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Euro-cash 'for skills, not roads' | Euro-cash 'for skills, not roads' |
(20 minutes later) | |
First Minister Rhodri Morgan says £1.3bn from Europe for west Wales and the valleys will be targeted at skill levels before new roads or airports. | |
He said it would help workers gain the high level skills needed for Wales' future prosperity. | He said it would help workers gain the high level skills needed for Wales' future prosperity. |
Wales' poorest areas have had over £1bn of Objective One aid since 2000, but it will dry up at the end of the year. | Wales' poorest areas have had over £1bn of Objective One aid since 2000, but it will dry up at the end of the year. |
But economic activity in west Wales and the valleys is still estimated at under 75% of the European Union average. | But economic activity in west Wales and the valleys is still estimated at under 75% of the European Union average. |
So those areas will qualify for a further £1.3bn of European aid between 2007 and 2013. | So those areas will qualify for a further £1.3bn of European aid between 2007 and 2013. |
Mr Morgan said: "We're talking about putting more emphasis on raising skills in the workforce and we're putting more emphasis on the human resources side." | Mr Morgan said: "We're talking about putting more emphasis on raising skills in the workforce and we're putting more emphasis on the human resources side." |
He said less emphasis would be put on "pouring concrete and spending millions on highways, new airports and so forth". | He said less emphasis would be put on "pouring concrete and spending millions on highways, new airports and so forth". |
He said the means used to allocate the Euro millions would be "more strategic" and less bureaucratic than in the past. | He said the means used to allocate the Euro millions would be "more strategic" and less bureaucratic than in the past. |
"It means fewer projects, but bigger ones, fewer programmes, but easier to understand ones," Mr Morgan said. | "It means fewer projects, but bigger ones, fewer programmes, but easier to understand ones," Mr Morgan said. |
The assembly government is consulting until 6 October on plans to spend the EU money. | The assembly government is consulting until 6 October on plans to spend the EU money. |
Rhondda has has benefited from Objective One money | Rhondda has has benefited from Objective One money |
The first minister visited Brussels this week to discuss initial spending plans with Danuta Hubner, the EU Commissioner responsible for regional aid. | The first minister visited Brussels this week to discuss initial spending plans with Danuta Hubner, the EU Commissioner responsible for regional aid. |
But the Confederation of British Industry's director in Wales said lessons had to be learned in allocating funds, as he argued that European money had not always been wisely spent. | But the Confederation of British Industry's director in Wales said lessons had to be learned in allocating funds, as he argued that European money had not always been wisely spent. |
David Rosser hoped the funding, known as "convergence" funding, would be more strategically allocated than the Objective One scheme. | David Rosser hoped the funding, known as "convergence" funding, would be more strategically allocated than the Objective One scheme. |
Mr Rosser said: "That resulted in many hundreds of projects, some of which were very good, some of which I think fell rather wide from the mark and didn't focus on increasing wealth. | Mr Rosser said: "That resulted in many hundreds of projects, some of which were very good, some of which I think fell rather wide from the mark and didn't focus on increasing wealth. |
"This time I think we need to take a more strategic approach. We need to introduce fewer, large-scale projects which we can apply across the convergence funding area to have a greater impact." | "This time I think we need to take a more strategic approach. We need to introduce fewer, large-scale projects which we can apply across the convergence funding area to have a greater impact." |
Communities | Communities |
Conservative economic development spokesman Alun Cairns agreed that fewer projects should be supported. | Conservative economic development spokesman Alun Cairns agreed that fewer projects should be supported. |
But he was worried that a more "strategic" approach to funding might mean too much direction from the assembly government and insufficient input from local authorities. | But he was worried that a more "strategic" approach to funding might mean too much direction from the assembly government and insufficient input from local authorities. |
Mr Cairns said: "It's now going to be completely the opposite to last time, which will be a 'top-down' approach telling communities, telling local authorities exactly what they should be doing." | Mr Cairns said: "It's now going to be completely the opposite to last time, which will be a 'top-down' approach telling communities, telling local authorities exactly what they should be doing." |
The assembly government has described the new European funding as a "golden scenario" for Wales. | The assembly government has described the new European funding as a "golden scenario" for Wales. |
But this is only because in large parts of Wales income per head is significantly below the EU average. | But this is only because in large parts of Wales income per head is significantly below the EU average. |