Inclusive of amendments of 30 September 2008, of 15 May 2009

Implementing Local Development Strategies

Legal basis

As referred to in Article 62(1)(a) with a view to achieving the objectives of one or more of the three other axes defined in sections 1, 2 and 3 (Article 63(a) of Reg. (EC) N 1698/2005)

Measure Code: 41 (inclusive of Measures 411 and 413)

Through successive rounds of the LEADER programme, local action groups have developed through the bottom-up approach to an extent where LEADER now delivers a local development strategy in all rural areas. To achieve further integration of programming in the wider rural community and avoid duplication of actions, it is appropriate that the LEADER methodology is introduced to mainstream rural development programming to deliver all measures under Axes 3 under Measure 413. However, the highly innovative LEADER approach will also be developed to address rural needs in relevant spheres outside the confines of the measures of Axis 3 and specifically through interventions to support enterprises that are involved in the processing and or marketing of Annex 1 products under measure 123 of Axis 1. This activity will be delivered under Measure 411.

To deliver integrated value-added measures in the whole of the rural territory across Axis 3/4 and Measure 123 of Axis 1.

The process for selection of local action groups will commence when a draft national rural development programme has been submitted to the EU Commission for approval. The selection process, including a call for proposals, submission of applications with business plan, evaluation and final selection of groups should be completed in time to facilitate timely implementation of the programme.

• 
  The coherence of the plan with the nature of the territory, particularly in socio-economic terms. It must prove its economic viability, innate innovation and sustainability in the sense that resources will be used in such a way that the options available to future generations are not impaired
  
• 
  The degree to which the plan targets support, which seeks to enhance the job opportunities and/or activities for women and young people
  
• 
  The level of business activity demonstrated in the proposed actions
  
• 
  The rigour and depth of the needs assessment and the described links between needs assessment, the process and outcome of local objective setting, activities, actions and projects, and their relationship with national and EU policy objectives
  
• 
  The extent of the commitment, ability and proposed methods for ensuring on-the-ground co-operation with other agencies involved in local development
  

• 
  The overall flexibility of the plans with regard to ongoing local needs and policy review, as well as wider contextual policy development (e.g. the national spatial strategy and/or the County Development planning process)
  
• 
  The groups management structure, administrative ability and financial status
  
• 
  The physical size and population of the territory, its degree of rurality and the characteristics of the area population
  
• 
  The degree to which co-operation is integrated into the local development strategy
  
• 
  Representation of the community pillars in the area concerned (and observance of the ‘bottom-up principle’)
  

It is not possible to pre-empt the objective selection process for the programme but current coverage of the entire rural territory is provided by 35 territorial LAGs and three representative organisations.

In the current LEADER+ programme almost one third of all LAGs service a territory with a population greater than 100,000. Only one group, with a predominantly peri- urban population on the fringe of the Greater Dublin Area, exceeds the size limit of 150,000 inhabitants. Any applications proposing to exceed the size limits will be evaluated according to the physical size and geography of the territory, the degree of rurality and the characteristics of the population living there. Proposals to establish groups covering a population of less than 5,000 will only be considered justified in the case of geographic fragmentation, e.g. islands, or very low population density e.g. less than 10 persons/km².

The basic template governing the activities of LAGs, including the focus on type of operation, will be the formally approved business plan submitted as part of the final approval and contract process. The further balance of activity will be determined by the financial allocation to the groups, eligible activities as defined by the measures in the programme and subsequent detailed national operating rules determining eligibility of actions and expenditure. Project selection will be further strengthened by the use of expert project evaluation committees established within the group structure.

Local Action Groups will act as intermediate bodies for the disbursement of the national portion of public programme funding to successful project applicants. This function will be delegated to the LAGs by the Paying Agency, as provided for under article 6(1) of Council Regulation (EC) No. 1290/2005. When eligible projects are completed and documentation submitted, LAGs can apply to the Paying Agency for re-imbursement of the EU-funded portion of the project costs already paid out by them.

The scope of actions under measure 123 of Axis 1, Axes 3 and 4 as set out in this programme is limited to fall under the EAFRD and would not intervene in the areas set aside for the Operational Programmes 2007–2013 to be supported by the ERDF and ESF. Breaking this down further, County Development Boards have government responsibility for co-ordinating the delivery of measures locally through local authorities and area development groups. Conscious of the need to avoid duplication of interventions, Local Action Groups will be obliged to have cross-representation arrangements with County Development Boards and have business plans endorsed by them.

The Department of Community, Rural and Gaeltacht Affairs has set down detailed criteria for Local Action Groups delivering nationally funded local community initiatives on its behalf. The operating rules governing the rural development programme will ensure there is no overlap between it and any community initiatives in operation.

Beneficiaries for investment support projects under measures 311, 312, 313, 321 (excluding the Broadband Reach Scheme), 322, 323 and 331 may request the payment of an advance. This will be limited to a maximum of 20% of the public aid related to the investment and its payment shall be subject to the establishment, by the beneficiary, of a bank guarantee or an equivalent guarantee corresponding to 110 % of the amount of the advance.

• 
  Total Cost: €336,970,511
  

• 
  Public Expenditure: €249,470,511
  

Measure 123, delivered by M411, will have a grant rate of 40% up to a maximum grant level

Rates of aid cannot exceed rates available to comparable projects under other grant aid schemes operated by Government Departments and State agencies. Subject to this underlying principle the maximum rate of public funding as a general rule will be 75 per cent, with the following exceptions:

• 
  Administration up to 100 per cent
  
• 
  Animation up to 100 per cent
  
• 
  Training up to 100 per cent
  
• 
  Analysis and development for community-based projects up to 90 per cent and 75 per cent for private promoters, subject in all cases to a maximum of €50,000 per project
  
• 
  Community groups will be eligible for a higher rate of aid at 90 per cent where this higher rate of grant would not discriminate against private interests or promoters in the same sphere of activity.
  

Grant aid must conform to the provisions of de minimis legislation. The standard ceiling for grant aid will be €150,000 with prior approval required from the Department for higher levels up to the de minimis ceiling.

Article 63(b) of Reg. (EC) N 1698/2005

Transnational and inter-territorial co-operation will be supported under this measure. Co-operation is allowable between LEADER groups and other non-LEADER groups provided the project involved is led and co-ordinated by a LEADER group. Support will be available for projects falling under Measure 411 and 413 and also for innovative and experimental approaches to promoting joint ventures addressing common issues. This context, preparatory activity, co-ordination and animation are eligible for funding. While joint actions may involve groups from third countries, only activities taking place within the EU are eligible for funding. All cross-border projects involving LAGs from Northern Ireland must be submitted to the relevant Managing Authority and endorsed by the Cross Border Steering Group for Rural Development.

The co-operation methodology must be integrated in the business plans of LAGs at the outset of the programme. The selection and approval of projects must be carried out to the same extent as for other projects, i.e. through the project evaluation committee process. The value-added benefit of all projects must be clearly demonstrated and transparent.

• 
  Total Cost: €10.70m
  
• 
  Public Expenditure: €7,877,497