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Dáil
‹ Leaders' Questions

Funding for the Leader scheme

Summary

Deputy Fleming highlights rural concern about a major reduction in funding for the 2014–2020 Leader programme and seeks additional Government support. The Tánaiste acknowledges Leader’s importance, explains reduced EU funding and points to closer cooperation with Enterprise Ireland and IDA Ireland.

There is huge disquiet and concern in rural Ireland about the newly constructed Leader scheme to be implemented from now until 2020. The previous Leader scheme was a lifesaver to say the least for rural Ireland, and communities throughout the country benefited from funding for various projects which created jobs, supported and financed several community projects and promoted involvement by the public in projects with a bottom-up approach. The previous Leader scheme had €400 million available for the partnership local development companies. The latest funding allocation for 2014 until 2020 has been cut drastically to €220 million. This is a massive cut of 45% across the board.

This drastic cut for vital services in rural Ireland is a devastating blow for rural groups. It is a further indication of the slash and burn policies which apply to our rural countryside. The decreased allocation will have a significant detrimental impact on the ability of the new realigned partnership groups to deliver community-based projects and support vital community services and facilities. The impact on business development, growth and jobs is looking very bleak. Will the Tánaiste and the Government immediately review the Government's contribution and raise the amount of matching funds from the Exchequer to compliment EU funding, and at least have a fund which is similar to what existed for past Leader groups? It is probably one of our most successful schemes ever for the delivery of services in rural Ireland. Will the Tánaiste go back to the drawing board and finance it properly?

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Deputies

Hear, hear.

Comment on this

I thank Deputy Tom Fleming. As he is probably aware, the European Union in its budgetary programme for the next number of years has reduced the amount which countries such as Ireland receive under this heading. This is alongside the various changes happening in farming and the Common Agricultural Policy. I absolutely accept what Deputy Tom Fleming said, that Leader has been an enormously important force in rural Ireland. Even in rural north County Dublin, part of which I represent, it has been a huge force for positive economic and social good. One of the consequences of the change, which will be very positive for rural Ireland, is the new programme being rolled out will be heavily concentrated not simply on what has been done in the past but on creating rural employment and rural enterprise. This will continue.

The one area which I understand has been reviewed is that in some Leader programmes, and I stress some Leader programmes, the level of administration costs was very high. In some cases it was more than one quarter of the total cost. As we look forward to the forthcoming budget the Government will look at how to support these rural initiatives and rural enterprise. We have already given a significant indicative allocation to, for instance, the development of an IDA Ireland presence throughout the country in regional enterprise development programmes. As these programmes develop, with IDA Ireland and Enterprise Ireland, I am hopeful and confident they will link in with the existing Leader network. I and the Minister of State, Deputy Humphreys, have had the privilege of visiting many of these schemes in various parts of rural Ireland, and what we are doing, which is complimentary and parallel, is to expand community employment. In recent years we have created the Tús scheme, which is very popular particularly in rural Ireland with regard to initiatives on the environment, tourism and beautifying our villages and towns.

There has been a reduction in the EU allocation for Ireland under this heading, but the Government has recently committed to a regional development and industrial programme. We now have IDA Ireland officials based in the regions for the first time in a long time, to look for new businesses, new initiatives and foreign direct investment to come to the regions. I hope that as we go forward ConnectIreland will work closely with Leader and with the new arrangements for the Leader companies.

Comment on this

I welcome the Tánaiste's statement that the Government will look into additional moneys, in particular with a view to the forthcoming budget. This certainly will be very much a corrective action by the Government to address this matter whereby there is a total reduction of approximately €180 million from the funding available from 2009 to 2014.

The Leader model adopted by Europe is the most efficient and the best value for money Leader programmes have been conducted in this country, which has been recognised. The European Commission is concerned at the methodology used in the tendering process. Protective notice is being given to staff of current Leader groups, which have been delivering productively. Staff have been mentoring and advising in the community and they have delivered top-class administration and wonderful management. This is throwing out the baby with the bath water. If we dispose of these, we cannot allow it to happen through neglect or careless action by the Government. I am very impressed by, and I welcome, the Tánaiste's reference to the involvement of IDA Ireland and Enterprise Ireland and job creation companies. Leader is an appropriate word because these bodies have been the leaders in delivering jobs in rural Ireland. Since 2009, some 8,698 rural enterprises were funded by the Leader programme, supporting the creation of 4,084 rural jobs in the worst economic recession in the country. From today, I hope we work positively with Leader groups for future development, for the good of our countryside and to keep people in jobs.

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I look forward to seeing a closer working relationship between Leader, Enterprise Ireland and IDA Ireland. I was in Kerry recently and, if IDA Ireland were to invest in the Kerry Technology Park beside the institute of technology and facilities for entrepreneurs in IT, from listening to the Tralee chamber of commerce it sees great potential for employment in the south west and specifically in Kerry. Deputy Tom Fleming saw the Enterprise Ireland statistics last week, where new enterprises and smaller enterprises growing into larger enterprises are now exporting significantly. If, as a country, we can harness the energy of the Leader groups and the significant community contribution and participation in the Leader groups and bring it together with IDA Ireland and Enterprise Ireland, we can create new enterprises and employment in rural areas. ConnectIreland has been working very successfully since it started a few years ago and almost all of its jobs have been in rural Ireland. This is not just into the bigger towns and cities.

The tendering system for the Leader groups was conducted under the auspices of Pobal and it was challenging for people to be involved in it. The main issue is that the European Union has significantly reduced the funding heading. The Government is committed to matching funding but the amount we can commit depends on budgetary issues. It is a priority of the Government to ensure the recovery, as it begins to take hold, goes right into rural Ireland as much as in urban Ireland. In that respect, I welcome the comments of Deputy Tom Fleming and I will give them my support.

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