European Commission Decision - Major Boost for Rural Development

The European Commission has informed the Department of Community, Rural and Gaeltacht Affairs that they have agreed to a proposed amendment in relation to Axes 3 & 4 (LEADER Axes) of the Rural Development Programme Ireland 2007-2013.

The Rural Development Programme represents an overall public investment of €425 million which will facilitate improvements to the quality of life in rural areas and the diversification and development of the rural economy. It has now been agreed that "additional public funding from relevant local authorities may be used in respect of community projects of a capital nature. This is permissible under the three measures - Basic Services for the Economy and Rural Population, Village Renewal and Development; and Conservation and upgrading of the Rural Heritage."

The maximum rate of public funding in such cases shall be 95%. Speaking today, Éamon Ó Cuív T.D., Minister for Community, Rural and Gaeltacht Affairs said: "I welcome the decision by the European Commission to allow matching local authority funding. This will be a major boost to local communities and local authorities in funding projects under the Rural Development Programme 2007-2013".

For non-commercial projects, the maximum aid available under the Programme to date was 75% but many communities were finding it difficult to raise the other 25% for the provision of Village Renewal, Conservation of the Rural Heritage and Basic Services Projects. As the European Commission has now agreed that up to 95% of funding can be provided between LEADER funding and local authority funding, this will enable projects of a larger scale and of a greater variety to proceed. This will also encourage cooperation between LEADER companies, local authorities and local communities in Village Renewal projects etc. Under the present Rural Development Programme, there is a major emphasis on the importance of the provision of facilities for rural recreation such as car parks, signage etc., as well as the development of rural villages to provide high quality public amenities. Under Village Renewal, works such as pavements, lighting, art, landscaping etc. are eligible for funding.

It is estimated that this change to the programme will facilitate the expenditure of an additional €21m of national funds in the delivery of this major Programme.