Boost To Social Fabric and Competitiveness

9th April 2008

Projects across the Highlands and Islands designed to increase economic competitiveness are to benefit from 15.4 million pounds of European funding, First Minister Alex Salmond announced today.

The funding will be distributed amongst 45 projects through the 2007-13 European Regional Development Fund (ERDF) and European Social Fund (ESF).

Recipients include:

* The Barnardos Youthbuild project, which seeks to help disadvantaged young people into employment. The funding will allow a one-year pilot project to be run across the Highland and Islands region, in partnership with Scottish and Southern Energy and associated employers who will guarantee employment for young people who complete the project.

* The Social Enterprise Academy, which will run a project aimed at equipping social enterprises and SMEs across the Highlands and Islands with leadership and enterprise skills.

* North Highland College, which will use its funding to promote reskilling for the oil, gas and renewables industries.

The First Minister made the announcement ahead of a visit to Scotlands only Gaelic-medium college, Sabhal Mor Ostaig on the Isle of Skye, which has previously benefited from European Structural Funding.

First Minister Alex Salmond said: The Scottish Government is promoting sustainable success across Scotland. The Highlands and Islands hold many of the key resources, not least the talent of the people, that can put us ahead of international competition. The challenge now is to make sure we put the Highlands and Islands in the right position to be able to fulfil its potential.

European Structural Funds provide us with a great opportunity to increase our economic compititiveness, by supporting strategic projects that can help boost employment, tackle social exclusion, and support sustainable businesses.

The number of projects that have won funding across the Highlands and Islands is testament to the initiative and enthusiasm that the region has to offer. I hope that this injection of resources will enable these important projects to thrive.

I know the success this funding can grow. Tomorrow, for example, I will be travelling to the Isle of Skye to visit a previous recipient - the Sabhal Mor Ostaig Gaelic college, to open their new Fas Centre. This will be a centre for creative and cultural industries, and is a great sign of ambition and good health.

We have everything it takes for the Celtic Lion economy to take off in Scotland. What we need is to give our enterprises the best chance of success. By funding initiatives that will strengthen the social fabric of the Highlands and Islands and enhance our competitiveness, we can help the economy to roar.

Martin Crewe, Director of Barnardo's Scotland, said: Barnardos Scotland is delighted to have secured the European Structural Funding to deliver our successful Youthbuild service in the Highlands and Islands. We are pleased to be able to capitalise on our relationship with Scottish and Southern Energy and a range of other participating employers to offer opportunities to young people who have no qualifications or prospect of employment. Youthbuild aims to enable young people to achieve independent and sustainable employment and provide opportunities that will last a lifetime. Our partnerships will add considerable value to this service and scope for further development.

Neil McLean, Director of the Social Enterprise Academy said: We are thrilled to be approved for European funding for our leadership development programme over the next three years. With this funding, the Academy will be able to extend our work with social enterprises in the Highlands and Islands, creating sustainable communities by tailoring learning and development to meet the needs of rural, remote and island communities across the region.

It was announced last October that the Highlands and Islands would receive approximately 127.6 million pounds of European Structural Funds in 2007-13. The total allocation for Scotland is 570 million pounds. The money can be used to match-fund projects that will help Scotland improve its growth rate and get more people into work. Like other parts of the UK, Scotland has received just under half of the funding received in 2000-06 due to European Union enlargement.

The next opportunity for projects in the Highlands and Islands to bid for funding will come soon, with decisions in early June 2008. Enterprise Minister Jim Mather announced on April 8 that ý158m had been awarded to projects in Lowlands and Uplands Scotland under the first round of the 2007-13 programme.

Public sector organisations can apply for funding, including local government, non-governmental organisations and the enterprise networks, as well as further education bodies and the third sector. The private sector cannot apply for the funding directly, though representative organisations can.

A list of project proposals, assessed by an advisory group, recommended for approval is submitted to the Programme Monitoring Committee (PMC). The committee comprises senior representatives of partners from the programme area, chaired by the head of the Scottish Governments European Structural Funds Division. PMC recommendations are passed to Ministers for final decisions on projects.