Comptroller and Auditor General

Ikpon on Value for Money Ex1rninacion

Local Development Initiatives

Oc1obtr 1999

copyGovernment of lrelmd 1999

l~BI 0-707(i-G406-3

middotrhe report Vts prepJred on 1he basis of inforn1ition clcxu111ent11ion tnd

txplan111ons obttincd fro111 1he bodies rlfcrrccl 10 in che rcplt)n

middotrhc draft rcpo11 Vis sent 10 che Accouning Officers of the )ergt1rt111ent of middotrnurisn1

Sport ind Hecn1tion the l)epa111nent of En1crprise middotrriclt and E1nploy1nent incl th

l)ep1nn1tnr of AgriculturLmiddot and Food and their co111n1en1s Cre requested Xllen

1pprorna1e con1n1en[s received ere incorporated in thl final version of the rcpon

RelgtOrt of the Comptroller and Auditor General

Local Development lnitiadves

I havt in 1ccord1nce ilh the provisions of Stclion 9 of the Co1nptroller and Audilor

ce11ertl (Arnenclmerll) Ari 199 carried our a viluc for money exarnin11io11 of local

demiddotelopn1en1 ini1i1timiddotes

I hereby subn1i1 111~middot rlpon of thl abclmiddotl ex1111initinn for prese1H~Hion 10 gtiii fmiddotireann puru111t to Stction J 1 of the siicI Act

John Purcell Comptroller and Auditor General

29 Dctober 1999

C

Table of Contents

Introduction

2 1cl1nin1stririve Efficitmiddotncy

3 Co-nrdinition of 1ctivilies

4 Operational Efficiency

17

30

42

Appendices

5

Page

Glossary

Summary of Findings

Local Development Initiatives

A Annual Costs 11lcl Outputs of lncl1viclu1l County Enterprise Bo1rcb le1cler

Groups rnd Jgte1rrnerships 1995 - 1997

B 1d1nini-tn1tion Cost middotrrLlld-gt of Local f)cvclop111cnt bodies

The Operational Progr1mme for lcx-al llrban and Rur11 Dlvdoprnent

ierfonnance lndica1ors and Hevised largc1s

I) h1re1c1 from Consol1CL1ed Reporting Guicldin~s - DecernbcT 1997

middotrhc lCader Opcrat1011al Progra1nn1c - Pcrfonnancc lndicuors and Rtmiddotvisecl middotrargels

E fturi of l)tveloprnlnl gencie- in county Ho-co1111non and thlt

Services Provided

f Fr1nwwork of AgnTnlltnt Bctween Coun1v Meath CEB and County Mea1h

leider 11 Group

G middotrcr111- nf Reference fltgtr lnc~rdcpa111ncntal Policy Co111111i1rcc

Glossary

AAES

tni1nation

lleneficwy

Bord M6ni

CEil

Coilhe

CSG

1)(1chas

DSCFA

Hfll

Enttmiddotrprise Ir~Ltncl

ESB

f L

Fisherivs llotrds

Forfis

1rca Allcnv~1nce Enterprise Schen1e Vhich is

idministered bv lannerships on behilf of DSCFA

From Jimrny 1999 this sch~nw is known is the llick

to Xork Enterprisc 1llov~1nce

middotrhc role of ani1nation is to i111prove the effec1iveness

of the con1111unity in loc1l develop111cn1

Project pro111oter or con1nu1n11y group in receipt of

fin1ncill suppo11

Stare sponsored body ni1n1ging and developing

pearlinds

County Enterprise Board

St~He sponsored body 1111n1ging public forests ind

nlatcd activities

Coun1y Strategy Groups Crc cs11blished under

OlLURI) to L1cili1a1e co-ordinHiun ind 111inirn1sc

duplication in the dtlivtry of progr1n111Hs ii county

level between the different irntiatives

1middot11e t-lerirage Service it the l)cpa11111ent of rts

f-kririge Gielucht ind rhe Islands

Depinmcnr of Sociil Community ind Fimily Affiirs

Easrern Heilth lloird

Sttle sponsored body issisling Irish co1np1nilts 10

increJse their sales expo11s JJHl e111ploy1nent

Electricity Supply Board

Europe1n U11io11

iition1l 1r~1ining and en1pluynHmiddotn1 1uthority

Sta111tory organisations cl11rged vitl1 responsibilicy for

the developnllnl ind protection or inland fisheries

Forf1s is the policy 1chbulliso1) and co-ordination ho1rd

for industrial developn1ent and sci middotnce and

technology

II) Ireland

Int grtlltd Slrvices lgtrojcct

llC

lncrreg II

lEI I)EJ( II

LE11DEH groups

ITU

11insrrea111ing

Mid-Term Evalua11on

~lonitoring Co1nn1itree

011UHD

lc1rnerships

1 State Ovncd coinpany vhich pro111ores invard

investn1ent

middotrhe Integrated Services 1gtrojec1 V1~ estiblishcd co coshy

onlinate tile inptHs of all slle services in four pilot areas of clisaclvan1age

lnterclepaHn1e11tal Policy Cltnnn1i1tee for LltgtCtl

Devdopmenr w1s est1blish1middotd in June 1995 and ns

function i-gt to Omiddotcrsce and n1ike reco11unenda1ions on

local devclopmelll

111 EU lnili~llive 10 develop cross hltgtrcler co-opcrllion

Jnd to help an1s ovcrcon1e prohle1u~ as-ociated Viti

being on 1ht Unionmiddots internal and externJI fronlitrs

incl to fill gap- in energy netvorks and provide

interconnections Vllh vider european nelvorks

liaisuns c111re actions cle clltJ1cofPen1en1 (e reco1101nie

rurole - 1 Co111111unity lnitiJlit for rurtl cl~veloptlHnr

covering rhc period 1994 to 199)

Companies est1blished undn IEADER 10 11nple111elll

llHmiddot progran1111e objectives

Long-tcrrn unc1nployecl

ProceS of tr1niferring successful pilol project- of an

innov~Hive nalure 10 n1iinline govtrnn1cnt clepart1nents

anti ~1gencies

1n independent evalualion rtq11ir(cl to be carried out

on any EU progrunn1e Vhich is five or n1ore years in

ltJper~1tion

Fsublished to mTrsec rhe operation of any EU progr~1111111e It con1ains reprtscn1arives of thlt EU

co1111nission govern1nent clepart111ents and progran1111e

in1pll~n1entors

Orerationcd lrogrJmme for Local Urban and Hurd

lkvelopmcnt 1994-1999

Area-lhsed lannersh1p Companies

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

copyGovernment of lrelmd 1999

l~BI 0-707(i-G406-3

middotrhe report Vts prepJred on 1he basis of inforn1ition clcxu111ent11ion tnd

txplan111ons obttincd fro111 1he bodies rlfcrrccl 10 in che rcplt)n

middotrhc draft rcpo11 Vis sent 10 che Accouning Officers of the )ergt1rt111ent of middotrnurisn1

Sport ind Hecn1tion the l)epa111nent of En1crprise middotrriclt and E1nploy1nent incl th

l)ep1nn1tnr of AgriculturLmiddot and Food and their co111n1en1s Cre requested Xllen

1pprorna1e con1n1en[s received ere incorporated in thl final version of the rcpon

RelgtOrt of the Comptroller and Auditor General

Local Development lnitiadves

I havt in 1ccord1nce ilh the provisions of Stclion 9 of the Co1nptroller and Audilor

ce11ertl (Arnenclmerll) Ari 199 carried our a viluc for money exarnin11io11 of local

demiddotelopn1en1 ini1i1timiddotes

I hereby subn1i1 111~middot rlpon of thl abclmiddotl ex1111initinn for prese1H~Hion 10 gtiii fmiddotireann puru111t to Stction J 1 of the siicI Act

John Purcell Comptroller and Auditor General

29 Dctober 1999

C

Table of Contents

Introduction

2 1cl1nin1stririve Efficitmiddotncy

3 Co-nrdinition of 1ctivilies

4 Operational Efficiency

17

30

42

Appendices

5

Page

Glossary

Summary of Findings

Local Development Initiatives

A Annual Costs 11lcl Outputs of lncl1viclu1l County Enterprise Bo1rcb le1cler

Groups rnd Jgte1rrnerships 1995 - 1997

B 1d1nini-tn1tion Cost middotrrLlld-gt of Local f)cvclop111cnt bodies

The Operational Progr1mme for lcx-al llrban and Rur11 Dlvdoprnent

ierfonnance lndica1ors and Hevised largc1s

I) h1re1c1 from Consol1CL1ed Reporting Guicldin~s - DecernbcT 1997

middotrhc lCader Opcrat1011al Progra1nn1c - Pcrfonnancc lndicuors and Rtmiddotvisecl middotrargels

E fturi of l)tveloprnlnl gencie- in county Ho-co1111non and thlt

Services Provided

f Fr1nwwork of AgnTnlltnt Bctween Coun1v Meath CEB and County Mea1h

leider 11 Group

G middotrcr111- nf Reference fltgtr lnc~rdcpa111ncntal Policy Co111111i1rcc

Glossary

AAES

tni1nation

lleneficwy

Bord M6ni

CEil

Coilhe

CSG

1)(1chas

DSCFA

Hfll

Enttmiddotrprise Ir~Ltncl

ESB

f L

Fisherivs llotrds

Forfis

1rca Allcnv~1nce Enterprise Schen1e Vhich is

idministered bv lannerships on behilf of DSCFA

From Jimrny 1999 this sch~nw is known is the llick

to Xork Enterprisc 1llov~1nce

middotrhc role of ani1nation is to i111prove the effec1iveness

of the con1111unity in loc1l develop111cn1

Project pro111oter or con1nu1n11y group in receipt of

fin1ncill suppo11

Stare sponsored body ni1n1ging and developing

pearlinds

County Enterprise Board

St~He sponsored body 1111n1ging public forests ind

nlatcd activities

Coun1y Strategy Groups Crc cs11blished under

OlLURI) to L1cili1a1e co-ordinHiun ind 111inirn1sc

duplication in the dtlivtry of progr1n111Hs ii county

level between the different irntiatives

1middot11e t-lerirage Service it the l)cpa11111ent of rts

f-kririge Gielucht ind rhe Islands

Depinmcnr of Sociil Community ind Fimily Affiirs

Easrern Heilth lloird

Sttle sponsored body issisling Irish co1np1nilts 10

increJse their sales expo11s JJHl e111ploy1nent

Electricity Supply Board

Europe1n U11io11

iition1l 1r~1ining and en1pluynHmiddotn1 1uthority

Sta111tory organisations cl11rged vitl1 responsibilicy for

the developnllnl ind protection or inland fisheries

Forf1s is the policy 1chbulliso1) and co-ordination ho1rd

for industrial developn1ent and sci middotnce and

technology

II) Ireland

Int grtlltd Slrvices lgtrojcct

llC

lncrreg II

lEI I)EJ( II

LE11DEH groups

ITU

11insrrea111ing

Mid-Term Evalua11on

~lonitoring Co1nn1itree

011UHD

lc1rnerships

1 State Ovncd coinpany vhich pro111ores invard

investn1ent

middotrhe Integrated Services 1gtrojec1 V1~ estiblishcd co coshy

onlinate tile inptHs of all slle services in four pilot areas of clisaclvan1age

lnterclepaHn1e11tal Policy Cltnnn1i1tee for LltgtCtl

Devdopmenr w1s est1blish1middotd in June 1995 and ns

function i-gt to Omiddotcrsce and n1ike reco11unenda1ions on

local devclopmelll

111 EU lnili~llive 10 develop cross hltgtrcler co-opcrllion

Jnd to help an1s ovcrcon1e prohle1u~ as-ociated Viti

being on 1ht Unionmiddots internal and externJI fronlitrs

incl to fill gap- in energy netvorks and provide

interconnections Vllh vider european nelvorks

liaisuns c111re actions cle clltJ1cofPen1en1 (e reco1101nie

rurole - 1 Co111111unity lnitiJlit for rurtl cl~veloptlHnr

covering rhc period 1994 to 199)

Companies est1blished undn IEADER 10 11nple111elll

llHmiddot progran1111e objectives

Long-tcrrn unc1nployecl

ProceS of tr1niferring successful pilol project- of an

innov~Hive nalure 10 n1iinline govtrnn1cnt clepart1nents

anti ~1gencies

1n independent evalualion rtq11ir(cl to be carried out

on any EU progrunn1e Vhich is five or n1ore years in

ltJper~1tion

Fsublished to mTrsec rhe operation of any EU progr~1111111e It con1ains reprtscn1arives of thlt EU

co1111nission govern1nent clepart111ents and progran1111e

in1pll~n1entors

Orerationcd lrogrJmme for Local Urban and Hurd

lkvelopmcnt 1994-1999

Area-lhsed lannersh1p Companies

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

RelgtOrt of the Comptroller and Auditor General

Local Development lnitiadves

I havt in 1ccord1nce ilh the provisions of Stclion 9 of the Co1nptroller and Audilor

ce11ertl (Arnenclmerll) Ari 199 carried our a viluc for money exarnin11io11 of local

demiddotelopn1en1 ini1i1timiddotes

I hereby subn1i1 111~middot rlpon of thl abclmiddotl ex1111initinn for prese1H~Hion 10 gtiii fmiddotireann puru111t to Stction J 1 of the siicI Act

John Purcell Comptroller and Auditor General

29 Dctober 1999

C

Table of Contents

Introduction

2 1cl1nin1stririve Efficitmiddotncy

3 Co-nrdinition of 1ctivilies

4 Operational Efficiency

17

30

42

Appendices

5

Page

Glossary

Summary of Findings

Local Development Initiatives

A Annual Costs 11lcl Outputs of lncl1viclu1l County Enterprise Bo1rcb le1cler

Groups rnd Jgte1rrnerships 1995 - 1997

B 1d1nini-tn1tion Cost middotrrLlld-gt of Local f)cvclop111cnt bodies

The Operational Progr1mme for lcx-al llrban and Rur11 Dlvdoprnent

ierfonnance lndica1ors and Hevised largc1s

I) h1re1c1 from Consol1CL1ed Reporting Guicldin~s - DecernbcT 1997

middotrhc lCader Opcrat1011al Progra1nn1c - Pcrfonnancc lndicuors and Rtmiddotvisecl middotrargels

E fturi of l)tveloprnlnl gencie- in county Ho-co1111non and thlt

Services Provided

f Fr1nwwork of AgnTnlltnt Bctween Coun1v Meath CEB and County Mea1h

leider 11 Group

G middotrcr111- nf Reference fltgtr lnc~rdcpa111ncntal Policy Co111111i1rcc

Glossary

AAES

tni1nation

lleneficwy

Bord M6ni

CEil

Coilhe

CSG

1)(1chas

DSCFA

Hfll

Enttmiddotrprise Ir~Ltncl

ESB

f L

Fisherivs llotrds

Forfis

1rca Allcnv~1nce Enterprise Schen1e Vhich is

idministered bv lannerships on behilf of DSCFA

From Jimrny 1999 this sch~nw is known is the llick

to Xork Enterprisc 1llov~1nce

middotrhc role of ani1nation is to i111prove the effec1iveness

of the con1111unity in loc1l develop111cn1

Project pro111oter or con1nu1n11y group in receipt of

fin1ncill suppo11

Stare sponsored body ni1n1ging and developing

pearlinds

County Enterprise Board

St~He sponsored body 1111n1ging public forests ind

nlatcd activities

Coun1y Strategy Groups Crc cs11blished under

OlLURI) to L1cili1a1e co-ordinHiun ind 111inirn1sc

duplication in the dtlivtry of progr1n111Hs ii county

level between the different irntiatives

1middot11e t-lerirage Service it the l)cpa11111ent of rts

f-kririge Gielucht ind rhe Islands

Depinmcnr of Sociil Community ind Fimily Affiirs

Easrern Heilth lloird

Sttle sponsored body issisling Irish co1np1nilts 10

increJse their sales expo11s JJHl e111ploy1nent

Electricity Supply Board

Europe1n U11io11

iition1l 1r~1ining and en1pluynHmiddotn1 1uthority

Sta111tory organisations cl11rged vitl1 responsibilicy for

the developnllnl ind protection or inland fisheries

Forf1s is the policy 1chbulliso1) and co-ordination ho1rd

for industrial developn1ent and sci middotnce and

technology

II) Ireland

Int grtlltd Slrvices lgtrojcct

llC

lncrreg II

lEI I)EJ( II

LE11DEH groups

ITU

11insrrea111ing

Mid-Term Evalua11on

~lonitoring Co1nn1itree

011UHD

lc1rnerships

1 State Ovncd coinpany vhich pro111ores invard

investn1ent

middotrhe Integrated Services 1gtrojec1 V1~ estiblishcd co coshy

onlinate tile inptHs of all slle services in four pilot areas of clisaclvan1age

lnterclepaHn1e11tal Policy Cltnnn1i1tee for LltgtCtl

Devdopmenr w1s est1blish1middotd in June 1995 and ns

function i-gt to Omiddotcrsce and n1ike reco11unenda1ions on

local devclopmelll

111 EU lnili~llive 10 develop cross hltgtrcler co-opcrllion

Jnd to help an1s ovcrcon1e prohle1u~ as-ociated Viti

being on 1ht Unionmiddots internal and externJI fronlitrs

incl to fill gap- in energy netvorks and provide

interconnections Vllh vider european nelvorks

liaisuns c111re actions cle clltJ1cofPen1en1 (e reco1101nie

rurole - 1 Co111111unity lnitiJlit for rurtl cl~veloptlHnr

covering rhc period 1994 to 199)

Companies est1blished undn IEADER 10 11nple111elll

llHmiddot progran1111e objectives

Long-tcrrn unc1nployecl

ProceS of tr1niferring successful pilol project- of an

innov~Hive nalure 10 n1iinline govtrnn1cnt clepart1nents

anti ~1gencies

1n independent evalualion rtq11ir(cl to be carried out

on any EU progrunn1e Vhich is five or n1ore years in

ltJper~1tion

Fsublished to mTrsec rhe operation of any EU progr~1111111e It con1ains reprtscn1arives of thlt EU

co1111nission govern1nent clepart111ents and progran1111e

in1pll~n1entors

Orerationcd lrogrJmme for Local Urban and Hurd

lkvelopmcnt 1994-1999

Area-lhsed lannersh1p Companies

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

C

Table of Contents

Introduction

2 1cl1nin1stririve Efficitmiddotncy

3 Co-nrdinition of 1ctivilies

4 Operational Efficiency

17

30

42

Appendices

5

Page

Glossary

Summary of Findings

Local Development Initiatives

A Annual Costs 11lcl Outputs of lncl1viclu1l County Enterprise Bo1rcb le1cler

Groups rnd Jgte1rrnerships 1995 - 1997

B 1d1nini-tn1tion Cost middotrrLlld-gt of Local f)cvclop111cnt bodies

The Operational Progr1mme for lcx-al llrban and Rur11 Dlvdoprnent

ierfonnance lndica1ors and Hevised largc1s

I) h1re1c1 from Consol1CL1ed Reporting Guicldin~s - DecernbcT 1997

middotrhc lCader Opcrat1011al Progra1nn1c - Pcrfonnancc lndicuors and Rtmiddotvisecl middotrargels

E fturi of l)tveloprnlnl gencie- in county Ho-co1111non and thlt

Services Provided

f Fr1nwwork of AgnTnlltnt Bctween Coun1v Meath CEB and County Mea1h

leider 11 Group

G middotrcr111- nf Reference fltgtr lnc~rdcpa111ncntal Policy Co111111i1rcc

Glossary

AAES

tni1nation

lleneficwy

Bord M6ni

CEil

Coilhe

CSG

1)(1chas

DSCFA

Hfll

Enttmiddotrprise Ir~Ltncl

ESB

f L

Fisherivs llotrds

Forfis

1rca Allcnv~1nce Enterprise Schen1e Vhich is

idministered bv lannerships on behilf of DSCFA

From Jimrny 1999 this sch~nw is known is the llick

to Xork Enterprisc 1llov~1nce

middotrhc role of ani1nation is to i111prove the effec1iveness

of the con1111unity in loc1l develop111cn1

Project pro111oter or con1nu1n11y group in receipt of

fin1ncill suppo11

Stare sponsored body ni1n1ging and developing

pearlinds

County Enterprise Board

St~He sponsored body 1111n1ging public forests ind

nlatcd activities

Coun1y Strategy Groups Crc cs11blished under

OlLURI) to L1cili1a1e co-ordinHiun ind 111inirn1sc

duplication in the dtlivtry of progr1n111Hs ii county

level between the different irntiatives

1middot11e t-lerirage Service it the l)cpa11111ent of rts

f-kririge Gielucht ind rhe Islands

Depinmcnr of Sociil Community ind Fimily Affiirs

Easrern Heilth lloird

Sttle sponsored body issisling Irish co1np1nilts 10

increJse their sales expo11s JJHl e111ploy1nent

Electricity Supply Board

Europe1n U11io11

iition1l 1r~1ining and en1pluynHmiddotn1 1uthority

Sta111tory organisations cl11rged vitl1 responsibilicy for

the developnllnl ind protection or inland fisheries

Forf1s is the policy 1chbulliso1) and co-ordination ho1rd

for industrial developn1ent and sci middotnce and

technology

II) Ireland

Int grtlltd Slrvices lgtrojcct

llC

lncrreg II

lEI I)EJ( II

LE11DEH groups

ITU

11insrrea111ing

Mid-Term Evalua11on

~lonitoring Co1nn1itree

011UHD

lc1rnerships

1 State Ovncd coinpany vhich pro111ores invard

investn1ent

middotrhe Integrated Services 1gtrojec1 V1~ estiblishcd co coshy

onlinate tile inptHs of all slle services in four pilot areas of clisaclvan1age

lnterclepaHn1e11tal Policy Cltnnn1i1tee for LltgtCtl

Devdopmenr w1s est1blish1middotd in June 1995 and ns

function i-gt to Omiddotcrsce and n1ike reco11unenda1ions on

local devclopmelll

111 EU lnili~llive 10 develop cross hltgtrcler co-opcrllion

Jnd to help an1s ovcrcon1e prohle1u~ as-ociated Viti

being on 1ht Unionmiddots internal and externJI fronlitrs

incl to fill gap- in energy netvorks and provide

interconnections Vllh vider european nelvorks

liaisuns c111re actions cle clltJ1cofPen1en1 (e reco1101nie

rurole - 1 Co111111unity lnitiJlit for rurtl cl~veloptlHnr

covering rhc period 1994 to 199)

Companies est1blished undn IEADER 10 11nple111elll

llHmiddot progran1111e objectives

Long-tcrrn unc1nployecl

ProceS of tr1niferring successful pilol project- of an

innov~Hive nalure 10 n1iinline govtrnn1cnt clepart1nents

anti ~1gencies

1n independent evalualion rtq11ir(cl to be carried out

on any EU progrunn1e Vhich is five or n1ore years in

ltJper~1tion

Fsublished to mTrsec rhe operation of any EU progr~1111111e It con1ains reprtscn1arives of thlt EU

co1111nission govern1nent clepart111ents and progran1111e

in1pll~n1entors

Orerationcd lrogrJmme for Local Urban and Hurd

lkvelopmcnt 1994-1999

Area-lhsed lannersh1p Companies

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

Glossary

AAES

tni1nation

lleneficwy

Bord M6ni

CEil

Coilhe

CSG

1)(1chas

DSCFA

Hfll

Enttmiddotrprise Ir~Ltncl

ESB

f L

Fisherivs llotrds

Forfis

1rca Allcnv~1nce Enterprise Schen1e Vhich is

idministered bv lannerships on behilf of DSCFA

From Jimrny 1999 this sch~nw is known is the llick

to Xork Enterprisc 1llov~1nce

middotrhc role of ani1nation is to i111prove the effec1iveness

of the con1111unity in loc1l develop111cn1

Project pro111oter or con1nu1n11y group in receipt of

fin1ncill suppo11

Stare sponsored body ni1n1ging and developing

pearlinds

County Enterprise Board

St~He sponsored body 1111n1ging public forests ind

nlatcd activities

Coun1y Strategy Groups Crc cs11blished under

OlLURI) to L1cili1a1e co-ordinHiun ind 111inirn1sc

duplication in the dtlivtry of progr1n111Hs ii county

level between the different irntiatives

1middot11e t-lerirage Service it the l)cpa11111ent of rts

f-kririge Gielucht ind rhe Islands

Depinmcnr of Sociil Community ind Fimily Affiirs

Easrern Heilth lloird

Sttle sponsored body issisling Irish co1np1nilts 10

increJse their sales expo11s JJHl e111ploy1nent

Electricity Supply Board

Europe1n U11io11

iition1l 1r~1ining and en1pluynHmiddotn1 1uthority

Sta111tory organisations cl11rged vitl1 responsibilicy for

the developnllnl ind protection or inland fisheries

Forf1s is the policy 1chbulliso1) and co-ordination ho1rd

for industrial developn1ent and sci middotnce and

technology

II) Ireland

Int grtlltd Slrvices lgtrojcct

llC

lncrreg II

lEI I)EJ( II

LE11DEH groups

ITU

11insrrea111ing

Mid-Term Evalua11on

~lonitoring Co1nn1itree

011UHD

lc1rnerships

1 State Ovncd coinpany vhich pro111ores invard

investn1ent

middotrhe Integrated Services 1gtrojec1 V1~ estiblishcd co coshy

onlinate tile inptHs of all slle services in four pilot areas of clisaclvan1age

lnterclepaHn1e11tal Policy Cltnnn1i1tee for LltgtCtl

Devdopmenr w1s est1blish1middotd in June 1995 and ns

function i-gt to Omiddotcrsce and n1ike reco11unenda1ions on

local devclopmelll

111 EU lnili~llive 10 develop cross hltgtrcler co-opcrllion

Jnd to help an1s ovcrcon1e prohle1u~ as-ociated Viti

being on 1ht Unionmiddots internal and externJI fronlitrs

incl to fill gap- in energy netvorks and provide

interconnections Vllh vider european nelvorks

liaisuns c111re actions cle clltJ1cofPen1en1 (e reco1101nie

rurole - 1 Co111111unity lnitiJlit for rurtl cl~veloptlHnr

covering rhc period 1994 to 199)

Companies est1blished undn IEADER 10 11nple111elll

llHmiddot progran1111e objectives

Long-tcrrn unc1nployecl

ProceS of tr1niferring successful pilol project- of an

innov~Hive nalure 10 n1iinline govtrnn1cnt clepart1nents

anti ~1gencies

1n independent evalualion rtq11ir(cl to be carried out

on any EU progrunn1e Vhich is five or n1ore years in

ltJper~1tion

Fsublished to mTrsec rhe operation of any EU progr~1111111e It con1ains reprtscn1arives of thlt EU

co1111nission govern1nent clepart111ents and progran1111e

in1pll~n1entors

Orerationcd lrogrJmme for Local Urban and Hurd

lkvelopmcnt 1994-1999

Area-lhsed lannersh1p Companies

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

II) Ireland

Int grtlltd Slrvices lgtrojcct

llC

lncrreg II

lEI I)EJ( II

LE11DEH groups

ITU

11insrrea111ing

Mid-Term Evalua11on

~lonitoring Co1nn1itree

011UHD

lc1rnerships

1 State Ovncd coinpany vhich pro111ores invard

investn1ent

middotrhe Integrated Services 1gtrojec1 V1~ estiblishcd co coshy

onlinate tile inptHs of all slle services in four pilot areas of clisaclvan1age

lnterclepaHn1e11tal Policy Cltnnn1i1tee for LltgtCtl

Devdopmenr w1s est1blish1middotd in June 1995 and ns

function i-gt to Omiddotcrsce and n1ike reco11unenda1ions on

local devclopmelll

111 EU lnili~llive 10 develop cross hltgtrcler co-opcrllion

Jnd to help an1s ovcrcon1e prohle1u~ as-ociated Viti

being on 1ht Unionmiddots internal and externJI fronlitrs

incl to fill gap- in energy netvorks and provide

interconnections Vllh vider european nelvorks

liaisuns c111re actions cle clltJ1cofPen1en1 (e reco1101nie

rurole - 1 Co111111unity lnitiJlit for rurtl cl~veloptlHnr

covering rhc period 1994 to 199)

Companies est1blished undn IEADER 10 11nple111elll

llHmiddot progran1111e objectives

Long-tcrrn unc1nployecl

ProceS of tr1niferring successful pilol project- of an

innov~Hive nalure 10 n1iinline govtrnn1cnt clepart1nents

anti ~1gencies

1n independent evalualion rtq11ir(cl to be carried out

on any EU progrunn1e Vhich is five or n1ore years in

ltJper~1tion

Fsublished to mTrsec rhe operation of any EU progr~1111111e It con1ains reprtscn1arives of thlt EU

co1111nission govern1nent clepart111ents and progran1111e

in1pll~n1entors

Orerationcd lrogrJmme for Local Urban and Hurd

lkvelopmcnt 1994-1999

Area-lhsed lannersh1p Companies

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

le1ce 111d Heconcilurion

lESI

Pos1 2000 subrnission

Territorial Employment

Picts

Tourism Opcrationll

Progran1111c

Ul~HN ini1iuive

1n EU Initiative to reinforce progress Ovards a

pe1ccful ind stable society by incre1sing econo1nic

dcvelop1nc1H urban and rur~d regeneration

developing cross-lxJrdcmiddotr links incl con1lx111ing soci1l

exclusion

Progra1nn1e for Econo111ic and Social Progress

Suh1nissions nques1ed fro111 govern1ne111 depar11ntnts

other sr11e 1gcncics ind na1ionil 1x1nners on the

future use of structurII funds post 2000

An EU lrnti1tive to hdp the unemployed find 1obs 1n

dis1clv1n1aged areas

middotrhe opera11onal progra111111c for 1ouris111 devltlopnHnt

under tlw Community Support Framework 199i middot 1999

n EU Initiative the purpose of which is 10 1ddress

in 111 integrited tr urban sltxi1l exclusion by

building panncrship arr1ngcnHnrs bttvcen locil

1u1horitil and 01hcr loc1J structures

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

S1J1mmary middotrhis alue for 1nnney rcpo11 is cnnccrntd vi1h the oper~Hion during the period 1994shy1995middot of loc1J devllop1ntnt initiatives provided through (ounry Enterprise Boards (CEiis) Arc1-B1sed 11nnersh1r Comp1111es (i1rtncrshipsJ ind IEADER groups

CEiigt Wltre es11hished in every countv for thtmiddot p11rrose of promnlng locd emerprise incl econo1111c clev([op1nen1 middotrhcrc 1rc 3 CLBs vhich opcrltttc undtmiddotr agreen1en1

Villi the J)epart1ncn1 of Enterprise middotrrade and E111ploy1nen1

middotrhe purpose of Partnerships is to co1nlx11 unln1ployn1ent ~ind exclusion middotrhere ire

38 lannerships operalrng in 1re1s design11ed as disrdvrntagcd and a fu11her 33 Inell devtlopnumiddotnt gruups in non-dis1dv1nt1gecl 1n1s middotrhesc opertle under in inle1111ldi1ry con11x1ny vhich rt~purt~ to the Igtcp1rt11Hnt uf middotrouris111 Sprnl ind

Rccreilion

The LEADER grours were cstiblrshed under an EU In11io11ive to promote rur11 clevcmiddotlopnitmiddotnt 1ly suppCgtrting lltgtcal developnHtH groups middotrhere middottrl 5i lEAl)EH

groups opirH1ng undcr agrei1nc11t- vith the lJep1ru11ent of Agriculrurl ind Food

From 1994 10 1998 public funding totalling l208 million was providld lo these bodies of vhich pound-127 111illion middotIi pruvicled by 1hc EC Co111n1i~sion incl f~-1 111illion

by 1he Exchequer CEB-gt ~ind Pannirships an funded under the ()perationtl lrofra111111e Or Lltx-al Urlgtan and Hurorl [kvelop111en1 199lt1-1999 (OPUIHD) The UADER groups 1re funded under the LEAD EH Operational Programme 1994- 1999

middotr11e value for niuncy ex1111inttion looked H specific issues rel1ting to rhc

acln1inistr1tive ~ind opilJtiontl etliciincy of thlt thrt~t~ 1ypts of hoclies lht

1rra11gc111ents fo1 co ordination lgtlttvtmiddotcn rhe txxlies and approache~ 10 ltValutlion of

their i111p1ct

Administrative Efficiency

middotrhe divcrsily of 1c1ivi1ies ~ind different stages of developnicnr of the hodies li1111t chc~

exrc11 to Vhich cross con1parisons of achninistrHive efficiency c1n be 111acllt

drrinistc111011 expc11di111re hy all tlte hocl1es 111tallld S28 9 11ull1on 1n tlw pltn11d 1995 to 1middot)97 )uring 1hiI period thl ovcr~i11 rrcenl~tgi of ad1111ni~lration costs to total cxplncli111re declined subtantitlly fro1n 28Yo co 220u principilly bccaust n1any of chc bodies n1ovcd fron1 1 set up phase ICgt being fully operational Achninis1r1t1on expenditure as a ptTcc11t1ge of ltgtlal expcndi1un also varied bttVCltll individu1I hnclitmiddots clue to clitlere1Hes in the nalure of the aclimiddoti1ies undeniken For lX~ttnpk the level of 1cl1ninistr~1tive co-l~ middotoukl he influenced by lhe extent to Vhich

incli11idual bodies is~lll grant support or offer non-financial 1ssist1nce In generil Partnlrships have higher adn1in1strllion cost- nlHive to thlmiddot other hod1es for rhis reasc)n

middotrhe llodies are characterised hy -ubstintitl voluniarmiddotymiddot inputs at board and sulgtshycon1n1inee levels middotrhis is in kclping Vith hirncs-ing local knovledgc and tpenise ro ~1ch1eve con1n1on ob1ectivt~ Key staff VCrC inv1n1hly highly qualified and

rcso ircefuL

lhe develop1ncn1 of n1~1nagen1tmiddotnt inforn1ition _ys1c1ns has not been sari-Ltctorymiddot in

--- middot- --------------shy

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

ulttf I )(coJlllc1 II If ii itl f itL

that rhert is nn 1tJ1un111ic sharing of d111 11nnng loc1l dtVllop111en1 bodies ind lhe scope for effectiveness inilysis is t1111i1ed middotrhroughoul 1hlt pcritxl covered by lhL ex1111in11ion inforn1ation systt111s vl1icl1 include perfcn1111nce 111e1suns ind inclic1tors (cl n1cJniror etliciltncy incl ~tTectiveness htvL l)etmiddotn under tlevLmiddotlup111cn1 ind pr()grts is heing 1111cle in iddrc sing the deficiencilS

Co-ordination of Activities

The flexible approich 10 the i111ple111et11ition of local dewloprnnt policy rcmiddotstilts in consider1hhmiddot duplicition of the enlcrprislmiddot crvicts providld by thlt three types or hodils Vith 1pcc1 10 objlClies clients incl 1c1ivities middotro i lesser lXtLllt 1here is duplici11on of 1c1ivities concerned ilh coun1ering serious ecnno111ic incl sociil dis1clv1n1ige heciusl Pirtnerships t1rgct specific clitnl groups - the long-tcnn unemployed ind the soci11ly excludld In nine ctsc-s Pinnerships and lEADEH groups share i conunon 1111n1gc1nen1 board

Co-operilion 11nung 1hc hodies ind Villi othtr urginisalions (Stale local govern111tnl co111111unity ind volunttry st ctor incl bllllllSS) ~Jt loctl ltvel to 1chicve igreed objectives con1rib11tcs to the unique innovlit roll of 1hc Local l)evelor1nen1 initiitives

Suhsicly shopping can ltgtCltl1r IHrehy Lmiddotlitmiddotn1s can 1111xin1ise the public funding they rcciivi by tpplying for grillS frolll cliffcnn IJodieS (O 11ppOlt cliiferent elelllt~lllS Oi

their projccls middotrhis incvit1bly leicls lo cluplic11ion in 1d1ninistrllion Fonnil in1erdep1rr111en1il 1gree111en1s should Ix- cmiddotontmiddott1ded to define 1l1e li1ni1s bllVecn the ohrcc11ves clienls ind activities of thl three bodies ind si111ilir 1gree111en1s should he concluded It locil level middotrhese 1green1tmiddotn1 n1ight look for vays of n1ini1nising the id111inisr11ion of 111ultiple tpplicHions for funcling in 1 project

t cohestvlmiddot 1ppro1ch to th( intcgrition of locil govern1nen1 1nd loc~ll develorn1en1 V~ts set out in 1998 by tn in1erclep111n1ental middotrask Force J1nplen1cnt11ion of 1his rep(U1 is underv1y

Operational Efficiency

middotrh1middot 1111in 1ctivi1y ind outpul tirgcts ire being n1et but the absence of baseline perfnnnince d111middot llll1ns lltll ii is not knclvn hoV dc1111nding 1he original r1rgets Vere 1rising fron1 VOrk by the external cviluitors ro thl Oper1tional Progra1nn1es 1111ny nf the 11rge1s h1vc been rlisccl hv tile -loniroring (01nn1inees vhich oversee llH i1nplv111c111tlilt)n c)f rl1ltmiddot Progr11111ncs

1hile tlcn1en1s nf exptmiddotnditun (Pannltrships incl LEAJ)FH groups) Vere son1cvh1t behind tirget II the lttlcl of 1998 it is cxpec1ed by the lgtcp~1111nents 1h11 spcncling targlts viii he n1e1 by the encl of the Operational Progran1111es

Sludils indicHt lhH tht level of dcadvciglll (the tmiddotxrent to Vhich enterprises suppltgtrlt~cl unclir the Operational lrogr1111111es Ould be cst1hlished Vilhout gr1n1s) n11y be in the rangt 4(Yc1 10 50dego ()isplicen1en1 (the ex1cn1 to Vhich suppo11ed enterpri~cs clive11 stils ind en1ploy111en1 oppo11uni11es fro1n other Irish enterprises) 111iy he in the r1ngl 20 (Cl 400u Fron1 eirly l 99H CEBs and P111nerships have been tn1poverecl to Jss1s1 enterprise projects by n1eans of refuncl1ble Jid incl equily Use

ii

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

S1111111u11v

of thltse forms of id should he expndcd quickly in prelerencl 10 11011-repyJlt gracts 1s they can help to reduce cleHhveight 1nd dispL1ce111tnt and in addi11on 1re t 1111)1 econo1nictl use of public funds

Son1e inst1nces of clispk1cen1en1 providl social benefits vhich n11y outvcigh the

cost involved There is a need for n1orl cl1rity regarding the circu111s11nces in vhich

dispbccrncnr rn he perrnined

Assessment of Impact

lhe developn1en1 of sys1e1ns to 1ssess the in1pact of Local J)tgtvtgtlopn1en1 initkHives is not easy hec1use of 1he clibullersity of objccrives rhc tick of n1easurahility nf so111e

i111p1cts rlie tlJsence of clisagtregtled d1t1 n1odels rclcv1nt lo locil areas and the need for careful in1erpretHio11 of results

Quantitative Assessment

ltJu1n1itJtiC 1sessn1ent of the in11x1c1 of (gtcal l)evclopn1ent hodivs c1n bl carried our by exa1nining ch1nges in vari1ble such as long-tcnn 11ne1nploynHnl ind 1-n11middotrpri-e forn1arinn Studits to dare of thest v1riallles have yielded inlmiddotonclu-ive

rt~sults

rtpon on the i111p~1ct of OJgtLLHI) on ong-tenn ltnen1ployr11lrlt shnvs thtt fro111

1991 to 1996 unc111ploy111cnt in gtJrtntmiddotr~hipmiddotareas fell by roughly poundhe sa111t penentage as in non-P~n1nership ~treas

A111y~is of 11~11ional Live Hcgi~[er cla1a for 1he pc-riod CJ94-1998 indilates ~1 signifi(1n1 Lill in chc kwl of long-cerm unemployment hich b pat11cula1 focu of P~1r111erships bur the reduction n1ay h1ve 111ore 10 do vith 1he in1pact of tron~ 1middotconon1ic gn)vth poundh1n vid1 rhc effec1 of Local l)cvclop111cnt initiatives

A nmiddotiev of the nu1nber of n1anuL1c1uring s1ar1urs fru1n 1987-1996 siHJVS rhar 1he rapid econon1ic grcJvlh fro1n 1995 and the onstmiddott of thtmiddot Local l)evllop111ent iniri11ives did 101 result in an increisecl rate of 1111nuf1c1uring sta11ups

lntc~rnion of enterprise support incl perforn11nct da11 Jcross the Loctl l)evmiddot-lopn1cn1 inipoundiuives voulcl be required in order 10 est1hlish 1he underlying reasmiddot)llS for these rends

Quiitative Assessment

lkciled Census of Populicio11 d11 (1991 a11d 19)6) is available regrd1ng 1ndicacors of distdv1n11ge in Pirtnership 1n~1 hile rherc are lin11tuions inolved in int(-rpreti11g the cl1t1 fu11her ~1111lys1s ~houd facilitlle 1s~es1nen1 of lhl in1p1cr of the actimiddotities of 1111ncrhips

Jhe exlent of n1~11eri1J specificJJly covering 1hc evtlua1ion of i111pacl is very li111ited P1rt11crships hie CJrriecl our evcril cisc Situlies to cxplorL the in1ptrl of 1heir tcliililS ind 10 pro111ute 1-gtesr pr1c1ice (1~l srudies arc undervay also in ni1ny

lEA)EH groups l-lovtver there is i clt-1r nted for 111ore d111 lmiddotulllmiddotcrion and the

clevdopmenc of sonil policy rnocleb co prnvicle a hcncr ins1gl11 into che imp1cr of Loe~ I l)evelop111ent 1c1ivities

iii

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5

bull

Local Development Initiatives

middot

- shy~~ ~~ltmiddot~-

middot

middot~

1 Introduction

Background to Local Development Initiatives

11 Since htbull ltarly 1)90 the (omiddoternn1tmiddotn1 middotill1 the support of 1hc European

lJnion (_lmiddotl) h1s introdutcd 1 nun1hvr of policy initiatives in suppo11 of hxil sltx-ioshy

eltcgtncgtnlilmiddot clcvelltlp1ncnt Tlteslt 1ni1i1timiddotcs stc111111cd fngt1n htmiddot pertcivcd L1ilt1re (Jf

cxiting pnlicicmiddots to _hirl lfllmiddot benefit ol 1middotcono111ic gnnmiddotth lmiddotquitahly tcrn-s local

ro11H1H1nililS ind 111Hn1g thl 111ore distdmiddot1n11gtmiddotd scctCJr of Irish iocitImiddot (~llltrtl to

1hc initiatives ts tliemiddot cn~11ion of lllcd lll1ployn1cn1 oppnnunititmiddot togetlitmiddotr Villi

llHISllrtmiddots to 11cklc cduc1tional distclvan11glmiddot tJlmiddotirltlflllltnlil cl1c1y ind ocial

lxclusion middotrhe IH~v pc ii icy alio n11rked 1 revers~1l fro111 the tr1ditio11al htmiddotgi111ony DI

central govltrnnitmiddotn1 by nmiddotcognising iht roll Vhich local cu11111111ni1amiddot c1n play in

the proctsi of lCltHlltunic trKI Sltgtc1al dtbull(lopn1enc

12 r pri11IJI) purpo--l of Incil J)evelop111lnl V1- co identify Jprropnllt Vays of

-tin1uLtting tll rllvvant luctl re-ources 111 suppo11 of Lllterpngti deth)pn1vn1 ind

tickling long-tern1 unernploy111ent hough llLttetL lhe-imiddot 1rt di-rinct uhjccliVLS 1nU

tlil vXtmiddotnr ro middothich they could htbull 1sotiatcd in operationd llllll- rc1111ined tn he

lthlished it that ti111e

13 IIH 1111in ekmiddotnlLllC ()f the llt appro1ch middotLlL

bull p1rtnersliip hllVtmiddotcn stitulory hu ines ind cD111nH1nity scctnrgt

bull dtmiddotmiddotulurinn to local bodies of lllltmiddotds idcntifiLation pL1nning to-ordi111Cio11 of

progr11111tltS dvlill of 1r111ova1it and ctmiddotriain other action tnd 111on11()ring

of progres

bull involvcrncnt of the eniirlt co111n1unity cspcciilly d1sHhmiddot1nt1gcd groups

bull 1dltl[Hilt1n cgtf a Jtili-li(middot ll)PH)tclt l1tbullrtbulll)y l(l)flCgtllliC 111d S(icmiddoti~1J dlVtbullhipnlcllt

VOllld OCClll (CllCUllellliy

13 middotrt1tmiddot Hhnini-rrililtlll (Jf Lo~middot1l J)tmiddotvlmiddotlopnHmiddotnr in Ireland is cl1ssi1111l1r legt 1ll11 in

oth1 middotr FlJ countriis in li1tl

bull lhltrl artbull i nu111lill of di1inc1 pn1gr1n1n1cs

bull there i strong centrd gullllllhllt 111d EU involve111tlll

bull 111middotv local 1d111ini-tr1t1vc s1n1c1111middotls -ere demiddoticcJ inderH1Hllnt ()r lXiring local

govlmiddotrn111cnt structu1

Ctmiddotrrril goven1111enl control- the hulk of public fininces At locil ltmiddotvel local

aulill gtril ilt~ ft 1 net ions h1 ve 1llen li111i1ed Ct ivering n11ttcrs such ts roads -1ni111ion

111d housing ihill 1hvonric1llv locil ~1u1lionl1tS co1dd lllgtgLmiddot in 111a11v uther ()cal

c lemiddot l le iJ Hnen t

hinmiddotling ~ygttlIll 111d ittthility 10 pursue ltl ignificull ltgtctl c1x11ion middotYtcn1_ 1 middotr1sk

oca Je1ehJ[J111e111 lnitiatiues

Force 1 esrtblish~cl by rhe Governn1tnl 1nadc i nu111her of rtco1n1ncnd1tions in 1

rcpon 111 August 1998 regarcl1ng the mtcgration of local dcvdopment with local

government These ere approved by the Government in September 1998 (sec

paragraphs 10 to 3 31)

Organisational and Management Arrangements

15 The tO main EU funded programmes providing suppon for Local

Development arc the Opernional Programme for Local Urban 1nd Hural

Devclormcnt (OlLUHD) ind 1he llADEH II lrogr1111111c These Opcrntional

lrog11mmcs were drafted by the Department of the Tao1sc1ch and 1hc Dep1rtmen1

of Agriculture and Food (Agricuhure 1nd Food) respectively within EU guidelines

incl 1grced Vith the EU Co1n111ission

16 Each sub-progr1111111e of 011UlI) and IEADER 11 is 1clm1nistc1nl locally by di1inc1 Local J)evelop1ncn1 bodilts middotrhis c11nin~1tion is concerned Vilh Lltx~il

l)evelop111en1 acrivilies 1cl1niniscercd by Coun1y Enlerprise Bltgtards and 1re1-Based

111111crship Companies under OlLURD and by LEADEl groups under LEADER II Hcspons1bili1y for rhee bodies coines under chi rc1nit of three scpar11lt Governn1en1

Dep111ments (sec 11gurc II)

Co1111ty pound11er[Jrise Boards

17 Crn1111y Enterprise lloirds ((Ells) were established 111 Oe1olier 1993 wnh the

tilll or fu tering incl f1cilitating che LCOll01l1iC dcvelopn1ent of local area~ Each CEB

Vts required 10 clrt1 up 1 Counry 1nccrprise Pltn incl its iccions incl prupo-als are

Figure 11 Main Departments and Local Development bodies

Enterprise Trade and

Employment

County Enterprise

Boards

Tourism Sport Government and Recreation Departments and Agriculture

and Area Intermediary and Food DevelopmenlCompany

Management Ltd

bull

Area-Based

Local LEADERPartnershipsDevelopment groupsCompanies and

Bodies community groups

1Jc To5k fmiddot(Jtmiddotccmiddot R(Xlrt u11 rbe 1tfpound7ratiu11 lt oc(lf (io1en1111e1u (11tf Local Jc1elo1me11t Srs1e111s bullbull~Ql( 19)i

2

---1tfrotluct1un

ha ed on 1hi plan middotrhertmiddot art 51 ltEBs in total covering county and urban local

~ll1hori1y 1rc1s Ftch (~EB h1s 1-i 111e1111Jer irHluding repngtStIltHivls of local

govltrnn1c11t public Stl or 1g~ncics hu1ntmiddots Lun1ing lradt union and co11111n1ni1y

inlTest

lH middotrhc CEBs provide 1 r1nge of enltrprigtt -upp()rt -ervices al local levt l eg

admiddot1 ic~ and coun~tlling hus1ncmiddot infonnaiion financial 1sis1ancc and 111an1gtIlllnc

dcmiddottlop11l(Jll middotrhtbull firgltl group- ~tre husinltsse- co11111nu1i1y groups individud

en rcprtJ1(lJrs 1nd -n1i[] enterprises cEBs tonk OVtf re-gtpon-ihililv frorll lhl fltgtrlller

Industrial i)tclop111cnt u1hori1y (ll)A) for the devt~lDpllhllt of 111anufac111ring and

inl =rna1iont gtervicc - finn~ Vilh ltmiddot s th111 ten en1ploycmiddotc In 1ddi1ion_ thtmiddoty is-u111cd

the l1tmiddot roll of pngt11101in~ 111 vnltTpriL culturt

l~1 J-ro111 1hc outet the i)tgtp1r1111lnt of Entcrprist middotrrade and F1nployn1cnt

( Enterpri-e middotrr1dtmiddot 111d L111ploynHmiddotn1) has been responsiblt for co-ord1n~Hing and

supcrvising the crBgt lniti11ly dec1~ions on grant payn1ent~ lo individual projecls

vtre vetted by hl f)t1gt1rt111enl 11ltgttVtL (~EBs Vere ccgtr1s1i1111cd as lin1ited liahili1y

l0111p1nies during iltJltJ) and ifl(I 1January 19CJ(i hive 111idc grtnt decisions

110 Stiffing accon1111ltJLlatiun and 01hcr expen es V(~1tmiddot ini1i1lly provided liy lhtmiddot

lul ii 1u1horitics on a recoupn1cnr lgtt~i and ah hough the CFBs anmiddot nov

inl orporatccl rntny havtmiddot coniinutd Viti lliis 1rrangen1cn1

111 Funding for ltt]is is co-fin111ctmiddotd by Elj _1ruc1urtl funds via suh-progra1111ne I

of 011UHD mcl hv the hchequlr

Ara-amp1setl lc1rt11erslJiJ (-tJn11c111ies

112 1ret-Bit~d 11rtntrhip co1np1nies ltPa11ncrship) vere originally c-tihlished

in 12 ~1rltmiddotmiddotas un 1 pilot hi~i in 1991 10 in1phnhnt an nca-hastmiddotd nmiddotspollgtt to longshy

tlrrn unen1pl(lyn1tlll under tile Progra111111e for Econoinic and Sul-i1I Progrltss (PESP)

_JH Partnerships havt hcen lSt1hlished (2() urhJn ind 1- rural) lo optrat in 55 areas

dtig11Htmiddotd by 1hc (~ovvnlllltlll i~ hling disidvan1~1gtd In 1cldi1ion lherc ire 55 C(lJllllH1nity dcmiddotLmiddotlop111ent groups in non-dtmiddotsig111ted arets middot1J1ch c1ny oul fu11ctior1s

i111iltr to tho~v uf 1he 11r111er-liips middotrile Boards of i)irectors of the co111panil-gt lll

drvn fror11 (1) 1he SlgtCiil p1nncr (ii l -ttle 1genc1tmiddots ind (iii) co111111unity ~ind

vc gt t1n1tr~- cHg111is1 tio11

tmiddot13 The function~ nf the P1rntrsliip art to preptre lnc1I dcmiddottlopn1t~n1 pl1n _ in

con~tdtalion vi1h otl1LI local groups incl hudicmiddots_ to lOLHlltf d1stdvan11gc in 1hcir

~trtts and tiltn lo hlmiddotl thlmiddot-c plans i111ptmiddotn1cmiddotn1td middotrile pl111 oullines the rangt of

socitl ind lmiddotcono111ic tSSlltS to ht addrtmiddot scd in lhimiddot l1rget trta and the ohjeclive to

Ill pursultd h1scd on tile resuh of ~1 ltgtcio-ccono111ic analysis of lhc iret middotrliLmiddot

intbulllllion i~ ro 1tLmiddotlcr11c lnlt11 eronoinic dltmiddotvltmiddotlorn1e1H increise frnrloynHmiddotnt ind

local Develop111e11t l11itiati1es

tickle cxclu~ion incl 1nargintlisa1ion resulting fro111 long-llflll une111ploy111ent vc1y

vide r1nge of 1ctivities i~ unde111ken including job pltCLlllCIH adull education

training con111n1ni1y clevelopn1lmiddotn1 cnviro1111H111tl projLCI~ and youth iniliHives

114 An indepenckn1 in1c1mcdia1y company wis eslahlished in 1992 in111ally under

1he aqigt of 1he Dep111men1of1he Tioisetch and subgtltltjlltgtnily from midmiddot 1997 1he

Depanmcn1 of Tourism Spon and lkcre11ion (Tourism Spon and Hecreuion) 10

oversee 1hc P1nnersllips ind Jocd devclopn1tnl groups middotrhe con1pany 1rca

i)(velopmet11 M1n1gemen1 Iid (ADM) is required 10 cv1lu11e plins from

Ptrlllt~r~hips corn111unity groups ind selecled organisHions lO 1J1ocatc resources in

1ccord1ncc Vilh the eviluation resul1s ind ro 111onitor LXpenditure incl perfon11~1nce

by btneficiarits Over lj(YtJ of funding is spent by tile lartncrsliips incl (he re1111inder

is spent by co1n1nuni1y gro11ps ind nHionil nrgani11ions

115 funding for P1rtnerships co1111nuni1y groups and eligible spending bv selected n11iond org1nisarions is co-fin1ncecl by ElJ s1n1ctural funds incl by the

Exchequer EU funding is provided uh-progrtmme 2 of 011uRD

LEADER

116 This EU lni1ia11vcmiddot for rural devdopmenl w1s origin1lly bunched 111 1991

(lEADloR 1) The obwrnw of 1hc progr11nme wis 10 ltS11lilish locli devdopmen1

1ction groups bullhich voulcl bt responsible for 1he in1plcn1cn11tion of business pl1ns

for heir areis lE1l)EH I v1s 1he subjecl of 111y firs value for 111oney exa111ini1ion

comple1ed 1n Decemhe1 1994 The ini1i111ve wis co111inued under 1he Oper11ional

lrog11mme for IEADER 11 covering ihe period 1994 10 1999 There tre 34 approved

1EADlR groups (is opposed IO 16 group in 1hc orig1nli progr111Hnc) These 11e

iu10110111011- lcg1l cntilies each conrrollecl by 1 boird 111d opeining under 111

igreen1en1 Vith the J)cp111111cnt of gricul1urc and Food (Agriculture incl Fuuclgt Jht-

l)epa1111Hmiddotn1 required th11 the bo1rds h1ve 1 1ripar1ite s1n1crure representative of 1he

con1111unity incl volunt1ry sec1ur luc1l Stite ~1gencies and the priv11t I con11ncrcitl

sector

117 Unlike 1he 01her lniti11ives covered in 1h1gt ex1111in11ion (which are csset11ilily

n11io11il policy initiHivc-) lEAl)EH i in EU lnitiitivl Vliich Va designed incl

Ln1nchccl by the turope~111 Co111111issio11 his 1ne1ns 1hi1 he in1plc111enlalio11 of

LEAJ)flt its 1in1ing ind opertting rules ~in de1ennined Ltrgel~middot Vithin 1ht EU

Co111n1i~sion 1uncling for rhe LEl)EH II lrogr1111n1e is co-financed fron1 ElJ

s1n1c111ioli f11nd the 1lADEH Opci1110111 lrogrunmc 1))4-1999 rnd by ihe

Exchequer

4

In 1roclzut1on

Sc1urces of Finance

118 The Fll Commission incl rhe Exchequer prolidccl funding for the 1niria11middotes inmiddot

the period 199i-199H follows

EU hchequer Toril

pound-111 t-111 ~-nl

CEils 465 516 98 I Parntrships 530 181 711

LEIDER groups 272 ILG 388

126 7 81) 208 0

Scope and objectives of the examination

1l) middotrhe cxa111in~1tion V~1s concerned only vi1h initiatives to pron1ott local

clebullclop111em rhrough Counrv Enrcrprisc Boards Ptrrnerships and LEADEH groups

Thue are 111anv orher ml[1nives for local devdopmcm such as URBAN Terrironal

E11l)loy1nent Picts Pe~tce ~incl Heconciiation 111d lnterreg II vhich ire outside the

scogtc of this ex~1111ina1ion

12middotJ Nei1her iJ)-1 nor the l1rtnershirs arv covered by 111y statutory value fcgt1 11101ey nn1i1 In the interest of producing i cohcivc report on locil l)lmiddotvclopn1cnt

ini1=11ivlts 1hey igreed that the exa111inuion ~hould he extended to chc111 middotrhcir coshy

OJX ration in 1liis resptmiddotlmiddot1 i~ icknovllmiddotclgecl

121 The overall objec11vcs of rhc c1n1inar1on w

bull ro ltVal11are rhc administrative effwncv ol rhc llltXlit (Chaprer 2)

bull lo asstmiddotss the extent of duplic~Hion and co-ordin1tion ~1rrangen1en1s ltCh1p1cr j)

bull to ev~dualc thl operHional efficiency of the bodies (Chipttr 4)

bull to coniidcr ho- tlii i1n1x1ct of 11ie holtl1e~ can hl asscmiddotssecl (Ch1p1cr 5)

1nr The p1opltJ-f of Illgt c_rrn11iiu111011 CFHgt lar111lmiddot-Ji1ps and 1eoJ(1middot grv11S uill IA Fccmiddoti-rlmiddotd l u lrJl(I

)c1lffJ[gtl11ltf hodico

5