1. The Management of European Structural Funds in Western Scotland ISPA Partners Meeting April 2003 Laurie Russell Strathclyde European Partnership

2. SCOTLAND?

3. Objective 1 transition 310m euro Objective 2 73m euro Objective 2 480m euro EUROPEAN FUNDS MAP Objective 2 250m euro Objective 3 310m euro

4. INSTITUTIONS Scottish Executive Managing Authority UK Parliament Scottish Parliament and Executive of Ministers PoliticiansCivil servantsAgencies Local councils National enterprise agency Universities and colleges Wide range of non government organisations

5. Partners European Commission Scottish Executive SEP Ltd PROCESS

6. 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

7. 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?

8. 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

9. 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

10. 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

11. APPLICATION PROCESS PROGRAMMEIMPLEMENTINGCOMMITTEE ECONOMIC & SOCIAL COHESION COMPETITIVE LOCATION LABOUR MARKET COMPETITIVE SMEs PARTNERS Apply Decide Appraise Assess

12. 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

13. 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

14. DOWNSIDE? Participation takes time, consultation takes longer Effort needed to develop partnerships - they dont 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

15. 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

16. Up to date information… www.wsep.co.uk Register to receive regular email updates