Open - Scottish Government
Open - Scottish Government
Open - Scottish Government
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• Healthier. to help people to sustain and improve their health, especially in<br />
disadvantaged communities, ensuring better, local and faster access to health care<br />
• Safer and stronger. to help local communities to flourish, becoming stronger, safer<br />
places to live, offering improved opportunities and a better quality of life<br />
• Greener. to improve Scotland's natural and built environment and the sustainable<br />
use and enjoyment of it<br />
These are accompanied by five Strategic Priorities that are most critical to economic growth:<br />
Learning, Skills and Well-being<br />
Supportive<br />
Business Environment<br />
Infrastructure Development and Place<br />
Effective <strong>Government</strong><br />
Equity<br />
While Structural Funds will make direct and indirect contributions to all of these priorities,<br />
'Equity' is of particular interest. The Strategy recognises the importance of ensuring<br />
sustainable growth and prosperity being fairly shared across Scotland as a whole, in terms<br />
of communities and areas as well as individuals. Actions will include ensuring the most<br />
remote areas of Scotland can contribute to, and benefit from economic growth and<br />
developing a more strategic approach to the growth of Scotland's cities, towns and rural<br />
areas. Both the 2000-06 and 2007-13 Structural Funds programmes are wholly in line with<br />
the Purpose, objectives and priorities of the <strong>Government</strong> Economic Strategy.<br />
The Strategy contains a series of targets for measuring progress. The headline targets are to<br />
raise Scotland's GDP growth rates to the UK average by 2011 and match the GDP growth<br />
rate of comparable small independent EU countries by 2017. Within the priority for equity, by<br />
2017, the <strong>Scottish</strong> <strong>Government</strong> has committed itself to narrowing the gap in labour market<br />
participation between Scotland's best- and worst-performing regions. In addition, it also aims<br />
to increase overall income and proportion of income earned by the three lowest income<br />
deciles by 2017 and reduce greenhouse emissions by 80 percent by 2050.<br />
A related development was the establishment in June of the Council of Economic Advisers<br />
(CEA), set up to advise the First Minister on the best way to improve Scotland's sustainable<br />
economic growth rate. The CEA will be chaired by Sir George Mathewson, former Chief<br />
Executive and then Chairmen of the Royal Bank of Scotland, and includes ten other<br />
members who come from the highest levels of business and economics. The CEA will:<br />
advise the First Minister directly about the best way to improve Scotland's<br />
sustainable economic growth;<br />
• have quarterly meetings following the publication of the quarterly growth figures; and<br />
publish an annual report providing expert commentary on the <strong>Scottish</strong> economy.<br />
The CEA met for the first time in September.<br />
27
<strong>Scottish</strong> Budget and Spending Review<br />
Also in November, the <strong>Scottish</strong> <strong>Government</strong> set out its proposed spending plans for 2008-<br />
11. Against a background of a relatively tight budget settlement from the UK <strong>Government</strong>,<br />
the proposed budget - to be debated and decided by the <strong>Scottish</strong> Parliament early in 2008 -<br />
committed itself to:<br />
reducing - and in many cases, removing - business rates affecting 150,000 small<br />
business premises;<br />
reducing rail journey times between Scotland's<br />
major cities;<br />
undertaking an ambitious programme to tackle climate change; and<br />
freezing Council Tax rates across the country.<br />
Re-organisation of the Enterprise Networks<br />
The new government set out proposals for overhauling Scotland's enterprise networks -<br />
<strong>Scottish</strong> Enterprise and Highlands & Islands Enterprise - in September. The re-organisation<br />
- to take place during 2008 - aims to de-clutter the organisational landscape for economic<br />
development and create more effective agency responsibilities. The key changes include:<br />
• a clearer focus by the enterprise networks on the goal of delivering sustainable<br />
economic growth;<br />
• greater responsiveness to the needs of businesses and the <strong>Scottish</strong> economy as a<br />
whole;<br />
• creation of a strategic forum involving Ministers, officials, <strong>Scottish</strong> Enterprise,<br />
Highlands & Islands Enterprise, and VisitScotland to provide clear ministerial<br />
leadership and promote greater integration and collaboration;<br />
the replacement of Local Enterprise Companies by five regional operations, each<br />
with their own business-led regional advisory board;<br />
the transfer of responsibility for the provision of local business support through<br />
Business Gateway operations and local regeneration functions to local authorities;<br />
• an agenda of co-location of local enterprise staff alongside relevant local authority<br />
colleagues to create a single point of access for advice on planning, licensing,<br />
business development and other services;<br />
• the creation of a single skills body resulting from the merger of Careers Scotland and<br />
learndirect Scotland as well as the training sections of the enterprise networks<br />
(scheduled to be up and running during 2008);<br />
• the transfer into <strong>Scottish</strong> Enterprise - initially on a joint venture basis - of the<br />
business and innovation grant functions, such as Regional Selective Assistance,<br />
currently delivered by the <strong>Scottish</strong> <strong>Government</strong>; and<br />
a requirement for the enterprise networks, VisitScotland<br />
share services where possible.<br />
and the skills body to look to<br />
While it is not clear what the longer-term implications of these changes will be for Structural<br />
Funds, in the short term, there will be minimal impact on existing funding commitments by<br />
the enterprise networks to current projects and on the interest, will and capacity to take<br />
forward new projects under the 2007-13 programmes. Key national business development<br />
and researchlinnovation functions will remain centred on the enterprise networks, so the<br />
changes are unlikely to impact the new Strategic Delivery Body arrangements for the 2007-<br />
13 programmes.<br />
28
Local Authority<br />
Concordat<br />
The <strong>Scottish</strong> <strong>Government</strong> reached agreement in November on a Concordat with the<br />
Convention of <strong>Scottish</strong> Local Authorities (COSLA), setting out a new relationship between<br />
central and local government in Scotland. The agreement involved COSLA recommending<br />
that its local authority members agree to a freeze on council tax resources during the 2008-<br />
11 Spending Review period. In exchange, the <strong>Scottish</strong> <strong>Government</strong> committed itself to:<br />
not introduce any structural<br />
reform of local government;<br />
remove the ring-fencing of funding provided by the <strong>Scottish</strong> <strong>Government</strong> to local<br />
authorities; and<br />
• establish Single Outcome Agreements with individual local authorities from 2008.<br />
The Single Outcome Agreements will enable local authorities to achieve a range of<br />
outcomes, previously linked to particular packages of funding provided by the <strong>Scottish</strong><br />
<strong>Government</strong>, in the context of the whole <strong>Scottish</strong> <strong>Government</strong> funding block to local<br />
authorities. A performance framework system is to be established to monitor progress on<br />
these outcomes.<br />
The reduction in ring-fenced funding applies to <strong>Scottish</strong> <strong>Government</strong> funding, not Structural<br />
Funds. Structural Funds awards will continue to have a separate financial control system<br />
and work towards the targets established in the Operational Programmes. It will not be<br />
subsumed within these new arrangements.<br />
Skills Strategy<br />
A new skills strategy, Skills for Scotland - A Lifelong Skills Strategy, was launched by the<br />
<strong>Scottish</strong> <strong>Government</strong> in September. One of the key announcement in the strategy was the<br />
creation of a new skills body involving the merger of functions previously held by Career<br />
Scotland, learndirect Scotland and the enterprise networks (as described above). Its vision is<br />
"a smarter Scotland with a globally competitive economy based on high value jobs, with<br />
progressive and innovative business leadership".<br />
Action has been identified as required under the following<br />
headings in the strategy:<br />
Individual development: including developing a distinctively <strong>Scottish</strong> approach to<br />
skills acquisition, creating a coherent funding support system, and ensuring that the<br />
strategy promotes equal access to and participation in, skills and learning for<br />
everyone<br />
• Economic pull: including stimulating increased demand for skills from employers,<br />
improving the utilisation of skills in the workplace, understanding current and<br />
projected demands for skills to help prepare for future skills needs, and challenging<br />
employers, learning providers, awarding bodies and others to use the <strong>Scottish</strong> Credit<br />
and Qualifications Framework as a tool to support learning.<br />
• Cohesive structures: simplifying structures to make it easier for people to access the<br />
learning, training and development they need, ensuring that Curriculum for<br />
Excellence provides vocational learning and the employability skills needed,<br />
achieving parity of esteem between academic and vocational learning, challenging<br />
funding bodies to use their budgets to help achieve a step-change in skills<br />
development and use, and encouraging providers to see themselves as part of a<br />
continuum of provision.<br />
Again, the 2000-06 and 2007-13 Structural Funds programmes are wholly in line with the<br />
new skills strategy.<br />
29
Other Key Developments<br />
While the developments noted above are the most important relating to Structural Funds,<br />
there were a number of other initiatives that are worth noting in the following areas:<br />
• business development<br />
• skills<br />
• regeneration<br />
• social enterprise/voluntary sector<br />
climate change and energy<br />
Business Development<br />
Small businesses in the Hiahlands and Islands were supported by a new £7.5 million funding<br />
investment package announced in January, through which ten business parks are to be<br />
expanded and their facilities upgraded.<br />
Across Scotland, additional funding of £40 million was made available in February to<br />
<strong>Scottish</strong> Enterprise to support a range of capital proiects. Two of the projects earmarked for<br />
additional funding are:<br />
early-stage plans to create an Advanced Forming Research Centre, which will develop<br />
new technologies to improve and speed-up high-precision manufacturing processes,<br />
particularly for engineering companies making high quality metal components; and<br />
a new energy development centre in Aberdeen providing high-quality business units in<br />
response to demand within the energy sector.<br />
The Hiahlands and Islands music industry received assistance from extra and better coordinated<br />
support from the country's enterprise networks, including a new £500,000 fund<br />
(the <strong>Scottish</strong> Music Futures Fund) to support musicians and musical entrepreneurs.<br />
The main grant schemes to support business innovation were further simplified in April with<br />
the launch of the SMART: SCOTLAND scheme. SMART: SCOTLAND brings together three<br />
existing schemes to support innovative research.<br />
Lastly, the <strong>Scottish</strong> <strong>Government</strong> created the Saltire Prize for innovation in industry. This is to<br />
be an annual award that provides funding to projects that demonstrate the best of innovation<br />
in different areas of industry and business. The first award will be made in 2008 and will<br />
focus solely on renewable energy.<br />
Skills<br />
An extra £1 million of funding for enterprise education was announced in March as part of<br />
Determined to Succeed programme. Determined to Succeed is based on the fundamental<br />
principle that a strong <strong>Scottish</strong> economy requires enterprising and entrepreneurial young<br />
people. The new funding will go towards a range of activities to be agreed with employer<br />
organisations, including the Confederation of British Industry, <strong>Scottish</strong> Chambers of<br />
Commerce, and the Federation of Small Businesses.<br />
A strategy to provide English language training opportunities to migrant workers and others<br />
was also announced in March. The Enalish for Speakers of Other Lanauaaes strategy for<br />
30
Scotland, supported by funding of £5 million over 2008, will create around an additional<br />
4,000 classroom places, mainly at colleges, to remove pressures which have built up in<br />
recent years, particularly since the enlargement of the EU.<br />
Lastly, in October, universities and colleaes across Scotland have been given an additional<br />
£100 million capital funding package, enabling progress to be made on projects such as<br />
those at Dundee, Inverness, Forth Valley and Kilmarnock.<br />
Social Enterprises<br />
and the Voluntary Sector<br />
In March, a new strateav and action plan intended to grow and develop social enterprise was<br />
launched. The strategy,. Better business - a strategy and action plan for social enterprise in<br />
Scotland, was drawn up by Communities Scotland. It highlights the contribution a social<br />
enterprise business model can contribute to economic growth and business development<br />
while at the same time meeting social objectives. Social enterprises aim to deliver services<br />
focused on the needs of people, on the regeneration and empowerment of people in<br />
deprived communities. It has several strategic objectives:<br />
raising the profile and demonstrating<br />
opening up markets to social enterprise<br />
the value of social enterprise<br />
• increasing the range of finance available to social enterprises<br />
developing the trading capacity of social enterprises through better business support<br />
In August, the <strong>Scottish</strong> <strong>Government</strong> made available additional economic development<br />
support to social enterprises to help increase skills in order to maximise income generation,<br />
secure investment in the business and provide more services for those who need them.<br />
Support is to cover:<br />
• Business, financial and investment readiness planning<br />
• Staff development<br />
• Board development/governance<br />
• Market research and marketing<br />
Legal support<br />
Lastly, care workers across Scotland's voluntary sector are benefiting from more training and<br />
development with funding going to 64 groups through the <strong>Scottish</strong> <strong>Government</strong>'s Voluntarv<br />
Sector Development Fund to improve staff training and support. The fund targets support at<br />
small and medium-sized voluntary organisations which will help their staff meet standards for<br />
registration with the <strong>Scottish</strong> Social Services Council.<br />
Climate Change and Energy<br />
A new Climate Chanae Bill to cut greenhouse emissions by 80 percent by 2050 is In<br />
development.<br />
In September, authorisation was given to the biggest wave-energy project in the world,<br />
capable of generating electricity for around 2,000 homes. The project, owned by <strong>Scottish</strong><br />
Power and operated from the European Marine Enerav Centre in Orkney, would consist of<br />
four 750 Kilowatt Pelamis wave-energy converters.<br />
31
,<br />
3. IMPLEMENTATION: PROGRAMME AND PRIORITIES<br />
3.1 Operational Programme<br />
The socio-economic analysis contained in the Operational Programme and updated in Section<br />
2.1 of this Report describes the strengths and opportunities upon which the region can build, and<br />
the weaknesses and challenges deriving from low productivity and sparsity of population which<br />
require to be addressed.<br />
In recognising the limited resources available the Programme acknowledges that maximum<br />
impact can be best derived from supporting actions as set out in Article 3 of the ESF<br />
Regulation:<br />
• enhancing access to employment and the sustainable inclusion in the labour market of<br />
job seekers and inactive people, preventing employment, in particular long term and<br />
youth unemployment, encouraging active ageing and working lives and increasing<br />
participation in the labour market;<br />
• reinforcing the social inclusion of disadvantaged people with a view to their sustainable<br />
integration in employment and combating forms of discrimination in the labour market;<br />
• increasing adaptability of workers, enterprise and entrepreneurs with a view to<br />
improving the anticipation and positive management of economic change;<br />
• enhancing human capital.<br />
As a result, €52.150 million has been allocated for 2007-2013 across four Priorities:<br />
1. Increasing the Workforce (€15.124 million);<br />
2. Investing in the Workforce (€20.339 million);<br />
3. Improving Access to Lifelong Learning {€15.124 );and<br />
4. Technical Assistance (€1.564 million)<br />
The Financial Tables as approved and set out in the Operational Programme are attached at<br />
Annex 1.<br />
Horizontal Themes<br />
Inherent in this approach is a commitment to the horizontal themes of equal opportunities,<br />
environmental sustainability and social inclusion. Built in to the process of appraisal, these<br />
terms recognise the need to maximise benefit from the Fund during the programming period.<br />
Subsequent Reports will detail what specific benefits have been derived.<br />
StrateQic Delivery Bodies (SDB)<br />
In a major departure from previous arrangements, the Managing Authority has commissioned a<br />
single Strategic Delivery Body - UHI Millennium Institute - to deliver a basket of key strategic<br />
projects within Priority 3 that will be consistent with and contribute directly to the objectives of the<br />
Programme.<br />
The SDB will receive funding from only part of the Priority - the balance being available for<br />
competitive bidding - and support will only be given to activity that is additional and for which<br />
the SDB is the only delivery agent.<br />
The following allocations<br />
apply:<br />
32
• up to 55% of the total allocation of ESF Priority 3 - Improving Access to Lifelong<br />
Learning, will be allocated to UHI Millennium Institute, a total of€8.318 million.<br />
Community Planninq Partnerships (CPPs)<br />
The development of Community Planning Partnerships is a clear priority of the <strong>Scottish</strong><br />
<strong>Government</strong>. Structural Funds will be made available to support CPPs in the Highlands and<br />
Islands by contributing to integrated social inclusion Iregeneration action plans across the<br />
Programme area, coordinated by Local Authorities.<br />
ESF support for CPPs will come largely from Priority 1 - Increasing the Workforce. Funds<br />
will support projects set out in Plans and will complement the key role of CPPs in delivering<br />
projects supported by a range of other funding bodies.<br />
Local Authorities will be responsible for the submission of Plans, which will then be assessed<br />
by Advisory Groups for eligibility, affordability and impact. Thereafter individual organisations<br />
will be responsible for bringing forward components of the Plan as and when ready.<br />
Between €12 million - €14 million from both funds will be available to support the<br />
development of CPP activity. It is anticipated that complementarity will be achieved through<br />
integration of funding from LEADER and elements of SRDP and the Fisheries fund.<br />
Taroetinq<br />
Targeting and the focussing of investment is fundamental to the successful implementation<br />
of the Programme and to achieving the Lisbon targets. The focus for investment in Priority 1<br />
include the following groups:<br />
• long term unemployedlinactive people, particularly those with no or low<br />
qualifications and multiple barriers to entering employment or self-employment,<br />
and remaining in a job;<br />
• 16-19 year olds not in employment, education or training;<br />
• unemployed/inactive lone parents and other carers;<br />
• older people seeking to re-enter the labour force or requiring re-skilling to allow them<br />
to remain in the workforce; and<br />
• unemployed/inactive people from ethnic minority groups.<br />
In addition, whilst geographical targeting, successfully implemented in previous<br />
programmes, will be applied horizontally across all Priorities, it will be applied particularly in<br />
relation to Priority 1. Whilst the <strong>Scottish</strong> Index of Multiple Deprivation remains insufficiently<br />
sensitive to adequately identifying rural disadvantage, a more meaningful measure within<br />
the region is the "fragile area" classification applied by Highlands and Islands Enterprise.<br />
This measure recognises structural problems resulting from a self-reinforcing combination of<br />
remoteness, poor infrastructure and low or low earning levels of economic activity.<br />
Targeting will focus on applicants resident in areas which satisfy at least one of the three<br />
sets of criteria which determine fragility - geographic, demographic and economic. A list of<br />
"areas of need" will be produced in due course and future reports will detail how resources<br />
have been allocated in support of these.<br />
Under Priority 2 targeting will focus on particular groups including:<br />
• Employees who lack basic core skills, including those with low levels of literacy<br />
or numeracy and for whom English is not their first language;<br />
33
• Employees without qualifications;<br />
• SME managers with skills needs; and<br />
• Key staff in social enterprises.<br />
Under Priority 3, the aim is to assist the design and introduction of innovative products to<br />
reform education which attract into learning people disillusioned by their previous<br />
experience. Implementation requires to be horizontal, across the region however activity<br />
requires to support the following:<br />
Proqress<br />
• Personnel in public and private training/education providing access to lifelong<br />
learning and support services to key client groups;<br />
• Voluntary sector/social economy organisations;<br />
• Agencies working with employers;<br />
• Employers, their representative bodies, the <strong>Scottish</strong> Trades Union Congress,<br />
trade unions and workers organisations.<br />
The <strong>Scottish</strong> <strong>Government</strong> held a "Shadow Round" for ESF Priority 1 (Increasing the<br />
Workforce) commencing in January 2007. The purpose of the round was to allow project<br />
activity to take place during the year in the absence of approved Structural Fund<br />
Programmes and to ensure vulnerable target groups and projects were not disadvantaged. A<br />
total of up to £2 million was made available.<br />
A total of sixteen applications were received with a total grant request of £1.238 million.<br />
Following assessments by the <strong>Scottish</strong> <strong>Government</strong> supported by the Intermediate<br />
Administrative Body, six projects were recommended for approval with a total grant<br />
commitment of £383,233.<br />
The limited number of applications received during the round is largely down to the relatively<br />
recent round under the previous Programme (Autumn 2006), which provided support for<br />
many organisations into 2007. These will be covered in the Transitional Programme Annual<br />
Implementation Report for 2007. In addition, the low number of recommendations is possibly<br />
due to the relatively short window for preparation and submission. There were also a number<br />
of very small applications brought forward without sufficient preparation or understanding of<br />
ESF.<br />
The first formal round opened in October. Under Stage 1, a total of 84 projects were<br />
received with a total grant request of £14.394 million. This included the application from the<br />
SOB.<br />
Following assessment, sixty-eight projects were invited to proceed to Stage 2. Due to lack of<br />
match funding confirmation, five projects chose not to submit, leaving sixty-three projects<br />
seeking grant assistance totalling £12.582 million, again including the SOB.<br />
Following appraisal by the Advisory Group in December a total of forty-two projects were<br />
recommended for approval with an approximate grant request of £2.584 million.<br />
Amendments to the grant figure require to be made as not all ineligible costs had been<br />
removed. It is also anticipated that a number of projects may subsequently withdraw. No<br />
recommendation was made in respect of the SOB application. This was considered<br />
separately at the Programme Monitoring Committee in January 2008.<br />
34
Issues<br />
During discussions<br />
the following issues were highlighted:<br />
• the low number of applications under Priority 2 and 3 and in particular the<br />
disappointing performance of the Further Education sector;<br />
• the quality of applications was relatively poor and indicated that bodies had not<br />
yet taken on board the opportunities offered by the New Programme; and<br />
• the eligibility of training related to forestry and foodstuffs under ESF. This issue<br />
may well result in an amendment of the Operational Programme to ensure the<br />
ESF can support and that EAFRD is not the most appropriate route.<br />
35
Priorities<br />
Priority 1: Increasing The Workforce<br />
Description:<br />
Proqress<br />
• to provide support to strengthen the "bottom-up" approach to training and<br />
development within local communities. Financial assistance will be given to<br />
locally-based organisations delivering support to the target groups and trainers.<br />
During 2007, there were six projects approved under this Priority with an ESF grant request<br />
totalling £0.383 million. The types of project approved include craft employability, rural<br />
opportunities for disadvantaged groups on Western Isles and a Transport to Work Scheme.<br />
In addition a further twenty projects were recommended<br />
request of £1.48 million. The key projects recommended<br />
for approval with a total grant<br />
include:<br />
Indicators<br />
• <strong>Scottish</strong> Childminding Association - Childminding Recruitment and Training.<br />
Providing training opportunities for 152 young people;<br />
• Cothram - Combating Social Exclusion. Community Based Learning in South<br />
Uist; and<br />
• Barnardo's Scotland - Youthbuild. Assisting disaffected young people with<br />
skills, experience and opportunities to access independent, sustainable<br />
employment.<br />
Actual<br />
Actual<br />
Indicator Type Target Baseline Achievement in Achievement<br />
Year<br />
Cumulative<br />
Number of participants receiving Output 3,000 98.500 economically<br />
support inactive of working age nfa nfa<br />
CONS. 2005)<br />
Number of participants with multiple Output 1,400 Not available<br />
deprivations (i.e. those who qualify in 2 nfa nfa<br />
or more of the tarQet Qroups)<br />
Number of participants entering Result 1,000<br />
emplovment. nfa nfa<br />
Number of participants entering Result 1,000<br />
education or training. nfa nfa<br />
Number of participants gaining a partial Result 1,400<br />
(i.e. a completed unit towards a full nfa nfa<br />
Qualification) or full qualification.<br />
Number of participants in employment Result 500<br />
six months after leavinQ<br />
Number of participants who progress<br />
towards employment. nfa nfa<br />
Net number of participants entering Impact<br />
emplovment. nfa nfa<br />
36
Priority 2: Investing In The Workforce<br />
Description:<br />
Proaress<br />
• to increase skills and earnings levels within the Highlands and Islands<br />
workforce in all sectors of the regional economy, with particular reference to<br />
priorities identified in the ERDF programme, fostering the growth of<br />
enterprises and entrepreneurship.<br />
During 2007, there were no projects approved under this Priority. Twenty projects were<br />
recommended for approval, with a total grant request of £1.008 million.<br />
The types of projects recommended<br />
include:<br />
Indicators<br />
• Construction skills;<br />
• Developing Leaders for Sustainable Communities;<br />
• Training for Land Based Businesses for Growth; and<br />
• Re-skilling for Oil, Gas and Renewables.<br />
Indicator Type Target Baseline Actual Actual<br />
Achievement Achievement<br />
in Year<br />
Cumulative<br />
Number of participants Output 7,930 275,000<br />
receiving support<br />
economically<br />
active of<br />
working age<br />
(ONS, 2005)<br />
Number of participants Result 2,960<br />
gaining partial (i.e. a unit<br />
within a full qualification)<br />
or full qualification<br />
Addressina low Daid//low skilled and vulnerable arouos<br />
Number of male Output 1,130 7,500<br />
participants without basic economically<br />
skills active with no<br />
qualifications<br />
(ONS,2005)<br />
Number of female Output 1,130 9,500<br />
participants without basic economically<br />
skills active with no<br />
qualifications<br />
(ONS, 2005)<br />
Number of male Output 1,130 330,000 (ONS,<br />
participants without level 2005)<br />
2 skills<br />
Number of female Output 1,130 301,000 (ONS,<br />
participants without level 2005)<br />
2 skills<br />
Number of male Output 430 495,000 (ONS,<br />
participants without level 2005)<br />
37
Indicator Type Target Baseline Actual Actual<br />
Achievement Achievement<br />
in Year<br />
Cumulative<br />
3 skills<br />
Number of female Output 430 452,000 (ONS,<br />
participants without level 2005)<br />
3 skills<br />
Number of male Result 440<br />
participants gaining basic<br />
skills<br />
Number of female Result 440<br />
participants gaining basic<br />
skills<br />
Number of male Result 350<br />
participants gaining level<br />
2 skills<br />
Number of female Result 350<br />
participants gaining level<br />
2 skills<br />
Number of male Result 90<br />
participants gaining level<br />
3-5 skills<br />
Number of male Result 90<br />
participants gaining level<br />
3-5 skills<br />
Number of participants Impact<br />
who progress into more<br />
secure or better skilled<br />
emplovment<br />
Addressina under-reoresentation in the workforce<br />
Number of projects Output 850 Not available<br />
addressing better gender<br />
balance.<br />
Number of women going Result 510<br />
into gender-imbalanced<br />
sectors after 6 months<br />
Imorovina manaaerial skills and continuina orofessional develooment<br />
Number of participants in Output 370 Not available<br />
projects addressing<br />
managerial skills<br />
Number of participants in Output 480 Not available<br />
projects addressing<br />
continuing professional<br />
development<br />
Number of participants Result 600<br />
gaining a partial or full<br />
qualification<br />
Number of participants Result 340<br />
QaininQ levels 6-10 skills<br />
Number of companies Impact<br />
benefiting from improved<br />
skills traininQ<br />
Increasina social enterorise skills<br />
Number of participants Output 850 Not available<br />
from social enterprises<br />
38
Indicator Type Target Baseline Actual Actual<br />
Achievement Achievement<br />
in Year Cumulative<br />
Number of participants Result 600<br />
from social enterprises<br />
gaining a partial or full<br />
Qualification<br />
Number of social Impact<br />
enterprises benefiting<br />
from improved skills<br />
traininQ<br />
Priority 3:<br />
Improving Access to Lifelong Learning<br />
Description:<br />
• to widen access to lifelong learning, increasing the range of quality education<br />
and training provision available and participation rates, particularly through UHI<br />
Millennium Institute and its network.<br />
Proqress:<br />
During 2007 there were no projects approved under this Priority. Two projects were<br />
recommended for approval, with a total grant request of £0.96 million.<br />
The types of projects recommended include:<br />
• Community Empowerment in Tourism, Heritage and Leisure based activities.<br />
Indicators:<br />
Indicator Type Target Actual Actual<br />
Achievement Achievement<br />
in year Cumulative<br />
Number of participants who are Output 850 n/a n/a<br />
trainers<br />
Number of projects supporting the Output 30 n/a n/a<br />
development of new courses/materials<br />
or innovative approaches to learning<br />
Number of local learning Output 120 n/a n/a<br />
centres/access pointsl workplace<br />
initiatives supported<br />
Number of trainers gaining a partial Result 600 n/a n/a<br />
(i.e. completed unit towards a full<br />
Qualification) or a full Qualification<br />
Number of new courses/materials Result 300 n/a n/a<br />
developed<br />
Number of participants benefiting from Result 2,800 n/a n/a<br />
support<br />
Number of participants gaining a partial Impact<br />
or full qualification as a result of<br />
supported proiects<br />
39
Additional<br />
ReportinQ<br />
In accordance with Commission Regulation 1828/2006 Annex XXIII, additional reporting is<br />
required in relation to indicators that do not have targets set for them. When data is available<br />
(in 2008) breakdowns will be provided by both unemployment and inactivity status, gender,<br />
vulnerable groups status (migrants, ethnic minorities and disabled individuals and age of the<br />
following:<br />
• number of participants receiving support<br />
• number of participants gaining a partial qualification<br />
• number of participants gaining a full qualification<br />
• number of participants without basic skills<br />
• number of participants without level 2 skills<br />
• number of participants without level 3 skills<br />
• number of participants gaining level 1 skills<br />
• number of participants gaining level 2 skills<br />
• number of participants gaining level 3-5 skills<br />
• number of participants in projects addressing better gender balance<br />
• number of participants going into gender imbalanced sectors<br />
• number of participants in projects addressing managerial skills<br />
• number of participants in projects addressing continuing professional development<br />
• number of participants gaining a partial qualification (in projects supporting managerial<br />
skills)<br />
• number of participants gaining a full qualification (in projects supporting managerial<br />
skills)<br />
• number of participants gaining specialist training in equal opportunities and<br />
environmental sustainability issues<br />
• number of participants from social enterprises<br />
• number of participants from social enterprises gaining a partial qualification<br />
• number of participants from social enterprises gaining a full qualification.<br />
There is no information yet available for projects approved in 2007 (Shadow Round) as final<br />
claims are not due until April 2008. Based on the information provided in application forms<br />
designed to capture the required data to support Annex XX111, in respect of six projects<br />
approved the following is anticipated:<br />
Gender MainstreaminQ<br />
No activity to report. Final claims due April 2008.<br />
243<br />
123<br />
46<br />
73<br />
33<br />
Miqrant Participation<br />
in Emplovment<br />
No activity to report. Final claims due April 2008.<br />
Activities to Improve Social Inclusion of Minorities<br />
No activity to report. Final claims due April 2008.<br />
40
Activities to Improve Social Inclusion of Disadvantaqed<br />
Includinq Those With Disabilities<br />
All six project approvals tackle disadvantage. No output activity to report during 2007.<br />
Innovative Activities<br />
No output activity to report during 2007.<br />
Trans-national and/or Inter-Reqional Actions<br />
No output activity to report during 2007.<br />
Policy Actions<br />
The Operational Programme establishes the policy context for its implementation.<br />
Specifically, it highlights the need for alignment with:<br />
• The EU's Community Strategic Guidelines (CSG);<br />
• The UK's National Strategic Reference Framework (NSRF);<br />
• The Integrated Guidelines on Growth and Jobs;<br />
• The European Employment Strategy recommendation; and<br />
• The UK's National Reform Programme (NRP), successor to the National Action Plans.<br />
The following nine "Key Programme Challenges", the basis for the three ESF Priorities map<br />
to both the Community Strategic Guidelines and the National Strategic Reference<br />
Framework Priority Actions:<br />
Fiqure 5: Proqramme challenqes and the Community Strateqic Issues<br />
KEY PROGRAMME<br />
CHALLENGES<br />
1: Targeting particular client groups<br />
I 2: Encouraging women returners<br />
Attract<br />
and retain more<br />
• people in employment.<br />
I 3: Addressing<br />
under-employment<br />
4: Targeting low-waged/low-skilled<br />
5:Addressing gender pay gap/representation<br />
6:lncreasing business/entrepreneur/CPO skills<br />
Improve adaptability of<br />
workers<br />
and<br />
enterprises and the<br />
flexibility of the labour<br />
market.<br />
8: Improving access for most vulnerable<br />
9: Improving UHllearning capacity<br />
Increase investment in<br />
human capital through<br />
better education and<br />
skills.<br />
41
Future reports will seek to demonstrate how ESF actions supported relate to the key<br />
challenges and aggregate to the Community Strategic Guidelines and the National Strategic<br />
Reference Framework.<br />
In addition, the aggregation of activity in relation to Programme Challenges 1 to 3 will add<br />
value to the employment strategy set out in the National Reform Programme. This analysis<br />
will provide details of ESF activity in support of:<br />
• New Deal (focussing on long term unemployment);<br />
• Pathways to Work; and<br />
• Closing the Opportunity Gap.<br />
42
3.2 National Reform Programme<br />
The National Reform Programme sets out the UK <strong>Government</strong> Strategy to:<br />
• raise the skills levels in the workforce by increasing participation in education at<br />
age 17 from 75% to 90% over the next ten years;<br />
• ensure 2.25 million adults improve their basic skills over the period 2001 to 2010;<br />
and<br />
• reduce the number of adults in the workforce without a Level 2 qualification by at<br />
least 40%.<br />
Structural Fund activity addressing Key Challenges 1-3 will add value to the strategy, whilst<br />
Key Challenges 4-9 will add value to the Skills Strategy in Scotland.<br />
Future reports will detail:<br />
• how ESF actions contribute to the foregoing:<br />
• assess how actions may be refined to support the policy framework; and<br />
• provide examples of good practice.<br />
This may be done at a Priority level and in accordance<br />
Annex XXIII (as set out in page 40 of this report).<br />
with the analysis required for<br />
43
3.3 Financial Engineering Instruments<br />
No activity to report.<br />
3.4 Coordination<br />
Liaison and joint working agreements between the Highlands and Islands and Lowland and<br />
Upland Scotland Programme has been undertaken within the following fields:<br />
• applicant registration; and<br />
• application processing/appraisal.<br />
Reqistration<br />
The <strong>Scottish</strong> <strong>Government</strong> requires all organisations to register for the 2007 -2013<br />
Programmes in order to:<br />
(i) allow an assessment of their eligibility to apply for Structural Funds; and<br />
thereafter<br />
(ii) to provide access to the new online application system (EUROSYS).<br />
Registration is required only once during the lifetime of the Programme (albeit a reregistration<br />
is required following the launch of the new database).<br />
Organisations are required to register with one Intermediate Administrative Body (lAB), and<br />
this covers them for all four <strong>Scottish</strong> Programmes. Once the recipient body is satisfied<br />
regarding the status of the applicants, the remaining lAB is informed accordingly.<br />
Application<br />
ProcessinQ/ Appraisal<br />
Where applications are received in respect of pan-<strong>Scottish</strong> projects or where applicants<br />
pursue support for projects in both Programme areas, the assessment and appraisal<br />
information is shared between the respective lABs.<br />
This approach seeks to ensure consistency in decision making, in respect of outputs and in<br />
terms of any conditions that may be applied.<br />
Two applications - Princes' Trust and Venture Trust - in the Shadow Round demanded<br />
liaison between the lABs. This joint working was extended to a combined Article 60b Visit in<br />
respect of the Venture Trust.<br />
The benefits of enhanced coordination is recognised and various issues around the<br />
interpretation of the National Rules suggests that the current informal arrangements may<br />
need to be formalised following Stage 2 submissions.<br />
44
3.5 Horizontal Themes<br />
The essential interplay of economic development and social inclusion, equal opportunities<br />
and environmental sustainability continue to be at the centre of European Union, United<br />
Kingdom and <strong>Scottish</strong> <strong>Government</strong> policy priorities.<br />
In the 2007-13 programmes all applications will be expected to demonstrate that they have<br />
taken these issues fully into account in designing and delivering their projects.<br />
Projects will be scored on each of the horizontal themes in terms of how far these issues<br />
have been considered and acted upon. A zero score for any two of the horizontal themes will<br />
result in the project not receiving an award.<br />
Social Inclusion<br />
In the relevant section of the Application form Horizontal Themes, applicants are expected to<br />
demonstrate that they have taken Social Inclusion issues fully into account in designing and<br />
delivering the programme. Projects are scored on how far those issues have been<br />
considered.<br />
A new combined initiative is being considered by the <strong>Scottish</strong> <strong>Government</strong> to replace the old<br />
anti-poverty strategy. The new strategy could be linked to the Single Outcome Agreements -<br />
A variety of initiatives such as: Working for Families Fund, Workforce Plus, More Choices<br />
More Chances and others may be involved.<br />
The three ESF priorities focus on exclusion in the following ways:<br />
• Priority 1: Increasing the workforce - supporting the training of groups which face<br />
barriers to entering the workforce and ensuring that they have the skills to gain<br />
sustainable employment.<br />
• Priority 2: Investing in the workforce - ensuring low skilled, low paid, under-employed<br />
and migrant workers have the necessary skills to take advantage of opportunities for<br />
higher-quality, better-paid and more sustainable employment.<br />
• Priority 3: Improving access to lifelong learning - recognising that support for<br />
individuals must be made in parallel with improvements to the systems that will<br />
enable them to access the training and support needed to enter, stay and progress in<br />
the labour market.<br />
The 2007 - 2013 Programme will link into enhanced <strong>Government</strong> Strategy relating to Social<br />
Inclusion. The Managing Authority will monitor and evaluate social inclusion indicators<br />
throughout the lifetime of projects and will look for new ways of integrating social inclusion<br />
factors into the Programme with a view to enhancing Scotland's social inclusion agenda.<br />
An inclusive labour market supports social inclusion and a well-functioning economy. This is<br />
a long-term approach, which requires a balance between the objectives of social inclusion<br />
and economic objectives. The reality that poverty and exclusion is not decreasing among all<br />
groups or communities, despite the efforts so far, points clearly to the fact that actions to<br />
close the opportunity gap need to be mainstreamed across all the new Structural Funds<br />
programmes and priorities.<br />
The promotion of Social Inclusion will be carried forward by staff in the new Intermediate<br />
Administration Bodies and the European Structural Funds Division in the <strong>Scottish</strong><br />
<strong>Government</strong>. A Social Inclusion Champion was appointed within the Division.<br />
45
Equal Opportunities<br />
Equal opportunities have been a consistently key element of <strong>Scottish</strong> Structural Funds<br />
programming. For over a decade, <strong>Scottish</strong> Programmes have actively pursued the<br />
integration, or mainstreaming, of the horizontal themes, particularly Equal Opportunities and<br />
Sustainable Development, into the design and delivery of programmes<br />
The following sections provide summary detail of the activities in 2007 underpinning the<br />
embedding of good practice in the new programmes with respect to Equal Opportunities.<br />
Equal Opportunities<br />
- National Overview<br />
Equal Opportunities activity in 2007 had two key strands: looking forward to the new<br />
programmes and ensuring that partners understood the implications of recent legislation.<br />
With respect to the latter, a range of new public duties for equal opportunities arose from<br />
2006 legislation. The Equality Act 2006 introduced a move towards more pro-active equality<br />
legislation, in line with the amended Race Relations Act. It introduced legislation through<br />
public sector duties on disability and gender equality as well as the creation of the<br />
Commission for Equality and Human Rights (subsequently renamed the Equality and Human<br />
Rights Commission) which merged the existing Equality Commissions (the Commission for<br />
Racial Equality, the Disability Rights Commission and the Equal Opportunities Commission).<br />
The public sector duty on disabilitv equality came into force on 4 December 2006 and<br />
ensured that when public authorities carried out their functions they gave due regard to:<br />
promoting equality of opportunity<br />
between disabled people and other people;<br />
• eliminating discrimination that is unlawful under the Disability Discrimination Act;<br />
eliminating harassment of disabled people that is related to their disability;<br />
• promoting positive attitudes towards disabled people; encouraging participation by<br />
disabled people in public life; and<br />
taking steps to meet disabled people's needs, even if this requires more favourable<br />
treatment.<br />
The public sector duty on aender equality came into effect in April 2007 and meant that<br />
service providers and public sector employers would have to design employment and<br />
services with the different needs of women and men in mind. The duty requires public bodies<br />
to set their own gender equality goals in consultation with service users and employees and<br />
to take action to achieve them.<br />
New ESF Programmes in Scotland - New Horizontal Themes - Social Inclusion, Equal<br />
Opportunities and Sustainable Development. In the 2007-2013 Programme application<br />
forms for applicants - Compliance with Equal Opportunities stated the following:<br />
• Your organisation must have an active Equal Opportunities policy and a form complaints<br />
procedure in place.<br />
• If the project's target group is restricted to single sex of particular racial groups you must<br />
comply with all relevant Equal Opportunities Legislation.<br />
• If your organisation has had any unlawful discrimination findings in the last 3 years you<br />
must disclose the outcome.<br />
• Also applicants and their sub-contractors must promote equality of opportunity with no<br />
discrimination on the grounds of Gender, Ethnic Origin, Religion or belief, Disability, Age<br />
and Sexual Orientation in accordance with the Commission for Equality and Human<br />
Rights guidelines.<br />
46
In this context, it is worth noting a September 2007 conference held in Inverness to reflect on<br />
the role and activities of the Equalities Commission and look forward to the new Equality &<br />
Human Rights Commission. The conference - Doing the Gender Equality Duty Better in the<br />
Highlands and Islands - consisted of several workshops and discussions led by the Royal<br />
National Institute for the Blind, Glasgow University and Edinburgh Council with widespread<br />
representation from Structural Funds partners, including SCVO, Aberdeenshire Council and<br />
the <strong>Scottish</strong> <strong>Government</strong>.<br />
Recognising the need to help partners understand the implications of these new duties, the<br />
<strong>Scottish</strong> <strong>Government</strong>'s Equality Unit developed an Equality Impact Assessment Tool. The<br />
Equality Impact Assessment Tool is available to all staff via the <strong>Government</strong>'s internal<br />
intranet and a read-only version of the Equality Impact Assessment Tool is available online<br />
at: http://vq 73eda/systmes/EqualityU nit!Assessment.<br />
At the same time - at a Structural Funds level, and reflecting the shift in activity to<br />
developing the new 2007-13 Programmes(speak to Muriel where this is available) - the<br />
Equal Opportunities Adviser to the <strong>Scottish</strong> Structural Funds Programmes worked on<br />
distilling <strong>Scottish</strong> good practice over the last few years into advice and support for the new<br />
programmes. The final key activity of the Adviser in 2007 was preparing a summary report<br />
on the good practice in the <strong>Scottish</strong> programmes. The promotion of Equal Opportunities will<br />
be carried forward by staff in the new Intermediate Administration Bodies and the European<br />
Structural Funds Division in the <strong>Scottish</strong> <strong>Government</strong>. An Equalities Champion was<br />
appointed within the Division.<br />
For the new programmes, an Equal Opportunities Assessment was carried out as part of<br />
programme development. The <strong>Scottish</strong> <strong>Government</strong> requires an Equality Impact<br />
Assessment to be undertaken when introducing new policies or changing existing policy in a<br />
significant way. This entails:<br />
assessing and consulting on the likely impact of the policies they are proposing to<br />
adopt;<br />
monitoring<br />
any adverse impact of their policies;<br />
publishing the results of their assessment, consultations and monitoring; and<br />
ensuring public access to the information<br />
and to services arising from the Policy.<br />
In recognising this duty, the European Structural Funds Division within the <strong>Scottish</strong><br />
<strong>Government</strong> ensured that the implications of the changes proposed in the new round of<br />
Structural Fund Programmes were thoroughly assessed from all aspects of equality through<br />
an Equal Opportunities Assessment of the new programmes. A joint meeting of the Equal<br />
Opportunities Forum and the Impact Assessment Working Group was held on 22 November<br />
2006 in Glasgow. This was timed to coincide with the formal consultation period on the new<br />
programmes which ran from October 2006 to January 2007. This meeting mainly focused on<br />
the consultation from an Equal Opportunities view point with regard to the new programmes.<br />
A series of questions, based on those in the formal consultation were asked, which again<br />
informed the final draft programmes and the delivery process. Representatives were invited<br />
from a wide range of equality groups in addition to the usual Equal Opportunity Forum<br />
members, however attendance was low. The reason for this may have been that there had<br />
been extremely good input from a wide range of bodies in the initial stages, and their views<br />
had been taken into account in the development of the draft which had been published and<br />
was then at the formal consultation stage. Some bodies may have preferred at that stage to<br />
enter a view as part of the formal process registering their input in that way.<br />
47
Further contact was made with those absent from the Forum and the workshop in order to<br />
obtain their views and feedback from the questions relating to the consultation. This was<br />
tried in various forms, e-mailing, suggesting meetings at <strong>Scottish</strong> <strong>Government</strong> offices or for<br />
officials to go to their offices, asking for feedback either by telephone or bye-mail. Further<br />
responses from the Disability Rights Commission and the Empower Theme B EQUAL<br />
Initiative Development Partnership were received, and these also informed the assessment.<br />
Environmental<br />
Sustainability<br />
As with Equal Opportunities, the focus of activity in mainstreaming Sustainable Development<br />
has been with applying the lessons of the old, to the development of the new programmes.<br />
Sustainable Development has been divided into two themes in the new programmes; Social<br />
Inclusion and Environmental Sustainability. The Managing Authorities recommend that<br />
Environmental Sustainability should be pursued at programme level as part of the overall<br />
aims of the European funding programmes.<br />
In giving visibility to both Social Inclusion and Environmental Sustainability as separate<br />
entities under the umbrella of Sustainable Development, both these elements are given the<br />
opportunity to have a clear priority for the future. The measures put in place to assess these<br />
themes contribute to a key <strong>Scottish</strong> <strong>Government</strong> target of sustainable economic growth.<br />
The Managing Authority and Programme Management Executives previously had at their<br />
disposal a Sustainable Development National Advisor, who had been funded by <strong>Scottish</strong><br />
Natural Heritage and the <strong>Scottish</strong> Environment Protection Agency to guide the information<br />
and evaluation of Sustainable development within the programmes. This role was further<br />
developed through participation in workshops on the role of Sustainable Development in the<br />
new programmes. Two workshops were held with key partners on sustainable development<br />
and the new programmes during 2006. Follow-up actions were taken in 2007 with<br />
workshops involving the <strong>Scottish</strong> <strong>Government</strong> and SNH on setting a scoring system for<br />
assessing applications and appropriate environmental indicators for measuring project<br />
activity. The results of these workshops informed the procedures for implementing the new<br />
programmes.<br />
In terms of delivery, the instruments for mainstreaming will continue to build on the good<br />
practice tested and assessed under earlier programmes. For example, champions will<br />
continue to be designated at different levels, such as managing authorities and the<br />
intermediate administrative bodies for the new programmes. Where required, short term<br />
expertise will be used for training different parts of the delivery system to mainstream the<br />
Horizontal Themes on a continuing basis through the lifetime of the programmes, reflecting<br />
the smaller scale of the programmes, the experience developed to date across programme<br />
management and the reduced need for full time national advisors.<br />
48
4. IMPLEMENTATION- FINANCIAL<br />
4.1 Payments Made<br />
As at 31 May 2008 no payments have been made to applicants under the 2007-13<br />
operational programmes.<br />
4.2 Payments Received<br />
As at 31 May 2008 the only payments received from the Commission are in respect of the<br />
programme advances.<br />
4.3 Payment Targets<br />
The N+2 Rule is a requirement of the Financial Regulations which require Programmes to<br />
meet established financial targets on an annual basis from the end of Year 1 (plus 2) i.e. in<br />
the case of 2007-2013 Programmes, the first annual target is the end of 2009.<br />
N+2 relates to expenditure defrayed, and meeting targets can be hampered by a slow rate of<br />
commitment and by implication expenditure and delays in the implementation of projects.<br />
Compliance rules have applied in previous programmes, however the <strong>Scottish</strong> <strong>Government</strong><br />
is planning a more rigorous approach in the years ahead.<br />
Article 93 of Regulation 1083/2006 details the principle of automatic decommitment.<br />
Effectively the Year 1 (2007) budget allocation as defined in the Financial Tables requires to<br />
be paid out and declared to the Commission by 31 December of Year 3 (2009).<br />
The Regulation allows for an advance of funds in 2007 and 2008, which reduces the target<br />
for 2009 and 2010. The targets for the programme are:<br />
ESF N+2 Tarqets<br />
Year € Tarqet Annual TarQet Increase<br />
2009 12,794,189 -<br />
2010 23,929,810 +11,135,621<br />
2011 33,335,402 +9,405,592<br />
2012 40,937,309 +7,601,907<br />
2013 46,659,623 +5,722,314<br />
2014 50,424,119 +3,764,496<br />
2015 52,150,195 +1,726,076<br />
Failure to meet the targets will result in a loss of grant so implementation arrangements<br />
developed by the Managing Authority aim to avoid any such difficulties.<br />
49
5. IMPLEMENTATION - QUALITY AND EFFECTIVENESS<br />
5.1 Programme Monitoring Committee<br />
The management arrangements for the Programme are based on a two tier structure<br />
comprising:<br />
(i)<br />
(ii)<br />
Programme Monitoring Committee, responsible for Monitoring and Reviewing progress of<br />
the ERDF and ESF Operational Programmes, for consideration of operational issues and<br />
approval of project recommendations;<br />
Advisory Groups, responsible for detailed project appraisal, development of guidance and<br />
advice on selection criteria.<br />
The Committee and the Advisory Groups are chaired by an official of the <strong>Scottish</strong><br />
<strong>Government</strong> and serviced, under contract, by the Intermediate Administrative Body.<br />
In accordance with Article 63 of Council Regulation (EC) No 1083/2006 of 11 July 2006 a<br />
single Monitoring Committee was established with responsibility for the ERDF and ESF<br />
Operational Programmes.<br />
In order to ensure quality and effectiveness of the Programme, the Committee has drawn up<br />
its own:<br />
(i) Terms of Reference (Annex 2); and<br />
(ii) Rules of Procedure (Annex 3),<br />
within the institutional, legal and financial framework of the Member State.<br />
Membership of the Committee combines representatives of the key public, educational and<br />
voluntary bodies operating within the Programme area together with "social" partners.<br />
MeetinQs held<br />
The Monitoring Committee met once during 2007, as an Interim Committee, prior to the<br />
approval of the respective Programmes. All decisions made at the meeting on 25 September<br />
were "in principle". All were homologated at the first full meeting on the Committee following<br />
approval of the Programmes, held in January 2008.<br />
The Committee<br />
approved "in principle":<br />
• Terms of Reference and Rules/Procedure;<br />
• Structure, Terms of Reference and Rules/Procedure of Advisory Groups; and<br />
• Implementation Arrangements in respect of:<br />
Registration Procedures;<br />
National Rules on Eligibility;<br />
Strategic Delivery Bodies;<br />
Community Planning Partnerships;<br />
Annual Expenditure Targets;<br />
Audit and Marketing;<br />
Selection Criteria;<br />
Application Timetable and Process; and<br />
Retrospection.<br />
In addition the Committee also approved "in principle"<br />
• Communication Plan;<br />
50
• Evaluation Strategy;<br />
• Technical Assistance; and<br />
• "Shadow" Round Awards.<br />
During the year there were no significant problems encountered and no modifications were<br />
made to either of the Operational Programmes, albeit amendments to the Selection Criteria<br />
were made.<br />
Advisory Groups<br />
Three Advisory Groups support the Programme Monitoring Committee. They undertake the<br />
technical appraisal of projects in accordance with the approved selection criteria and<br />
thereafter make recommendations in respect of projects to the Committee. The Groups are<br />
chaired by an official of the <strong>Scottish</strong> <strong>Government</strong> and comprise "technical experts" and not<br />
organisational or sector representatives. Membership of Advisory Groups was established<br />
following an open tendering procedure. Following press and website advertisements, the<br />
<strong>Scottish</strong> <strong>Government</strong> appraised candidates and made the appointments. Details of<br />
Structure, Terms of Reference (Annex 4) and Rules of Procedure are attached (Annex 5).<br />
Groups are required to meet in order to deal with the normal flow of applications. During<br />
2007:<br />
• Advisory Group 1 met on 20 March to assess projects submitted in the "Shadow"<br />
Round; and<br />
• Advisory Groups 1, 2 and 3 met in early December to consider the applications<br />
submitted in the first formal round.<br />
In response to issues raised by the Advisory Group members at the December round of<br />
meetings a report "Strategic Issues" was prepared for Monitoring Committee consideration<br />
(HI/PMC/07-13/020). The points raised included eligibility issues around:<br />
• marina developments;<br />
• sports facilities;<br />
• community halls; and<br />
• roads projects.<br />
5.2 Intermediate Administration Body (lAB)<br />
The following steps have been taken by the lAB to ensure quality and effectiveness of the<br />
Programme:<br />
• a training session for Advisory Group 1 members prior to the Shadow round in<br />
January;<br />
• a training day for all Advisory Group members on 8 November; and<br />
• a series of workshops across the Programme area at the end of June/early July, in<br />
Inverness, Kirkwa II, Lerwick, Oban and Stornoway, to promote the new Programmes.<br />
Throughout 2007, the lAB was involved in a series of meetings to establish detailed<br />
operational arrangements with respect to the Community Planning Partnerships and the<br />
Strategic Development Bodies. Both Highlands and Islands Enterprise and UHI Millennium<br />
Institute made presentations to Advisory Groups during the December series of meetings.<br />
51
5.3 ManagingAuthority Action<br />
Work at the level of the Managing Authority concentrated on the essential elements for<br />
effective implementation of the new programmes. A Steering Group, comprising members of<br />
the Managing Authority and Certifying Authority convened to consider strategic aspects to<br />
programme drafting, negotiation and implementation. Business processes, guidance and<br />
other 'operational' issues were considered and developed by the Business Continuity Group,<br />
comprising members of the Managing Authority, Certifying Authority and the Intermediate<br />
Administration Bodies. a Project Board oversaw the development and roll-out of the new IT<br />
system. (This work continues into 2008.)<br />
In addition, groups were established to lead the development of both the Evaluation and<br />
Communication Plans.<br />
The value of the respective groups is already evident in the contribution each has made to<br />
the successful introduction of the programme. the scope and membership will be reviewed<br />
regularly to ensure that both remain relevant and appropriate.<br />
5.4 Ongoing Evaluation<br />
Following recommendations 4 contained in the European Commission's working documents 5 ,<br />
and in part from the increased emphasis placed on evaluation by the European Regulations<br />
(Article 41 [1] and Article 13 of Council Regulation 1083/2006) we have produced a <strong>Scottish</strong><br />
Structural Funds Evaluation Plan. The plan is focused on both the European Regional<br />
Development Fund (ERDF) and the European Social Fund (ESF), but it also has read across<br />
to the <strong>Scottish</strong> cross-border and trans-national programmes under the Territorial Cooperation<br />
Objective, although evaluation activities on these programmes will be covered<br />
under a separate plan.<br />
In 2007 we also established the <strong>Scottish</strong> Monitoring and Evaluation Group (MEG). This<br />
group has been set up in order to promote sharing of experiences and dissemination of good<br />
practice. The group includes officials from European Structural Funds Division, our two<br />
Intermediate Administration Bodies, Highlands & Islands Enterprise, <strong>Scottish</strong> Enterprise (the<br />
latter two are key partners with significant evaluation experience as the regional<br />
development bodies for Scotland) and the <strong>Scottish</strong> <strong>Government</strong>'s analytical services unit.<br />
Part of the role is to identify and provide intelligence on what evaluations have been or are<br />
being carried out from other sources. Members will be encouraged to network together to<br />
share that information. The group convened in person in August and November this year.<br />
In addition to this activity we were present at the UK Evaluation Standing Group in July, the<br />
DG Emploi ESF Partnership Meetings in May and September, and the DG Regio ERDF<br />
network meeting in September. We also attended an evaluation and monitoring seminar<br />
that was run by the European Institute of Public Administration in Maastricht on 22-23 March<br />
2007.<br />
We are currently running two separate evaluations. We are setting up a new approach to<br />
how we manage external consultants to evaluate our Programme, moving from individual<br />
tendering to a 'pool' of key evaluators. We are also in the early stages of tendering for an<br />
evaluation of the shadow round funding.<br />
4 This is not a compulsory requirement of the European Commission.<br />
5 Working Paper 2: Indicative Guidelines on Evaluation Methods: Monitoring and Evaluation<br />
Indicators and Working Paper 5: Indicative Guidelines on Evaluation Methods: Evaluation during the<br />
Programme Period.<br />
52
5.5 Ongoing Monitoring<br />
The following Article 60b check activity was planned and carried out during this year:<br />
Project:<br />
Reference:<br />
Date:<br />
The Venture Trust: A Chance for Change<br />
HI/ESF/SI/2007/0005<br />
24/10/07<br />
The visit was undertaken jointly with LUPS. Numerous concerns were raised and highlighted<br />
to the applicant and <strong>Scottish</strong> <strong>Government</strong>. A follow up meeting with the applicant took place<br />
on 30 November (and a subsequent meeting held on 7 February).<br />
53
6. PUBLICITY<br />
6.1 <strong>Scottish</strong> Communication Plan<br />
Draft in progress<br />
54
7. FINANCIAL CONTROL<br />
7.1 Management and Control Report<br />
The Management and Control Report is currently being drafted for the 2007-13 operational<br />
programmes.<br />
7.2 Problems and Corrective Measures<br />
No activity to report during 2007.<br />
7.3 Technical Assistance<br />
The interim Programme Monitoring Committee agreed in principle at its meeting of 25<br />
September 2007 to the use of Technical Assistance from the programme to support a range<br />
of implementation and evaluation initiatives. While many of these will emerge as the<br />
programme matures, two principle actions have already attracted Technical Assistance -<br />
The <strong>Scottish</strong> <strong>Government</strong> contract with Highlands & Islands Partnership Programme as the<br />
Intermediate Administration Body; and, the <strong>Scottish</strong> <strong>Government</strong> initiative to introduce a new<br />
web-based application and claim process and database.<br />
7.4 Verification and Compliance<br />
No projects were approved under the programme in 2007. As a result no on-the-spot visits<br />
were carried out.<br />
55
8. COMPLEMENTARITY, CONSISTENCY, COORDINATION<br />
COMPLIANCE WITH EUROPEAN COMMUNITY POLICIES<br />
AND<br />
8.1 Competition Policy & State Aids<br />
Guiding principles for a comprehensive reform of State aid rules and procedures were set out in<br />
the State Aid Action Plan, published by the Commission in 2005. This was published in<br />
response to a series of challenges: the re-Iaunch of the Lisbon Strategy for growth and jobs, the<br />
enlargement of the EU and the increasing complexity of State Aid rules.<br />
The reform, set out in the action plan, progresses as the Commission continues to review and<br />
update existing regulations and procedures. New Guidelines on State aid for Environmental<br />
Protection were introduced in January 2008. These are an important part of the Commission's<br />
Energy and Climate Change Package to provide the right incentives for Member States and for<br />
industry to increase their efforts for the environment. During 2008, the Commission is expected<br />
to adopt a general block exemption regulation which will simplify, consolidate and expand the<br />
existing regulations. Member States are also being consulted on Rescue and Restructuring Aid<br />
and the State aid rules for Public Service Broadcasting.<br />
The <strong>Scottish</strong> <strong>Government</strong> State Aid Unit continues to ensure that stakeholders across Scotland<br />
are updated on developments and consulted on relevant proposals for review and change. The<br />
Unit also promotes awareness of State aid and provides an advisory service to public sector<br />
stakeholders in Scotland. All approved projects assisting undertakings with public funds are<br />
required to ensure compliance with EU competition policy and associated relevant legislation<br />
prior to receiving an offer of grant. Guidance on Structural funds and State aid is available on the<br />
State aid website at www.stateaidscotland.gov.uk<br />
8.2 Public Contracts<br />
Project sponsors are required to advertise necessary contracts in the Official Journal, providing<br />
details of these adverts prior to the issue of the award. This is also followed up by provision of a<br />
public procurement questionnaire if the project is around or over the threshold for Official Journal<br />
advertisement. This is submitted to the Managing Authority. No public contracts were advertised<br />
during 2007.<br />
8.3 European Investment Bank<br />
The EIB, although providing Scotland with assistance in the form of support to transport,<br />
infrastructure and environmental projects does not duplicate the work of Structural Funds in<br />
Scotland. The organisations to which these loans have been granted are not in receipt of<br />
other EU funding. Overall, the <strong>Scottish</strong> <strong>Government</strong> remains committed to maintaining a<br />
continuing dialogue with the EIB and to exploring the possibility of EIB supported projects. At<br />
present there is particular interest in and discussion of the JEREMIE and JESSICA<br />
initiatives, which could bring about useful collaboration between the EIB, ERDF, and<br />
domestic funding in the fields of business investment and urban regeneration.<br />
The <strong>Scottish</strong> <strong>Government</strong>'s European Structural Funds Division will continue to give careful<br />
consideration to all proposed investment in Scotland by the EIB and ensure co-ordination<br />
between funds where appropriate.<br />
8.4 European Agricultural Fund for Rural Development<br />
The <strong>Scottish</strong> Rural Development Programme implements relevant measures in Regulation<br />
1698/2005. These comprise those related to Axis 1, improving the competitiveness of the<br />
56
agricultural and forestry sectors, Axis 2 improving the environment and the countryside, Axis<br />
3 the quality if life in rural areas and diversification of the rural economy and axis 4 Leader. It<br />
takes full account of other Community support instruments, setting out the demarcation<br />
criteria for the operations supported by the EAFRD and those supported by other<br />
Community support instruments. The new Scotland Rural development Programme runs<br />
from 2007 to 2013. A draft operational programme was submitted to the European<br />
Commission during 2007. (This was subsequently approved in early 2008.)<br />
8.5 Common Fisheries Policy<br />
The European Commission published the regulation for the European Fisheries Fund (EFF)<br />
in July 2006. The EFF succeeds FIFG in all Member States and operate over the 2007 -<br />
2013 programming period (2007-2013). In consultation with stakeholders and other UK<br />
Administrations the <strong>Scottish</strong> <strong>Government</strong> is developing an Operational Programme for the<br />
EFF which should allow the European Commission to approve the new schemes<br />
establishment in the UK in late 2008.<br />
8.6 Other<br />
There were no major projects approved in 2007. Global Grants do not apply under this<br />
programme.<br />
57
9. ANNEXES<br />
Annex 1:<br />
Annex 2:<br />
Annex 3:<br />
Annex 4:<br />
Annex 5:<br />
Financial Allocations<br />
Programme Monitoring Committee: Terms of Reference<br />
Programme Monitoring Committee: Rules of Procedure<br />
Advisory Groups: Terms of Reference<br />
Advisory Groups: Rules of Procedure<br />
58
Annex 1<br />
FINANCIAL ALLOCATIONS<br />
The financial allocations for each year of the programme are shown in the table below. €52.15<br />
million of Community funding will contribute to a Programme of €104.3 million in total, resulting in<br />
a target Programme intervention rate of 50% (as calculated on the basis of public expenditure).<br />
Table 12: Year bv source offundina for the Proaramme (in €)<br />
Community<br />
National Public<br />
Year Funding Funding Total Fundina Co-financina Rate<br />
{a} {b} {c} = {a} + {b} {e} = {a}!{c}<br />
2007 12,794,189 12,794,189 25,588,378 50%<br />
2008 11,135,621 11,135,621 22,271,242 50%<br />
2009 9,405,592 9,405,592 18,811,184 50%<br />
2010 7,601,907 7,601,907 15,203,814 50%<br />
2011 5,722,314 5,722,314 11,444,628 50%<br />
2012 3,764,496 3,764,496 7,528,992 50%<br />
2013 1,726,076 1,726,076 3,452,152 50%<br />
2007 - 2013<br />
Total 52,150,195 52,150,195 104,300,390 50%<br />
For the three key priorities of the Programme, resources have distributed with<br />
the following rationale .<br />
• Priority 1 has received a significant share of funding, reflecting the priority placed on the<br />
challenge of worklessness in domestic policy, particularly for an economy where<br />
employment rates are already relatively high.<br />
• Priority 2 has the highest share of funding because it covers a range of important, interrelated<br />
factors influencing skills development in the region. Improving the skills of the<br />
workforce has been identified in domestic policy and by partners as the key strategic<br />
area for EU intervention.<br />
• Priority 3 has a similarly large share of funding in recognition of the importance of access<br />
to lifelong learning in a rural, peripheral region and the scope for the UHI and its college<br />
network to address these issues.<br />
Table 13: Priorities b source of fundin in €<br />
Priorit<br />
Priorit<br />
Priorit<br />
Priori<br />
Total<br />
Year<br />
Axis 1<br />
Axis 2<br />
Axis 3<br />
Axis 4<br />
a<br />
15,123,557<br />
20,338,576<br />
15,123,557<br />
1,564,505<br />
52,150,195<br />
National<br />
Public<br />
Fundin<br />
b<br />
15,123,557<br />
20,338,576<br />
15,123,557<br />
1,564,505<br />
52,150,195<br />
EIB<br />
Contributions<br />
oo<br />
o<br />
o<br />
o<br />
o<br />
Other<br />
Fundin<br />
o<br />
o<br />
o<br />
o<br />
o<br />
o<br />
The intervention rates have been set to reflect previous ESF experience and to ensure that<br />
the minimum required EU funding will be provided to match fund projects.<br />
59
Annex 2<br />
Programme Monitoring Committee<br />
Terms of Reference<br />
The Monitoring Committee shall satisfy itself as to the effectiveness and quality of the<br />
implementation of the operational programmes in accordance with the following:<br />
it shall consider and approve the criteria for selecting the operations financed within six months<br />
of the approval of the operational programmes and approve any revision of these criteria in<br />
accordance with programming needs;<br />
it shall periodically review progress made towards achieving the specific targets of the<br />
operational programmes on the basis of documents submitted by the managing authority;<br />
it shall examine the results of implementation particularly the achievements of the targets set<br />
for each priority and the evaluations undertaken by the managing authority as referred to<br />
Article 48 (3);<br />
it shall consider the recommendations from Advisory Groups on operations to be financed and<br />
thereafter approve projects, making recommendations to Ministers with regard to the award of<br />
grant assistance;<br />
it shall consider and approve the annual and final reports on implementation pursuant with the<br />
terms of Article 67;<br />
it shall be informed of the annual control report, or of the part of the report referring to the<br />
operational programme concerned, and of any relevant comments the Commission may make<br />
after examining that report or relating to that part of the report;<br />
it may propose to the managing authority any revision or examination of the operational<br />
programmes likely to make possible the attainment of the respective fund's objectives, referred<br />
to in Article 3 or to improve its management, including its financial management;<br />
it shall consider and approve any proposal to amend the content of the Commission decision<br />
on the contribution from the funds;<br />
it shall agree Technical Assistance measures in accordance with Article 46 including<br />
management, monitoring and control together with activities to reinforce the administrative<br />
capacity for implementing the funds.<br />
it shall ensure compliance with all Community policies (where appropriate) and coordination<br />
with assistance granted by the other grant and loan instruments of the Community e.g. the<br />
European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund<br />
(EFF);<br />
it shall also consider any matters relating to the implementation of the programmes e.g.<br />
retrospection, geographical targeting and multi-annual awards; and<br />
it shall establish such supporting Committees or structures as considered appropriate to assist<br />
the Committee in exercising its functions and responsibilities. To this end the Committee is<br />
required to approve:<br />
The establishment of Advisory Groups - membership being determined by the managing<br />
authority; and<br />
The Terms of Reference and Rules of Procedure of Advisory Groups.<br />
60
• In order to promote objectivity and the exchange of frank and impartial views and<br />
comments, it is essential that advisory group members respect the confidential nature of<br />
the proceedings of any meetings that take place.<br />
• Accordingly, members must not report the context of any part of an application or of any<br />
detailed discussion to any third party, and in particular must not attribute any discussion,<br />
score or comment to anyone or more members of the advisory group.<br />
• In the event that a member of an advisory group is unable to appraise applications or<br />
attend any specific meeting no substitution will be allowed, as this appointment is on an<br />
individual basis.<br />
63
Annex 5<br />
Advisory Groups<br />
Rules of Procedure<br />
Membership<br />
1. Advisory Groups will be chaired by a member of a Managing Authority and will comprise up to<br />
ten "technical" experts appointed by the <strong>Scottish</strong> <strong>Government</strong>.<br />
2. Members will be appointed for their knowledge, expertise and experience and shall not act as<br />
representatives of any agency or sector.<br />
Place and Frequency<br />
3. Advisory Groups will normally meet on up to two occasions per year, at a particular stage in the<br />
application cycle, at a convenient location, normally in the Programme area.<br />
Agenda<br />
4. The Convenor, with assistance from the lAB, will draw up an agenda for the meeting including<br />
any items which might be requested in writing by a member of the Groups. The agenda shall be<br />
issued to Advisory Groups, along with papers necessary for the meeting, normally ten working<br />
days before the date of the meeting.<br />
Secretariat<br />
5. The Advisory Group secretariat will be provided by the lAB, Highlands and Islands (Scotland)<br />
Structural Funds Partnership Ltd, (HIPP)<br />
Written Procedures<br />
6. Any issued that cannot be dealt with in normal business may be dealt with by written procedure.<br />
Members will be required to give their views within ten working days unless there is justification<br />
for a shorter deadline. The absence of objection from any member of the Committee will<br />
generally indicate approval for the course of action proposed.<br />
Record of the Meeting<br />
7. The lAB shall produce a record of each Advisory Group meeting and this shall be submitted in<br />
draft to the Convenor within ten working days of the meeting. Draft minutes shall be issued to<br />
the Group within twenty working days of each meeting.<br />
Draft minutes will be made available for circulation on the Programme's web-site following<br />
clearance from the Convenor.<br />
Decisions and Conclusions<br />
8. Decisions and conclusions of the Advisory Group shall be reached, wherever possible by<br />
consensus.<br />
64
Annex 3<br />
Programme Monitoring Committee<br />
Rules of Procedure<br />
Membership<br />
1. Membership of the Monitoring Committee will be determined by the Minister on the advice<br />
of the <strong>Scottish</strong> <strong>Government</strong>. In addition the Committee will comprise officials of the<br />
<strong>Scottish</strong> <strong>Government</strong> and other <strong>Government</strong> Departments and Agencies as appropriate.<br />
Representatives of the Commission shall participate in the work of the Committee in an<br />
advisory capacity.<br />
2. The Committee will be chaired by a representative of the Member State or the managing<br />
authority and with his/her agreement, the Committee may call upon the advice of nonmembers<br />
depending on the business to be discussed.<br />
Place and Frequency<br />
3. The Monitoring Committee shall meet on at least two occasions per annum at a<br />
convenient location, normally within the Programme area.<br />
Agenda<br />
4. The Convenor will draw up an agenda for the Committee meeting, including any items<br />
which might be requested in writing by a member of the Committee. The agenda shall be<br />
issued to the Committee, along with the papers necessary for the meeting, normally ten<br />
working days before the date of the meeting.<br />
Secretariat<br />
5. The Monitoring Committee secretariat will be provided by the Intermediate Administrative<br />
Body (lAB), Highlands and Islands (Scotland) Structural Funds Partnership Ltd.<br />
Written Procedure<br />
6. At the initiative of the Convenor, or at the request of another member of the Committee,<br />
and with the Convenors agreement, an item of substance which requires an outcome prior<br />
to the next Committee meeting may be submitted to the Committee for adoption by written<br />
procedure. Members of the Committee shall give their opinion within ten working days of<br />
effective delivery. The absence of objection to the written procedure from any member of<br />
the Committee will generally indicate approval for the course of action proposed.<br />
Record of the Meeting<br />
7. The lAB shall produce a record of each Committee meeting and this shall be submitted in<br />
draft to the Convenor within ten working days of the meeting. Draft minutes shall be<br />
issued to the Committee within twenty working days of each meeting.<br />
8. Draft minutes and associated papers will be made available on the website following<br />
clearance by the Convenor.<br />
9. Papers will be available on request following the Committee, in advance of being<br />
incorporated on the web-site.<br />
Conclusion<br />
10. Decisions and conclusions of the Monitoring Committee shall be reached, wherever<br />
possible, by consensus.<br />
61
Annex 4<br />
Advisory Groups<br />
Terms of Reference<br />
1. Groups will apply the thorough appraisal and scoring mechanisms developed by the <strong>Scottish</strong><br />
<strong>Government</strong> for projects submitted under both funds on the basis of the procedures approved by<br />
the Monitoring Committee;<br />
2. Groups will apply agreed selection criteria and therefore rank projects. This will involve taking<br />
into account technical checks undertaken by the lAB and policy issues raised by the <strong>Scottish</strong><br />
<strong>Government</strong>;<br />
3. Groups will submit a list of project applications with recommendations on funding to the<br />
Monitoring Committee, having regard to Priority level financial commitments;<br />
4. Groups will be required to approve the operational details of all schemes including the regular<br />
reporting requirements prior to the approval of that scheme;<br />
5. Groups will ensure that projects are consistent with the objectives of the respective Programmes<br />
and comply with all relevant EC Directives and Regulations including in particular, State Aid and<br />
Procurement; and<br />
6. In terms of the participation of Advisory Group Members, the following will apply:<br />
• Membership will be for up to three years. At the end of 2010, members wishing to continue<br />
on the group will need to re-apply.<br />
• Members will be expected to participate fully in all relevant advisory group activities,<br />
including the training provided before any applications are sent for appraisal. Consistent<br />
inability to do so will result in a re-assessment of membership.<br />
• Members will require to act in an objective and non-partisan way.<br />
• Members must not advocate projects within their constituency or interest.<br />
• In the event that a project application, under consideration by an advisory group, derives<br />
from the employing organisation of a member of the advisory group, that member cannot<br />
speak to the project in question and will be asked to disengage themselves from the<br />
appraisal process - including removing themselves physically from the room during any<br />
discussion.<br />
• No member of the advisory group can advocate or represent a project in any way where<br />
their employing authority has a financial or other formally expressed interest in the project.<br />
The advisory group member can neither advocate for the project nor speak in answer to<br />
points of clarification or matters of technical or factual nature. As with all project applicants<br />
questions of clarification and requests for additional information will be formally raised in<br />
writing with the applicant organisation following the meeting of the advisory group.<br />
• Where appraisal groups meet to discuss specific projects, discussions will be recorded in a<br />
summary, unattributable, minute. This minute will be available to any person requesting it<br />
in order to conform with the Freedom of Information (Scotland) Act 2002, which introduced<br />
important rights for all to access information held by <strong>Scottish</strong> public authorities.<br />
• The names of advisory group members, and their organisations will also be published proactively<br />
on lAB websites, also in line with the Freedom of Information (Scotland) Act 2002.<br />
62
•.<br />
..';-"-:-<br />
~ .~ ~. ~'..~:' j' 1""":<br />
"".f" {'~:~~--.;~~ ~'~' ;:,J"::::": -;.--:; ';. ' .<br />
.Sandwtck ~act,StOmoWay, i1s1 2BW<br />
Rathad Shanndabhalg, Steornabhagh. HS1 2BW<br />
Mr. Dennis Malone,<br />
Chief Executive,<br />
HIPP,<br />
12a Ness Walk,<br />
INVERNESS.<br />
IV3 5SQ<br />
Telephone:<br />
Facsimile<br />
ALEX A MACDONALD<br />
CONVENER<br />
01851 -709502<br />
01851 -706022<br />
7 May 2008<br />
Dear Dennis,<br />
HIGHLANDS AND ISLANDS SCOTLAND EUROPEAN STRUCTURAL FUND<br />
PROGRAMMES 2007-13<br />
RECOMMENDATIONS ON STRATEGIC ISSUES AND SDB APPLICATIONS<br />
I refer to your recent letter regarding the above and asking for consideration and<br />
agreement on two sets of recommendations. I would comment as follows -<br />
(1) SDB Applications<br />
(2) Strategic issues Paper<br />
• Marina/Pontoon DeveloDment: J agree with the recommendation.<br />
• SDorts Facilities: I agree with the recommendation.<br />
• CommunitvNillage Halls: I agree with the recommendation.<br />
• RoadslTranSDort: As you; will be aware Comhairle nan. Eilean Siar has a<br />
·vested! int~rest" having: anapplicationia the ~yst~m and approval is still<br />
awaited.' .
2<br />
With respect to Jhefirst and third j "bullet pointed" recommendations. I would suggest<br />
that the limit, ofg~a.nt, on i'1fra~t~cture:proje~~ .be: i,e. ~500kwith, a', maximum<br />
intervention rate 01,25%. This 'JitO!Jldtake ~ccount of the need for such.projectsto<br />
be strategic as:,set out in the Operational Programme. I would also' draw your<br />
attention to the Paragraph on ]p~ge 84, of the: Operational,. Programme<br />
1 I<br />
headed<br />
.<br />
...<br />
"Structural<br />
~ . j , ..... '<br />
Funds Value Added:' ~nd especially: the first: and last sentences. 'In<br />
addition a single cap figure. an~ ,maximum intervention rate would assist clarity.<br />
With respect t~ ~hethird ·bull~ ~oipt" I V/9uld suggest t~at H;IT~$. and:ZETRANs<br />
prior:ities be t~,k~nifl1o accouj'lt i~ tpe id~rltificati(m, of.pr:oj~~s.:.>and nottJe the sole<br />
basis as is impliedii1 the teXt.' , .<br />
I am in agreement with the fourth;"Qullet point". All,of these recommendations should<br />
apply to applications submitted of 4 June 2008 .<br />
..-- -- --...<br />
With respect to our own application referred to earlier, you will be aware that this was<br />
submitted in September 2007 under the rules as they then were, i.e. no restriction on<br />
project costs or grant. It doe~ not seem equitable that new rules are applied<br />
retrospectively. ,I would also pqin; ,out that project costs ~ave ~sen steeply as a<br />
result o,fthe d~l~y in decisiqn:.m4kirg reg~~dingo~r aw~r~. i~hil~t I ~ould not wish<br />
to delay matters. further I cannot agree to these recommendatIons until my concerns<br />
have been address.<br />
Finally, as you will be aware I did not receive the original correspondence regarding<br />
these matters by e-mail. Giv~n ~h~ ·silence is a~sent" response. requested I would<br />
suggest that HI,P?: should s~~ tQ establishwh~ther, corr,espondence, has been<br />
received in the first instance. ' "<br />
I look forward to hearing from you.<br />
Yours sincerely,<br />
Convener
Enterprise, Energy and Tourism Directorate<br />
European Structural Funds Division<br />
John Rigg<br />
Deputy General<br />
T:0141-242 5413 0141-2425959<br />
John.rigg@cotland.gsi.gov.uk<br />
RIECfE~\fIE[)<br />
3 0 MAY 2008<br />
---------------<br />
~<br />
The <strong>Scottish</strong><br />
<strong>Government</strong><br />
Dr John Rigg<br />
Meridian Court<br />
5 Cadogan Street<br />
GLASGOW<br />
G26AT<br />
28 May 2008<br />
Dear Dr Rigg,<br />
DECLARATION OF INTERESTS AND NON-DISCLOSURE UNDERTAKING<br />
- EUROPEAN STRUCTURAL FUNDS 2007-13 PROGRAMMES<br />
At recent Programme Monitoring Committee (PMC) meetings we agreed to provide a<br />
Declaration of Interest and Non-disclosure Form to cover your participation in the 2007-13<br />
programmes.<br />
Members will be aware of recent high profile cases on the handling of data by public<br />
authorities and their agents, from media reporting. In light of this, and in line with general<br />
good practice in this area being adopted by <strong>Government</strong>, I attach a form which I would like<br />
you to complete. This covers 6 key points to be adopted as a member of either a PMC or<br />
Advisory Group (AG).<br />
Our new IT system, €'UROSYS, will also allow permissions for members to access certain<br />
details on-line for project appraisal and this declaration covers the privileges and benefits<br />
that will bring. I should remind you however, that our data on-line is held to the highest<br />
security standards (including access logs recording the use of all registered users) and there<br />
is very little information within the new system that requires encryption for financial or<br />
personal purposes.<br />
Can I ask if you are intending to use delegates for appraisal purposes that they also sign and<br />
return the form. This will allow us to hold a formal register of delegates and use this list to<br />
set up access and monitoring arrangements, for delegates use of €UROSYS.<br />
I would be grateful if you could read and sign the attached form and return it to Norman Muir,<br />
at the address in the footer below, by 30 June 2008.<br />
Yours sincerely<br />
",.;- .<br />
~Jk - R....,r;<br />
--------<br />
Dr John Rigg<br />
Meridian Court, 5 Cadogan Street, Glasgow G26AT<br />
www.scotland.gov.uk<br />
INVESTOR<br />
IN PEOPLE
EUROPE & SCOI1AND<br />
European Regional DewIopment Fund<br />
Investing inyourFtrtur~<br />
IUIDPE & SCOI'lAND<br />
£uropeanSocial Fund<br />
Investing in your Future<br />
Programme Monitoring Committee members<br />
Advisory Group members<br />
Named delegates<br />
DECLARATION OF INTERESTS AND NON-DISCLOSURE UNDERTAKING<br />
- EUROPEAN STRUCTURAL FUNDS 2007-13 PROGRAMMES<br />
Under the terms of your appointment to a Programme Monitoring Committee<br />
(PMC) or Advisory Group (AG) in the 2007-13 Lowlands and Uplands or<br />
Highlands (LUPS) & Islands (H&I) Scotland Programmes you accept the<br />
following conditions:<br />
1. You will be expected to attend all PMC or AG meetings (or participate fully in<br />
marking as 'virtual' AG in the LUPS area). The PMC meets at least twice a<br />
year and you may be required to attend additional meetings from time to time.<br />
AGs meet in accordance with the number of application rounds, notified in<br />
advance by the <strong>Scottish</strong> <strong>Government</strong> and its Intermediate Administration<br />
Bodies (approximately twice a year from Autumn 2008).<br />
2. You will be expected to bring an independent judgement to bear at meetings<br />
(or appraisal as a 'virtual' AG member) on issues of strategy, performance,<br />
compliance and the disbursement of Structural Funds.<br />
3. You must not put yourself in a position where your own interests or those of<br />
your constituency are in direct conflict with the proper conduct of the<br />
PMC/AG. In such an event you must immediately disclose to the PMC/AG<br />
any material interest you have in any aspect of the deliberations of the<br />
PMC/AG or any project requiring particular consideration by the PMC/AG.<br />
4. As a member you will have access to confidential and sensitive information,<br />
including recommendations made by others on PMC/AG on the award of<br />
funding. Prior to meetings you must not divulge or communicate this<br />
information to any person or cause any unauthorised disclosure.<br />
5. The proceedings of the PMC/AG are recorded in a non-attributable format.<br />
PMC/AG members are required to respect the confidential nature of the<br />
deliberations and not to disclose these outwith the formal meetings, other<br />
than through the agreed and published minute, published on lAB websites, in<br />
line with the freedom of information requirements.<br />
~~~<br />
The <strong>Scottish</strong> nt
EUROPE. SCOI\AND<br />
European Regional Development<br />
Investing in your Future<br />
Fund<br />
EUROPE.<br />
SCOI\AND<br />
EuropeanSodalFund<br />
tnvesting In your Future<br />
6. In using the €UORSYS system to access information, you confirm that any<br />
access privileges provided will be undertaken in conformity with the rules set<br />
out above.<br />
I have read above and agree to the terms of my appointment.<br />
Name (BLOCK CAPS): .<br />
Role: .<br />
Signed: . Date: .<br />
~~~<br />
The SCOttish<br />
CioVernment
EUROPE & SCOTlAND<br />
European Regional Development<br />
Investing in your Future<br />
EUROPE & SCOTlAND<br />
European Social Fund<br />
Investing in you~future<br />
Fund<br />
THE HIGHLANDS & ISLANDS<br />
ERDF & ESF PROGRAMMES 2007-2013<br />
PROGRAMME MONITORING COMMITTEE<br />
WEDNESDAY, 4 JUNE 2008<br />
09:30 HOURS -12:30 HOURS<br />
TOWN HALL, LERWICK<br />
HIP~<br />
AGENDA<br />
1. CONVENOR'S INTRODUCTION<br />
2. APOLOGIES<br />
3. MINUTE OF PREVIOUS MEETING: 22 JANUARY 2008<br />
4. MATTERS ARISING<br />
5. STRATEGIC OVERVIEW<br />
• Past and present<br />
• Forward look<br />
• N+2<br />
6. WRITTEN PROCEDURE UPDATE<br />
• SDBs<br />
• Strategic Issues<br />
7. COMPLEMENTARITY & COORDINATION<br />
• SRDP<br />
• LEADER<br />
• EFF<br />
Report from the <strong>Scottish</strong><br />
For Information<br />
HI/PMC/07-13/023<br />
Report from the <strong>Scottish</strong><br />
For Information/Decision<br />
HI/PMC/07-13/024<br />
Report from the <strong>Scottish</strong><br />
For Information/Decision<br />
HI/PMC/07-13/025<br />
<strong>Government</strong>:<br />
<strong>Government</strong><br />
<strong>Government</strong>:<br />
8. ANNUAL REPORTING Report from the <strong>Scottish</strong> <strong>Government</strong>:<br />
HI/PMC/07-13/026<br />
(i)<br />
(ii)<br />
ERDF Annual Implementation Report<br />
ESF Annual Implementation Report<br />
For Decision:<br />
H I/PMC/07 -13/026(i)<br />
For Decision:<br />
HI/PMC/07-13/026(ii)<br />
9. ANY OTHER COMPETENT BUSINESS<br />
10. DATE OF NEXT MEETING<br />
f'\ VI- - ~ ~~L<br />
A BUFFET LUNCH WILL BE PROVIDED BY SHETLAND ISLANDS COUNCIL<br />
•<br />
AT CLOSE OF COMMITTEE BUSINESS<br />
U f'.J..vl:- A-k.... •.<br />
INVESTOR IN PEOPLE<br />
~ Lor-- ~ ("--<br />
O.nA.- 2../1 I.~<br />
.
EUROPE & SCOTLAND<br />
European Regional Development Fund<br />
Investing in your Future<br />
HIP~<br />
EUROPE & SCOTLAND<br />
European Social Fund<br />
Investing in your Future<br />
Jubilee Lodge<br />
12c Ness Walk<br />
Inverness<br />
IV3 5SQ<br />
Tel: +44 (0) 1463279500<br />
Fax: +44 (0) 1463279501<br />
21 May 2008<br />
Dear Colleague<br />
HIGHLANDS & ISLANDS STRUCTURAL FUNDS PROGRAMMES 2007-2013<br />
PROGRAMME MONITORING COMMITTEE<br />
The next meeting of the Programme Monitoring Committee in respect of the above is scheduled to take<br />
place on 4 June 2008 in the Town Hall, Lerwick commencing at 09:30 a.m. The meeting will be hosted by<br />
Shetland Islands Council.<br />
Unfortunately due to delays, the Annual Reports (ERDF and ESF) are not included in the papers. These<br />
will follow under separate cover. Please accept my apologies for the delay.<br />
I trust the above is satisfactory and if you require any assistance prior to the meeting please get in touch<br />
with either myself of my colleague Rosemary Currie on +44(0)1463 279500 or email<br />
rosemary. currie@hipp.orq.uk<br />
I look forward to seeing you at the meeting.<br />
Yours sincerely<br />
Dennis Malone<br />
Chief Executive<br />
I~"VESTORIN PEOPLE
•Europe & Scotfand<br />
Investing in your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE<br />
HIP~<br />
Present<br />
Dr John Rigg<br />
Cllr Sandy Park<br />
Cllr Alex MacDonald<br />
Cllr Dick Walsh<br />
Mr Stuart Black<br />
Mr John Ferguson<br />
Mr Stephen Boyd<br />
Mrs Linda Stewart<br />
Ms Lynn Hamilton<br />
Mr lain Duff<br />
Ms Morag Redwood<br />
Tuesday 22"d January 2008<br />
Royal Marine Hotel, Dunoon<br />
<strong>Scottish</strong> <strong>Government</strong><br />
The Highland Council<br />
Comhairle nan Eilean Siar<br />
Argyll & Bute Council<br />
Highlands and Islands Enterprise<br />
<strong>Scottish</strong> Council for Voluntary Organisations<br />
<strong>Scottish</strong> Trade Union Congress<br />
UHI Millennium Institute<br />
VisitScotiand<br />
<strong>Scottish</strong> Council for Development & Industry<br />
H&I Equality Forum<br />
European Commission<br />
Ms Annick Villarosa<br />
Mr Marc Vermyle<br />
DG Regional Policy<br />
DG Employment<br />
In Attendance<br />
Mr Jim Millard<br />
Mr Dennis Malone<br />
Ms Lorna Gregson-Macleod<br />
Mr Donald Mackenzie<br />
Ms Melissa Mackin<br />
Ms Billie McLean<br />
<strong>Scottish</strong> <strong>Government</strong><br />
HIPP - Intermediate Administration Body<br />
HIPP - Intermediate Administration Body<br />
HIPP - Intermediate Administration Body<br />
<strong>Scottish</strong> <strong>Government</strong><br />
<strong>Scottish</strong> <strong>Government</strong><br />
CONVENORS WELCOME AND INTRODUCTION<br />
1. The Convenor welcomed members to the second meeting of the Monitoring<br />
Committee, with particular reference to Stephen Boyd (STUC) attending his first<br />
meeting. He also thanked Councillor Walsh, Argyll & Bute Council, for hosting the<br />
meeting and for dinner the previous evening.<br />
2. The Convenor thanked members for their patience in establishing a revised date for<br />
the meeting and explained that the financial front loading of the Programme<br />
demanded early decisions that secured early commitment and spend on projects.<br />
lNVESTOR IN PEOPLE
•Europe & Scottand<br />
Investing In your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE HIP~<br />
APOLOGIES<br />
3. Apologies were received from:<br />
• Cllr Stephen Hagan<br />
• Mr William Roe<br />
• Cllr Alistair Cooper<br />
• Ms Susan Davies<br />
• Mrs Rosemary Thompson<br />
Orkney Islands Council<br />
Highlands and Islands Enterprise<br />
Shetland Islands Council<br />
<strong>Scottish</strong> Natural Heritage<br />
The North Highland College<br />
MINUTE OF PREVIOUS MEETING<br />
4. The minute of the previous meeting, 25 th September 2007, was agreed as a correct<br />
record.<br />
MATTERS<br />
ARISING<br />
5. The following matters were raised:<br />
(i)<br />
(ii)<br />
(iii)<br />
(iv)<br />
Para 8.2: Transitional Proaramme Monitorina Committee<br />
Mr Millard confirmed that a date for a meeting of the Transitional Programme<br />
Monitoring Committee is being trawled for, for the first half of 2008. The<br />
agenda will include the AIR and N+2 decommitment for EAGGF.<br />
Para 9.4: Advisory Groups<br />
Mr Malone confirmed that the final composition of Groups had been<br />
circulated to members by written procedure.<br />
Para 9.9: Declaration of Interest<br />
Position clarified by Advisory Group Convenor prior to each meeting.<br />
Para 10.8: Community Plannina Partnerships<br />
Mr Malone confirmed that discussions had taken place in October but that the<br />
alignment between the <strong>Scottish</strong> Rural Development Programme/LEADER<br />
and CPPs and where this fits with the respective ERDF and ESF<br />
Programmes remained unclear.<br />
In response to a query from John Ferguson, Mr Millard confirmed that the<br />
competitive process would kick-off in parallel with submission of CPP<br />
proposals in late Spring but acknowledged there may be delays due to limited<br />
readiness of all the necessary components for a viable CPP bid.<br />
(v)<br />
(vi)<br />
Para 10.11: Oraaniaram<br />
Completed, to be taken under item 7 on agenda.<br />
Para 11.1/11.2: Scorina Systems<br />
Mr Malone confirmed that the amendment has been made and implemented<br />
in current round.<br />
INVESTOR h'< PEOPLE
•Europe & Scotland<br />
InvestIng In your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE HIP~<br />
(vii)<br />
Para 14: Access to Full Applications<br />
Mr Malone confirmed that access to the new system is built into the design.<br />
He indicated that a full set of ESF applications had been issued on request to<br />
one Committee member last week.<br />
(viii) Para 19: Communications Plan J Millard<br />
Mr Millard confirmed this had been done. Mr Vermyle advised that any such<br />
documentation requires to be submitted to the Commission on the CCI<br />
database. Mr Millard agreed to re-issue.<br />
(ix) Para 24: TA to support CPP's J Millard<br />
Mr Millard stated that he was still reflecting on this matter and whether there<br />
needed to be distinction between "support for the programme" or<br />
"supporting a project". Whatever, the conclusion will have to be consistent<br />
with the National Rules.<br />
(x)<br />
Para 29: Electronic Issue of Papers<br />
Mr Malone confirmed that electronic copies of the papers had been issued as<br />
requested.<br />
Context<br />
6. Dr Rigg updated members on the Shadow Round, adding that an internal audit had<br />
been undertaken on the process. Conclusions were largely positive and some<br />
helpful suggestions had been made to be incorporated into future rounds.<br />
7. In response to a question from Ms Villarosa, Mr Millard explained that in Highlands &<br />
Islands, only one CPP bid per local authority area was anticipated, largely from<br />
ERDF, and comprising details of a range of eligible projects. The "Plan" would be<br />
appraised by the Advisory Group and thereafter individual project sponsors would<br />
bring forward applications when ready.<br />
8. Cllr Walsh reminded members of the need to avoid potential duplication between<br />
CPP bids and the Challenge bids.<br />
(Interim) Monitorina Committee (HI/PMC/07-13/017)<br />
9. Mr Millard confirmed the need to formally approve previous "decisions in principle"<br />
made by the Committee at its meeting in September 2007. Having detailed the<br />
decisions and having acknowledged the written procedure exercise of December<br />
2007, the Committee approved all decisions of the previous meeting.<br />
Proaramme Deliverv Arranaements (HI/PMC/07-13/018)<br />
10. Mr Malone's short presentation demonstrated how the various delivery arrangements<br />
fit together and what allocations were available for each component. He also<br />
highlighted the differing decision making procedures.<br />
11. Members noted the report.<br />
L",'VESTOR L'I PEOPLE
•Europe & Sc:otland<br />
Investing In your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE HIP~<br />
StrateQic Deliverv Bodies (HI/PMC/07-13/019)<br />
12. Mr Millard explained that given the scale of the proposed allocation in support of the<br />
SOBs - HIE and UHI Millennium Institute - the decision to approve falls to the<br />
Monitoring Committee. In order to facilitate this process each SOB was being asked<br />
to present their proposals. In addition, the applications and technical comments from<br />
the lAB were attached.<br />
12.1 HIE: Presentation bv Stuart Black<br />
Nine areas of activity highlighted which EROF is needed to support. Following<br />
questions Mr Black confirmed:<br />
• That HIE would be the final beneficiary of grant;<br />
• That advice would not be generic but developmental in support of businesses of<br />
scale;<br />
• That generic advice would be provided through Business Gateway; and<br />
• That support for HISEZ would be monitored to avoid duplication.<br />
Dr Rigg also confirmed that HIE would be required to meet its spend profile in order<br />
to assist the N+2 position.<br />
Ms Villarosa stressed the requirement on all applicants to report to the <strong>Scottish</strong><br />
<strong>Government</strong> on any intended sale and use of buildings sold on.<br />
12.2 UHI Millennium Institute: Presentation bv Linda Stewart<br />
Three areas of activity highlighted under EROF and five under ESF.<br />
Mrs Stewart acknowledged the need to discuss further matters of eligibility. Having<br />
heard the report Mr Vermyle expressed concern over the relatively high percentage<br />
of support being allocated for curriculum development. He explained that ESF was<br />
employment driven and that curriculum development was borderline activity.<br />
While the Commission had knowingly approved this provision in the Operational<br />
Programme the current allocation in support of this activity should not increase.<br />
Ms Villarosa also indicated that residential accommodation was not eligible and<br />
should not be supported.<br />
Mrs Stewart also confirmed that UHI Millennium Institute would be the final<br />
beneficiary.<br />
13. Ms Villarosa requested clarification on the use of TA. Mr Millard confirmed that given<br />
the limited availability of TA priority was given to Programme administration and<br />
evaluation. Any work associated with the delivery of projects would be funded out of<br />
the project. He agreed to reflect on any other potential use of TA.<br />
14. Having heard the presentations and discussion the Committee approved the SOB<br />
applications in principle and invited the Advisory Group Convenor/lAB to address<br />
matters of detail and ensure consistency with the Terms of Reference of the Advisory<br />
Groups and report thereafter by written procedure.<br />
J Millard<br />
J Millard<br />
IIAB<br />
INVESTOR<br />
1.\'1PEOPLE
•Europe & Scotland<br />
Investing in your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE HIP~<br />
Strateaic Issues (HI/PMC/07 -13/020)<br />
15. Dr Rigg reminded members of the Committee of their role in ensuring a strategic<br />
perspective to the programmes. He requested declarations of interest, where<br />
appropriate, though he was content for members to contribute to the discussion on<br />
any of the projects. When speaking on individual projects with which they were<br />
familiar, members should restrict themselves to points of information and avoid<br />
lobbying or advocacy.<br />
16. Mr Millard explained that in considering projects the Advisory Groups highlighted a<br />
number of issues where the Committee's position needs to be established.<br />
Following discussion the following was agreed:<br />
(i) Marinas continue to be low priority due to lack of direct employment impact.<br />
"Small scale" developments, where these contribute directly to the<br />
regeneration of a local community, could be considered as part of a CPP bid.<br />
(ii) Community Halls: no blanket exclusions but ERDF to be available to<br />
support only those elements that relate to training/learning and flexible space<br />
which is not allocated for specific/routine use.<br />
(iii) Sports Facilities: continue to be low priority. Little direct employment<br />
impact.<br />
(iv) Roads Projects: continue to be eligible but only where there is evidence of:<br />
(a)<br />
(b)<br />
crucial issue of access to remote communities; and<br />
appropriateness of scale - given that the Priority was not designed<br />
for and cannot sustain significant infrastructure projects when a range<br />
of targets require to be met.<br />
Members invited Mr Millard and the Programme Director to work up a paper to reflect<br />
the foregoing, for clearance by the Committee by written procedure, that will provide<br />
definitive guidance to applicants and Advisory Groups.<br />
J Millard/<br />
D Malone<br />
17. The final point in the report related to the quality and volume of ESF applications.<br />
Members recognised some of the difficulties currently being experienced by<br />
applicants and agreed that a series of workshops was required to address issues of<br />
both volume and quality.<br />
18. Ms Redwood raised concerns over the limited response in many applications to<br />
Equal Opportunities - and how this reflected policy and not implementation.<br />
19. Dr Rigg confirmed that where such issues had been highlighted the lAB had already lAB<br />
gone back to project sponsors. Time restrictions had prevented the received<br />
applications from being presented. On this matter the lAB will ensure compliance<br />
prior to the issue of any grant offer.<br />
lr-.'VESTOR<br />
L\I PEOPLE
•Europe & ScoUand<br />
Investing In your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE HIP~<br />
Advisorv Group Recommendations (HI/PMC/07-13/0021)<br />
20. Mr Millard introduced the item in his capacity as Convenor of the Advisory Groups.<br />
He confirmed the quality of assessment applied by the Groups. He acknowledged<br />
the challenges given to the lAB in getting back to numerous applicants, given the<br />
necessarily tight timescale of the round.<br />
21. Ms Villarosa expressed surprise over the reference to lack of quality in respect of a<br />
number of applications which were then recommended for approval.<br />
22. In response Ms Gregson-Macleod indicated that due to the shortened time available<br />
in the round, the lAB had gone back to the applicant and requested amendments to<br />
their applications. Since most of these were unable to respond prior to the issue of<br />
papers, the original views of the AG's featured in the project summaries. However,<br />
projects had not been recommended for approval unless concerns raised in the<br />
appraisals had been addressed.<br />
23. Ms Villarosa also pointed to an apparent lack of clarity between what may be funded<br />
under UHI SOB and what might be delivered under the challenge bidding.<br />
24. In respect of the recommendations on projects, the following issues were raised:<br />
(i)<br />
in response to a query from Ms Villarosa, the Convenor confirmed that the<br />
VisitScotland application would not be operated on the basis of a global<br />
grant;<br />
(ii) in response to concerns over the efficacy of the process, John Ferguson J Millard<br />
requested clarification in respect of SCVO's Positive Steps to Employment<br />
Project. Mr Mackenzie confirmed that Jobcentre Plus had confirmed that<br />
most of the activity proposed was covered by the New Deal Contract<br />
potentially limiting additionality and that SG would be exploring this in more<br />
detail with DWP;<br />
(iii)<br />
(iv)<br />
in respect of New Start Highland, following an intervention from Linda<br />
Stewart, it was acknowledged that the project merited one year support - the<br />
recommendation being overturned; and<br />
in respect of the application for the Western Isles Roads project, it was<br />
agreed to support in principle (allowing the project to proceed) with a final<br />
grant figure to be determined following consideration of a report by the<br />
Monitoring Committee from Mr Millard/Mr Malone.<br />
25. Thereafter, the Committee approved the remaining recommendations thereby lAB<br />
committing approximately £5.75m of ERDF and £2.6m of ESF. In addition the<br />
Convenor confirmed that applicants had the right to re-apply and specifically in this<br />
regard requested the lAB liaise with the STUC over a future submission.<br />
26. Mr Millard confirmed that in respect of the eligibility of training under ESF of<br />
food/forestry, discussion had taken place that should allow an amendment to the<br />
Operational Programme. Current applications to proceed on that basis.<br />
INVESTOR L'
•Europe & Scotland<br />
Investmg In your Future<br />
Highlands and Islands Convergence<br />
Programmes 2007-2013<br />
PROGRAMME MONITORING COMMITTEE HIP~<br />
27. Mr Millard referred to representations from Highlands & Islands European<br />
Partnership regarding the development of a role in the assessment process of a<br />
"Programme Review Group". He confirmed that PRG would be the sounding board<br />
for the next (truncated) round and that the <strong>Scottish</strong> <strong>Government</strong> would consider the<br />
position thereafter.<br />
28. Members agreed this was a sensible way forward and would help to aid effective<br />
Partnership.<br />
Biddina Rounds (HI/PMC/07-13/0022)<br />
29. Having heard Mr Malone on the proposals for the Bidding Cycle and meeting<br />
schedule for 2008/09, the Committee agreed the arrangements presented.<br />
A.O.C.B.<br />
30. Dr Rigg indicated that the European Commission consultation on the future of<br />
Cohesion Policy post 2013 was due to close at the end of January. The UK<br />
<strong>Government</strong>'s proposed response was not particularly controversial. A separate<br />
<strong>Scottish</strong> <strong>Government</strong> submission would be made stressing the importance of<br />
'regional' cohesion.<br />
31. John Ferguson requested the provision of regular information on the profile of spend<br />
on the Programme for N+2 purposes. Dr Rigg agreed.<br />
32. Mr Millard confirmed that the day's proceedings, when minuted, would be subject to<br />
FO!.<br />
33. Dr Rigg confirmed the departure of two colleagues - Donald Mackenzie from the lAB<br />
and Annick Villarosa from the Commission transferring to External Relations with a<br />
posting in Fiji. He expressed his thanks and best wishes to both.<br />
Date of Next Meetina<br />
34. The date of the next meeting of the 07-13 Monitoring Committee is:<br />
Wednesday 4 th June<br />
Location: Lerwick (hosted by Shetland Islands Council)<br />
Time: 09.30 hours<br />
INVESTOR L'; PEOPLE
For information<br />
EUROPE & SCOTlAND<br />
European Regional Development Fund<br />
Investing in your Future<br />
EUROPE & SCOTlAND<br />
European Social Fund<br />
Investing in your Future<br />
THE HIGHLANDS & ISLANDS<br />
ERDF & ESF PROGRAMMES 2007-2013<br />
PROGRAMME MONITORING COMMITTEE<br />
Strategic Overview<br />
Report from the <strong>Scottish</strong> <strong>Government</strong><br />
HI/PMC/07 -13/023<br />
HIP~<br />
Purpose<br />
1. To allow the Committee to consider progress of the Programmes at a strategic level and also to<br />
consider how it wishes to progress.<br />
Recommendations<br />
2. The Committee is invited to:<br />
(i)<br />
(ii)<br />
consider the details of the Report and form views on how it wishes to proceed; and<br />
thereafter<br />
to note the Report.<br />
BackQround<br />
1. At the time of the last meeting, the operating environment in respect of the new Programmes<br />
was still evolving.<br />
2. The <strong>Government</strong> Economic Strateav was published in November 2007 and signals a significant<br />
change of focus putting economic growth at the heart of Scotland's development. The purpose<br />
of the Strategy:<br />
To focus the <strong>Government</strong> and public services on creating a more successful Country,<br />
with opportunities for all of Scotland to flourish, through increasing sustainable<br />
economic growth."<br />
3. The Strategy sets out a framework with five strategic objectives:<br />
• Wealthier and Fairer;<br />
• Smarter;<br />
• Healthier;<br />
• Safer and Stronger; and<br />
• Greener.<br />
It identifies five key challenges facing Scotland:<br />
• Raising the economic growth rate;<br />
• Improving the poor productivity performance;<br />
• Extending the high participation rate;<br />
• Encouraging population growth; and<br />
• Improving social, regional and intergenerational equity.<br />
L"iVESTOR h'l PEOPLE
For information<br />
HI/PMC/07-13/023<br />
Efforts to address these challenges will be delivered by activity within the following strategic<br />
priorities recognised as critical to economic growth:<br />
• Learning, Skills and Well-being;<br />
• Supportive Business Environment;<br />
• Infrastructure Development and Place;<br />
• Effective <strong>Government</strong>;<br />
• Equity.<br />
4. The implementation of the Strategy requires the alignment of financial and other resources<br />
including the activities of key bodies, to ensure that policy development and spending<br />
programmes are focused in support of the Purpose.<br />
5. The Strategy provides a clear framework for the implementation of the two Structural Funds<br />
Programmes in the Highlands and Islands.<br />
6. The new National Rules on Eliaibilitv prepared in accordance with EC Regulation 1083/2006<br />
(para. 56) are based on key principles of additional costs and apply to all projects approved<br />
under the 2007-2013 Operational Programmes.<br />
7. Whilst every effort had been made to produce clear guidance on eligibility, the bidding Round<br />
did highlight several areas where additional clarity was required, e.g. in respect of additionality<br />
on New Deal contracts. There remains however "differences in interpretation" for example in<br />
terms of staff or other costs being seen as "in-kind" contributions which are now ineligible.<br />
These matters will be resolved as they arise, but applicants are required to acknowledge that<br />
the new rules are, of necessity, more restrictive and will be applied with greater rigour.<br />
8. The final area where a deal of flux was being experienced was in respect of the application<br />
process. The new IT system has recently been launched and this has involved re-registration<br />
and successful applicants from the first Round also require to upload paper based applications<br />
on to the system.<br />
ImDlementation: 2000-2006<br />
9. Drawing on the ERDF analysis presented to the Monitoring Committee at the end of 2006 the<br />
following key information should be noted:<br />
(i)<br />
Allocations<br />
£46.6 million (37%) to the Enterprise Network;<br />
£39.1 million (30%) to the Local Authorities;<br />
£13.4 million (10%) to Higher and Further Education;<br />
£13.2 million (10%) to Voluntary Sector.<br />
(ii)<br />
Sectors<br />
Transport contains the highest level of awards, with over £41 million allocated in<br />
support of road improvements, air services and ferry and harbour facilities.<br />
£21 million supported tourism, £12 million of which went to infrastructure and almost £8<br />
million providing financial assistance and marketing support.<br />
Of the twenty-nine<br />
were island-based.<br />
project approvals made in support of industrial property, sixteen<br />
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(iii)<br />
Tarqetinq<br />
10. In terms of ESF:<br />
Argyll and the Islands and Western Isles were awarded £34 million of grant directly.<br />
These areas also shared in the pan-Highland & Islands total of £32 million,<br />
implemented in the main through HIE "schemes".<br />
Almost £30 million was allocated in support of those areas with the highest needs<br />
assessment classification.<br />
(i)<br />
Human Resource Development<br />
34% of ESF supported the Further Education Sector, and 31% supported the Voluntary<br />
Sector.<br />
The Further and Higher Education Sector and Highlands and Islands Enterprise shared<br />
a marked drop in approvals from 2005.<br />
The Voluntary Sector has been the most active in supporting the Intermediate Labour<br />
Market. £2.5 million was awarded to the Voluntary Sector to address issues of social<br />
inclusion.<br />
11. In looking ahead at the new Operational Programme, members may wish to have regard to<br />
past performance.<br />
Implementation: 2007-2013<br />
12. Following the first Round (and the earlier "Shadow Round"), a total of fifty-four projects (fortyfive<br />
ESF and nine ERDF) have been approved with a commitment of just over £8 million. Of the<br />
projects approved in January 2008 (forty-eight) still five have received Letters of Offer. The<br />
quality of the applications submitted was of such a standard that almost all applications<br />
required amendment or required to make adjustments to the financial commitment.<br />
13. Progress is being made, but slowly. Technical issues are being resolved but in several<br />
instances applicants are not responding. The application of the new compliance rules could<br />
mean that several projects will be decommitted, however given the limited number of approvals<br />
and the need to achieve expenditure and with the onset of the new IT system, a period of grace<br />
may be allowed.<br />
14. Approvals have been issued in respect of the following:<br />
Voluntary Action Lewis (Social Enterprise);<br />
Outdoor Capital (Lochaber - Marketing);<br />
<strong>Scottish</strong> Intellectual Asset Management (Business Development);<br />
Comhaire nan Eilean Siar - Rural Opportunities (ESF);<br />
Forestry Commission - Apprenticeship Scheme;<br />
Highland Opportunity - Employment Grants Scheme;<br />
Highland Council - Community Based Bilingual Assistants.<br />
15. Following approval in principle the applications from the two Strategic Development Bodies<br />
(SDBs) - Highlands and Islands Enterprise and UHI Millennium Institute - work has been<br />
ongoing to finalise the details. This is now complete and "Offers" are due to be issued<br />
imminently. UHI Millennium Institute launched its SDB programme on 15 May 2008. In order to<br />
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ensure the strengthening of the horizontal themes in the Programme, a specific condition has<br />
been applied to each of the SOB approvals.<br />
16. It is too early yet to get a perspective on targeting, needless to say that past performance in this<br />
area has been successful with the horizontal application of geographical targeting across<br />
Programmes. This approach still applies but with added emphasis under Priority 3 to assist<br />
smaller communities and "islands off islands".<br />
17. In terms of strategic issues, progress has also been made in terms of shaping the Programme<br />
- identifying what can be funded and what ought not to be funded - given the tighter financial<br />
perspective. Decisions have already been made in respect of:<br />
• marina developments;<br />
• sports facilities; and<br />
• non-eligible areas of community halls.<br />
In respect of roads projects under Priority 3, discussion<br />
is continuing.<br />
18. Conscious of a relatively slow start, particularly in relation to expenditure, two further Rounds<br />
are planned for 2008.<br />
An interim Round over the summer, applications having already been submitted, to pick up resubmissions<br />
from the last Round and any applications that are time critical. It is anticipated that<br />
following a Programme Review Group assessment of Advisory Group Recommendations, a<br />
written procedure with the Committee will be undertaken in mid-August:<br />
19. A full Round will take place in the Autumn the Committee being presented with project<br />
recommendations at its next meeting towards the end of January 2009.<br />
Expenditure<br />
(N+2)<br />
20. Article 93 of Regulation 1083/2006 details the principle of automatic decommitment. The first<br />
test of N+2 falls at the end of 2009, i.e. the 2007 budget allocation paid out and declared by 31<br />
December. The Regulation allows for an advance of funds in 2007 and 2008 which would<br />
effectively lower the target figures for 2009 and 2010.<br />
21. The tables below provide an indication of the targets which have to be met by the end of each<br />
calendar year:<br />
ERDF N+2 Taraets<br />
Annual Target<br />
Year € Taraet Increase<br />
2009 29,896,923 -<br />
2010 55,918,173 +26,021,250<br />
2011 77,896,766 +21,978,593<br />
2012 95,660,586 +17,763,820<br />
2013 109,032,250 +13,371,664<br />
2014 117,828,968 +8,796,718<br />
2015 121,862,392 +4,033,424<br />
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ESF N+2 Taraets<br />
Annual Target<br />
Year € Taraet Increase<br />
2009 12,794,189 -<br />
2010 23,929,810 +11,135,621<br />
2011 33,335,402 +9,405,592<br />
2012 40,937,309 +7,601,907<br />
2013 46,659,623 +5,722,314<br />
2014 50,424,119 +3,764,496<br />
2015 52,150,195 + 1,726,076<br />
22. Failure to meet the targets will result in a loss of grant so the implementation arrangements<br />
developed by the <strong>Scottish</strong> <strong>Government</strong> for the Programmes aim to resolve previous difficulties<br />
in meeting targets.<br />
23. During previous Programmes, the Monitoring Committee developed and approved an "N+2<br />
Action Plan" which was adapted to meet circumstances during the implementation of the<br />
Programme. An "Action Plan" will be prepared for consideration by the Committee in January<br />
2009.<br />
Lookina Ahead<br />
24. The 2000-2006 Programme demonstrated a degree of similarity to the Objective 1 Programme<br />
of 1994-1999. Continuity was the order of the day and building on early investment was<br />
encouraged. The 2007-2013 Programme is however a significantly different animal, not least<br />
because of the success of the earlier Programmes and the significant change in the socioeconomic<br />
circumstances of the region.<br />
25. The new Programmes reflect:<br />
• the Lisbon agenda, with up to 60% of investment being required to directly support job<br />
creation;<br />
• the increased emphasis on research and development, technological innovation and<br />
training to match;<br />
• a significant reduction in opportunities for "traditional large scale infrastructure" e.g.<br />
transport, tourism facilities;<br />
• an emphasis on learning and knowledge and on business development.<br />
26. As a consequence the new Programmes offer up different opportunities for investment and<br />
have challenged partners to be innovative. The bulk of the applications received to date - albeit<br />
the SDS applications have yet to realise any activity - tend to reflect the more traditional<br />
approach. There are however exceptions. The <strong>Government</strong>'s Economic Strategy does however<br />
provide a framework to allow the approach to evolve.<br />
27. For example key sectors have been identified. How can Structural funds add value to the<br />
development of these? Should we be prioritising these sectors in appraising applications?<br />
European Social Fund can be used to help address labour market shortages and the skills<br />
deficit in these sectors. This is a particular opportunity to utilise ESF in a much more strategic<br />
manner, driving out what is needed on the back of labour market analysis. A proactive<br />
approach rather than one which is responsive. Delivery of training in the Highlands and Islands<br />
in these key sectors should be the responsibility of Skills Development Scotland, and Structural<br />
Funds should be used to prepare a structured programme of training providing the region with a<br />
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significant asset.<br />
28. During the summer months, a series of workshops across the Programme area will be<br />
undertaken with the specific objective of encouraging new thinking and exchanging ideas on<br />
new types of activity.<br />
Conclusion<br />
29. A steady start to the new Programmes. A lot of work has gone into the development of the SOB<br />
applications and on Community Planning Partnership activity which will have longer term<br />
benefit. Not surprisingly there is still a bit of a hangover from the old Programme in terms of<br />
approach, but new opportunities need to be explored quickly in order to generate the major<br />
expenditure needed to meet N+2. The new IT system should help as will the continuing<br />
development of guidance and eligibility.<br />
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WRITTEN PROCEDURE UPDATE<br />
Report from the <strong>Scottish</strong> <strong>Government</strong><br />
PurDose<br />
1. To update members in respect of the recent written procedure.<br />
Recommendation<br />
2. Members are invited to:<br />
(i) note the additional conditions on the SDS arrangements; and<br />
(ii)<br />
note the progress on the strategic issues and discuss as appropriate.<br />
Backaround<br />
3. The recent "written procedure" sought to address two areas outstanding from the<br />
January meeting of the Monitoring Committee:<br />
• agreement on the detail and score in respect of the four SDS applications<br />
from Highlands and Islands Enterprise and UHI Millennium Institute, following<br />
approval in principle; and<br />
• policy in respect of particular types of activity, highlighted by Advisory Groups<br />
during the appraisal process and discussed by members.<br />
4. The former was facilitated through an Extraordinary Advisory Group meeting whilst<br />
the latter involved detailed consideration by the Programme Review Group.<br />
Strateaic<br />
Deliverv Bodies<br />
UHI Millennium Institute<br />
5. The recommendations of the Extraordinary Advisory Group to support were<br />
accepted. Members found the additional detail and the baseline and projections of<br />
student numbers of value and addressed Commission concerns over growth.<br />
6. Two areas however require particular attention in monitoring and reporting:<br />
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• reporting geographical targeting and outcomes; and<br />
• horizontal themes.<br />
7. The expected outcomes from the UHI SOB are as follows:<br />
15 research facilities supported;<br />
30 e-Iearning/training facilities supported;<br />
15 RTO projects supported;<br />
7 renewable energy projects supported;<br />
5 patents filed;<br />
5 vocational training facilities supported;<br />
50 gross jobs created;<br />
200 participants, level 4 and above.<br />
8. Progress against these targets will be reported quarterly in claims and in bi-annual<br />
reports. The Monitoring Committee will receive an annual update on progress in<br />
advance of the re-assessment of the Annual Operating Plan.<br />
Hiahlands and Islands Enterprise<br />
9. The recommendations of the EAG in respect of the HIE applications were also<br />
agreed, albeit with similar concerns over the horizontal themes.<br />
Conditions<br />
of Grant<br />
10. As a consequence of the foregoing, the following conditions, in addition to standard<br />
conditions, will be included in the formal offers of grant:<br />
• Eligible Expenditure - applications include a list of indicative projects. These<br />
appear broadly in line with the scope of Operational Programmes, however<br />
you are required to liaise with the lAB before committing to individual projects<br />
or elements thereof;<br />
• Expenditure Profile - your application sets out expenditure profiles for EROF<br />
and ESF. The <strong>Scottish</strong> <strong>Government</strong> as Managing Authority, attaches<br />
considerable importance to the achievement of expenditure levels to ensure<br />
that programmes meet the exacting annual expenditure targets (N+2). Failure<br />
to commit to and/or achieve sufficient levels of expenditure may result in this<br />
award being withdrawn or reduced;<br />
• Horizontal Themes - applicants are required to submit a further appendix<br />
detailing the Programmes three cross cutting themes - social inclusion, equal<br />
opportunities and environmental sustainability - with explanations of how the<br />
various elements of the projects will address each;<br />
• Reporting arrangements - progress will be subject to regular reporting<br />
including:<br />
- quarterly progress reports (and claims for grant) to the IAB/MA;<br />
- six monthly liaison with the lAB;<br />
- annual reporting to the PMC detailing geographical disbursement of funds.<br />
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StrateQic<br />
Issues<br />
11. Members were invited to consider the policy position in respect of four issues.<br />
Responses were content with the PRG recommendations in respect of:<br />
• Marina and Pontoon Developments;<br />
• Sports and Leisure Facilities; and<br />
• Community/Village Halls.<br />
12. The one area where agreement was not unanimous was in respect of the<br />
recommendations for dealing with Roads/Transport.<br />
Rationale<br />
13. The thrust of the (ERDF) Operational Programme sought to distinguish between<br />
strategic communications (which would not be eligible) and "local" projects designed<br />
to sustain communities by improving access both physically and ·virtually'. The<br />
secondary issue being one of scale.<br />
14. Given the commitment to support the CPP package, approximately £9.5 million is<br />
available to support:<br />
Recommendations<br />
• 40 e-Iearning and childcare (and other) community facilities;<br />
• 15 transport projects;<br />
• 2100 (m 2 ) of business space;<br />
• 15 ICT infrastructure projects;<br />
• 10 renewable energy projects; and<br />
• 1200 gross jobs created.<br />
15. The Programme Review Group recommended that:<br />
• infrastructure projects be restricted to a maximum level of intervention of 20%<br />
up to a maximum grant of £350k (Le. outwith CPP bids);<br />
• a limit of £500k proiect costs for CPP transport projects with a maximum<br />
intervention rate of 25% (Le. within CPP bids);<br />
• revenue transport projects able to apply up to a maximum level of<br />
intervention of 40%;<br />
• up to £3 million of the £9.5 million remaining n the Priority (after CPP topslicing)<br />
to be "allocated" allowing Hitrans/Zetrans the opportunity to prioritise<br />
consistent with the objectives of Priority 3.<br />
16. Concerns were raised in respect of bullet points one and four and members are<br />
invited to consider further.<br />
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Conclusion<br />
17. The SOS application will firm up year on year and greater clarity will be achieved in<br />
respect of outputs and targeting. The conditions on the awards will ensure that<br />
detailed reporting arrangements are established.<br />
18. Clarification on the roads/transport issue requires to be achieved by further<br />
discussion.<br />
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THE HIGHLANDS & ISLANDS<br />
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EUROPE & SCOTlAND<br />
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ACHIEVING COMPLEMENTARITY OF THE PROGRAMME WITH OTHER EUROPEAN<br />
FUND PROGRAMMES OPERATING IN THE HIGHLANDS AND ISLANDS<br />
Report from the <strong>Scottish</strong><br />
<strong>Government</strong><br />
Purpose<br />
1. To explore opportunities for improving the efficiency and sharpening the impact of<br />
the programme through coordination with other European programmes operating in<br />
the programme area.<br />
Recommendations<br />
2. Members are invited to:<br />
• note the overlap emerging between certain parts of the Programme and of other<br />
European funded programmes operating in the Highlands and Islands as these<br />
programmes are adopted and the detail of their provisions and coverage becomes<br />
clear; and<br />
• invite the Programme Review Group to assess the incidence and degree of overlap<br />
and to bring forward recommendations to limit any adverse impact and instead<br />
achieve maximum complementarity of the Programme with the other funding<br />
streams.<br />
Backaround<br />
Complementaritv<br />
3. The European Commission's Community Strategic Guidelines on Cohesion note that<br />
synergies and coherence should be promoted between Cohesion policy (Cohesion<br />
Fund, ERDF and ESF) and the European Agricultural Fund for Rural Development<br />
(EAFRD) and the European Fisheries Fund (EFF). EU regulations oblige Member<br />
State authorities to avoid overlaps and to guarantee consistency and<br />
complementarity between the Structural Funds and the EAFRD/EFF. In addition,<br />
each programme should define the fields of support to be financed by each Fund.<br />
4. Effort to achieve this integration can be focused in two directions - procedural<br />
complementarity and strategic complementarity.<br />
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Procedural complementarity involves how the delivery structures interrelate. In a<br />
<strong>Scottish</strong> context this could include for example arrangements for common<br />
membership of Monitoring Committees or advisory groups or requirements for<br />
reciprocal attendance at such decision making and pOlicy meetings. Arrangements<br />
of this nature are in hand and progressing.<br />
This paper therefore focuses on the opportunities for strategic complementarity -<br />
that is the segregation - whether by reference to project size, geographic location,<br />
time period or other features - of otherwise potentially overlapping or duplicative<br />
provisions in the respective programmes.<br />
European Funds Proarammes in the Hiahlands and Islands<br />
5. There will be four 1 European funded programmes running concurrently in the<br />
Highlands and Islands during the present 2007- 2013 programme period:<br />
FUND Programme Potential Overlapping Provisions<br />
ERDF H&I Programme Priority 1 theme 1<br />
Priority 3 whole priority<br />
ESF H&I Programme Priority 1<br />
EAFRD<br />
<strong>Scottish</strong> Rural Development<br />
Programme<br />
Rural Development Contracts Rural Priority Provisions (various)<br />
LEADER<br />
• National Multiple measures<br />
• Ring-fenced<br />
EFF UK Operational programme 2 Axis 4 - Fisheries Dependant Areas<br />
6. These programmes are either exclusive to the area or, being <strong>Scottish</strong> national<br />
(SRDP) or UK national (EFF) in their coverage, have specific ring-fenced funding<br />
1 Four 'mainstream' programmes. Interreg IV programmes will also operate in all or parts of the<br />
Highlands & Islands.<br />
2 Commences Autumn 2008 for 6 years 2008-2013<br />
2<br />
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allocated to the Highlands and Islands.<br />
7. The availability of funds from sources outwith the mainstream programme offer an<br />
opportunity which with effective planning, could help re-shape the financing<br />
proposals under Priority 3, as they affect CPPs. These arrangements were<br />
determined in advance of knowing what the additional funding streams could bring to<br />
the area. Reviewing how best to utilise the respective resources could have the<br />
effect of re-balancing the "strategic" focus under the Priority.<br />
The ChallenQe<br />
8. In aggregate these funds deliver less than their respective counterpart funds in the<br />
last programme period yet in the Highlands and Islands they are now potentially<br />
more disconnected from each other in their four separate programmes. In the 2000-<br />
2006 programme period assistance to the four fields covered was delivered through<br />
one programme - the Highlands and Islands Special Transitional Programme with<br />
only LEADER delivered separately. Therefore there is now a more complex<br />
complementarity challenge - four separate funds each with its own programme, each<br />
addressing the same territory in whole or in part, sometimes with quite similar<br />
measures especially in the field of community focused support.<br />
Where is the overlap?<br />
9. Although there is also potential at Priority 1 (theme 1 -support for small business) -<br />
and elsewhere in the ERDF programme - for overlap with the relevant funding<br />
provisions of other programmes, the problem is best illustrated by the degree of<br />
alternative funding available for activities covered by Priority 3: 'Enhancing<br />
Peripheral and Fragile Communities':<br />
1. Conversion and ada tation to enter rise/communit centres/facilities ...<br />
2. Refurbishment of existing business development facilities ... including the<br />
develo ment of local incubator and business su ort centres ... ,<br />
3. Develo ment of e-skills/learnin /commerce facilities<br />
4. Develo ment of childcare/de endent care facilities<br />
5. Support for medium-sized energy production and distribution from<br />
renewable energy technologies in response to community energy needs<br />
(small-scale facilities - typically for farms and individual enterprises - will be<br />
funded throu h the <strong>Scottish</strong> Rural Develo ment Pro ramme<br />
6.<br />
7.<br />
8. Investments in ICT infrastructure to enable fra ile areas to take better<br />
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D advantage of the region's broadband infrastructure ...<br />
10. To the confusion of applicants, everyone of the above elements is also available in<br />
some degree from the SRDP whether it be under the Rural Priorities section of the<br />
Rural Development Contracts (ROC) provision ( measures 1,2,3,4 and 5 above) or<br />
under LEADER ( measures 6,7 and 8 above). Each option carries different grant rate<br />
ceilings:-<br />
ERDF Priority 3: 40%;<br />
R.D.C.s: on average 75%;<br />
LEADER 50%.<br />
11. Similarly each has different parameters regarding project sizes - Priority 3: minimum<br />
£50k, no ceiling - ROC minimums and ceilings depend on measure applied for,<br />
LEADER minimum £2k - maximum notionally £150k.<br />
12. The implications in terms of operational inefficiency and confusion to the client is<br />
clear but the potential for unfocussed deployment of funding and even the creation of<br />
difficulties over the absorption of funds is an equally serious consideration.<br />
13. The whole issue is dealt with extensively under the title 'Coordination with Other<br />
Funds' at Chapter 6 of the ERDF Operational Programme. That chapter and<br />
matching treatments in the texts of each of the other programmes provide a<br />
comprehensive oversight but are necessarily only descriptive in nature. We need<br />
now to consider how to achieve this coordination in practice.<br />
Differentiation<br />
14. The challenge is to identify clear steps that can be implemented to distinguish the<br />
relevant provisions of the Highlands and Islands ERDF Programme more sharply<br />
from the provisions of the other European Programmes with which they are<br />
becoming blurred. As has already been stated this can be achieved by differentiation<br />
on the basis of the geographic territory each programme covers, the size of project<br />
they will assist or the period during which the provisions will operate. The latter<br />
option is clearly not relevant or feasible now but the first two - geographical<br />
designation and stipulation of minimum project size -are possible and have the virtue<br />
of simplicity. Already the text unequivocally focuses the ERDF Programme - but<br />
most particularly Priority 3 - on peripheral or fragile areas and already a minimum<br />
project size is being applied as a criterion. Any exercise to identify appropriate steps<br />
towards securing complementarity might usefully examine how best to reinforce the<br />
geographic focus in the allocation of funding and consider the scale of any<br />
adjustment of minimum project size necessary to be effective.<br />
Conclusion<br />
15. It is important to take all reasonable steps to achieve complementarity between the<br />
European Programmes operating in the Highlands and Islands and in so doing<br />
ensuring absorption and expenditure to meet annual expenditure targets. Experience<br />
from the Special Transitional Programme has demonstrated that "holding on" to<br />
allocations in the hope of achieving spend is not an effective approach and invariably<br />
results in the loss of efficiency. Partners face a cluttered landscape and we need to<br />
bring greater structure and clarity to process. PRG would be the best vehicle to make<br />
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a start to this and address the detail. Meetings are already provisionally scheduled<br />
for 12 June and 13 August. This should allow recommendations to circulate to the<br />
PMC by written procedure alongside project and CPP recommendations in late<br />
August.<br />
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