NICVA guidance on A Modern Regional Policy for the UK

(1) Background

In March 2003 the Treasury in conjunction with the Department of Trade and Industry and the Office of the Deputy Prime Minister published a consultation paper entitled ‘A Modern Regional Policy for the United Kingdom’. A copy of the document is available on the NICVA website as are our briefing papers. It is important that voluntary and community organisations respond in writing to this consultation by 4 July 2003.It is particularly important if organisations wish to see a follow-on Programme to Peace II which will this time be focused on peace and reconciliation and will be more efficient and effective in its delivery than Peace II.

NICVA believes that the number of responses in this case will be very important and, therefore, urges you to take action.

Responses can be brief and NICVA would suggest that the following points should be addressed in your own words.

(2) Overview of document

The general thrust of the document is to separate regional policy between the existing fifteen member states of the European Union and the new ten accession countries.The document proposes that the Structural Funds should concentrate on the ten accession countries and that the existing fifteen member states should fund their own regional policy.NICVA has serious concerns that regional policy in the United Kingdom would flounder and become more divorced from the rest of the European Union and that peripheral areas likeNorthern Ireland would ultimately begin to lag further behind.NICVA also believes that the document is inward-focused rather than outward-looking and runs against our need in Northern Ireland to be more outward-looking in social and economic matters within the European Union. Other concerns centre on the visibility of Europe to Northern Ireland citizens if the proposed new policy is introduced. However, NICVA would also support the central thrust of the document which calls for simplification of the bureaucracy of delivering these types of programmes.Whether the programmes are delivered internally by the United Kingdom or as part of a Structural Funds package, simplification of application, appraisal, accounting, monitoring, reporting and auditing is essential to ensure that future programmes are more productive, and output and outcome focused and led.

(3) Peace III

The most important paragraph for Northern Ireland in the document is paragraph 4.18 on page 29. It reads “Northern Ireland and the border region of Ireland also currently benefit from a unique Peace II programme.This demonstrates the European Union’s continuing support for the Good Friday Agreement and is a special programme, delivered by a North/South implementation body, that aims to reinforce progress towards a peaceful and stable society and to promote reconciliation in the region.Since 1995 the European Union has made a substantial financial commitment to the peace process, which has undoubtedly assisted the political, social and economic development of Northern Ireland.The current Peace II Programme ends in 2004 and there is no doubt that the need for activities that promote reconciliation will continue after that date as underpinning support for the implementation of the Good Friday Agreement.This proposed framework does not include a continuing role for added-value, cross-border initiatives.In addition to this, further EU support to promote reconciliation and further underpin the wider work to implement the Good Friday Agreement would remain a possibility.However, the unique objectives and different timescale of the Peace II Programme make it appropriate that this would happen separately from the consideration of this proposed EU framework for Devolved Regional Policy.

This paragraph should be referred to and referenced in your response.The paragraph should be welcomed in the document recognising that the process of peace and reconciliation is a long-term project in Northern Ireland.The United Kingdom and Irish governments should be encouraged to seek the support of the European Union for a Peace III Programme.It is NICVA’s understanding from discussions that this would receive a positive response from the European Commission. The focus of a Peace III Programme should clearly be on reconciliation and on Priority II activities of the current Peace II plan.In line with earlier remarks on simplification, it should be pointed out that the Peace III Programme can only be effective if application and other procedures are simplified and if the Programme is led by a culture which is focused on outputs and outcomes rather than being stifled and strangled by a chaotic and overly complex bureaucracy.

(4) Policy achievements of Structural Funds

The mainstream Structural Funds did not deliver extra resources for Northern Ireland (any allocated was already contained within Northern Ireland public expenditure allocated by the Treasury).There were significant policy and cultural changes which the Programmes promoted.Through these Programmes, government here began to consult more on the design and implementation of some of its spending programmes involving the social partners and consulting with voluntary and community organisations, the private sector, trade unions, farmers, rural community and others.This should be commended – indeed, the partnership process in Northern Ireland is promoted by the European Union.By and large, this has had a beneficial effect.

(5) Peripherality and areas ‘lagging behind’

NICVA has some concern that the UK document marks a subtle shift in government policy towards ‘equal treatment’ of regional development within the UK. NICVA would have some concern that the government will move towards equalising inputs in all regions moving away from providing additional support for areas which have lagged behind, are less developed economically and poorer in terms of average incomes.It is important to reinforce policy on regional development and promote equitable development.Greater attention must be given to those areas which are lagging behind in the economy and they should be assisted to catch up with the more prosperous.It is particularly important for Northern Ireland given our peripherality both in terms of the United Kingdom but, even more so, in terms of the European Union as we are quite far from the centre of economic activity and tend to have additional costs particularly for energy and transport. The Treasury, which issued this consultation document, actually has targets on reducing regional disparities, which do not appear to be reflected in the regional policy now proposed.

(6) EU programmes and the north/south implications in Ireland

Regional policy as it affects Northern Ireland should pay particular attention to the relationship with the Republic of Ireland.The last two plans for regional development here have focused on North/South development with the production of Common Chapters in the programme two programmes.Indeed, the Special EU Programmes Body was created as a North/South body to administer and manage Structural Funds.It is important that future planning should consider the economic relationship on this island.In developing a policy for the region, the United Kingdom government and the European Commission should consider fiscal policies in terms of state aid.The tax revenue regime is much better in the South and has greatly encouraged economic development there.The United Kingdom government should consider how it might assist Northern Ireland to compete with and benefit in the same way as the Republic of Ireland.

(7) Final comments

It is important that as many organisations as possible respond to this consultation.Responses do not need to go into all the areas mentioned above but should at least pick up on the issue of making a call for Peace III.A submission should be made (preferably by email) to the Department of Finance and Personnel by 4 July 2003 to the following address:

Structural Funds Consultation
European Division
Department of Finance and Personnel
NI Health Estates
Stoney Road
Belfast BT16 1US

eurodiv.cfg@dfpni.gov.uk
028 9052 3890

A copy should also be sent to the Department of Trade and Industry at:

Structural Funds Consultation
Regional European Funds and Devolution Directorate
Department of Trade and Industry
Bay 31151 Victoria Street
London SW1H 0ET

sf.consultation@dti.gsi.gov.uk
0207 215 2520

Please also copy to James Laverty at NICVA by email at
james.laverty@nicva.org