Minister ‘gives assurance’ on ring-fencing of Leader funds

BY FRANCIS FARRAGHER

IFA Connacht Vice-President, Padraic Divilly said that he has received assurances from Environment Minister Phil Hogan, that County Managers will not be allowed to ‘dip into’ Leader funding to fill financial holes in local authority budgets.

Mr. Divilly said that he got assurances from Minister Hogan that Leader funding would be ‘ring fenced’ in the next programme for exclusive use for rural development initiatives.

He said the 5% allocation of Rural Development funds to Leader in the next EU Rural Development programme must be matched 50/50 by the Government.  Leader must also be allowed get support from other EU funds such as the Regional and Social Fund, added Mr. Divilly.

“We also pointed out to the Minister concerns in relation to the establishment of socio-economic committees in each county under his alignment proposals.  We told Minister Hogan that the structure must have a majority of community and local organisations and the Chairman of the SEC should be elected by the total group, not chosen by the local authority or the County Manager.

“In relation to the peripheral areas, IFA stressed serious concern that in the new structure these areas will be neglected.  IFA put forward the view that flexibility must be shown in relation to how local development initiatives are delivered as otherwise weak rural areas will become further disadvantaged.

“Currently local development companies deliver vital programmes to rural areas such as the Rural Social Scheme, the Walks Scheme and project support.  Any diminution in these programmes will impact negatively on low income farm families,” said Padraic Divilly.

 On the recent reallocation of Leader funds, the IFA also expressed concern to Minister Hogan that Leader companies in disadvantaged areas had lost out because of the lack of private matching finance. 

They pointed out that while 43% of Leader funding in the current Rural Development Programme has been used up, it was important that every effort is made to ensure that by year-end that there was maximum uptake involving higher grants being provided to Leader companies in disadvantaged areas.

In relation to the Walks Scheme, IFA have proposed that the current scheme is extended to a further 40 walks with additional funding of €2m.  Already 2,000 farmers benefit from this scheme and walks have a huge economic impact in the areas where they are located.