Launch of European Regional Development Fund (ERDF) 2007-13
"I am very pleased to be here at the launch of the latest phase of European Regional Development Fund support for the economic development and regeneration of the East Midlands.
"Although my constituency of Corby and East Northamptonshire has not previously benefited from ERDF, I have seen at first hand the benefits that ERDF has brought across the region.
"During the last round of funding from 2000-06 the East Midlands Objective 2 programme received a total of £245 million ERDF towards the economic restructuring of the region.
Working alongside other funding, ERDF support has helped the region address the issues associated with the major loss of jobs and income as a result of the rundown in the coal, textile and other industries which have traditionally been major employers.
"The 2000-06 programme has supported a wide range of ERDF projects in the region, across a broad spectrum of activity. Picking out just a few: the redevelopment of the Old Market Square in the centre of Nottingham; the Markham Environmental Technologies Innovation Centre in Derbyshire; and the Bio City initiative which supports start up and growth of Small and Medium Enterprises in the bio-pharmaceutical and life science sector, one of the region's high value growth sectors.
"The 2007-13 programme on which we are focusing today will build on the achievements of the Objective 2 programme, but it should be recognised that the new programme has a particular focus on the Lisbon and Gothenburg priorities of growth, jobs and sustainable development - a subject that our colleague from the European Commission who is speaking later this morning will undoubtedly cover in more detail.
"For 2007-13 the region has been allocated some €268m ERDF (around £190 million). This will be matched by domestic public and private sector funding to deliver well over half a billion Euros (or £380 million) in economic support towards improving the prosperity and competitiveness of this region.
"As I'm sure most of you will be aware, in overall terms the region is performing well, with high levels of employment and relatively high levels of economic growth. However, it still performs less well than the UK average on productivity. Given our relatively high share of manufacturing activity in the region, we are perhaps also more vulnerable than other regions to the continuing challenges posed by globalisation.
"It is clear that the region's businesses will need to become more innovative and produce higher value added goods and services, with more highly skilled people, in order to compete in a rapidly changing global economy. It is also recognised that the move towards a more resource efficient and low carbon economy offers a significant economic opportunity for the region in terms of productivity savings, new market opportunities and increased economic resilience.
"Despite the fact that some parts of the region are enjoying strong growth and improved economic performance, there are particular localities that continue to have high levels of deprivation and low levels of economic activity. We continue to see, therefore, significant disparities in terms of economic performance, employment and earnings within the East Midlands. Reducing these disparities will not only increase the welfare of a significant proportion of the residents of the region, it will also contribute to closing the gap in economic performance between the East Midlands and the UK's leading regions.
"These challenges and opportunities were identified in our East Midlands Regional Economic Strategy, A Flourishing Region, and the ERDF Programme sits within the framework of, and contributes to the delivery of, that Strategy. You will hear more about the detail of the programme from other speakers, but it is clear to me that whilst seeking to address the overarching issue of business performance and productivity, it also places an additional focus on reducing the disparities within the region.
"It is important that I emphasise that ERDF is not the only source of funding to support economic development and regeneration in the East Midlands, but it is critical that ERDF works in partnership with domestic funding streams in support of regionally agreed priorities. That is why the alignment with the Regional Economic Strategy is so important and is also one of the reasons behind the Government's decision to transfer the management of the new ERDF programmes to the Regional Development Agencies.
"We believe that this alignment between ERDF and regional funding streams will deliver greater impact and I am confident that emda, together with its partners, will grasp these new responsibilities with dedication, drive and determination.
"As your Regional Minister, I am proud of this region's ability and willingness to work in partnership. This was clearly demonstrated throughout the consultation process undertaken to scope this new ERDF programme. It is important that a wide range of partners have been able to shape the ERDF programme, as well as play a role in its implementation.
"Ensuring that appropriate partners are involved in the delivery of solutions in local areas is important and an issue that I am particularly interested in, given my role as Minister for the Third Sector. At the local level, it will be important to ensure that ERDF supports the Local Area Agreements, which are currently being negotiated with Local Authorities and their partners.
"The excellent turn-out at this launch is a clear indication of the desire of people and organisations from various sectors in this region to make a success of the 2007-13 ERDF programme. I wish you well."
