Northern Ireland Office

A consultation on how a new £325 million EU funding package for Northern Ireland should be spent was launched today by the Secretary of State, Peter Hain MP.

The new money will support Northern Ireland’s future Competitiveness and Employment European Structural Funds programmes and Mr Hain encouraged everyone to use the opportunity to express their views:

“Northern Ireland has benefited enormously from EU funding over the last 30 years. EU enlargement and our improved relative economic performance means less funding is available than previously. But it is still a significant sum and is fully additional and we want to get the maximum possible benefit.

“It is essential that this £325 million EU funding for Competitiveness and Employment is focused on high value, innovative activities which complement our existing national strategies and that we deliver these through efficient delivery structures.

“The plans set out in the Competitiveness Programme proposals offer key additional spending in promoting innovation, increasing investment in technological development, enterprise and entrepreneurship, and creating a better climate for doing business in Northern Ireland.

“The Employment Programme proposals focus additional spending on removing barriers to work, equipping people with the necessary skills to enter the workforce and improving the existing skills of people already in work.”

Highlighting the cross cutting themes for both programmes, the Secretary of State said: “The important underlying themes are the need for equality, promoting good relations and sustainable development, and creating sustainable communities.

“In line with the Anti Poverty and Social Inclusion Strategy for Northern Ireland these EU Programmes will aim to deliver expenditure programmes that target poverty, disadvantage and multiple deprivation in urban and rural areas and to create sustainable communities that are active, safe and inclusive.

“It is vitally important that we receive views from right across the community and from all sectors on these proposals before they are finalised and submitted to the European Commission.”

Notes to Editors:

1.The Consultation Document (including draft programmes) is available on the DFP, European Division website. The 12 week consultation period ends on 14 March 2007 and respondees are asked for views on six questions set out in the document.

2.The purpose of EU Regional Policy is to provide EU Member States, and regions with Member States, with assistance to overcome structural deficiencies and to enable them to strengthen their competitiveness and increase employment. The EU Structural & Cohesion Funds, the second largest item of EU expenditure, can be used for a wide range of activities including developing transport and communications, infrastructure, supporting innovation, enterprise and business development, protecting and enhancing the environment, support specific sectoral and regional economies, delivery active labour market policies and improving skills.

3.The current cycle of Structural Funds programmes will come to an end in 2006 with new programmes coming into effect in 2007. Northern Ireland will receive £325 million EU Structural Funds for the period 2007 to 2013 from the new EU Regional Competitiveness and Employment Objective, which has replaced ‘Objective Two and Three’ funding – some £211 million for Competitiveness and £114 million for Employment.

4.The EU Budget Agreement reached by the UK Presidency in December 2005 recognised the need to extend EU Cohesion Policy across an enlarged EU. With this has come a re-direction of EU Structural Funds towards the new Member States in recognition of their greater needs.

5.Northern Ireland with its improved relative economic performance, will receive significantly reduced levels of EU Structural Funding post 2006 compared to previous programming periods.

6.The Special EU Programmes Body (SEUPB) plans to launch in January 2007 separate consultations on an EU Peace and Reconciliation Programme and a Cross Border Programme involving Northern Ireland, Ireland and Scotland – see SEUPB website.