Administration costs accounted for 33 per cent of the expenditure on the Leader rural development programme until this year, Taoiseach Enda Kenny told the Dáil. He said "that is not pumping rural Ireland for schemes", adding that the OECD had recommended a more integrated approach to dealing with those kind of funds.

“That is why the relationship between Leader and the local authorities, which are served by elected people from all over the country, will make an impact.”

Mr Kenny said there was a responsibility on the part of Leader groups to work with local authorities and other agencies to make the best impact with the €250 million allocated. “I expect they will do a very good job,” he added.

The Taoiseach was responding to Fianna Fáil leader Micheál Martin, who said the Government had cut funding by 43 per cent. He said it meant towns and villages in rural areas would lose services relating to childcare, transport and supports for start-up businesses.

Mr Martin said as far as he could see, funding for all counties, with the exception of two, was going to be savagely cut. Incredibly, Cork was going to lose up to 71 per cent of its funding, he added. Kilkenny was going to lose up to 50 per cent, as would Donegal, Meath, Kerry and Tipperary.

“To add insult to injury,” Mr Martin added, “the independence and autonomy of Leader and rural development companies has been fatally undermined by the Government.”

Mr Kenny said each county had been notified of the amount it would receive from the €250 million. “Deputy Martin will be aware there has been a change in the nature of the relationship between local authorities, on which public representatives serve, and different organisations and agencies, including the Leader groups,” Mr Kenny said.