Dáil Éireann Debate, Thursday - 14 June 2018
26. Deputy Éamon Ó Cuív asked the Minister for Rural and Community Development if he is satisfied with the rate of capital expenditure in 2018 under the various schemes administered by his Department; if not, the steps he plans to take to address the shortfall in capital expenditure to date; and if he will make a statement on the matter. [25025/18]
Amharc ar fhreagraThe Revised Estimates in respect of the Department of Rural and Community Development sets out gross capital expenditure of €87.5m; this capital expenditure is supplemented by some €7.7m in respect of capital carried forward from 2017.
Whereas the Fiscal Monitor, which reflects an estimate of monthly expenditure, sets capital expenditure to be 62% behind profile to the end of May, the actual rate of capital expenditure is 46% behind profile to the end of May. (This includes both voted capital and capital carryover expenditure to date).
The main reason for this underspend is delayed expenditure in respect of the Town and Village Programme in Quarter 1 2018 due principally to the severe weather which hampered progress on a number of projects.
My officials have been in contact with the local authorities in respect of this programme, and I understand that it is expected that expenditure will meet profile by year end.
I am also carefully reviewing the spend for the LEADER programme. This is a multi-annual EU co-funded programme to support rural development. Ireland has an allocation of €250 million under the programme over the period 2014-2020, including both national and EU funding. The programme is administered by Local Action Groups (LAGs) throughout the country which deliver funding in accordance with Local Development Strategies that have been agreed for each LAG area.
As of 10th June, 2018, 1,024 projects with a value of almost €29.5million have been approved for LEADER funding by the LAGs. A further 341 projects requesting over €19.2 million in funding are at various stages in the approval process. This funding will be drawn down as projects start to incur expenditure and submit payment claims.
My Department is engaging with the LAGs who operate the scheme at local level to assess the progress on projects to date, so as to confirm the actual projects that will mature for payment in 2018, the estimated value of these claims and the month the claim will be submitted.
While the pace of approvals varies between Local Action Groups, I am confident that the progress being made by the LAGs, along with the administrative improvements which my Department introduced last year, will result in a continued increase in project approvals and payments under the LEADER programme over the coming months.
I will, however, be carefully monitoring spending across all capital subheads within my Department, so as to maximise the positive impact of 2018 funding for rural and community development and will consider reallocations as required.
