How European funding works

Jun 12 2007 By The Journal

The main investment from Europe in recent years has come from what is called the Objective 2 programme.

Projects are eligible for funding up to a maximum of 50% of their total cost, with additional `match' funding secured from other public or private sector sources, such as Government grants or venture capital, loans or investment. The aim of this programme is specifically to create new jobs, support existing businesses and start-ups and help people with training.

There have been four priorities under the programme to help ensure appropriate allocation of funding:

1. Encouraging entrepreneurs to create jobs, increase SMEs and promote business start-ups.

2. Developing businesses to create jobs by improving SMEs' competitiveness.

3. Creating strategic employment opportunities by investing in key developments.

4. Supporting communities to enhance the employability of local residents and their access to work.

Despite being subject to strong regulation, European funding has been incredibly flexible and versatile for the region from one end of the spectrum to the other.

We've been able to grant just a few thousand pounds to train a community warden or help a small business expand its premises.

Then there have been multi-million-pound projects in regeneration, venture capital, business support or innovation which boost the region's economic development on a much larger scale.

Highlights of the programme

European funding summary 2000-2006

Total programme investment: £503.5m.

Total number of investments made: 1,433.

Largest single investment: North East Co-Investment Fund: £20m.

Smallest single investment: Sedgefield Council - West Ward: £1,428.

Average investment per project: £351,360.

Average investment each year: £71.93m.

So how does all this translate into tangible benefits for the region - we know what we spent but what did we get for that European money?

Well, over the seven-year period we have reached or helped achieve the following milestones across Durham, Northumberland, Tees Valley and Tyne & Wear:

* 6,988 net new jobs.

* 2,794 safeguarded jobs.

* 435 hectares of land developed.

* 194,063 square metres of premises developed.

* 21 tourist attractions created.

* 1,896 SME start-ups given direct financial support.

* 1,689 community groups and enterprises assisted.

Top 10 largest single investments

North East Co-Investment Fund: £23,000,000.

North East nanotechnology programme: £8,082,642.

New and Renewable Energy Centre (NaREC): £8,019,302.

Business Support Network for Tees Valley: £7,115,202.

Business Link Additional IDB (Regional Business Link): £7,057,597.

Widening Business Brokerage in Tyne & Wear: £6,416,759.

International Trade META Project: £6,631,839.

Business Support Network for Tyne & Wear: £6,383,064.

North East Regional Investment Fund 3: £5,805,000.

The Sage Gateshead: £5,683,883.

Top 10 smallest single investments

Sedgefield Borough Council - West Ward: £1,428.

Tees Valley Joint Strategy Unit: £1,709.

Chester West Community Partnership: £1,950.

SASDA Limited: £2,205.

Sedgefield Borough Council - Shildon: £2,857.

East Durham Play and Community Network: £3,000.

Grange Villa Community Enterprise Limited: £3,000.

Edmondsley Community Partnership: £3,030.

Redcar & Cleveland Sure Start Partnership: £3,143.

Pittington Primary School: £3,293.

Creating the right image

The North East's creative and technology industries are thriving and, with European Regional Development Fund support, our regional screen agency Northern Film & Media has set up a new fund for the independent network television sector.

The establishment of the £1m Network TV Investment Fund aims to ensure continued growth for ambitious and creative companies over the next two years.

Developed in partnership with the BBC, Channel Four and One NorthEast, the fund is stimulating the production of new network programming in the region and generating a range of creative jobs in five local independent production companies.

Northern Film & Media has secured £365,000 of ERDF money to help kick-start this activity. Headline Pictures, Liberty Bell, Different, Media 19 and Standing Stone, the latest venture from Tyneside native Tom Gutteridge, are the first companies to benefit.

Northern Film & Media chief executive Tom Harvey explained: "We have £1m to spend on developing network TV production in the region.

"We are giving experienced people and their companies the financial support to develop creative and engaging ideas, win commissions, draft in key personnel and, ultimately, generate network production in this region."

Mr Gutteridge, who has already established Vine Media, an international content company in London and Los Angeles, has set up Standing Stone Productions in Newcastle and is already looking for development personnel to join him in the region.

For him, the Network TV Investment Fund confirms that the region is once again serious about getting into network production.

He says: "The North East is a wonderful place to live. It's a great lifestyle - the cost of living is much less than the south - and the whole area is buzzing with optimism and entrepreneurial spirit.

"That's why I've relocated here, and I'm looking for other producers to join me."

The fund enables each company to receive match funding from both public bodies, such as the BBC, and private companies, raising the potential total investment to considerably more than £1m.