ESFVON
European Social Fund Voluntary Organisations Northern

March 2001 Bulletin

Important News for 97 - 99 Objective 2 ESF Projects

In September/October last year ESFVON identified there would be potential difficulties for Objective 2 European Social Fund (ESF) projects due to finish in December 2000. This stemmed from the delays in the approval of the 2000-2006 Objective 2 Programme. An update of the current situation will be given later. ESFVON contacted approximately 80% of the voluntary and community sector projects likely to be affected. We identified serious problems would occur which, in the worst instances, could cause organisations to close.

We are pleased to say work by ESFVON, with support from others such as Government Office-North East and the secretary of the Association of Local Trusts Secretaries, has led to a Gap Guarantee Scheme being put in place. The scheme was recently agreed for the whole of the country by the Secretary of State. It is available to all voluntary and community sector Objective 2 ESF projects which ended in December 2000, who are expecting to submit similar ESF projects to the new Programme.

The Gap scheme allows the continuation of ESF projects between the period 1 January 2001 and whenever the new Objective 2 Programme rolls out later this year. If the new ESF application is approved, the start date will be viewed retrospectively as 1st January 2001. This means the funding will officially come from the new Objective 2 Programme and funds from the Gap Scheme will not be used. This bridging scheme should help to ensure continuity of provision until the new programme is in full flow.

We would like to take this opportunity to again thank all involved, from organisations giving information about their projects, to those mentioned above supporting ESFVON's initiative. We think everyone will agree it was much needed and has certainly been appreciated.

Details on how the scheme will run are expected to be sent out from the week commencing 12th March 2001. This scheme will only apply to voluntary and community sector organisations. If you have any questions please contact ESFVON.

Objective 2 Regional Forum

10am-1pm, Wednesday 28th March 2001
Northern Rugby Club, McCracken Park, Newcastle

Following on from the successful events at the Stadium of Light and Northumbria Training, we are holding the third meeting of the voluntary and community sector Objective 2 Regional Forum this month.

We will be discussing funding opportunities for the sector within the new Objective 2 Programme, what the admin arrangements will mean for organisations wishing to apply and important themes such as community businesses, capacity building, equal opportunities and sustainable development.

If you would like to come along, and why not bring some of your target communities area residents too, simply fax or e-mail this booking form back to reserve a place.

This event is free of charge and tea and coffee will be provided for delegates.

BOOK YOUR PLACE NOW BY FAX, E-MAIL OR POST:
Returning to:
ESFVON, St Cuthberts House, West Road, Newcastle upon Tyne, NE15 7PY
Tel: 0191 2749886
Fax: 0191 2742235
E-mail: info@esfvon.org.uk

Click here to view a copy of the booking form, and then print it out.

Objective 2 Programme 2000-2006 Developments
Since our last Bulletin, there have been a number of changes to the 2000-2006 Objective 2 Programme. We have written this bulletin now because the majority of the details are known and are unlikely to change greatly.

Single Programming Document & Program Complement
The Single Programming Document (SPD) is the overall North East argument for receiving Objective 2 support and also contains the strategic Priorities and Measures to be funded. Back in October last year our Bulletin indicated the SPD would be agreed by Christmas - however it was only agreed in principle. This means that the SPD was agreed subject to some minor changes, such as the financial tables. It is expected the Objective 2 Programme, including the SPD, Programme Complement and administration arrangements will be formally agreed and signed off later this month.

As mentioned in previous Bulletins there is a new document for this Programme which gives the Measure level eligible activities to be funded. This is the Programme Complement and it does not need to be agreed by the European Commission. Instead the partners (various sectoral representatives) agree the detailed activities. However, the Complement cannot be finalised until the formal agreement of the SPD. In January this year a new draft of the Programme Complement was produced and it is expected there will be one more final draft for consultation, before the document is finalised.

If you would like a copy of the latest version of the Programme Complement and you have internet access, the easiest way is to visit Government Office North East's website at:   www.go-ne.gov.uk

The website is much improved and does contain many other pieces of information both important and interesting.

If you are unable to access the Internet, ESFVON can supply paper copies on request. Please only ask for the sections of interest to your organisation as currently the whole document is 158 pages long!

Administration Arrangements
The administration arrangements for the new Programme have been agreed. The option chosen was for an enhanced package process rather than an Accountable Body status similar to SRB. The pros and cons of both were outlined in ESFVON's July 2000 Bulletin. The main differences from the previous process will be the increased delegated decision making powers of the package and the re-defining of the roles of the Secretariat, Package Managers and the members of the package partnership. The type of packages (Regional, sub-regional or local) for each Measure are given in the table in the next article.

A further new development is the adoption of Package Delivery Plans (PDPs) which will be similar to those found in SRB. PDPs incorporate the principles of the Action Plan approach to project selection and appraisal, without the package partnership being financially responsible. This responsibility remains with GO-NE.

The rough timetable for the development of packages is as follows:

End of January 2001Programme Monitoring Committee agreed administration arrangements
FebruaryPartnership invited to prepare Package Development Plans (PDPs)
By end of AprilPDPs to have been submitted to GO-NE
End of MayGO-NE to have commented on each PDP. PDPs endorsed.
Late May/June onwardsAppraising and approving projects applications

Note. Individual project applications cannot be approved until the package it applies through has been approved.

Restrospection on bids has also been approved. This means that for ERDF projects the earliest start date you can have is 7th April 2000 and latest end date is 31st December 2003, with financial completion by 31st December 2005. For ESF projects you can start from 1st January 2001 and your end date can be no later than 31st December 2003, which includes financial completion. Please note that when seeking retrospection you must bear in mind how much value your project is actually adding to the Objective 2 Programme. If you can complete you project before you receive an approval letter, it shows you would have run the project anyway and added value to the Objective 2 Programme is questionable.

The maximum project end dates have been chosen to coincide with the Objective 2 Programme's mid-term review. At this stage the European Commission (EC) will assess how well we have done as a region in achieving the levels of spend and outputs we said we would in the SPD and Complement. If we have done well, we can draw down additional funds in the form of a performance reserve. If we have not achieved enough, this money is lost to the region. This is why it is so important to be realistic in your project applications - the North East is counting on you to deliver. The mid-term review also gives the regional partnership the opportunity to review the Complement and see if it needs tweaking in order to be more effective and to modify Target Communities areas if appropriate.
Four Priorities, Not Three
Perhaps the biggest change to the new Programme's development has been the move from three Priorities to four. The change, in simple terms, is that the Small and Medium Sized Enterprises (SMEs) Priority which covered both new and existing SMEs, has been split in two. This is in response to Commission concerns about the large amount (approx 60%) of Programme resource earmarked for Priority 1. This gives the following Programme Structure:-

PRIORITIES AND MEASURESTYPE OF PACKAGE
Priority 1 - Establishing an Entrepreneurial Culture
Measure 1.1Growing New Businesses & Marrying Entrepreneurs with Ideas (ERDF Revenue)Sub-Regional
Measure 1.2Providing Access to Finance for Entrepreneurs (ERDF Revenue)Regional
Measure 1.3Accommodation for Entrepreneurs (ERDF Capital)Sub-Regional
Measure 1.4Entrepreneurial Attitudes and Skills (ESF)Sub-Regional
Priority 2 - SME Growth & Competitiveness
Measure 2.1Assisting SMEs to Expand (ERDF Revenue)Regional & Sub-Regional
Measure 2.2Providing Access to Finance (ERDF Revenue)Regional
Measure 2.3Developing Markets and Customers for SMEs (ERDF Revenue)Regional (for overseas); Sub-Regional
Measure 2.4Transferring Technological Assets to SMEs (ERDF Capital and Revenue)Regional
Measure 2.5Developing SMEs in Clusters and Sectors (ERDF Revenue)Regional
Measure 2.6Accommodation for SMEs (ERDF Capital)Sub-Regional
Measure 2.7Human Resource Development for SMEs in Clusters and Sectors (ESF)Regional
Measure 2.8Human Resource Development for Technology Skills (ESF)Regional
Priority 3 - Strategic Employment Opportunities
Measure 3.1Strategic Spatial Developments (ERDF Capital)Local, co-ordinated via regional group chaired by GO-NE
Measure 3.2Embedding Spatial Employment Opportunities (ESF)Linked with Measure 3.1
Priority 4 - Targeted Communities: Building Capacity & Connecting with Jobs
Measure 4.1Establishing Capacity in Targeted Communities (ERDF Capital & Revenue)Local
Measure 4.2Promoting Community Based Enterprises (ERDF)Local
Measure 4.3Investing in Sustainable Communities (ERDF Capital & Revenue)Local
Measure 4.4Improving Employability: Pathways to Work (ESF)Local
Measure 4.5Improving Employability: Links to Community Capacity, Businesses and Sustainability (ESF)Local

Table Notes: Sub-Regional = 4 packages covering Northumberland, Tyne & Wear, County Durham and Tees Valley. Local = likely to be at Local Authority/cluster of wards level
Priorities 1 & 2
The difference between the SME Priorities are that Priority 1 is for SMEs which have been trading for less than 36 months whilst Priority 2 in the main covers SMEs that have been trading for more than 36 months. ESFVON has produced a Fact File giving more details of each Measure's objectives.
Priority 3
The strategic sites have yet to be decided for the new Programme. This decision will be made soon and should be endorsed at the June 2001 Programme Monitoring Committee (PMC) meeting.
Priority 4
Perhaps the topic of greatest interest to potential Priority 4 applicants is the eligible wards. Under the previous Objective 2 Programme it was quite simple, either it was eligible or it wasn't. For the 2000-2006 Objective 2 Programme the arrangements are more complicated for several reasons:

Priority 4 Core Areas
This is made up of 25% of the population coming from urban areas and 5% from rural areas. The Index of Multiple Deprivation (IMD) has been used as the basis to decide which wards are eligible.
Priority 4 Flexibility/Rounding Out Areas
In addition to the Priority 4 core areas, further electoral wards and enumeration districts (EDs) were chosen on the basis that they filled holes in the map and completed "natural communities".

The wards chosen under these criteria are:

Northumberland

AlnwickCraster and Rennington, Whittingham, Elsdon, Hedgeley, Longframlington, Harbottle, Embleton, Lesbury, Alnwick Clayport, Longhoughton, Shilbottle
Berwick-upon-TweedCheviot, Beadnell, Milfield, Ford, Chatton, Bamburgh, Islandshire, Norhamshire, Spittal, Edward, Tower
Blyth ValleyCowpen, Croft, Hartford and West Cramlington, Kitty Brewster, Plessey
Castle MorpethEllington, Lynemouth, Ulgham
TynedaleWest Tynedale, Upper North Tyne, Wanney, Redesdale, Bardon Mill, Slaley and Hexhamshire, Allendale, Chollerton with Whittington, Tipalt, Chesters, Warden and Newbrough, Wark
WansbeckHirst, Newbiggin East, Choppington, Central

Tyne & Wear

GatesheadBede, Felling, Bensham, High Fell, Teams, Deckham, Saltwell (EDs CHFS 01-03, 05, 06, 10-12, 16)
Newcastle upon TyneWalker, Monkchester, Elswick, West City, Byker, Scotswood, Benwell, Woolsington (EDs CJGC 04-18), Moorside, Blakelaw (EDs CJFB 12, 13, 18), Kenton (EDs CJFN 05, 06, 11, 19-22), Wingrove (EDs CJGB 18, 20, 22), Walkergate (EDs CJFY 09, 10, 14, 23)
North TynesideChirton, Riverside, Howdon (EDs CKFH 04, 09-12), Collingwood (EDs CKFE 17, 19, 20)
South TynesideRekendyke, Bede, Cleadon Park, Tyne Dock and Simonside, Biddick Hall, Primrose, Beacon and Bents, All Saints, Hebburn South (EDs CLFL 02-05, 07-12)
SunderlandSouthwick, Town End Farm, Thorney Close, South Hylton, Grindon, Castletown, Colliery, Hendon (EDs CMFG 01-04, 07-13, 16, 19, 20, 23, 25), St Chads (EDs FN 02-04, 10, 11, 14-16, 19), Central (EDs FB 02, 06-09, 17-19, 24, 26, 27), Thornholme (EDs FW 01-04, 10)

County Durham

Chester-le-StreetGrange Villa, Edmondsley
DerwentsideSouth Stanley, Craghead, South Moor, Catchgate, Burnhope, Stanley Hall
DurhamPelaw, Shadforth, New Brancepeth, Pittington & West Rainton, Ushaw Moor
EasingtonEden Hill, Deneside, Dawdon, Shotton, Easington Colliery, Acre Rigg, Haswell, Wheatley Hill, Horden North, Horden South, Wingate, Dene House, High Colliery, Thornley, Blackhall, Howletch, South, Hutton Henry, Murton West, South Hetton, Easington Village, Deaf Hill
SedgefieldWest, Thickley, Cornforth, Old Trimdon, New Trimdon & Trimdon Grange, Sunnydale, Chilton (EDs GWFD 10-12)
TeesdaleGreta, Romaldkirk, Cotherstone with Lartington, Hamsterley and South Bedburn, Eggleston, Lynesack
Wear ValleyWoodhouse Close, St. Helen's, Coundon, Henknowle, Willington East, St. John's Chapel, Wolsingham, Coundon Grange, Stanhope, Tow Law, Crook North

Tees Valley

DarlingtonCentral, Cockerton West, Eastbourne North
HartlepoolOwton, Dyke House, Stranton, St. Hilda, Brus, Jackson, Rossmere, Fens (EDs ESFE 01-04)
MiddlesbroughThorntree, Pallister, St. Hilda's, Park End, Beckfield Beechwood, Berwick Hills, North Ormesby, Westbourne, Grove Hill, Easterside, Southfield, Ayresome, Gresham, Stainton and Thornton, Hemlington
Redcar and ClevelandGrangetown, South Bank, Kirkleatham, Coatham, Newcomen, Lockwood & Skinningrove, Loftus, Guisborough, Eston (EDs ETFG 02, 03, 05, 07, 09, 17, ETFA 03-11)
Stockton-on-TeesPortrack and Tilery, Hardwick, Parkfield (EDs EWFU 01-14), Newtown, Roseworth, Mile House, Bluehall (EDs EWFB 08-11), Victoria (EDs EWGC 02-05), Mandale (EDs EWFN 01-06, 08-11)

Priority 4 Soft Landing Areas
These types of area are former Objective 2 1997-1999 Programme Priority 4 CED areas which are not Priority 4 core or flexible areas under the new Programme. The proposal for these areas is that they will be able to apply for funds from Priority 4 until the 30th June 2002 and spend the resources until the 31st December 2003.

Excluding the EDs included in the previous table, these wards are:-

Northumberland

Blyth Valley Isabella
WansbeckPark, Sleekburn, College, Newbiggin

Tyne & Wear

North TynesideCollingwood, Longbenton, Howdon
SunderlandCentral

Durham

Chester-le-StreetChester West, Edmondsley

Tees Valley

HartlepoolBrinkburn, Park, Fens, Throston, Grange
MiddlesbroughLinthorpe, Newham
Redcar and ClevelandDormanstown, Saltburn, Skelton
Stockton-on-TeesBlue Hall, Victoria, Charltons, Mandale, Stainsby, St. Aidan's, Village, Marsh House, Elm Tree, Yarm
Objective 2 Package Development
Below is a general update on the packages which will deliver the Programme. Whichever package you are interested in, you should be involving yourself in its development now as there is still much you can influence, which may not be possible in a few months time. If you would like further information on how the packages will operate or contact details etc please contact ESFVON or One Voice Tees Valley (OVTV).

Priorities 1 & 2

The regional and sub-regional packages expected to deliver these Priorities are being formulated now. Some have started discussing project outlines already. For those working with community businesses, ESFVON strongly advises you become involved in the process quickly as there are considerable opportunities for you under these Priorities. You need to be become involved in order to influence the Package Development Plans (PDPs) which are to be written by each package.
Priority 3
The individual strategic site packages will be developed once the sites are chosen. Again, it is hoped the list of sites will be approved at June 2001 Programme Monitoring Committee (PMC) meeting.
Priority 4
The development of the Priority 4 packages is somewhat fragmented currently. Some already have community appraisals which are less than 2 years old, although some amendments may be required. Others have project ideas already and are working to bring these forward quickly.

As there is going to be a rationalisation of the number of packages, some areas will be expected to cover greater numbers of wards, although some have yet to decide the exact spread.
Grant Ranges
Another key issue for most projects is the maximum grant rate they can apply for. The following is from the January 2001 Final Draft Programme Complement for the 2000-2006 Objective 2 Programme:

Infrastructure capital investment without any revenue generating capacity50%
Infrastructure capital investment which generate substantial (see note 1) revenue 25%
Revenue expenditure schemes which are not in direct support of individual enterprises & do not generate revenue (eg grant rates)50%
Direct Aid schemes in respect of investments by individual enterprises15%
All expenditure co-financed by the ESF (excluding technical assistance)45%
Technical assistance50%
Note 1: the preamble to Regulation 1260/1999 suggests that "substantial" equates to at least 25% of the total costs of the investment.
Modulation of Grant Rates
A proposal for the new Programme, covering both ESF and ERDF capital, is the modulation of grant rates. This means that certain criteria must be met to enable the maximum grant rate for the activities to be undertaken, to receive approval. It is not proposed ERDF revenue projects will have modulation of grant rates as a good revenue project will have addressed sustainability thoroughly. If it had not, it would not have been approved.

For ERDF capital, projects will only qualify for the maximum grant rate where they meet BREEAM standards. BREEAM (Building Research Establishment Environmental Assessment Method) is a method for analysing and improving the environmental performance of buildings from design through to management. An example, where the maximum grant rate for infrastructure projects with revenue potential is 25%, then applicants would have to meet agreed criteria to obtain this level of support. The maximum rate for those that do not meet the criteria would be 20%.

For ESF, equality of opportunity is required to qualify for the maximum grant rate. The applicant will have to demonstrate that positive steps are being taken within the project to promote equality of opportunity. These steps will go beyond those required for the previous Programme, i.e. each applicant needing an Equal Opportunities policy. Options for ESF could be:

Evidence of Demand
For the first time track record is expected to be a component of project appraisal. If the project is a continuation or modification of a previous scheme, the question to be answered is: to what extent did the project meet the anticipated outputs for the last full year of operation? If not, to what degree did it vary?

For a completely new project, the question to be asked is:- to what extent was the business community (Priorities 1-3) or local community (Priority 4) consulted about the need for this particular scheme?

To exactly what extent these questions may prohibit/improve the prospects of the potential project are not known, but should be borne in mind.
Residents/Local Community Involvement
For Priority 4 Packages during the 2000-2006 Objective 2 Programme, the partnership is expected to be composed of at least 30% being local residents. The package development guidance states "safeguards must be written into arrangements that delegate decisions on project selection to local communities. Project selection panels should consist of a majority of members from the voluntary sector, community groups and local resident population".

This guidance should allow open and transparent selection and appraisal systems to be implemented in each package throughout the region.
World Tour Seminars
The last Bulletin promoted a number of awareness raising and information giving seminars ESFVON were planning to hold during November and early December. There were ten seminars in total covering Berwick through to South Durham. ESFVONs partner organisation OVTV also held an event in Tees Valley. In total over 100 people attended, including both those completely new to European funding and those with previous experience. To all who attended, we hope you enjoyed the day and found the information given useful. We also hope to see many of you in the future to discuss any potential ideas for projects you may have. If you were unable to attend, please contact us and we may be able to arrange additional events or pass the information on to you.
Community Initiatives
The following gives an update on the four Community Initiatives:

URBAN II

The joint Sunderland/Easington bid was included as part of the UK's 13 Programmes submitted to the European Commission. The problem is that the UK was only allocated 9 Programmes. A decision is expected soon. We will keep you informed of future developments.

EQUAL

It is expected the EQUAL Programme will be launched this month, with applications starting this summer.

INTERREG III

The North Sea Region, which includes the North East, should receive a response from the Commission before the end of April. It is not expected project selection will begin until July/August at the earliest.

LEADER+

It is hoped the Commission will agree the national Leader Programme by March 2001. Local partnerships will then be invited to bid. There is still no clear date as to when the project applications will be required.
Project Development
Given all of the above information and the current position in the development of the Objective 2 Programme, ESFVON strongly advises any voluntary and community organisation with any interest in submitting an application, to really start to get involved in the processes. There will not be a better time for you to become involved as, to a large extent, the page is blank especially at package level. Should you have any ideas that you would like to explore further, please don't hesitate to contact either Sue Mason or Victor Ottaway at ESFVON on 0191 274 9886 or Sue Featherstone at OVTV on 01642 240651. We can offer a wide range of services to help you develop a successful project and ……… best of all, they are FREE to access. Now is definitely a good time to seize the moment.

Last Updated: 14 March 2001

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