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Rural Development Funding

Dáil Éireann Debate, Wednesday - 23 October 2013

Wednesday, 23 October 2013

Ceisteanna (1)

Éamon Ó Cuív

Ceist:

1. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the reason for the cut in funding of 49% for community and rural development in 2014 compared to 2013; the reason for the 77% cut in capital funding and the 6% cut in current funding in view of the importance of the services provided out of this funding; the programmes that will be cut or curtailed as a result; and if he will make a statement on the matter. [44944/13]

Amharc ar fhreagra

Freagraí ó Béal (13 píosaí cainte)

The provision of €102.44 million for community and rural development in budget 2014 reflects the Government’s commitment to the sector notwithstanding the very difficult choices which have had to be made over a number of years to address our economic crisis and place Ireland firmly on the road to economic recovery. I am acutely aware of the great work being done in communities and the need to continue local development initiatives to the greatest extent possible. I have prioritised the Local and Community Development Programme. 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.

There are unavoidable reductions to a number of specific budget lines within the community Vote, and these reflect a range of considerations, including the scale of spending in previous years, the maturity of particular programmes and the balance required to meet EU co-funding needs. For example, there will be reductions of between 5% and 7% to the RAPID and Supports for Community and Voluntary Sector allocations for 2014.  The Interreg programme will be reduced by 8%. The Programme for Peace and Reconciliation will have reduced current funding but its capital funding will be increased by 27%.  I am satisfied that these allocations will fully meet 2014 commitments.

Leader is a multi-annual programme which has regularly underspent its annual allocations since it began in 2009. My Department has therefore been in a position to carry over significant amounts of unspent funding into the following year to meet upcoming commitments. Although Leader spending has increased each year since 2009, this will also be the case in the current year. I expect that in the order of €50 million will become available to carry forward into 2014 to fund Leader projects. Final decisions will be made in the wider context of the Department’s overall capital allocation and will be published in the revised Estimates later in the year, which will further underpin my commitment to these important programmes.

Can the Minister clarify how much the carry-over of Leader into this year was? According to my calculations, by mid-2013, there was still €181 million to be spent on Leader before the end of 2014. The Estimate provision for the whole year 2013 was €119 million and the Estimate provision next year is a maximum of €28 million. I did not get the breakdown between other capital expenditure, but that is €147 million. Unless the Minister's carry-over funded the first half of Leader's activities this year, he will be short of money to spend the whole programme by the end of 2014. Perhaps the Minister can explain how €147 million, at an absolute maximum, can fund the whole programme. Presumably some of this year's allocation was spent by the end of June this year. The Minister will be short by €30 million to €35 million at a minimum, but the shortage could be much greater than that. Will the Minister explain how the figures work?

Deputy Ó Cuív knows perfectly well that the revised Estimates volume is where the final allocations are made. Given that the budgetary process is in October this year, rather than in December, these final outcomes are not published until later in the year.

There is a carry-over for this year.

Yes, €35 million was the carry-over for this year on top of a significant amount of money that was spent in 2013. An estimated total of €105 million was available for expenditure in 2013. I have been doing everything I possibly can to get groups to commit to funding. There was a significant underspend on behalf of groups during 2012 and into 2013. I set a date which concentrated the minds of groups, boards and CEOs into allocating funds up to 31 August this year. I will be in a position to know what projects will be decommitted in the next few weeks to allow me to reallocate some of the money. That will ensure that it is committed in 2013 with a view to being spent in 2014 and 2015.

How much of this year's allocation was spent between January and the end of June 2013?

I do not have that figure.

Perhaps the Minister could provide me with that figure.

I have no doubt that when I get that figure I will find out clearly that there is a total under-provision for the Leader programme. The data we were given on budget day is deficient. I would be grateful if the Minister could send me that information - in other words, the spend on the Leader programme to 30 June 2013 out of the €190 million provided this year. I will then be able to calculate the shortfall in the provision of Leader for 2014 to ensure a full spend under the programme.

The entire programme value in 2013 is €370 million. The expenditure to date in October 2013 is €213 million. The balance to be paid is €157 million. The balance to be paid in 2013 is €30 million and the capital carry-over in 2014 will be €50 million. Therefore the allocation of €14 million in 2015 makes up for that. There is a gap in funding at the end of the programme of about €63 million. We will be examining how we can maximise all the elements of Leader funding in terms of commitments and drawn down before the end of the programme.

Is the Minister saying that he will make a provision of €63 million in 2015 to ensure a complete draw-down of the Leader programme?

I did not say that at all. I said that these are matters that will be discussed in the context of what resources are available in the budgetary situation in 2015. The Deputy does not expect me to announce now what allocations I will have in 2015.

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