Rural Economic Development Zones (REDZ) pilot initiative
Commission for the Economic Development of Rural Areas
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The Commission for the Economic Development of Rural Areas (CEDRA) identified the need to take a more tailored approach to planning at both a regional and local level and recognised that this approach should not be restricted by current administrative boundaries. The Commission believes this will require not only new systematic approaches but also a new cultural approach to planning that is focussed on participation and flexibility while centred on evidence of where the potential for economic development is situated.
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Work has begun in the context of local government reform to implement a more integrated, “joined up” approach to planning at a local level particularly with the introduction of the Local Economic and Community Planning processes at county level.
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However the Commission said it was not enough to simply enhance co-ordination from national, through regional to local authority levels. They believe that strategies need to be tailored to the needs of communities on the basis that it is at this geographic scale that all economic development strategies are implemented.
Rural Economic Development Zones (REDZ)
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The evidence presented in the CEDRA report demonstrates that in general, there is a clear beneficial relationship between towns and the surrounding rural areas, i.e. the rural hinterland, and similarly between towns and larger towns and cities in close proximity. These hinterlands are local, i.e. with few exceptions they are smaller than counties, and they reflect Ireland’s actual economic geography. As such these functional areas represent an appropriate scale of intervention when attempting to foster rural economic development as they encompass most of the resources available to enterprises and communities that an area has available to

support economic development. These areas are classified within the CEDRA report as Rural Economic Development Zones or REDZ.
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REDZ are defined as functional rather than administrative geographic areas that reflect the spatial patterns of local economic activities and development processes, i.e. they are the sub-county zones within which most people live and work. Research surrounding this element of the CEDRA report identified potential
REDZ in all areas of Ireland and recommended the implementation of a pilot initiative that supports the formulation of a localised strategic approach to the development of REDZ. The recommendation envisages full participation by communities at a local level in order to foster a sense of ownership of the REDZ development process.
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The aim of this initiative is to support a number of REDZ projects throughout
Ireland with a view to determining best practice with regard to how such projects are structured and implemented on the ground. It is envisaged that using the potential funding available through the REDZ initiative individual Local Authorities in cooperation with each other across administrative boundaries will be able to assign other funding from their own resources or indeed work with private stakeholders on the ground to provide the matched funding to implement the project. The criteria for the scheme will require projects to outline how they propose to access matched funding in order to implement the pilot in specific
REDZ areas. This will not only foster a local sense of ownership of the project but also ensure that local authorities and other interested stakeholders work together to develop and implement their project proposals.
 The allocation of €2 million euro will enable the funding of a number of pilots on a regional basis and at different levels of scale also. The scheme is open to all local authorities in cooperation with their relevant REDZ communities. This pilot initiative will not provide 100% financial support for proposed projects and the criteria for the scheme will require projects to outline how they propose to access matched funding in order to develop their REDZ.

Potential link to the LEADER Elements of the Rural Development Programme
(RDP)
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It is envisaged that pending the success of the pilot initiative that a call for proposals for a more extensive REDZ initiative under the LEADER elements of the RDP could take place in early 2016 with a view to having the funding allocated and the work commenced in mid - 2016.
Pilot REDZ Initiative
1. There will be an open call for proposals on 2nd June 2015 from which a number of pilots will be chosen.
2. Proposals will be accepted from individual Local Authorities (or multiple Local
Authorities in the case of a REDZ that crosses current administrative boundaries) in cooperation with relevant stakeholders in the REDZ areas.
3. REDZ local strategic economic development plans should identify and specify the needs and opportunities within a REDZ, identify those supports that both enterprise and labour require, and provide evidence to support their plan.
4. Each proposal should also outline the proposed additional funding to be allocated to the project from other public and/or private sources.
5. Proposals should also outline the processes in place to ensure participation at a local level.
6. From the perspective of the pilot initiative proposals will be accepted in the context of the potential REDZ identified in the CEDRA report and appended to this scheme outline (Appendix 1).

7. The scheme is a leverage scheme with up to 75% of the funding required being available through the pilot initiative and the balance being made up by cash and in-kind contributions from other sources e.g. Local Authority, Chamber of
Commerce, local business, fund raising etc. There is a minimum cash requirement of 15%.
8. In-kind contributions can include the donation of premises, machinery, sites, skilled and unskilled labour etc. that can be quantified in terms of monetary value.
Selection of Pilot REDZ
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The selection of and allocation of funding to successfully pilot REDZ will be on the basis of the quality of the proposal in line with the scheme criteria.
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The final decision with regard to the REDZ awarded funding will rest with
Minister Kelly and Minister of State Phelan based on the recommendations of a committee specifically set up for that purpose.
Number of projects in the pilot
3 flagships - 1 in each region to a max grant of €250k each.
5 for medium REDZ -
10 for small REDZ -
1 in each region and the final 2 based on quality to a max grant of €150k each.
2 in each region and the final 4 based on quality to a max grant of €50k each.
Examples
For a project costing €400k the breakdown could be as follows.
Pilot fund - €250k (max available)
Applicant group then needs to provide €150k in cash and in-kind contributions. The minimum cash requirement is 15% of the total cost i.e. €60k minimum and the remainder can be made up of in-kind contributions of labour, materials, etc.

For a project costing €300k the breakdown could be as follows.Pilot fund - €225k
(max available at 75%)
Applicant group then needs to provide €75k in cash and in-kind contributions. The minimum cash requirement is 15% of the toal cost i.e. €45k minimum and the remainder can be made up of in-kind contributions of labour, materials etc.
For a project costing €70k the breakdown could be as follows.
Pilot fund -
€50k (max available)
Applicant group needs to provide €20k in cash and in-kind contributions. The minimum cash requirement is 15% of the total cost i.e. €10.5k minimum and the remainder can be made up of in-kind contributions of labour, materials, etc.
Flagships REDZ:
Medium REDZ:
Small REDZ:
REDZ for which a town with a population of 10,000+ is the main economic driver for the area.
REDZ for which a town with a population of between
5,000 and 10,000 is the main economic driver for the area.
REDZ for which a town with a population of less than
5,000 is the main economic driver for the area.

Appendix 1: Map of REDZ