnership is contracted to carry out projects on behalf of my Department in relation to the LEADER and Local and Community Development Programmes. In regard to LEADER, 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 Rural Development Programme 2007 – 2013. This had the effect of reducing the available funding under the Programme from €427 million to an estimated €370 million. It was therefore necessary to carry out a comprehensive review of the level of commitments and expenditure across the Programme in order to apportion the remaining funds among the Local Development Companies (LDCs), taking into account the level of commitments already entered into.

The redistribution of funding was conducted in as fair and equitable a manner as was possible and in the case of West Cork Development Partnership the revised allocation represents a decrease of 16.3% from their original allocation. Many of the other LDCs experienced similar reductions. I am committed to the continued monitoring of this situation and my Department will review all commitments and expenditure levels later this month to ensure, in so far as is possible, that all available Programme funding is committed by end December 2013; allocations will again be revised if there is funding available for re-distribution.

I have prioritised the Local and Community Development Programme in allocating resources within my Department notwithstanding the very difficult choices which Government have had to make over a number of years to address our economic crisis and place Ireland firmly on the road to economic recovery. The 2014 provision of €47.7 million, just €1 million less than this year's allocation, will allow some 14,000 people who are distanced from the labour market to receive direct one-to-one labour market training and supports.

I recognise that all cuts imposed present challenges to Local Development Companies (LDCs) in managing costs. My Department expects LDCs, to the greatest extent possible, to continue to maintain key services and supports through prioritising resources at the front-line.

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