7,300 sign support for local development companies’ fight
The local development companies recently withdrew temporarily from the alignment process involving local authorities and the Department of Environment, Community and Local Government.
The process is part of reforms which would see local authorities take control of the LEADER Programme and the Local and Community Development Programme, previously run by local development companies.
Environment Minister Phil Hogan has admitted during a recent D•il debate that the alignment process is not making as much progress as it should, blaming it on “the procrastination of certain people who do not want change”.
T•naiste Eamon Gilmore has been drawn into the local government reform debate, saying he is aware of the concerns in local development companies and the Irish Local Development Network about changes under discussion. “It is important that the role of the local development companies and networks is maintained,” he said during Lead-ers’ Questions in the D•il last week, after Cork North-West Fianna F•il TD Michael Moynihan said alignment will take decision-making powers away from Leader companies, and is “nothing short of a money grab for cash-strapped local authorities”. Mr Gilmore said he had every confidence that Minister Phil Hogan will take on board the concerns of local development companies.
Meanwhile, Minister Hogan has said there will be a partnership between the local authority and community structures in the proposed local community development committees which will have an over-sight and monitoring role, from July 1, in the delivery of programmes such as the €47 million per year local and community development programme. However, all 50 local development companies are contracted by his Department to the end of 2014 to deliver this programme.
The successor programme in 2015 will become subject to a public procurement process overseen by the new committees. “I expect that the local development companies with their experience and expertise will be well placed to tender for the delivery of the new programme in their areas,” said Mr Hogan, in a D•il reply to …amon ” Cuív.
Mr Hogan noted the average administrative cost of delivering the local and community development programme in 2013 was 29% of the €47m allocated, which he said is far too high.
Asked by Deputy ” Cuív if the staff in local development companies which are unsuccessful in the public procurement process will be protected by transfer of undertakings regulations, Mr Hogan said there is no question of a transfer of obligation on behalf of the companies. The local development companies have expressed fears that their 1,900 jobs, and expertise built up over 20 years, are at risk.
From last week, people thinking of starting or expanding a business can access all State supports provided by bodies such as local authorities, Enterprise Ireland, Revenue, Department of Social Protection, Credit Review Office, training bodies – in one easily accessible location.
Local Enterprise Offices (LEOs) will also cater for companies that were up to now too large to access County and City Enterprise Board supports, but did not qualify either for Enterprise Ireland support.
The LEOs launch coincides with dissolution of 35 agencies which previously provided supports.
LEOs are tasked to help small businesses overcome barriers like finding information and resources; access to finance or marketing and business planning skills.
Environment Minister Phil Hogan TD said LEOs are part of a reform to enable local government be a key agent for delivering effective and efficient services locally.
He said, “Local authorities are already very active in supporting inward investment, promoting the commercial and enterprise interests of their areas, working with other State agencies and local business in supporting investment decisions.”
