2014 – 2020 Northern Ireland ERDF Investment for Growth & Jobs Programme PAUL BRUSH Head of European Support Unit DETI Tuesday 12 th February 2013

Programme Outline & Budget Allocations In line with draft regulations: Thematic Objective 1: Strengthening Research, Technological Development & Innovation (30%) Thematic Objective 3: Enhancing the Competitiveness of SMEs (30%), including Local Government dimension Thematic Objective 4: Supporting the shift towards a Low-Carbon Economy (20%) Balance of funds to be allocated across Objective 1 & Objective 3, & if budgets permits to Objective 2 ICT

Guiding Principles Delivery of Economic Strategy objectives & PfG targets. Projected demand in core priority areas (1, 2, 3 & 4) will significantly exceed budget available. Greater economic impact, economies of scale and administrative simplicity - a smaller number of priorities, projects and Implementing Bodies. Activities which have proved themselves to be EU compatible. Focus on projects which support SMEs, through mechanisms which deliver sectoral benefits. Exclude activities which sit more readily with other Structural Fund Programmes (e.g. Interreg, EAFRD, ESF, Peace). Align with the new EU competitive/ elective funds (e.g. Horizon 2020). Maximise the potential of private match and relieve baseline PE pressure. Take account of changes to Regional Aid rules. Profile of spend to meet annual N+2 targets.

Local Economic Development: Competitiveness Programme £25m of ERDF available to District Councils, at 50% co- financing rate Initially administered by DETI then transferred to Invest NI from 1 September 2011 Projects have ranged in size from £9k to £709k Projects have been a mix of export focus, business improvement, entrepreneurship & innovation i.e. broadly aligning with Thematic Objective 3 for programming period

Issues for Consideration  What Investment for Growth and Jobs activities should be delivered through Local Government?  Parameters set by RPA functions transferring?  Administration arrangements? - Single/multi-fund - ITI/CLLD options - Efficient & effective management & delivery - Accountability and financial flows - Consistency across Northern Ireland  Need to align with Commission's policy priorities set out in Europe 2020 and comply with the draft regulations  Alignment with other EU funds (ESF, Interreg, Peace, EAFRD)  Alignment with ‘national’ provision (Invest NI, NITB etc)  Timeframes – Programme and RPA  Budget – likely to be less than in previous funding period

Next Steps* *all dates beyond April are provisional Seek proposals from Councils by Easter Budget allocations for NI Programmes to be settled March/April 2013 Consultative Partnership Group meeting on delivery mechanisms to be convened Draft proposals to CPG by May 2013 Public consultation on draft proposals within overall OP (July – September 2013) Discussion of investment proposals with European Commission from early April 2013 Formal submission of Programme to European Commission October 2013