1. North East of England ERDF Competitiveness Programme 2007-13
Iain Derrick ERDF Secretariat Manager DCLG ERIP Conference 24th November 2011
North East of England ERDF Competitiveness Programme

2. Overview ERDF in the North East 2007-13
What is on the horizon post 2014?
Questions?

3. North East England ERDF Competitiveness Programme
Euros 375m / £322m ERDF investment in the period
Local Management Committee
Responsible for the strategic management / oversight of the Programme
Public / Private/ HE / TUC / Voluntary sector representation
Northern Business Forum (NBF) is a member
LEP representation
Chaired by DCLG
Deputy Chair agreed by partners

4. NE ERDF Competitiveness Programme
Euros 375m / £322m ERDF investment
Priority 1: Enhancing and Exploiting Innovation
Priority 2: Business Growth / Enterprise promotion
Key objectives
Innovation / competitiveness and technology led sectors
Support for business to start, grow and prosper
New Governance arrangements
Strengthened private sector representation on Local Management Committee and Programme Executive group
Role for Local Enterprise Partnerships (LEPs)
Deputy Chair role

5. Further £120m available for investment up to 2015
in Numbers
£322m ERDF
£202m ERDF financially committed
£120m ERDF spent
88 projects (live / complete)
Actuals
1, 321 new SMEs assisted
3,762 SMEs assisted
1,985 Businesses created
6,363 jobs created / safeguarded
Further £120m available for investment up to 2015

6. Manufacturing Advisory Service / North East Productivity Alliance (MAS-NEPA)
£4.2m programme established in 2008
Practical assistance to strengthen productivity and competitiveness
Strengthening region’s manufacturing sector by:
Safeguarding over 3,000 jobs
Training over 8,500 people
Saving over £50m
Reducing waste and energy consumption / carbon emissions
Experts from MAS NE’s Energy Team visited NORFRAN – manufacturer of high pressure diecastings based in North Tyneside – and saved the company 35% on its annual energy bills by renegotiating contracts, saving over £200,000 and safeguarding around 20 jobs.

7. DigitalCity – Tees Valley
DigitalCity strengthens Teesside University’s innovation and creative support services and builds upon its connections with the region’s digital media SMEs.
DigitalCity Business has created 120 small businesses
100% of businesses created survived beyond the first year.
178 jobs created
Developing a worldwide reputation for enterprise and creativity.

8. Finance for Business: North East
North East first in England to establish a JEREMIE Financial Engineering Instrument
Holding Fund £125m (including £59m ERDF / £62m European Investment Bank)
Since launch in 2010 £22m invested directly levered an additional £26m private sector investment
159 SMEs assisted to date, 850 by 2014
792 jobs created / safeguarded, 5000 jobs created by end 2014
Lasting legacy to the region

9. Enterprise
£80m of ERDF supporting enterprise
Over 4,000 people helped to explore potential to start own business
Nearly 2,000 new starts and 750 businesses helped to improve their performance
For example: Craig Smith set up The Printed Bag Shop after receiving help from The Prince’s Trust’s Enterprising Young People Initiative.
North East Young Entrepreneur of the Year
The Princes Trust – 2008 Winner of Enterprise

10. Business Enterprise North East
£28m targeted support to SMEs up to 2012 to ensure growth and survival
Delivered business support to North East companies through services including Business Link, UKTI and Compete North East
Business consultancy support for SMEs
Support for business creation
Support for exports

11. New proposals for EU Structural and Cohesion Funds post 2014 published 6th October (Draft regulations)
Envisaged that EU resources could be available to support economic development in current North East Programme area
EU Cohesion proposals include new ‘transition’ category likely to be of direct benefit to Durham and Tees Valley
Rest of region to have potential access to ‘Competitiveness’ type funds (More Developed regions category)

12. EU seek to align funding with the EUROPE 2020 Growth Agenda
Smart (innovation / competitiveness)
Sustainable (low carbon economy)
Inclusive (social and territorial cohesion)
The focus of any future transitional / more developed regions funding will prioritise:
Energy efficiency and renewables
SME competitiveness
Innovation

13. Issues still to be resolved - ERDF
Size of the pot
Distribution / allocation of resources across Devolved Administrations and England
National or regional programmes?
How to accommodate focus on functional economic areas rather than administrative areas?
Role for LEPs?
Simplification agenda

14. Key themes identified for the UK
Infrastructure investment
Support for SMEs
Innovation
Employability and skills
Localised regeneration and community economic development
Greater use of Financial Engineering Instruments (FEIs)
Transition to resource efficient, low carbon economy

15. Next Steps
To be discussed by the Council and the European Parliament, with a view to adoption by the end of 2012
BIS coordinates UK Government input
Negotiations will run in parallel to EU budget negotiations
Final allocations by Member State, and lists of eligible regions by category, to be decided after the final adoption of the package

17. Questions?