Dáil Éireann Debate, Wednesday - 21 February 2018
28. Deputy Carol Nolan asked the Minister for Rural and Community Development the value of payments to third party Leader project promoters since the launch of the implementation phase of the 2014 to 2020 programme to the end of December 2017; and the way in which this compares to payments made during the first 18 months of the 2007 to 2013 programme in terms of actual moneys paid out and as a percentage of the overall fund. [8820/18]
Amharc ar fhreagraAs the Minister is aware the new Leader programme that began in 2014 and ends in 2020 had a long delay in getting off the ground. It came on stream in 2016 but it has been dogged with huge amounts of bureaucracy and problems for communities that are trying to apply for funding. It seems to be turning into a real mess. We only have two years of the programme left to run. How much money has been spent? It seems to be very low compared to what the commitment is.
Funding arrangements for the current Leader programme from 2014 to 2020 were, for the most part, signed with the local action groups, LAGs, which delivered the programme in the second half of 2016 and the programme effectively became operational from that date. The current Leader programme has an allocation of €250 million over the period to 2020, whereas the previous programme, which covered the period 2007 to 2013, had an allocation of €400 million.
Project expenditure under the current programme to 31 December 2017 amounted to €661,844, or 0.3% of the total fund. I understand that funding agreements under the 2007 to 2013 Leader programme were signed with the LAGs early in 2009. A total of €16 million in project payments, or 4.4% of the total fund, were made during the first 18 months of the 2007 to 2013 programme.
Leader is an EU-wide programme, co-financed by the European Commission. As with any programme of this scale, there is a natural lead-in period for a new programme to become established, for delivery models to be put in place and for the local action groups to issue calls for proposals and work with applicants to refine their plans.
However, the number of project applications approved by the local action groups increased significantly in 2017. In total, 738 Leader projects have now been approved for Leader funding of €20.8 million. A further 318 project applications, requesting over €16 million in funding, are going through the approvals process. Payments will be made to the projects as they become operational and submit payment claims.
Communities that want to do something for their local area such as get a new roof for their small community centre or communities that want to provide other facilities around the country apply for funding and are faced with huge amounts of bureaucracy and they run into problems. The situation is catastrophic. That is reflected in the payments that are being made. No money was spent in the first two years of the programme. Since then a trickle of money has begun to be paid. There are only two years left in the programme. How will it be possible to spend €200 million in two years? It just does not seem logical that it is possible to do it given the way the process has worked up to now. I know the Minister will do his best to try to get the money spent and I appreciate that but it is not happening on the ground for communities. Since the local authorities became involved in the process the brakes have been applied all of a sudden and nothing has moved since then. Some reflection is needed on where this process has brought us.
I agree with Deputy Kenny. I want to see the money being spent. I want to see the programme in operation. I want local action groups to approve schemes. There is no delay in the Department and I guarantee that once the payments are required they will be made. It takes a while to identify schemes. The companies get involved and the schemes are approved and payment is made once the work is done. Deputy Kenny knows how the scheme operates.
I recently signed off on schemes in Waterford and Carlow. There were five halls in Carlow and there were hubs in Waterford. Deputy Kenny knows they will not happen overnight and that it will take time to develop them and for them to draw down the funding. I want the Leader money to be spent.
We met the Leader companies last May and we made 31 changes to reduce bureaucracy. We made it easier for companies to make applications. There are only two measures involved in making an application and the problems seem to arise after that. I want to see the money spent and going into rural areas. I want to see the companies working. It is in my interest to see Leader working, as it is in the interest of Deputy Kenny, but the companies must also make it happen. I have brought in the Leader companies and talked to them and they are happy with the changes that have been made. I am looking to see if further changes are required in addition to the 31 changes we have already made. Deputy Kenny is aware that Leader is an EU-wide programme and we must comply with the rules and regulations set out.
It seems there was a big problem from the outset given that 31 changes were required to make the scheme easier to access. We all know it is European funding and that there is a culture of ten people checking the work that has been done rather than ten people doing work. That is one of the problems, namely, that there is so much bureaucracy, boxes to be ticked and nonsense attached to much of the funding. I worked in the sector for years and I know the kind of stupidity that goes on, for example, photocopying something ten times and sending it off and then getting it back and photocopying it again. There is a culture of creating paperwork rather than going out and spending the blinking money on the ground where it needs to be spent.
I appreciate that the Minister brought in the Leader companies and that he tried to get the changes made. Perhaps there are no more changes to be made but since the local authorities were given a role in the process the system has gone askew. That must be recognised.
I made a 55% reduction in the paperwork. I have listened to the groups and people on the ground. I wanted to make the changes and I did so. We are reviewing the system on a daily basis but there is only so much I can do, that the Government can do or that the Department can do. The Leader companies have been given the responsibility and they have to roll out the scheme. They are the ones that have to talk to the people on the ground and they will have to deal with the Department. We have done our job. Nobody is telling me there is a serious problem in relation to bureaucracy. We have made it easier to make applications.
How will the money be spent in two years?
The Minister should be allowed to respond.
Deputy Kenny knows why it takes two years. One will not build a hall overnight and regardless of the facility it takes time to build it and then the receipts have to be returned in order to draw down the money. There must be checks and balances.
