I propose to take Questions Nos. 143, 144 and 146 together.
Axes 3 and 4 (LEADER) of the Rural Development Programme (RDP), for which my Department has responsibility, continues to facilitate access to significant financial resources for rural communities. The main objectives of the RDP are to improve the quality of life in rural areas and facilitate the diversification of the rural economy.
Yesterday I announced a number of changes to the RDP which will address some of the issues experienced to date in the context of the delivery of the Programme. Previously, the rates of grant aid available to private promoters in the context of supporting enterprise activity in rural areas, was 50% with some higher rates available for specific activities such as Training (100%) and Analysis and Development (90%). In the current economic climate, it has been difficult for private individuals to obtain the matched funding required in order to avail of this support level, particularly for larger projects. This suite of programme changes will allow for the provision of a 75% rate of aid for private promoters; this will decrease the matched funding and credit required for enterprise start ups in rural areas. I anticipate a significant increase in project commitments as a result of this change.
One of the more significant programme changes announced yesterday emerged from the need to have a more flexible approach to the achievement of the aims and objectives of the individual Local Development Strategies (LDS) of the Local Development Companies delivering the RDP. The change will allow for an extra allocation of €10 million to the Basic Services measure of the RDP. This measure has seen a very high level of demand to date and all indications are that there are still a large number of potential projects eligible under this measure that will be facilitated with this programme change.
Other changes to the programme include the implementation of a measure under Axis 1 of the Programme, using the LEADER approach. This follows my announcement in March 2012 of a €5 million fund to support the Agri-food sector; the measure will provide support for the development of projects, primarily processing of artisan foods, formerly supported under Axis 3 of the RDP.
Also as a result of the changes I am making, from now on, local authorities will be permitted to act as project promoters accessing funds directly from the RDP. Working in cooperation with community groups local authorities will be eligible to apply for the community rate of aid under the Village Renewal and Conservation measures of the RDP. I anticipate that this change will result in communities moving forward with projects they would otherwise not have considered due to the workload involved and the detailed plans required for some projects of a very complex nature.
My Department's budget allocation for the RDP includes €96 million for 2012 and €96 million for 2013.