A €425.4 million rural development package which has the capacity to deliver 10,000 jobs was launched yesterday by Eamon Ó Cuív, Minister for Community, Rural and Gaeltacht Affairs.
The programme, which will be administered through local Leader development groups, will receive €234 million from the EU and €191 million from the Irish taxpayer in the period up to 2013.
The implementation of the scheme was delayed because of a dispute between the Minister and the Monaghan/Cavan Leader group.
However, the Minister said that now this matter was resolved it would not mean the scheme would lose funding.
He said not only was the package three times larger than the amount available in the last programme (2000-2006) but it would also carry enhanced rates of aid for some capital projects which would increase from 50 per cent to 75 per cent.
"This will give community groups and individuals in rural areas more flexibility in making their valuable contributions to the continuing development of rural Ireland."
He said the funding would be channelled through local action groups to facilitate the continued development of rural communities all over Ireland.
Advertisements, he said, would appear in today's newspapers calling for proposals from local action groups to administer the funding in their areas. They would be asked to submit business plans for their areas, which would be independently evaluated.
"These activities are varied and include diversification into non-agricultural activities, support for business creation, encouragement of tourism activities, basic services for the economy and rural population, village renewal and development, conservation and upgrading of rural heritage and training and information," said Mr Ó Cuív.
The Minister said that while he would have lower estimates of the impact of the funding than the Irish Leader Network (ILN) organisation, he believed the funding would attract investment of over €1 billion into rural Ireland over its life.
ILN chairman Michael Ludlow said that based on the performance of Leader companies in the last 15 years, independent analysis suggested the grant would bring a massive €1.7 billion in investment to rural Ireland.
Based on independent analysis, the Minister said, he was confident that the initiative had the capacity to deliver 10,000 new jobs, sustain 16,000 jobs, create 4,500 new enterprises, train 120,000 people, assist 132,000 individuals and develop 1,400 rural villages.
All this, he said, would be accomplished with 250 dedicated professional staff and volunteer input independently valued at €36 million.
Welcoming the new funding, the IFA rural development chairman, Tom Turley, said a key initiative that should be funded was on-farm alternative energy projects, including carbon-neutral electricity production that could be fed into the national grid.
He said walks scheme, rural tourism, community transport initiatives and food projects must also be included in local plans.