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PART 3: IMPLEMENTATION ISSUES
Rural Development Plans and their funding allocation
45. Agreement was reached on the overall EU Financial Perspective at the meeting of the meeting of Heads of Government in December 2005 although this is still to be ratified by the European Parliament. We await information on the level of the UK allocation (and therefore that of Scotland) of EU rural development funds ( EAFRD). Information on funding for 2007-13 will be included in the consultation on the SRDP that will commence in a few weeks.
Internal and external consistency of the Strategy. Complementarity with other Community funding instruments
Internal consistency of the Strategy, including links across Axes
46. A fundamental feature of our approach to the 2007-13 SRDP is to develop an integrated programme of measures with strong links across axes. Extensive work has been carried out with a wide range of stakeholders to develop Land Management Contracts ( LMCs) that link across axes and therefore provide the opportunity for integrated delivery. We believe that this is evident in the priorities that have been proposed for each theme in the strategy. Our proposal is to adopt integrated delivery mechanisms that allow land managers and rural businesses to adopt complementary actions that address economic, social and environmental objectives. LMCs support actions to boost product quality and competitiveness, deliver environmental gains from land management and diversify the land-based sector into the wider rural economy.
47. The Less Favoured Area Support Scheme ( LFASS) contributes to maintenance of traditional agriculture landscape through continued use of agricultural land. During the years 2007, 2008 and 2009, certain articles in Regulation 1257/1999 will continue to apply to LFA support. This support, under Axis 2, remains very important for much of rural Scotland, where 85% of agricultural land lies within Less Favoured Areas;. it is crucial to retaining agricultural activity, from which environmental, economic and social benefits flow.
Co-ordination: relationship with other EU and domestic funding streams
48. The Commission's proposals for Structural and Cohesion Funds ( SCF), the European Agricultural Fund for Rural Development ( EAFRD) and the European Fisheries Fund ( EFF) require that funding provision must be consistent with the objectives of the other funds and that plans must contain information on the mechanisms for ensuring coordination of assistance between all three funds.
49. The Community Strategic Guidelines for rural development suggest ways in which demarcation could be organised using the scale of intervention and targeting. For example, local community infrastructure projects could be supported under Axis 3 whilst projects of more regional significance would be funded using the Structural Funds. We propose that projects funded by the EAFRD will focus on small-scale infrastructure and small and micro-businesses. The guidelines also suggest that, in relation to human capital, a priority for EAFRD would be to support training in the land-use sector, including diversification into other activities.
50. The SRDP will complement funding provided through other domestic sources such as that for infrastructure, business development and training through the Scottish Executive, the Government network of enterprise agencies and local authorities across Scotland. In addition, we are examining other grant schemes that are currently funded by the Scottish Executive Environment and Rural Affairs Department (for example, the Agriculture Processing and Marketing Grants Scheme and the Farm Business Development Scheme), and how these may be used to complement the resources of the next SRDP. This is important for Theme 1 and especially Theme 3 where not all of the priorities will necessarily be addressed by the SRDP - other programmes and funding streams may be more relevant. However, they are integral elements of our approach to rural development and we seek to ensure complementarity of approach.
51. To ensure we meet the Commission's proposals, we are developing new strategies for maximising the value of EU funds, in tandem with national funding, to contribute to our rural outcomes. The Rural Development Strategy under consultation in this document proposes priorities for spending through the EAFRD, including implementation of the LEADER approach. We are also developing strategies for the use of Fisheries and Structural Funds, which, together with the Rural Development Strategy, will explain how European funding will support the economic development and sustainable development of our rural areas.
Rural Network
52. Dissemination of good practice and learning from the experience of others will help to ensure that positive outcomes from the SRDP become embedded in the actions of those living and working in rural Scotland. Article 68 of the new Rural Development Regulation (1698/2005) requires each Member State to establish a National Rural Network. The UK Network should share and disseminate knowledge and experience on rural development among stakeholder organisations and administrations, including those representing different beneficiaries of the Programme.
53. The UK is required to ring-fence funding and allocate it to the Network which is to be used for the structures needed to run the network and preparing an Action Plan. This Action Plan will contain as a minimum:
- Identification and analysis of good transferable practices and the provision of information about them, including best practice on each Axis, the measures and the themes and on implementation issues such as evaluation;
- Details on Network management;
- Organisation of exchanges of experience and know-how, including on administrative topics and procedures;
- Preparation of training programmes for local action groups in the process of formation; and
- Technical assistance for inter-territorial and transnational cooperation.
54. Different options exist for the network. For example, a web-based or 'virtual' approach could be established including 'chat rooms' to facilitate day-to-day communications. Alternatively, a network could be set up based on a programme of seminars and meetings. Value-for-money and minimal bureaucracy should be a key consideration in designing the network. It may also be possible to operate a Scotland Network to focus specifically on the SRDP if this is considered cost-effective.
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