LDCs with 1,900 jobs in ‘fight to survive’

A public petition has been launched seeking support for local development companies which employ about 1,900.

These non-profit organisations are fighting for their survival, according to the Irish Local Development Network, of which 33 local development companies (LDCs) are members.

ILDN says upcoming local government reforms will open the Local and Community Development and LEADER Programmes to public tendering — making it difficult for their members to survive and deliver programmes and services to communities.

Also at stake, according to the network, are about 1,900 jobs in LDCs, and the expertise built-up over 20 years, plus additional funding leveraged by LDCs from philanthropic sources for community projects, worth €100m in 2012.

After reforms, local authorities will not be permitted to leverage this money.

At local meetings nationwide, the 50 existing local development companies have been seeking public support for continuation of their roles in designing and delivering local development strategies, and as designated contract holders for programme funds and related funding streams.

LDCs are non-profit organisations that deliver programmes tackling poverty and social exclusion, assisting enterprise creation, supporting the long-term unemployed, and offering education, etc, in partnership with government departments and agencies.

Such programmes include Tús, the Rural Social Scheme, Jobs Clubs, Back to Work Enterprise Allowance, Rural Transport Programme, Healthy Food Made Easy, Community Employment and Job Initiative Schemes, and Local Employment Services.

Local government reforms will shift responsibility for LDCs’ core funding programmes (the Local and Community Development Programme and LEADER) to local authorities.

Environment Minister Phil Hogan has confirmed that management of contracts and oversight for the Local and Community Development Programme will transfer to local authorities from July 1 next. The 2014 LCDP allocation was €47.7m, a new four-year programme will roll out next January, and Mr Hogan said it will be subject to the EU procurement directive, open to LDCs, other not-for-profit community groups, and commercial firms, to tender to provide services.

He has also confirmed that LEADER moneys will be paid through local authorities, but said this means less onerous administrative, finance and contractual obligations for LEADER companies/LDCs, because responsibility will now fall to local authorities.

Mr Hogan said €153m in EU funding will be available to LEADER from 2014 to 2020, plus national exchequer co-funding.