WAG freezing private sector out of EU funding

12.00.00am UTC (GMT +0000) Tue 1st Jul 2008

Speaking ahead of the debate on European Structural Funds, Mike German, leader of the Welsh Liberal Democrats, has criticised the Assembly Government for making the process for receiving EU money too difficult and for freezing out the private and third sector from the driving seat of the 2007 -2013 EU funding round.

So far, 19 of the 22 projects approved for the Structural Funds are Welsh Assembly Government-led projects, raising concerns that the Assembly Government is favouring public projects over private and third sector initiatives.

Mike German, Welsh Liberal Democrats European Affairs spokesperson said:

"The Government isn't doing enough to encourage private and third sector project bids to benefit from EU funding.

"I congratulate the two private sector companies on finding their way through the difficult Assembly Government maze of securing funding from the new round of Structural Funds.

"The number of approved projects for EU funding is very low, with only two projects coming from the private sector. This, combined with the current low number of approved projects, shows that the Assembly Government is creating difficult hoops for prospective private and third sector project bids. Curiously, the Government seems more than capable of jumping through its own hoops.

"Since the start of the funding round, the number of approved projects equates to around one project a month being approved.

"This European money is used to tackle regional disparities and support regional development and I don't want Wales to be losing out on the advantages this money provides, as it is very unlikely that Wales would receive money in the next round of EU funding.

"The key to using the opportunities offered by the EU Structural Funds is the creation of favourable conditions in which, public, private and third sector prospective bidders are given maximum opportunity of receiving funding. That way we get the best projects coming forward.

"The Assembly Government needs to provide more assistance to interested groups to meet the demanding criteria it has set the Welsh European Funding Office.

"Private and third sector interested bodies may encounter difficulties in preparing a comprehensive market analysis or long-term impact studies - all demanding requirements from the WEFO. This can discourage many from applying. This is where Assembly Government expertise could be of great use in offering assistance along side committing its own budget to the Targeted Match Funding pots.

"The Assembly Government needs to do all it can to ensure that none of the EU money gets sent back at the end of the spending period and that the benefits of the projects are realised as rapidly as possible."

Notes:

Mike German served as Minister for Economic Development, with responsibility for European Funding in 2000-1.