Common sense prevails

Commenting on the “clarification” of match-funding for the ERDF Convergence programme in Cornwall, Martin Follett, Chairman of the Cornwall Chamber of Commerce said:

“It is good to see that common sense has prevailed on this; although there was never much doubt in reality. Projects entirely matched by the private sector will continue to progress and this is certainly very good news.  

“It was always going to be the case that the public-sector match of Convergence would be held up by the review of all public spending. We would hope that this does not delay things any more than is necessary but having pressed the Government to act on the huge budget deficit it would be hypocritical for us to cry foul when it has particular impact in Cornwall.  

“Our research into business attitudes to some of the Convergence investment suggests that we should be seeking greater value from the large sums of money being spent on our behalf. Our members tend to share the Government’s view that spending should offer affordability and the flexibility for projects to be developed by local authorities and others after the RDAs have been abolished. We will certainly play our part in the process of review and consolidation”  

The Government statement reads:

“The future of the ERDF programme has never been in doubt. But the fact is that the RDAs are in the process of being wound down, so it is only proper that spending control is exercised, particularly during the course of a spending review. The moratorium on match-funding from the RDA single pot will therefore remain in place, to ensure only exceptional new spending commitments are made.

“Going forward, levels of ERDF commitment will be monitored to ensure they offer affordability and the flexibility for projects to be developed by local authorities and others after the RDAs have been abolished. Projects in pipeline that do not involve single pot match-funding will continue to progress through existing procedures, subject to the monitoring set out above.

“Future and transitional arrangements will be set out in the white paper on sub national growth, expected later this year.”

Posted 19th Jul 2010  by member Cornwall Chamber of Commerce & Industry