Dáil Éireann Debate, Thursday - 8 November 2018
9. Deputy Brendan Smith asked the Minister for Rural and Community Development the level of expenditure committed to date under the 2014 to 2020 LEADER programme for each individual programme; the drawdown of such grant aid to date by individual programme; and if he will make a statement on the matter. [46123/18]
View answerI represent two counties, Cavan and Monaghan, that have had the benefit of a LEADER programme since 1991. We were one of the pilot projects that were selected by the then Fianna Fáil Government following the introduction of the LEADER programme at European level by the former Commissioner for Agriculture and Rural Development, Ray MacSharry. I have seen the benefits of that investment during successive programmes.
I am concerned that the roll-out of funding under the current programme, which runs from 2014 to 2020, has been slow. I am very anxious for the maximum drawdown to occur and for the Government to be in a position to draw down the total funding allocated by the European Commission in respect of this very important programme, which is critical for rural communities. I ask the Minister to ensure there is impetus in the drawdown of funding and the approval of projects.
LEADER is a multi-annual programme which has a total budget of €250 million over the period to 2020. Funding to cover the full period of the programme has been allocated to each of the individual local action groups, LAGs, which deliver LEADER. Total expenditure on the LEADER programme since it commenced, effectively in 2016, has amounted to approximately €31 million. This comprises: €1.5 million for costs incurred by the local action groups to develop local development strategies; €20.3 million for the administration costs of the LAGs and the cost of their engagement with communities to generate projects; and €9.3 million on project expenditure.
The level of project activity under the LEADER programme has increased significantly this year. Some 1,450 projects have now been approved by the LAGs for funding of more than €46.3 million. The amount approved for projects in 2018, at €30 million, is nearly double the amount approved last year. A further 329 project applications, requesting an additional €22.1 million, are at various stages in the approvals process. Project payments have also increased significantly in recent months as approved works are completed and claims are submitted for payment. More than €8 million of project expenditure has been incurred in 2018, compared with just under €700,000 in 2017.
I am providing the Deputy with a breakdown of project approvals and project expenditure by each LAG area.
Additional information not provided on the floor of the House.
Table 1: Total LEADER approvals and expenditure by LAG as of 4 November 2018
|
Local Action Group |
No of Projects Approved |
Value of Projects Approved |
Total Project Payments |
|
Carlow |
20 |
€1,100,681 |
€544,756 |
|
Cavan |
26 |
€1,519,327 |
€336,021 |
|
Clare |
97 |
€1,939,103 |
€330,698 |
|
Cork North |
34 |
€1,167,868 |
€233,923 |
|
Cork South |
16 |
€470,302 |
€208,113 |
|
Cork West |
23 |
€723,506 |
€20,933 |
|
Donegal |
100 |
€3,923,726 |
€1,329,588 |
|
Dublin Rural |
39 |
€1,325,525 |
€217,236 |
|
Galway East |
28 |
€1,015,841 |
€0.00 |
|
Galway West |
22 |
€381,245 |
€52,285 |
|
Kerry |
160 |
€3,088,972 |
€611,676 |
|
Kildare |
18 |
€650,426 |
€11,070 |
|
Kilkenny |
54 |
€1,476,716 |
€404,577 |
|
Laois |
41 |
€941,706 |
€306,112 |
|
Leitrim |
45 |
€1,578,563 |
€153,913 |
|
Limerick |
69 |
€2,931,331 |
€87,046 |
|
Longford |
37 |
€837,200 |
€18,793 |
|
Louth |
46 |
€807,538 |
€156,904 |
|
Mayo |
86 |
€3,460,056 |
€430,103 |
|
Meath |
19 |
€800,882 |
€34,199 |
|
Monaghan |
32 |
€1,450,497 |
€241,671 |
|
Offaly |
82 |
€1,769,452 |
€750,907 |
|
Roscommon |
27 |
€1,410,667 |
€158,431 |
|
Sligo |
66 |
€2,306,081 |
€532,205 |
|
Tipperary |
92 |
€2,672,077 |
€395,406 |
|
Waterford |
46 |
€3,059,264 |
€1,063,618 |
|
Westmeath |
34 |
€512,511 |
€134,881 |
|
Wexford |
63 |
€2,157,507 |
€435,756 |
|
Wicklow |
28 |
€905,716 |
€71,792 |
|
Grand Total |
1,450 |
€46,384,282 |
€9,272,617 |
I thank the Minister for his reply. It is most disappointing to learn that only €31 million out of €250 million has been drawn down. We are at the end of the fourth year of the 2014-20 programme, which I accept was late getting off the ground. I have another question in respect of how we deal with it. Speaking to groups on the ground and people who have been involved in LEADER programmes over the years, it seems there has been too much bureaucracy. I know there has been some streamlining of the applications and approvals processes but more is needed. At a time when rural communities need investment, the provision of additional services and assistance for groups, individuals and community organisations that are trying to create employment, we have to ensure that every single cent of that €250 million is drawn down in good time. As the Minister knows, Departments and agencies sometimes have unspent funding as the end of the financial year approaches, which causes a rush to spend some money. The delay in approving projects and bodies trying to ensure full drawdown at the end of the year do not always result in the best value for money. Can the Minister assure us that the full complement of €250 million will be drawn down before the end of the programme in 2020? Groups need this investment and all of us in this House want to see that funding put to the best possible use.
I thank the Deputy for the question. In respect of his own county of Cavan, €1,519,327 has been approved to date and payments of €336,021 have been made. The Deputy is correct with regard to bureaucracy. We made 32 changes to the LEADER programme to try to make it easier for people to make applications. Deputy Smith, as a long-standing Member of the House, will know from previous LEADER programmes that they take a while to ramp up. More and more approvals are coming in and approvals are being made. At that point, the work has to be done and the funding is then drawn down. I am confident the €250 million will be drawn down in the lifetime of the programme.
As the years move on, more funding will be necessary, more applications will be completed and more funding will be drawn down. I am happier now than I was because there has been a major increase in the number of approvals. There are now 1,450 projects approved under the LEADER programme to the value of €46.3 million. The programme is beginning to ramp up in every county. To be fair to the LEADER companies, in the early stages of a programme they have meet and talk to groups and individuals who are bringing projects forward. They have to work with them and explain what is happening. These groups and individuals then submit an application and once approval has been given, the drawdown occurs. That is why the process is slow at the moment, but I have no doubt the €250 million to which the Deputy referred will be spent.
I thank the Minister. Is he satisfied that funding in various parts of the country has been proportionate to activity levels to date? Does he envisage that there will have to be a reallocation of funding between the different companies as time goes on? I am very glad we have two good companies in my constituency actively promoting the LEADER programme. As the Minister is well aware, areas such as Cavan-Monaghan face particular difficulties because of Brexit. Communities in these areas are fearful of the adverse impacts of Brexit on business, commerce and enterprise. If funding is reallocated or additional funding becomes available in any circumstances, I ask that the Minister give particular consideration to the needs of Border communities because what helped local communities in the Border area in the worst of times was the enterprise of local communities which were trying to draw down funding from the International Fund for Ireland and through different INTERREG programmes. There is a good community infrastructure to put public funding to good use. If any additional funding becomes available, I make a special plea to the Minister to consider the needs of my constituency of Cavan-Monaghan because we are on the frontier of a different jurisdiction which will, in future, be in a different trade zone.
Some counties, including Cavan, Monaghan, Kerry and Donegal, are doing very well out of the LEADER programme, which is now making allocations. The Deputy asked me whether I would redistribute any of that money. I do not want to do that. Every county has received its allocation and I want this money to be spent in the respective counties. If at some stage I have to review the whole scheme, I will do that.
The Deputy asked a fair question about making it easier for people to make the applications. Substantial grant aid is available under different schemes and the LEADER programme is now competing with some of these programmes. I want every single cent of that €250 million spent and I will make the necessary changes to ensure that occurs. The programme is ramping up now and the LEADER companies are making allocations. It is important that the work is now done and the various groups draw down the funding. As the Deputy knows, I cannot give them funding until the scheme is complete. The initial cost will be the set-up cost. The LEADER companies have to talk to people who want funding for projects. It is important the money is spent. I will continue to monitor the position because it is a good programme and one that I want to continue.
We will move on to Question No. 12 because the next available Deputy is Deputy Brendan Smith.
