I thank you, a Cheann Comhairle, for allowing me to raise this issue. I wish to share time with Deputy O'Dowd.
Partnership Budgets.
Is that agreed? Agreed.
I also wish to thank the Minister, Deputy Ó Cuív, for attending the House personally to deal with this important adjournment matter. He gave me and Deputy O'Dowd an opportunity to meet with him earlier. This is a serious issue for many people. The Monaghan and Cavan partnerships are the two I know best, of the 70 such partnerships that are in place nationally. Monaghan was advised earlier this year that it had a budget of €1.04 million available, which is now being cut back to less than €800,000. The partnership gives support to small farmers in isolated areas who will not now be served by Teagasc. They help those who are long-term unemployed. That has been difficult since the restrictions were placed on the back to work scheme, which is now only available to those who have been unemployed for more than five years. They also help those with various disabilities. They are deeply involved in community and voluntary groups generally, which will be deprived of services and funding due to these massive cutbacks.
Where stands the three year contracts signed by partnership companies with ADM in spring 2001? To whom is ADM answerable? What steps will be taken to ensure that local partnership boards are allocated the necessary funds to meet their commitments, which are based on what they were advised earlier this year?
These cutbacks will result in a further reduction in services. Everybody was assured in spring 2002 that such services would be the norm. When Fine Gael even dared to question the basis for some of the commitments, the Minister, Deputy McCreevy, said, and put in writing, that no cuts were planned or envisaged. However, there have been cuts in the CE schemes, summer job schemes and back to education grants. I questioned the Minister on a number of occasions on the budget available to CLÁR, a programme which both he and I appreciate. There are also delays in the operation of other schemes.
The major cutback in partnership funds is the main issue I am raising. Mostly volunteers are involved in partnership boards. They came together with great expectations of what could be done. They want to know to whom is ADM responsible? There are many organisations, including health boards, in place. The Ceann Comhairle knows all about the hospital issue in Monaghan and that we cannot get answers in that regard. There is also ADM and there are many other organisations that are supposed to be responsible, but to whom are they responsible? We want answers and money to ensure that these groups can continue to operate.
Molaim an tAire as ucht a theacht anseo anocht. Is rud an-mhaith é go dtagann Aire go dtí díospóireacht mar seo. Mar a dúirt an Teachta Crawford, bhí sé ag caint linn tráthnóar an scéal práinneach seo a bhfuil lán daoine buartha faoi. Caithfimid an fhírinne a fháil ón Aire agus níl aon dabht ach go bhfaighimid í, ach caithfear rud níos mó ná sin a fháil. Caithfimid an t-airgead a fháil dos na daoine bochta atá ag brath ar an Aire agus ar na scéimeanna páirtíochta timpeall na tíre.
We need to get the facts. I acknowledge the courtesy of the Minister and his Department officials in meeting us to discuss this matter. As my colleague said, there are two points of views. One view is that the partnerships are under extreme pressure for funding. They firmly believe that their budgets have been significantly cut back and that nationally the partnerships, on average, face cutbacks of 28%.
The Estimate for the Minister's Department states that they will face cutbacks of 6%. From speaking to people in partnerships throughout the country, they do not have a problem with the 6% cutback, but they have a problem with the major shortfall for projects such as the breakfast clubs, the homework clubs, services for Travellers, single parents and other people who are deprived and in extreme circumstances.
I acknowledge the personal commitment the Minister has to look after people in this area and the work he has done, but my community in Drogheda is deeply concerned. Having spoken to people in ADM and to its chief executive, Dr. Tony Crooks, they are convinced not only that jobs will be lost, but that the frontline delivery of important services to communities is under significant threat. In the partnership in Drogheda, in September there will be no homework clubs, breakfast clubs or proper services for single parents and others. This is an important issue, which the Minister must address immediately.
Ba mhaith liom buíochas a ghlacadh leis an mbeirt Teachta as ucht na ceist seo a thógáil liom tráthnóna. Is ceist thromchúiseach í agus tá sé tábhachtach go mbeinn féin, mar Aire atá freagrach aisti, i láthair leis an bhfírinne faoin scéal seo a mhíniú.
It is important that we set the record straight. I have been contacted by partnerships. The record is simple. An amount of €44.6 million has been provided in the Vote of my Department for the local development programme in 2003. This figure represents a reduction of 6% in the local development subhead over the 2002 figure. I emphasise that it is a 6% reduction.
In 2001 and 2002, funding of €45.5 million and €47.6 million was provided in the Estimates to deliver the three sub-measures of the programme. The outturn for those years was €43.2 million in 2001 and €53.6 million in 2002. An additional €6 million in 2002 was provided from savings within the Vote of my Department and allocated to the local development programme in December 2002. In other words, it was not part of the normal budget, but there were some savings and they was refunded at the end of the year. That additional funding was possible, but the partnerships could not have expected it and should not have counted on it.
The Deputy will be aware that ADM manages the local development social inclusion programme on behalf of my Department. The programme is delivered on the ground by 38 partnerships and 33 community groups. Allocations from within the budget available for the programme in 2003 were recently agreed by the board of ADM. The Minister has nothing to do with the individual allocations – they are agreed by the board of ADM and notified to each partnership and community group.
As the Deputies will appreciate, ADM must manage the programme within the budget avail able in my Department's Vote. Reductions in available funding for 2003 are being managed on a sliding scale, ranging from 4% to 7%, depending on the annual budget of the partnership and community group. In other words, the cutbacks this year are between 4% and 7% – there is no cutback of 33%.
I understand the partnerships and community groups may have had the expectation of the carry-over of commitments into 2003. Their understanding was that to the extent to which they had not spent NDP moneys in previous years, that they could do so, that they could roll them forward into 2003. This might have arisen because prior to 2000 under the previous national plan, this scheme was EU funded on a multiannual funding basis. However, this scheme is Exchequer funded only and, as everybody is aware, where a scheme is Exchequer funded, the Department operates on a cash basis each year, not on an accrual basis. Every Deputy fully appreciates that is the way we voted through the Estimates and we are involved in the Estimates procedure. There was no question of carrying money forward from one year to the next.
It is important to distinguish between commitments of partnership and community groups as opposed to unpaid liabilities brought forward from 2002 to 2003, in other words, bills etc. in hand. Net unpaid liabilities being brought forward by partnerships this year are quite small, in the order of €600,000. Presumably at the end of this year they will carry forward approximately the same amount of money into 2004. That is understandable because everyone knows that we will not have every bill at the end of the year.
It should be possible, therefore, for full programmes to continue. If a full programme could be completed with funding of €47 million last year and funding of €43 million the year before, it should be possible with funding of €44.6 billion this year – they are looking after the pennies this year. I have no doubt that this will be the outcome. This matter has come like a shot out of the blue in the past two weeks. I cannot see where the problem is in this regard. In the meantime I am working with ADM and the partnerships to minimise as far as possible the impact of the reduction of 6% in funding this year.
The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Thursday, 10 April 2003.