Local action groups face fund cuts if they don’t improve

LOCAL action groups have been told they will lose their share of €425 million funding for rural development “if they are not able to step up to the plate” with valid projects.

Funded 55% from the EU and 45% from the exchequer, the largest ever LEADER package for rural development can be drawn down between now and 2015 by 36 local action groups.

Indicative spend figures were initially agreed for each group, according to Department of Community, Equality and Gaeltacht Affairs secretary general Seosamh O hÁghmaill.

He told the Oireachtas Committee of Public Accounts, “I think we have had to take a more pragmatic line with some of the groups that are not spending, to say to them that we will make money available to the better spenders if they are not able to step up to the plate, as it were.”

“In some of the areas, the spend is still quite low.”

Funding of up to €150,000, ranging from 50% for individuals and companies, to 100% for community organisation training projects is available.

According to Mr O hÁghmaill, people were finding it difficult to borrow, in order to raise matching private funding.

He said there has also been “a fair bit of complaining about some of the level of the rules and the detail of the rules”. The department has had meetings with local action group chief executives about blockages holding back uptake of funds.

The main aim of the rural development programme is to improve the quality of life in rural areas and facilitate diversification of the rural economy.

The 36 local action groups, formerly known as LEADER companies, have been contracted to deliver the programme.

In early October, Community Minister Pat Carey said the biggest funding area to date was basic services for the economy and rural population, attracting €11,365,022.

Business creation and development attracted €3,755,876; encouragement of tourism activities €3,267,031; village renewal and development €2,620,648, conservation and upgrading of the rural heritage €1,814,746; training and information €1,758,472.

About €870,000 in total was funded for diversification into non-agricultural activities; skills acquisition, animation and implementation of local development strategies, etc.

Expenditure to date for the local action groups totalled €46,623,218, ranging from only €564,014 in the Fingal LEADER Partnership Co to €2,095,454 in the Co Sligo LEADER Partnership Company Ltd. Between 3% and 4% of expenditure is taken up by local action group administrative costs.