£54m European Union grant released for Merseyside regeneration projects
A damaging freeze on European development aid meant for Merseyside has been lifted – allowing £54m to be released for key regeneration projects.
In March, the European Commission slapped a temporary ban on all European Regional Development Funding (ERDF) announced for England, after an audit found “irregularities”.
It was the second time in three years the Commission had thrown doubt on grants earmarked for projects across England’s poorer regions, because of tendering errors and faulty documentation.
And it threatened £54m earmarked for Merseyside – the last slice of £250m pledged over the seven-year period between 2007 and 2013.
Now Communities Secretary Eric Pickles has claimed the credit for “swift action” to restore the flow of regeneration funding, through “tighter controls on projects”.
And, controversially, he suggested the rescue flowed from the decision to bring the process “in-house” – following the announcement that the North West Development Agency (NWDA) will be axed.
Mr Pickles said: “The ERDF programme has been plagued by a legacy of poor administration and fines that dates back to 2000.
“The Coalition Government has overhauled the management of these schemes, bringing them in-house and successfully minimising the liabilities.
“The measures this government has taken have been recognised by the European Commission which has just announced that payments for the ERDF programme will restart, allowing vital regeneration work to continue.”
Among the projects part-funded through ERDF grants are:
The Echo arena and BT convention centre, which opened in 2008 at the former Kings Dock.
The Mersey Waterfront revival project – including the cruise liner facility, at Princes Dock.
The “Visitor Economy” project, led by the Mersey Partnership, to attract more tourists to the city region.
The construction of the Floral Pavilion Complex in Wirral.
Mr Pickles said his department had inherited potential liabilities for ERDF projects estimated at £236m – money allocated to councils that the Commission was refusing to refund – but this had now been reduced to £172m. Of this figure £38.1m “cannot be recovered”, but ministers are still seeking to recover the remaining £133.9m.
The DCLG’s annual report vows to get tough by targeting projects that have “failed to comply with the requirements of the grant”.
Earlier this year, a U-turn saw 40 NWDA staff transfer to work directly for the DCLG, but questions remain about how projects will receive the “match funding” without which applications will fail.
Co-funding must come from the £950m “regional growth fund”, which is three times oversubscribed in its second cache, with decisions due in weeks.
Meanwhile, organisations in Merseyside have been fined almost £20,000 for failing to display the EU logo after receiving grants.
A damaging freeze on European development aid meant for Merseyside has been lifted – allowing £54m to be released for key regeneration projects.
In March, the European Commission slapped a temporary ban on all European Regional Development Funding (ERDF) announced for England, after an audit found “irregularities”.
It was the second time in three years the Commission had thrown doubt on grants earmarked for projects across England’s poorer regions, because of tendering errors and faulty documentation.
And it threatened £54m earmarked for Merseyside – the last slice of £250m pledged over the seven-year period between 2007 and 2013.
Now Communities Secretary Eric Pickles has claimed the credit for “swift action” to restore the flow of regeneration funding, through “tighter controls on projects”.
And, controversially, he suggested the rescue flowed from the decision to bring the process “in-house” – following the announcement that the North West Development Agency (NWDA) will be axed.
Mr Pickles said:
“The ERDF programme has been plagued by a legacy of poor administration and fines that dates back to 2000.
“The Coalition Government has overhauled the management of these schemes, bringing them in-house and successfully minimising the liabilities.
“The measures this government has taken have been recognised by the European Commission which has just announced that payments for the ERDF programme will restart, allowing vital regeneration work to continue.”
Among the projects part-funded through ERDF grants are:
- The Echo arena and BT convention centre, which opened in 2008 at the former Kings Dock.
- The Mersey Waterfront revival project – including the cruise liner facility, at Princes Dock.
- The “Visitor Economy” project, led by the Mersey Partnership, to attract more tourists to the city region.
- The construction of the Floral Pavilion Complex in Wirral.
Mr Pickles said his department had inherited potential liabilities for ERDF projects estimated at £236m – money allocated to councils that the Commission was refusing to refund – but this had now been reduced to £172m.
Of this figure £38.1m “cannot be recovered”, but ministers are still seeking to recover the remaining £133.9m.
The DCLG’s annual report vows to get tough by targeting projects that have “failed to comply with the requirements of the grant”.
Earlier this year, a U-turn saw 40 NWDA staff transfer to work directly for the DCLG, but questions remain about how projects will receive the “match funding” without which applications will fail.
Co-funding must come from the £950m “regional growth fund”, which is three times oversubscribed in its second cache, with decisions due in weeks.
Meanwhile, organisations in Merseyside have been fined almost £20,000 for failing to display the EU logo after receiving grants.
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