AMs to debate European Structural Funds report

The National Assembly for Wales will today (20 October) debate a report examining European Structural Funding.

Produced by the cross-party Enterprise and Learning Committee, it urges a more creative approach towards the distribution and use of Structural Funds to stimulate sustainable, long-term improvements to the Welsh economy.

The Committee’s inquiry found that while there was plenty of praise from the European Commission for the Welsh Government and the Welsh European Funding Office (WEFO) over the administration of Structural Funds, there are important issues that still need to be addressed.

These include the need to engage smaller players from the third and private sectors in the implementation of programmes and the negative impact that the Commission’s procurement rules may be having on the communities that most need to benefit from EU funded projects.

The Committee also highlighted the potential impact of tighter public sector budgets on the availability of match funding for EU funded projects, and the likelihood of increased demands on the Welsh Government’s Targeted Match Fund over the programming period.

Gareth Jones AM, Chair of the Enterprise and Learning Committee, said: “We received assurances from the Minister at the time that a lack of match funding would not be an issue for concern, despite this financial climate. Yet with such uncertainty, particularly in the shadow of the UK Government’s Comprehensive Spending Review, we believe this situation needs to be kept under review.

“We also had concerns about the need to improve communication between projects at a local level to avoid duplication of effort in achieving shared goals.

“The overall aim – and ultimate success – of European Structural Funding will be to achieve sustainable structural improvements in the Welsh economy, as well as improvements in the social inclusion agenda.”

In its written response to the report, the Welsh Government accepted 13 of the 19 recommendations made by the Committee, accepted a further five in principle and rejected one.