Structural Funds and Rural
Development Plan proposals for
2014-2020
Briefing paper – February 2013
1.
Introduction
This briefing provides an overview of the Welsh Government’s consultation on proposals
for the Structural Funds (ERDF and ESF) and the Rural Development Plan (RDP) for
2014-2020.
The documents were published on 14 and 31 January 2013 respectively and the
consultation period closes on 23 April 2013. The documents are available here:
Consultation on Wales and the EU: Partnership for Jobs and Growth - European Structural
Funds 2014-2020
The Common Agricultural Policy Reform: Rural Development Plan 2014-2020: Next Steps.
WCVA intends to submit a response to both consultations and we would welcome input
from third sector organisations. If you would like to contribute to our response, please send
comments to us by 12 April 2013:
Judith Stone
European Brokerage & Partnerships Co-ordinator
Third sector European team (3-SET)
Tel.: 029 2043 1744
E-mail: jstone@wcva.org.uk
2.
Purpose of the consultation
On 14 January 2012 the Welsh Government launched a full public consultation ‘Wales and
the EU: Partnership for Growth and Jobs – Structural Funds 2014-2020’ with proposals for
West Wales and the Valleys and East Wales. This was followed by the publication of the
Rural Development Plan (RDP – Pillar 2 of the CAP) consultation document on 31 January.
The Structural Funds (ERDF and ESF), the Rural (EAFRD) and Fisheries (EMFF) Funds
are all part of the European Commission’s Common Strategic Framework, which aims to
promote use of the different European funds in a more integrated way.
Both consultations have been developed following extensive involvement with
stakeholders in Wales, and invite comments on the Welsh Government’s proposed
strategies and investment priorities for the next programming period.
This consultation on the proposed strategic and investment priorities runs alongside an ongoing independent review by Dr Graham Guilford into the arrangements for implementing
the Structural Funds post-2013. The first part of this review concluded in November 2012
and focused on improvements to WEFO’s project application and management processes.
You can view WCVA’s response here.
The second part of the review, due to report in February 2013, will consider the
appropriateness of WEFO’s current governance and reporting arrangements in fulfilling its
role as both managing and certifying authorities for Structural Fund programmes and
consider whether the role of the organisation should be changed to encompass
responsibility for promoting and facilitating access to a broader range of EU funding
opportunities.
3.
The importance of these proposals to the wider third sector
European Structural Funds provide a significant source of funding to third sector
organisations to deliver the Welsh Government’s economic regeneration agenda.
In the 2007-2013 Structural Funds programmes (Convergence and Regional
Competitiveness and Employment, ERDF and ESF), third sector organisations led on 45
projects with a total value of £172.1 m1, and delivered contracts to the value of £117.8m2.
During the 2000-2006 programmes 319 third sector organisations accessed £251,514,365
of European funding (Objectives One, Two, Two T, Three, EQUAL and URBAN II)3.
This consultation process will help to shape the future funding priorities for 2014-2020.
4.
The Structural Funds (ERDF and ESF)
Between 2007 and 2013, our economy and people across Wales will benefit from around
£3.3 billion of investment (EU funds of £1.9 billion) through the European Structural Funds
programmes. As at 15 January 2013, a total of 277 projects have been approved EU
funds of over £1.86 billion, representing a total project investment of £3.8 billion.
For the programming period 2014-2020 it is expected that, since the average gross
domestic product (GDP) is less than 75% of the EU average, West Wales and the Valleys
(Convergence area) will qualify as a “less developed region”: the highest level of support
available, and it is expected that East Wales will qualify for the lowest level of funding as a
‘More Developed Region’. The actual amount of EU funding that will become available
during the next programming period is subject to the outcome of negotiations on the EU
budget by the European Council and the European Parliament.
The next round of programmes have been developed with a clear focus on growth and
jobs, which is in line with the Welsh Programme for Government, and the Europe 2020
goals of smart, sustainable and inclusive growth.
The vision for 2014-2020 is that Structural Fund programmes, properly aligned to the
Programme for Government, will help Wales become a confident, entrepreneurial and
ambitious nation, prospering from sustainable economic growth.
The 2014-2020 programmes will need to address the ‘fall out’ from the double-dip
recession and the continued long-term structural weaknesses in Wales.
The document notes that the annual GVA in Wales is circa £45 billion; whilst the value of
WCVA research (February 2012)
WEFO Programme Monitoring Reports (December 2012)
3 The third sector’s contribution to the Objective One programme 2000-2006 (Bryan Collis, WCVA,
September 2007)
1
2
the Structural Funds made available to Wales over 2007-2013 is circa £1.8 billion. This
emphasises the need for the European Programmes to work in a coordinated way with
devolved and non devolved government measures, and with both the third and private
sectors, and utilizing other sources of EU funding where appropriate (such as Horizon
2020, LIFE and the Connecting Europe Facility) in order bring about a transformational
change in our economy and labour market.
5.
Structural Funds proposed priorities

Convergence programme
European Regional Development Fund (ERDF):
1. SME Competitiveness
 Theme 1: Access to finance
 Theme 2: Entrepreneurship
2. Infrastructure
 Theme 1: Transport and network bottlenecks to growth
 Theme 2: Infrastructure-led growth
3. Research and Innovation
 Theme 1: Innovation for all
 Theme 2: Research and development
4. Renewable energy and energy efficiency
 Theme 1: Energy efficiency
 Theme 2: Marine energy (tidal, wave and wind)
European Social Fund (ESF)
1. Helping people into work
 Theme 1: Helping people into work
 Theme 2: Inclusion and engagement in the labour market
2. Education, skills and lifelong learning (Skills for all)
 Theme 1: Adaptability and progression
 Theme 2: Skills for research and innovation
 Theme 3: Skills for leadership and management
 Theme 4: Gender equality
3. Early years and young people (Brighter futures)
 Theme 1: Youth employment
 Theme 2: Youth attainment and engagement
 Theme 3: Early years

Regional Competitiveness and Employment Programme
European Regional Development Fund (ERDF):
1. SME competitiveness
 Theme 1: Access to finance

Theme 2: Entrepreneurship
2. Research and Innovation
 Theme 1: Innovation for all
 Theme 2: Research and development
3. Renewable energy and energy efficiency
 Theme 1: Energy efficiency
 Theme 2: Low carbon transition
European Social Fund (ESF)
1. Skills
2. Youth employment
The draft regulations stipulate that of the total future funding allocated to East Wales, a
minimum of 52% must be allocated to ESF and 80% of the remaining ERDF allocation
would have to be ring-fenced on the priorities of SME Competitiveness, Low Carbon
Economy and Research and Innovation. This would leave extremely limited resources for
activity outside the scope of these priorities.
6. The Common Agricultural Programme (CAP) and the Rural Development Plan (RDP)
The CAP comprises direct payments to farmers and wider economic and environmental
support under the Rural Development Plan (RDP). The Welsh Government is consulting
separately with the farming community on the reform of CAP Direct Payments, whilst
recognising the synergy with the debate around the RDP.
The RDP aims to improve competitiveness in the agriculture and forestry sector; safeguard
and enhance the rural environment and foster competitive and sustainable rural
businesses and thriving rural communities. The 2007-2013 RDP has a total funding
package of £841m from the European Agricultural Fund for Rural Development (EAFRD),
which is divided into four Axes:
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Axis 1 – supports the competitiveness of agriculture and forestry
Axis 2 – improves the environment and countryside through the Glastir programme
(farm sustainable land management scheme)
Axis 3 – improves the quality of life in rural areas (delivered by local partnerships)
Axis 4 – funds locally based ‘LEADER’ approaches to rural development.
The actual amount of EU funding that will become available during the next programming
period is subject to the outcome of negotiations on the EU budget.
The Welsh Government has responsibility for preparing the RDP in Wales. This must meet
three European Commission Objectives for the RDP:



The competitiveness of the rural economy (agriculture, forestry and rural SMEs)
The sustainable management of natural resources and climate action
Balanced territorial development of rural areas
The Europe 2020 strategy for smart, sustainable growth and the Welsh Programme for
Government, underpinned by more detailed policy documents, set the framework within
which the Wales RDP will set its targets and measure its impacts.
The next RDP will not contain axes and will have a more flexible structure based around
three broad objectives, relating to the competitiveness of agriculture, sustainable
management of natural resources and the balanced development of rural areas.
7. RDP proposed priorities
There are six Rural Development Priorities which set the context for the EAFRD:

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Fostering knowledge transfer and innovation in agriculture, forestry, and rural areas;
Enhancing competitiveness of all types of agriculture and enhancing farm viability;
Promoting food chain organisation and risk management in agriculture;
Restoring, preserving and enhancing ecosystems dependent on agriculture and
forestry;
Promoting resource efficiency and supporting the shift towards a low carbon and
climate resilient economy in agriculture, food and forestry sectors;
Promoting social inclusion, poverty reduction and economic development in rural
areas.
Innovation and climate change mitigation are cross-cutting objectives.
8. RDP delivery
It is proposed that the RDP is structured to reflect the integrated model for Sustainable
Development adopted by Welsh Government as its central organising principle, with its
three inter-linking spheres of economy, environment and social aspects.
The high administrative costs of delivering the current programme (around £19m), as well
as requirements for simplification, suggest a need to review structures at the local/regional
level and secure improvements. The Ministerial Advisory Group is currently considering
options for making changes.
The possible use of sub-themes to target specific sectors/groups of individuals/ geographic
areas is also being considered. These would be discrete programmes within the RDP.
Two sub-themes are currently under consideration: issues affecting the uplands of Wales
and support for young people.
LEADER is a mandatory part of the next RDP and has to receive at least 5% of the
funding. For the next programme it is suggested that LEADER is brought back to the
original concept and focused on innovation, piloting of new approaches, networking and
bottom-up community working. Local Action Groups (LAGs) would be required to work
within a clear strategic framework that aligns to the Welsh Programme for Government, but
recognising that LEADER works best when links are made between different sectors to
add value to local economic development.
9. The cross-cutting themes
The European Commission wants to see a more consistent approach to the cross-cutting
themes (also referred to as ‘horizontal themes’) across the four funds (ERDF, ESF,
EAFRD, EMFF). The themes that must be supported are Equal Opportunities (Article 7
Promotion of equality between men and women and non-discrimination) and Sustainable
Development (Article 8). The Welsh Government proposes to introduce a third cross-
cutting theme of tackling poverty because the commitment to promote social inclusion and
combat poverty is reflected as a thematic objective across EU Common Strategic
Framework funds in the draft EU programme regulation.
7.
Issues for the third sector

Working with the third sector
WCVA welcomes the clear commitment to working with the third sector to deliver
the programme priorities, however the chosen mechanisms for delivery will have a
significant impact on the third sector’s ability to engage with the programmes.
WCVA advocates funding mechanisms that provide greater flexibility such as global
or competitive grants, that could open up access to the funds for grass roots third
sector organisations. This will be vital to the tackling poverty agenda.

Working in partnership
WCVA welcomes the community–led local development approach within the RDP,
provided the third sector is involved as an equal partner.

Combating poverty and social exclusion
The EU Platform Against Poverty and Social Exclusion (Europe 2020 Flagship
Initiative) proposed that 20% of ESF in Convergence areas should be ring-fenced
for anti-poverty interventions. However poverty and social exclusion has
manifested itself in the proposals as a cross-cutting theme with no specific financial
allocations. WCVA believes this would compromise the ability of the programmes to
effectively address poverty and social exclusion.

Financial instruments
WCVA welcomes the commitment to creating financial instruments, including for the
third sector, to leverage additional funds and to promote a great legacy for the
funds.

Multi fund projects
The Common Strategic Framework presents a key opportunity to streamline EU
funding in Wales and to facilitate multi-fund projects that effectively address the
needs of beneficiaries and participants in a rounded way. However, in order to
make best use of this opportunity WEFO must put in place expert resources to
guide applicants through the complex system and WCVA urges Welsh Government
departments to begin work now on strategic initiatives, with colleagues in other
departments as well as external partners, in order to set the framework for
operational delivery.

Adding value with transnational projects
The aspiration to utilise other transnational EU funding streams such as Horizon
2020 and LIFE to add value to EU funded projects in Wales is welcomed, but this
will require significant investment in raising awareness of opportunities and
technical support to bring them to fruition.
8.
How to get involved

Shared sector response
WCVA will submit a response to the consultation on behalf of third sector organisations,
and would welcome feedback in relation to the specific consultation questions posed in the
documents, which can be found here:
Consultation on Wales and the EU: Partnership for Jobs and Growth - European Structural
Funds 2014-2020
The Common Agricultural Policy Reform: Rural Development Plan 2014-2020: Next Steps
(page 53)
We would particularly welcome case studies or examples (real and potential) that
demonstrate how greater integration could be achieved between ERDF, ESF, EAFRD and
the EFF.
Please send any comments you may wish to be included in WCVA’s response by Friday
12 April to the third sector European team (3-SET).

Respond directly to the Welsh Government
The deadline to submit your own comments on both documents is by 23 April 2013 to:
Consultation on Wales and the EU: Partnership for Jobs and Growth - European Structural
Funds 2014-2020
Programme Development Division
Welsh European Funding Office
Rhydycar
Merthyr Tydfil
CF48 1UZ
Or e-mail: WEFO-Post2013Programmes@wales.gsi.gov.uk
The Common Agricultural Policy Reform: Rural Development Plan 2014-2020: Next Steps.
CAP Planning Division
Welsh Government
First Floor, West Wing, CP2
Crown Buildings
Cathays
Cardiff, CF10 3NQ
Or e-mail RDP2014-2020@wales.gsi.gov.uk

Consultation events
WCVA will host three regional consultation events to provide information about the
proposals for the Structural Funds and Rural Development Programmes in Wales 20142020 and to hear feedback from the sector, which will inform WCVA’s responses to the
consultations:
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5 March 2013 – Venue Cymru, Llandudno, LL30 1BB
6 March 2013 - The Halliwell Centre, Carmarthen, SA31 3EP
18 March 2013 – Future Inn, Cardiff Bay, CF10 4AU
To book a place at these free WCVA events please contact: eventsadmin@wcva.org.uk
The Welsh European Funding Office (WEFO) will also host four consultation events:
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31 January 2013 - North Wales, Venue Cymru, Llandudno, LL30 1BB
21 February – South West Wales, Stradey Park Hotel, Llanelli, SA15 4HA
7 March – Mid Wales, tbc
21 March – South East, Coleg Morgannwg’s Nantgarw 3 Campus, CF15 7QX
A limited number of spaces are available. To register your place at one of the events
please email WEFO Communications.
If you have any queries about this briefing or the consultation document please contact
Judith Stone jstone@wcva.org.uk
JS
February 2013