Latest setback in €425m scheme
It appears that the EU Commission became aware, during a presentation on LEADER funding by a farmer at last year’s Ploughing Championships, that initiatives were being funded from the incorrect funding stream.
Rural development officials have been told no further assessment or approval should be carried out on projects involving a farmer or member of a farm family which in any way involves food preparation, production or processing. IFA and others have demanded a speedy resolution to the impasse. But a Department of Community, Equality and Gaeltacht Affairs spokesperson said: “It may take some time to come to a final position. There is no guarantee that the outcome will be in our favour.”
Launched nearly two years behind schedule by Community, Rural and Gaeltacht Affairs Minister Éamon Ó Cuív, the €425m programme of rural community funding for the 2007 to 2013 period has been slowed by difficulty in securing loans from banks to match funding granted from the State and the EU.
The latest setback for entrepreneurs with food-related projects further threatens Minister Éamon Ó Cuív’s hopes of up to 12,000 frontline jobs and many more supporting jobs stemming from LEADER aid for indigenous small-scale enterprise, particularly in the small food sector and rural recreation.
According to the Department of Community, Equality and Gaeltacht Affairs, the funding application freeze relates to the processing of agricultural products. On the ground, however, a very wide interpretation is apparent, with for example, a dairy farmer’s feasibility study for a cookery school and ballroom renovation placed on hold.
“Its like a shut up shop at the moment,” according to a rural business development consultant.
The consultant said he was told by “high ranking officials” to remove complaints about the LEADER funding embargo that were posted on social media sites.
