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5.3.4 AXIS 4 Implementation of the leader approach

Leader Strategy

The main priority under Axis 4 is to increase the capacity of local community and business networks to build human capital, innovate and co-operate in order to tackle local development objectives. These actions may apply in particular to Axis 3 but we expect that LEADER will also contribute to outcomes under Axes 1 and 2. In this way, LEADER will be used to complement and integrate rural strategies and priorities delivered across the Rural Development Programme.

Local development strategies prepared by Local Action Groups ( LAGs) will specify the precise actions to be taken forward through the LEADER approach. We expect that a wide range of partnerships will be engaged in the formulation, funding and implementation of LEADER strategies. LEADER is about Community benefit and collaborative approaches so that axis 3 of the RDR is most relevant and is where most of Leader funding is targeted. The selection criteria for LAGs will be directed at selecting local rural strategies which have a strong axis 3 emphasis.

Themes for Leader

In broad terms, LEADER will contribute to a sustainable society, a sustainable economy, and a sustainable environment in the nation's rural areas and communities.

In promoting a sustainable society, LEADER will encourage actions aimed at combating peripherality and outward migration of young and economically active residents. Sustainable societies should recognize and nurture indigenous languages, cultures and traditions, have access to local services, education and employment opportunities that meet local needs and promote thriving communities where people participate in the decision making processes affecting their own future.

In promoting a sustainable economy, LEADER will encourage actions aimed at providing prosperity for all rural communities through increased economic activity and higher added-value production to secure increased incomes. This could be achieved through offering increased opportunities for employment in a range of industries and services.

In promoting a sustainable environment, LEADER will encourage the conservation, enhancement and management of the natural and built heritage of rural Scotland as a positive asset. It will establish systems to ensure environmental considerations are taken into account Leader project planning and implementation. It will also seek to maximise the social and economic value that can be derived from the sustainable utilisation of rural Scotland's high quality natural environment.

Themes for Leader 2007 with noted relevance to Articles in the Rural Development regulation ( EC) no. 1698/2005 are:

• New Markets and Products
• Progressive Rural Economy
• Conservation of the Rural Environment
• Revitalising Communities
• Rural Community Capacity

LEADER will contribute to the strategic priorities for each axis listed in the Strategic Plan for Scotland, and the key thematic outcomes for the SRDP which are noted above. The strong focus of Leader will be on achieving rural development benefiting local communities, and access to public services for people in rural areas.

Relationship with regional structures

A regional approach will be established to deliver Tier 3 of Rural Development Contracts (see Chapter 11). A stakeholder forum in each region will establish priorities for support within its region. LEADER Local Action Groups will work closely with the regional project assessment committee so that LEADER priorities support and complement those established at a regional level. Each region may contain one or more LAGs.

Community Planning Partnerships ( CPPs) will play an important role in the regional delivery of the SRDP, including a strategic role in identifying local needs and requirements for LAGs. CPPs are bodies that bring together community representatives with the major actors shaping public service and investment.

Local Action Groups

LAGs will comprise a balanced and representative group of partners from local communities and socio-economic sectors. At least 50% of the partnership will comprise partners from industry and social partnership bodies in addition to other representatives of civil society, e.g., farmers, women and youth organisations. The remaining 50% of members will be from public organisations and agencies with a direct involvement and interest in rural development.

Each LAG will be internally coherent, have sufficient critical mass in terms of human resources, other resources and local economy to ensure that a sustainable development strategy is implemented. Areas appropriate for LEADER funding should be essentially rural areas which are relatively homogenous from the point of view of administrative arrangements, geography, economy or socio-cultural aspects. As a general rule, towns of up to 10,000 inhabitants are accepted for LEADER purposes, but major urban centres are excluded. LAG areas should fit within the regional structures which are being used for Land Management Contract regional prioritisation and delivery. There could be one or more LAGs within a region based around Local Authority boundaries so that Community Planning Partnerships are closely involved.

Each LAG strategies will be approved for LEADER funding once the Scottish Executive ( SE) is content that it satisfies the selection criteria, the Commission's three main priority themes, and demonstrates that it will deliver against the 5 key desired outcomes noted and to the priorities identified in the Strategic Plan for Scotland.

Local Development Strategies

Local developmental strategies will adopt an inclusive approach promoting interaction between the local population, socio-economic sectors, community groups and the environment, and will be produced following a review of the LAG area's assets and following consultation with the community as a whole.

Each Local Development Strategy should be based on the conclusions of the evidence base exercise. This evidence base must cover as a minimum the following points:

1. Description of LEADER+ projects that have been implemented and their outcomes, and the proportion of key projects that have been implemented.

2. Description of the structure and working methods of the Local Action Group and its activities (in order to demonstrate the bottom-up approach).

3. Total collective contribution made to the achievement of the goals of the Local Development Strategy under LEADER+.

Each Local Development Strategy must contain:

• Boundaries and position of the area
• Baseline situation, initial stock take of assets and resources
• Analysis of strengths and weaknesses
• Local Action Group: description, composition, responsibilities
• Vision and objectives
• Development strategies and areas of activity
• Environmental protection and sustainability
• Overview of project-planning and financing arrangements
• Plans for collaboration between rural areas.

Timetable for Selection of LAGs

Potential partners for LAGs will be invited through a "call" in June 2007 to join together into a prospective LAG for 2007-2013 and agree the boundary of the area they wish to have LEADER 2007-2013 cover based within the regional structure. The "Call" will also invite them to prepare local rural development strategies for their respective areas. The potential LAGs will be given guidance on strategic priorities for the 2007-13 programming period, and a note of the selection criteria used to appraise their strategies.

It may be necessary to operate a two tier "Call" system to allow those areas which have not been covered by LEADER+ to build their capacity and develop their strategies. It is hoped to have the majority of LAGs selected before the end of 2007 allowing time for the current areas of Scotland not covered by LAGs under LEADER+ to develop their strategies and submit them for selection.

Strategies will be submitted to the Executive by September 2007 when they will be analysed and decision taken by a Selection Panel whether the strategy meets all the requirements. Once the SRDP has been approved, LAGs will be notified of selection in October 2007. Business Plans will then be prepared and bids made for Leader funding in November/December.

Timetable

Selection panel

A panel will be set up to assess applications by LAGs to set up LEADER programmes. The members of the panel will have a wide involvement of rural affairs. The panel will consist of three representatives from Scottish Executive, a representative from Forestry Commission Scotland, two experienced rural development practitioners, and two members from the SRDP External Stakeholders Group.

Criteria for Selection of LAGs

Selection decisions will be based on the quality and content of the outline proposals. The Local Development Strategy must show clearly that it is based on an integrated approach. To this end the Local Development Strategy must describe how the following will be achieved:

• Coordination and linking of the individual areas of activity,
• Coordination with the other delivery mechanisms of the Scottish Rural Development Programme
• Partnership working between the various parties engaged in the projects,
• Reflection of the area's identity and its specific strengths and weaknesses in the priorities set for the plan,
• Intended use of the area's available resources,
• Reflection of the area's socio-economic baseline or start point.
• How the Strategy will deliver the EU priorities, the Scottish Strategic priorities and the key themes in the Scottish Rural Development Programme

Applications will be invited from rural areas across Scotland regardless of participation or not in earlier Leader programmes. Decisions will be based on the quality and content of the strategic proposals and competition based on criteria benchmarks as well as against other strategies. The process is in two parts - (a) baseline information detail about the partnership and geographic area it plans to cover and (b) more rigorous selection against criteria at the end of which LAGs and their strategies are either approved or rejected.

LAGs will inform SE of their geographical boundaries and deliver a note of who is represented in the partnership, their skills, experience, and role in rural development. SE will consider this information to ensure there is no duplication of area cover and that the partnerships satisfy the regulation criteria and represent as wide a rural view between public agencies and private groups as possible. Any duplication of boundaries or restrictive partnerships will be contacted and given an opportunity to amend the details.

Baseline information

The following baseline details are required to enable appraisal and approval of LAGs to move to second stage.

• Basic information - name, geographic area, Local Authority/Authorities for the area
• Eligibility criteria - explanation of social and economic coherence of geographic area
• Population - total population of area to be covered by LAG
• Competence - demonstration of competence and capacity to administer Leader detailing outline staffing levels, administrative costs including salaries, details of individuals involved and their experience including CVs
• Complementarity - with other types of assistance available in the area particularly with other measures in the SRDP, ERDF, Social Fund and Fisheries Fund. They should also demonstrate links with CPPs, Regional Project Assessment Committees, and Local Rural partnerships.

Potential beneficiary LAGs will be expected to note the main types of assistance available within the area from local, regional, and national organisations. Potential beneficiaries must outline how they intend to draw upon other sources of funding (both public and private) and explain how LEADER will be used to complement rather than duplicate activities funded from such sources. Potential beneficiaries should also define the relationship with other rural partnerships operating in the area such as Regional Project Assessment Committees and Community Planning Partnerships. This will ensure integration, avoid duplication and assist in the mainstreaming as part of the SRDP.

Potential beneficiaries who have provided the basic information required and who satisfy the baseline eligibility criteria will be invited to provide more detailed information along with a local rural development strategy for their chosen area and will be further assessed according to the following benchmark selection criteria:

Environmental protection and sustainability

The Local Development Strategy should demonstrate how it will contribute to the sustainable development of the region in ecological, economic and socio-cultural terms. The increased requirements for an integrated approach to the environment, and compliance with the principles of sustainable development, should be reflected and demonstrated. Every Local Development Strategy must also be compliant with the Natura 2000 programme.

Partnership working between different rural areas

Support and funding for trans-regional or trans-national collaboration between Local Action Groups or between Local Action Groups and comparable regional partnerships is a core element of the LEADER programme. The Local Development Strategy should set out the areas in which collaboration is proposed, and which Local Action Groups (or comparable regional partnerships) would be involved. The aim of collaboration may be the attainment of a critical mass to develop a particular project, or a wish to achieve complementarity between differing bodies, or a combination of both.

Partnership - the Scottish Executive require a description of all the organisations involved in the management of the LAG. The roles of each organisation should be outlined and an explanation given of the status ( i.e. Chair, funder) of the lead organisation in the partnership. The roles of each organisation in the management of the LAG should be noted, such as employing staff, providing secretariat support and managing the budget. It is important to show true partnership and not domination by a few organisations. Potential beneficiaries should also note which organisations may be involved with project delivery though not involved with the management of the LAG.

Methodology - an outline of the approach behind the strategy e.g. working with community groups and/or sectoral groups. Potential beneficiaries should demonstrate how relevant sectors of the community will be actively engaged in the planning, management and delivery of the strategy.

Innovation - an explanation of how the strategy is innovative in relation to process and projects. This involves actions taking calculated risks, managing change, and exploiting novel ideas and introducing good practice for other areas.

Analysis of the economic and social position of the rural area - detailed analysis which will identify opportunities for the area. The analysis will form the basis for each activity or project addressing an opportunity in an innovative way.

Target Groups - how potential beneficiaries plan to incorporate equal opportunities in the broadest sense as a horizontal action within their proposals. Women and young people have been highlighted as two groups who require specific targeting. Additional groups include micro and small businesses, and the under employed. Potential beneficiaries should identify positive action requirements relative to disadvantaged and excluded groups, and highlight any other target groups relevant to their LAG area.

Themes and Outcomes- potential beneficiaries must indicate how the proposed strategy relates to the three European themes and the 7 desired outcomes. The analyses of the opportunities in the area will be structured around any one or all of the three themes. Potential beneficiaries must explain how activities within LEADER complement each other and demonstrate that the development strategy will be based on an integrated approach rather than a collection of projects or combination of sectoral measures, and will deliver the desired outcomes. Strategies must also link to national and regional priorities.

Finance and Value for Money - an indication of the overall cost of the proposed strategy for the first two years including management costs. Potential beneficiaries should indicate how much money they require from the SRDP, their priorities for funding if successful, and also indicate potential sources of match funding. An indication of how much they anticipate being able to lever into the programme and their relationship to these funding partners. A breakdown of management costs and project costs must be provided; the balance between them will be considered in determining value for money and the cost for similar projects from different potential beneficiary LAGs may also be compared. It is recognised that new groups may have a higher management cost and low project expenditure initially but over the period of the SRDP management costs will be pegged to a maximum of 20% of Leader funding. Funds secured or anticipated from other Structural or Fisheries Funds should be detailed also.

Environmental sustainability - potential beneficiaries should demonstrate how they have taken account of the environmental conditions of their area and of how they can enhance the condition of and maximise local benefits from the environment.

Rationalisation - explain whether there is any scope for rationalisation within their partnership working, with the range of organisations providing a service in the geographical area, and detailing how they will work with other organisations and the potential for co-operation in the management and delivery of Leader and the SRDP.

Joint Projects - outline the potential for the LAG to work jointly with other groups within Scotland, across the United Kingdom, and throughout the European Union. Indications of joint projects should be outlined and partners listed where such information is available. It is recognised that new groups may take time to become established before involving themselves with joint project delivery.

Transferability - outline how the processes and projects the LAG intend to pursue may be transferred to other areas, including rural Scotland outwith Leader 2007-2013.

Business Plans

Once approved by the Executive LAGs will be invited to provide detailed Business Plans indicating how LAGs intend to implement their respective strategies and submit bids for Leader funding. The first business plan will cover the period 2007 - July 2010 with further plans required during the lifetime of the programme.

Service Level Agreement

Successful potential beneficiaries for LAG status will be required to submit terms of reference for their Partnership to the Scottish Executive providing details of the organisations involved in the partnership as well as gender balance. Partners will be required to sign a Service Level Agreement setting out the responsibilities of the Partnership in delivering the Leader element of the SRDP for the Scottish Executive, and naming a deputy should the principal be unable to attend LAG meetings.

Number of Local Action Groups in Scotland

The selection panel must take into account that a maximum of 25 Local Action Groups in Scotland may be awarded LEADER funding covering the rural areas of Scotland which amounts to approximately 80% of the total land mass of the country. The LAGs will fit within the 11 RPAC regions and recognise issues of island identity and large geographical areas such as Highland Council area. There may be one or more LAG per region. Through the competitive nature of Leader it is anticipated that the final approved number of LAGs will fall between 15-20 and that the geographic coverage of Scotland will be accordingly less. It is expected however that the final number will be around 18.

Justification for areas outside population limits

It is not envisaged that there will be any LAG areas which exceed 150,000 inhabitants or be less than 5,000 people. Full justification will be required for selecting an area breaching the population limits. Rural towns of up to 10,000 inhabitants will be eligible for Leader support.

Selection of Operations by LAGs

LAGs will prepare a strategy for local rural development within their approved area based on their local priorities, needs, and requirements, the three main themes of the axes of the Rural Development Regulation EC no. (1698/2005), and the following five desired outcomes the Scottish Executive wish to achieve:

Sustainable agriculture, forestry and fisheries competitive in markets and contributing to local economies;

Well treated and healthy domestic farm animals, Well maintained landscapes and biodiversity benefiting people and businesses, Rivers lochs and beaches free of unacceptable pollution,

Communities protected from flooding, climate change and other environmental hazards;

Rural development benefiting local communities,

Access to public services for people in rural areas.

LAGs will prepare a Business Plan directing local action without being too prescriptive. This plan will be updated on an annual basis indicating how they propose to implement the strategy and animate the LAG area. LAGs will select operations which fit the objectives of the Business Plan and which will deliver their local rural development strategy. Applications from businesses, community groups, individuals, and agencies will be sought and summarised for consideration by the LAG in plenary session. Project selection criteria will be based around the following:

• Strategic integration- direct links to local, national and European priorities
• Complementarity with Business Plan
• Evidence of demand
• Additionality - extent to which project would proceed without Leader support
• Leverage - amount of match funding from other sources
• Value for money - measure of efficient use of resources
• Project Management - assessment of ability to deliver project
• Innovation - assessment of how new project is to economy
• Equal Opportunities - full equal participation of individuals and social groups
• Community Involvement -degree of participation, involvement and support and extent to which project will benefit rural community
• Sustainability - duration over time
• Environmental Impact - extent to which the project enhances or protects the environment
• Transferability - ease of transferring ideas and lessons learnt to other projects

It is expected that operations will fall under the following broad headings which could be termed Leader "measures".

Themes for Leader 2007 with noted relevance to Articles in the Rural Development regulation ( EC) no. 1698/2005 are:

Financial circuits

As with the previous LEADER+ programme, Local Authorities or Local Enterprise Companies will act as the main local sponsoring partners for the LAGs. Being an approved publicly accountable body, they will act as intermediate beneficiary and hold the LAG money, arranging payment authorised by the LAG on approved projects to the local beneficiaries. It will be incumbent on SEERAD to ensure that adequate controls are in place and that the process is effectively managed. The EU element will continue to be claimed back by SEERAD quarterly in arrears. A Service Level Agreement will be signed with the Lead Partner outlining the financial responsibilities.

Inter-Territorial and Trans National Cooperation

Each LAG will be expected to demonstrate a commitment to co-operation to achieve:

• the necessary critical mass for projects to be viable;
• encourage LAGs to undertake complementary actions
• add value to a project through the bringing together of complementary skills, know-how, products and/or measures.

It is anticipated that new and less developed groups will benefit from the experience of experienced Groups, including any non Leader Groups which are however organised according to the Leader principles. Activities must complement the local projects promoted by the strategy. The co-operation must take the form of a project rather than just an exchange of experience, and that project must demonstrate genuine added value and produce real and tangible economic benefits for the rural areas involved in the project.

Leader will have a strong emphasis on co-operation between rural territories and LAGs are expected to work together to share experiences of best practice. This is further extended through the opportunity for Scottish LAGs to work jointly with partners in England, Wales, and Northern Ireland (inter territorial co-operation), as well as with Republic of Ireland, other parts of the European Union and non Member States (trans national co-operation).

Possible themes for joint projects could be:

• joint marketing of tourism products developed through Leader approach.
• Development of cultural initiatives - festivals
• Joint marketing of local products in the food and craft sectors - eg co-operatives creating a joint structure

Co-operation within Scotland and the United Kingdom

A range of projects will be developed under Leader which involves LAGs from different parts of Scotland. Where appropriate national organisations such as Visit Scotland, Communities Scotland, and the Enterprise networks will provide strategic guidance, though all projects must respect the bottom up nature of Leader.

Groups may look beyond Scotland to linking with other parts of the UK especially where there are geographical, economic or social features in common such as the border areas between Scotland and England.

Trans National Co-operation

Support will be available for joint projects developed by a LAG in Scotland and LAGs in other Member States and Leader type groups in countries outwith the EC. The expenditure incurred by non- UKLAGs will be met by the RDR Programme in the Member State concerned. If the co-operative project of a Scottish LAG is with an area outwith the European Union organised according to the Leader approach then expenditure associated with the project that relates to the Scottish LAGs area will be eligible for Leader funding. All transnational projects require approval from the Scottish Executive.

It is vital that trans national projects are quality projects involving activity in all areas of the project. A simple exchange of information will not constitute a project.

Running the LAG, Acquiring skills and Animating Area.

Running Costs

The limit to apply on the share of the local action group budget for running the local action groups will be a maximum of 20% of the actual budget allocated to each local action group.

Setting a maximum instead of specifying a target amount will allow the local action groups the flexibility to set the running costs at a level which meets their needs. If a local action group is able to cover their running costs with 10% of their budget, this will result in 90% of the budget going towards projects.

Some local action groups may require less of their budget to be spent on running costs as other funding partners may contribute in kind, for example admin services as opposed to a cash allocation. This will allow the local action group to save on their running cost outgoings and leave more funding available for projects.

Acquisition and Animation of LAGs

The indicative estimate of expenditure under Article 59(a) to (d) of Regulation ( EC) no 1698/2005 which will be used for skills acquisition and animation for the Leader axis is £1.5m - £2m.

This is based on cost for half a project officer per local action group per year assuming 20 local action groups, and a budget for training and networking activities.

The Funding will be used for activities such as training workshops for new local actions groups, additional workshops for new local action groups in order to offer extra support and guidance in the initial stages and refresher workshops for existing local action groups to update them on changes and issues related to the new Leader programme period.

Leader Network

The Leader+ network has from a slow start proved highly successful in sharing information, best practice and contacts for joint working. It is intended to continue to run a Leader network as a sub group of the Rural Network. To facilitate this a sum of Leader funding will be used to co-ordinate networking in Scotland.

Total Public Support for Measure 41: 61.4M Euro
Total EU Contribution for Measure 41: 33.8M Euro

Quantitative indicators and Targets

# Impact indicators will be estimated based on output and result indicators

# Impact indicators will be estimated based on output and result indicators

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