Having spent 20 of the last 30 years in Ireland, I am always fascinated by the view that the country is some kind of lost world of traditional music & that CCE are some kind of inspiration to all.

Government money to CCE is not always spent usefully, and often misappropriated- I have heard many anecdotes about this, one an offer to 'take over' a small thriving village festival by the 'brown envelope' method, made to a dedicated, but fortunately altruistic organiser, so be careful what you for, money isn't always a help.
It seems to me that even without the cash, the music is thriving in Britain in certain areas (Vic Smith mentioned Sussex in an earlier thread) just as it is in Ireland (Jim Carroll similarly in Clare) so the folkies are still there, even if not in the clubs.