ESEP Download Resources : UP-date February 2009
Welcome to the February 2009 issue of UP-date, the e-Newsletter for the Lowlands and Uplands Scotland Programmes
PROGRAMME NEWS
Temporary Framework for State Aid
The EC has adopted a temporary framework for State Aid to help Member States address the exceptional difficulties faced by companies in obtaining finance in the current financial and economic situation. In particular, the framework enables Member States to grant the following types of aid, under certain conditions, until the end of 2010:
- Up to €500,000 per company over the next two years.
- State guarantees for loans at a reduced premium.
- Subsidised loans, in particular for the production of green products (meeting environmental protection standards early or going beyond such standards).
- Risk Capital aid up to € 2.5 million per SME per year (instead of the current € 1.5 million) in cases where at least 30% instead of the current 50%) of the investment comes from private investors.
Any measures introduced under the framework must be in the form of a scheme, and be notified to the European Commission who have committed to ensuring swift authorisation.
Two new measures under the temporary framework
Two new measures have been announced under the State Aids temporary framework. Key changes include:
- UK National Temporary Loan guarantees Framework – aid in the form of loan guarantees as allowed under the Framework
- Temporary Aid for the Production of Green Products - the aid is in the form of subsidised interest raids for investment in environmental products
For more information on the Temporary Framework for State Aid visit the State Aid Unit website
OTHER NEWS
Green Jobs Blueprint
On 2 February, Cabinet Secretary for Finance and Sustainable Growth, John Swinney, announced plans to create thousands of green energy jobs by 2020. Scottish Government will progress action as part of its economic recovery programme – across energy generation, energy efficiency and transport – to create new jobs, tackle climate change and save households and businesses money.
Examples of the intended action include:
- Support and accelerate the implementation of renewable energy through the Renewable Energy Action Plan
- Build a commercially viable, diverse renewable heat industry through the implementation of the Renewable Heat Action Plan
- Work with the oil and gas sector to maintain its competitiveness and facilitate skills and knowledge transfer to other sectors
- Support the development and implementation of clean fossil technologies in Scotland
The UK Renewable Energy Strategy consultation document 2008 cited potential for 160,000 UK renewable energy jobs by 2020. There are currently around 3,000 jobs in green energy in Scotland.
Scottish Economic Recovery Programme
This programme has six elements, designed to increase short term demand in the Scottish economy and provide immediate support to those businesses and families most affected. These are:
- Reshaping capital spending plans
- Ensuring all government activity, including on planning and regulation, supports economic development
- Intensifying activity and support for tourism and Homecoming 2009
- Intensifying work around energy efficiency and fuel poverty
- Increasing advice to businesses and individuals
- Improving financial advice to vulnerable individuals
Further information on the Scottish Economic Recovery Programme, including an economic assessment of the Scottish economy by Dr Andrew Goudie, Chief Economic Adviser, can be found on the Scottish Government website
PACE - Partnership Action for Continuing Employment
PACE is a unique Scottish partnership initiative which provides support to employees when an organisation announces redundancies. Established by the Scottish Government, the initiative is being delivered by Skills Development Scotland and supported by national and local partners, offering a service to help individuals and businesses who are facing redundancy issues.
Recent improvements that will open PACE services to more individuals and employers include the establishment of a dedicated helpline and an improved website. Skills Development Scotland and Jobcentre Plus will be working closely together to create a seamless service between skills development and employability support to minimise the time people affected by redundancy are out of work.
More information on PACE is available from the Scottish Government website
TUC Briefing - Women and Recession
The TUC has recently produced a briefing looking at how the recession will affect women at work. The briefing notes that women will suffer for three main reasons:
- Jobs in this recession will be lost across the economy rather than concentrated in male dominated sectors such as manufacturing, as in previous downturns.
- More women work today than in previous recessions.
- More households depend solely or primarily on a woman's wage today. A quarter of households with children are headed by lone parents, 90 per cent of whom are women. Women earn more than men in a fifth of couples. Copies of the briefing can be downloaded from the TUC website
European Urban Day
On 6 February, Regional Policy Commissioner Danuta Hübner addressed the European Urban Day conference in Prague, organised as part of the Czech Republic’s presidency of the EU. The conference focused on the impact of the expanded urban development programmes supported by Cohesion Policy in 2007-13. Around 10% of total allocations under ERDF (€30 billion across the EU) is targeted at specific measures to promote urban development. Tools available for urban development through Cohesion Policy include:-
- JESSICA - a joint initiative by the European Commission, European Investment Bank and Council of Europe Development Bank aimed at facilitating financing of urban renewal projects through a combination of grants and loans;
- URBACT – promotes the exchange of good practice between towns and cities through the creation of thematic networks;
- URBAN AUDIT – statistical information to help cities learn from the experiences of other cities facing similar challenges;
- URBAN ATLAS – a new database of satellite images of 185 cities, designed to aid city planners in their work
More information on the JESSICA and URBAN development programmes is available from the European Commission website.
DG Regio Panorama Magazine
The latest issue of Panorama magazine is dedicated to the Green Paper on Territorial Cohesion. and is now available for download from the European Commission website
