merrion street

The Minister for the Environment, Community and Local Government, Mr. Phil Hogan T.D, today (24 April 2013), announced the release of €90 million funding for the LEADER elements of the Rural Development Programme 2007-2013.

Minister Hogan said “I am pleased to announce that following a thorough examination of project activity at all stages in the Local Development Companies that I can now release €90 million funding for the LEADER elements of the Rural Development Programme. This funding has the capacity, not only to facilitate access to sustainable employment opportunities in rural areas but also to help support sustainable communities and enhance rural economies for business creation and development into the future.”

In late 2011 the European Commission approved a change in the maximum co-funding rate from 55% to 85% for the LEADER elements of Ireland’s Rural Development Programme. While this was indeed welcome, especially as it reduced the overall contribution of the Exchequer to the Programme in relative terms, it also meant a net reduction in the overall budget, as the actual cash contribution from the Commission will not increase.. It was therefore necessary in February 2013 for the Department to place an embargo on project approvals as these changes meant that the original project allocations given to each Local Development Company (LDC) required readjustment.

Minister Hogan said “My Department has now completed the rebalancing exercise and I am authorising the issuing of contracts for approximately €42 million worth of projects which have all the necessary approvals in place”. In making this announcement the Minister said ‘I have given two weeks to the Local Development Companies to let my Department know whether all of these €42m worth of projects are ready to proceed or not. Once this is complete my Department will then be in a position to establish the remaining balance of funding in the Programme and will notify each Local Development Company of their allocation to the end of the Programme. I also want each Company to examine all project applications it has received and to ensure that only the best projects with the highest impact are funded. It is imperative that the best value possible is achieved from every last euro.”