The Management of European Structural Funds in

Western Scotland

ISPA Partners Meeting April 2003

Laurie Russell

Strathclyde European Partnership

SCOTLAND?

Objective 1 transition310m euro

Objective 273m euroObjective 2 480m euro

EUROPEAN FUNDS MAP

Objective 2250m euro

Objective 3310m euro

INSTITUTIONS

Scottish ExecutiveManaging Authority

UK Parliament

Scottish Parliament

and Executive of Ministers

Politicians Civil servants Agencies

Local councils

National enterprise

agency

Universities and colleges

Wide range of non governmentorganisations

Partners

EuropeanCommissionScottish

Executive

SEP Ltd

PROCESS

ROLES

• SPD developed in partnership by Scottish Executive, SEP Ltd, local partners and EC

• Administration of the Programmes:–Scottish Executive is the managing authority

–Day to day management devolved to SEP Ltd

• Public sector bodies (local councils, universities, colleges, enterprise agencies) develop projects and bid for European Funds support

• Decisions on funding awards are taken by partnership committees

• Devolved Programme management in Strathclyde since 1988 - similar model in other Scottish regions since 1994

• Company limited by guarantee - not for profit with clear public sector values

• Programme experience:– Objectives 2, – ERDF & ESF– Community Initiatives - RECHAR, URBAN,

RESIDER, EQUAL– Regional Innovation Strategy, TEP

WHAT IS SEP LTD?

WHAT DOES SEP LTD DO?

• Pre-application advice and assistance• Managing the project life cycle• Managing the decision making process

and committee system• Processing project applications, issuing

offers of grant, processing claims, carrying out monitoring visits

• Specialist support on horizontal themes• Disseminating good practice & learning• Publicising European Funds

HOW IS THIS FUNDED?• Technical Assistance and Co-finance:

– 50% from ERDF and ESF technical assistance

– 50% from partners

• Partners contributions:– Percentage of the Funds each is awarded

– Set by SEP Ltd Board of Directors, agreed with Monitoring Committee

– Fixed for duration of Programme

– Not eligible for European Funds

• Budget covers:– All office, staff and equipment

– Publicity and marketing

– Research into Programme issues

HOW ARE FUNDS DISTRIBUTED?

Development

Application

Assessment

Appraisal

Decision

Offer

SEP Ltd staff working with partners pre-submission

Projects received, referenced and acknowledged

Technical eligibility, horizontal themes, suitability

Selection criteria, scoring system, recommendations

Programme Implementing Committee considers all recommendations

Approved projects grant offer within 10 days of Ministerial approval of decisions

APPLICATION PROCESSPROGRAMMEPROGRAMME

IMPLEMENTINGIMPLEMENTINGCOMMITTEECOMMITTEE

ECONOMIC & SOCIAL

COHESION

COMPETITIVELOCATION

LABOURMARKET

COMPETITIVESMEs

PARTNERSApply

Decide

Appraise

Assess

CHARACTERISTICS OF THE SCOTTISH SYSTEM

• Regional economic planning - closer to problems leads to appropriate solutions

• Flexible co-finance for projects - bottom up approach• Partnership - every agency has equal status • Decisions are made by consensus• Targeting resources on areas of economic need -

strong local area development focus• Monitoring and evaluation built in • Sharing our knowledge / experience• Visibility of Europe on the ground

ADVANTAGES

• Consistent with and sensitive to but not driven by political priorities

• Able to survive institutional or political change• Positive Scottish Parliament independent

review in 2000 • Transparent and accountable• Equitable - all partners involved and have equal

voice• Balances objective appraisal criteria with

expertise and experience of partners

DOWNSIDE?

• Participation takes time, consultation takes longer

• Effort needed to develop partnerships - they don’t happen naturally or quickly

• Will need new skills and training needed• Some agencies will argue against transparency• Need to be clear about lines of accountability

and who does what• Genuine regional policy will require the centre

to relinquish power

CONCLUSION

• Partnership can be slower and therefore more expensive

• But the long-term benefits outweigh the short-term issues– High level of positive outcomes – Innovative Programme management and

projects– EC policy themes can be needed to mainstream

at member state level – Exchanging policies, ideas and projects

between regions and with the EC

Up to date information…

www.wsep.co.uk

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