Call to hike LEADER co-financing rate

The Government has been urged to bring the LEADER programme into line with the rest of the 2014-2020 Rural Development Programme, by increasing their LEADER co-financing rate from 37% to 46%.

“This would lessen the impact of cuts on rural Ireland and would assist LEADER Local Development Companies in ensuring the continued delivery of services to rural communities,” said John Walsh, Chairman of ILDN, the representative body of LEADER companies in Ireland.

He said rural unemployment increased by 192% between 2006 and 2011, compared to 114% in urban areas, and warned that reduced LEADER investment will have far reaching consequences for those most marginalised in rural Ireland.

“While we knew the funding for the new LEADER programme was to be reduced, the full impact of the cuts to local communities only became apparent when the county allocations were announced recently. Overall, the budget for the new programme has been slashed by over 40%, with some county allocations reduced by half, in comparison with the last programme.

Mr Walsh said: “Since 2009, 8,698 rural enterprises were funded through LEADER, which supported the creation of 4,084 rural jobs, during one of the worst economic times Ireland has faced in recent decades. LEADER also improved the quality of life for rural communities with significant investments in community infrastructure across the country.