Approval of €42 million for local development companies a major boost – Coffey

Fine Gael Waterford Deputy, Paudie Coffey, has welcomed news from the Minister for the Environment, Community and Local Government, Phil Hogan TD, that he is authorising €42 million to local development companies. Deputy Coffey received the news this afternoon (Wednesday) during a topical issue debate in the Dáil, where the Minister stated that he will be approving a total of €90 million for the funding of the LEADER elements of the Rural Development Programme.

“Local voluntary groups do a huge amount of work in every community around the country and are supported by local development companies every year. The release of €42 million will act as a stimulus in rural Ireland and will help to support and create jobs in every town and village across Ireland.

“In late 2011 the European Commission approved a change in the maximum co-funding rate from 55% to 85% for the LEADER elements of Ireland’s Rural Development Programme. While this was indeed welcome, especially as it reduced the overall contribution of the Exchequer to the Programme in relative terms, it also meant a net reduction in the overall budget, as the actual cash contribution from the Commission will not increase. It was therefore necessary in February 2013 for the Department to place an embargo on project approvals as these changes meant that the original project allocations given to each Local Development Company (LDC) required readjustment.

“The Minister informed me that he has given two weeks to the local development companies to let his Department know whether all of these €42 million worth of projects are ready to proceed or not. Once this is complete the Department will then be in a position to establish the remaining balance of funding in the Programme and will notify each Local Development Company of their allocation to the end of the Programme.

“The Waterford LEADER programme over the course of the last number of years has supported over 100 projects in rural Waterford and the news from Minister Hogan today will allow even more projects across Waterford to develop and improve communities.”

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