“ Partnership and Progress” 31 st May 2006

1. TERRITORIAL COHESION AND NATIONAL-REGIONAL PARTNERSHIP for the programming period 2007-2013 Benchmarking Seminar on The Regional Competitiveness and Employment Objective, The European Agricultural Fund for Rural Development (EAFRD), The Regional State Aid Provisions (RSA). “Partnership and Progress”31st May2006 Presentation by Steve Barwick Director of Strategy, NWRA

2. Overview of Presentation • Introduction to UK situation • Introduction to the diverse, distinct and determined North West of England • Explanation of the North West Regional Assembly • Background on the NW and the Structural Funds • Detail on region’s response to NSRF and Operational Programme • Information on Assisted Areas Map and EARDF

3. Situation in UK • UK receive approx €9.4 billion over period: • €2.6b in Convergence (Cornwall, West Wales, Highlands & Islands) • €6.2b in Competitiveness (including ‘phasing in’ Merseyside & S Yorks) - €5.3b left • €0.6b in Territorial Cooperation • Consultation NSRF released 28 February – deadline 22 May • Some different proposals for Scotland, Wales and N Ireland • England asked to respond to 11 questions, including • Comments on proposed priorities • Focus on Lisbon Agenda • Coherence with other policies and alignment with domestic • Future architecture • Allocation between ERDF and ESF and criteria allocation across regions

4. The North West of England • 6.9 million population – larger than 11 EU25 countries • Home of Beatles, Manchester United, Lake District, Hadrian’s Wall, Blackpool, historic Chester as well as residents from all but 6 nations in the world

5. The North West of England • Five varied sub regions – Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside • GVA 89% UK average (GDP 101.2% EU average) - two of five poorest NUTS 2 regions in UK and also one of the most affluent

6. North West Regional Assembly • Indirectly elected with statutory functions (Spatial Strategy and Development Agency Scrutiny) as well as responsibility for “strategic focal point activity” • Strategic and streamlined organisation – focussed on sub regions and an Executive Board of 21 members • Together with Northwest Development Agency – joint presence in Brussels (NW Brussels Office) • Joint European committee: North West Regional European Partnership (NWREP) • English Regions Network and ERBO (English Regions Brussels Offices)

7. Structural Funds – Post 2006 • Critical issue for North West – currently largest UK regional recipient (€2.4bn over 2000 – 2006): funds making a difference • UK Government position - budget constraint, Structural Funds to go “east” and “renationalisation” of regional policy • NWRA prefer Structural Funds – long term, guaranteed and partnership approach; also why should poor parts of UK lose out?

8. Structural Funds – NWRA Approach • Funding for the North West after 2006 – “From Europe or not it must be substantial and long term” • Political communication campaign focussed on UK Ministers but also on European Commission • Steering group led by sub group of European Group and chaired by Cllr Flo Clucas of Liverpool City Council (CoR member) • To date four meetings with Ministers and one with Commissioner as well as official level contact and numerous letters

9. Goals of the North West • General - significant funding (at the level of €1.5 billion plus) • Specific – convergence funding for Merseyside and special fund for Cumbria as well as significant funding for other three sub regions • Build on successful impact of Structural Funds 2000-06 and deliver Lisbon objectives • Also wanted to maintain territorial co-operation activity and see outstanding issue of ex-regio resolved • Results? • Acknowledgement of “cliff edge of funding” issue • welcome decision in December on EU budget 2007-13

10. National Strategic Reference Framework - Consultation • Government consultation launched February • Good – three months to respond; shared aims with UK Government on overall target; good overall economic assessment of regions; arrangements to link to domestic funding • Not so good - limited information on planned allocation criteria, insufficient references to Regional Economic Strategy, Northern Way, city regions, Cumbria, ICT and Regional Assemblies • Response prepared by working group of NWDA, NWRA and sub regional officers; input of NWREP and Government Office consultation event • Final response agreed by NWDA and NWRA executive boards

11. NSRF – North West Response • Regional Economic Strategy as region’s response to Lisbon and includes sub regional priorities is the overarching guide for Competitive and Employment Objective • UK allocation should be distributed using REP- PSA2 target as evidence base – i.e overwhelming majority of €6.2 billion to regions with less than average GVA • NW merits approx €1.5 billion in total – this includes “topslice” for Cumbria (€200million) and pre-allocated sum of €450 million for Merseyside • Flexibility for whole region in ERDF and especially ESF • There should be a single regional Competitiveness and Employment programme for the North West region, including clear recognition of the proposed ring-fenced component for Merseyside.

12. Regional Economic Performance Public Service Agreement “To make sustainable improvements in the economic performance of all English regions and over the long term reduce the persistent gap in growth rates between the regions.”

13. Structural Funds – Next Steps • Proposed regional allocations and changes to draft NSRF • Operational Programme – Government Office led exercise - Consultants appointed • Steering Group – sub regional politicians and partnerships as well as others (Dept Work Pensions/English Partnerships) • Governance arrangements critical • Delivery!

14. The Co-operation Objective • Not included in NSRF – different process • No consideration of how transnational activities could be carried out under Competitiveness and Employment Objective • NW recognises the opportunities and added value of participation in this Objective - tackling common issues JOINTLY with partners from other Member States e.g. the North West hopes to establish bi-lateral maritime co-operation activities with Ireland as well as practical exchanges of experience with colleagues throughout Europe

15. European Agricultural Fund for Rural Development • Good and early contact with UK Government on future EAFRD – consulted on all aspects • Additional consultation period 28/2 – 22/5, including on: • 10% to Axis 1 – delivered by RDAs • 80% to Axis 2 – delivered by Natural England • 10% to Axis 3 - delivered by RDAs • North West favourable subject to reasonable flexibility for regions – though all depends on final content of National Strategic Plans • Territorial Dimension will be dealt with by regional decision making • North West positive about the move from Regional Policy to Agriculture

16. Assisted Areas Consultation • Two-part consultation • Part I – (15th Feb – 19th April) 3 questions: • Extent of coverage for ‘phasing in’ regions under 87.3(c) • Criteria to use to allocate • Geographical unit for designation • Part II – (summer 2006 – 4 weeks) • Draft map will be produced and comments invited

17. North West and Assisted Areas • Very important issue for region – 40% of region’s population currently covered by 87(3)(a) and (c) • Understand total down (for UK from 30% to 23%) but believe North West should suffer “minimal loss” • Difficulties – EU filters exclude significant areas of need within economically flourishing NUTS 3 areas e.g. Manchester South - UK Government consultation did not automatically designate phasing in region – Merseyside - for 87(3)(c) coverage

18. Assisted Areas Map – NW Response • Welcomed two stage consultation • Agreed to disagree on automatic coverage within region • Argued for Map to be targeted at regions with less than 100% GVA (UK); then use basket of other criteria • Use ward level data – and ensure 50,000 and 20,000 population coverage provisions fully utilised • Flexibility required so that North West Map makes sense i.e. covers areas identified in RES for investment as well as those area where companies vulnerable to global factors

19. Conclusions • UK Consultations still in process so no definitive results as yet – need to see how it progresses • European dimension highly important to North West – not just financially • Complex issues – wide range of actors: inevitably problems but structures in place to resolve them • Underpinning principle is partnership (within region i.e sub regions and NWDA and without i.e Government and EC) – leading to progress

20. Contacts Steve Barwick – Director Policy, Scrutiny and Europe – steve.barwick@nwra.gov.ukwww.nwra.gov.uk Suzy Sumner – Head of North West Brussels Office suzy.sumner@northwesthouse-brussels.orgwww.nwbo.be