World Bank Seminar Latvia 8-9 June 2004 Using European Funds in Western Scotland Presented By: Laurie Russell Chief Executive Strathclyde European Partnership

SCOTLAND?

SCOTLAND

Regional profile Glasgow City region of 2.2 million people, 43 per cent of the Scottish population Employment structure: services 72%; manufacturing 20%; agriculture 1%; construction 8% More women than men in the labour market Growth areas: personal and financial services; tourism; creative industries; biotechnology, construction

Regeneration Population Unemployment rate People in employment Businesses per 1,000 people Region’s share of Scotland’s worst-off communities Glasgow’s share of Scotland’s worst-off communities  c2.3m  11.4%  908,000  18.1  89.9  55.6  c2.2m  7.6%  945,000  17.9  85.6  58.9 Early 90sEarly 00s 19% drop in employment in manufacturing between 1990 and % drop in vacant and derelict land between 1995 and 1997

Institutions Scottish Executive Managing Authority UK Parliament Scottish Parliament and Executive of Ministers PoliticiansCivil servantsAgencies Local councils Local enterprise agencies Universities and colleges NGOs

European Funds map Objective 1 transition 308m euro Objective 2 73m euro Objective 2 480m euro Objective 2 250m euro Objective 3 507m euro

Our partnership

The partnership 200 organisations –Local councils –Scottish Enterprise and the LEC’s –Local Development Companies –Further & Higher Education –Area Tourist Boards –NGOs (voluntary and community groups) –Scottish Executive and national agencies Transparent, participative decision making

Process Partners European Commission Scottish Executive SEP Ltd

Roles SPD developed in partnership by Scottish Executive, SEP Ltd, local partners and EC Administration of the Programmes: – Scottish Executive is the managing authority – Day to day management devolved to SEP Ltd Public sector bodies (local councils, universities, colleges, enterprise agencies) develop projects and bid for European Funds support Decisions on funding awards are taken by partnership committees

What is SEP Ltd SEP Ltd helps agencies access European Funds Devolved regional Programme management in Strathclyde since 1988 Similar organisations in other Scottish regions set up in 1994 Programme experience: –Objectives 2 –ERDF & ESF –Community Initiatives - RECHAR, URBAN, RESIDER, EQUAL

What does SEP Ltd do? Pre-application advice and assistance Managing the project life cycle Managing the decision making process and committee system Processing project applications, issuing offers of grant, processing claims, carrying out monitoring visits Specialist support on horizontal themes Disseminating good practice & learning Publicising European Funds

How are funds distributed? Development Application Assessment Appraisal Decision Offer SEP Ltd staff working with partners pre-submission Projects received, referenced and acknowledged Technical eligibility, horizontal themes, suitability Selection criteria, scoring system, recommendations Programme Implementing Committee considers all recommendations Approved projects grant offer within 10 days of Ministerial approval of decisions

Application processPROGRAMMEIMPLEMENTINGCOMMITTEE ECONOMIC & SOCIAL COHESION COMPETITIVE LOCATION LABOUR MARKET COMPETITIVE SMEs PARTNERS Apply Decide Appraise Assess

How is this funded? Technical Assistance and Co-finance: –50% from ERDF and ESF technical assistance –50% from partners Partners contributions: –Percentage of the Funds each is awarded –Set by SEP Ltd Board of Directors, agreed with Monitoring Committee –Fixed for duration of Programme –Not eligible for European Funds Budget covers: –All office, staff and equipment –Publicity and marketing –Research into Programme issues

Our results

Since 1988 Over £1,000m European Funds invested Over 8,000 projects funded Over 60,000 jobs created or safeguarded

Characteristics of the Scottish system Regional economic planning - close to problems making appropriate solutions Flexible co-finance for projects Partnership where every agency has equal status & decisions are made by consensus Targeting resources on areas of economic need Visibility of Europe on the ground Sharing our knowledge/experience

Advantages Working with political priorities Able to survive institutional or political change Transparent and accountable Equitable - all partners have equal voice Balances objective appraisal criteria with expertise and experience of partners

Downside? Participation takes time, consultation takes longer Effort needed to develop partnerships - they don’t happen naturally or quickly Some agencies will argue against transparency because of confidentiality Need to be clear about lines of accountability and who does what The centre has to relinquish power

Conclusion Partnership can be slower and therefore more expensive But the long-term benefits outweigh the short-term issues –High level of financial commitment –Innovative programme management and projects –Levering in EC policy to member state mainstream –Exchanging policies and ideas between regions and with the EC

Sharing this experience euroconnections

SEP euroconnections Overview What is it? –Founded upon the skills and experience of managing Structural Funds in Scotland –Partnership of socio-economic regeneration agencies –A non-profit making body that creates value for Scotland What does it do? –Sharing knowledge and spreading skills –Developing networks of knowledge and building long-term relationships –Connecting people, ideas and experiences How does it do it? –Deliver Technical Assistance and twinning contracts –Identify and develop new Programmes/projects –Long-term support to partners in New Member states Connecting to New Member states

STIMULATING TRUSTWORTHY CONNECTING RESPECT PROGRESSIVE QUALITY AGILE Values built on public sector ethos

Nature and focus of projects Programme Management –Technical Assistance and Twinning –Building structures Project development support –Idea generation and capacity building –Development and implementation of projects Project implementation –Consultancy and studies –Construction and development Partner Initiatives –EC initiatives (Interreg, Innovative Actions, Equal, RIS)

Project participation Programme Management Project Development Support Project Implementation Partner Initiatives Scottish Executive Managing Authority/Paying Authority Scottish Programme Management Executives Scottish socio-economic regeneration partners Private sector partners European Consortium Partners Private sector companies (construction, tourism, engineering etc) Local Consortium Partners Scottish Executive and public sector partners in Scotland Scottish socio-economic regeneration partners Learning sector in Scotland

SEP euroconnections current work Lithuania –Innovation Capacity (twinning) –Social Adaptability (TA) –Support to business (TA) –Special Preparatory Programme (TA) Czech Republic –Special Preparatory Programme (twinning) Poland –Support to Ministry of Finance (twinning) –Support to RIS development (TA) Slovakia –Support to SDF (TA) Romania –Capacity building South Muntenia (twinning) –Support regional development at national level (twinning) Hungary –Support to Ministry of infrastructure and environment (twinning) Connecting to New Member states

European Funds in Western Scotland Presented By: Laurie Russell Chief Executive Strathclyde European Partnership Tel: Fax: