1. Wales Council for Voluntary Action (WCVA) represents the interests of voluntary organisations, community groups and volunteers in Wales. It has over 1,500 organisations in direct membership and is in contact with many more through national and regional networks.

2. WCVA has drawn up this response to the Welsh Assembly Government's consultation document, Wales: A Vibrant Economy, following its own consultations with voluntary and community groups in Wales.

3. The response is based on:

· the views expressed at WCVA's regional policy events in January 2006, held in South Wales, West Wales, North Wales and Mid Wales, involving over 180 participants. Feedback was given in response to presentations on W:AVE from Welsh Assembly Government officials, followed by a more detailed discussion during workshops focussed on W:AVE and community economic regeneration, involving 66 people.

· consultation with the county voluntary councils in Wales, whose combined membership is in excess of 6,000 groups;

· consultation with the voluntary sector members of the Voluntary Sector Partnership Council, and with voluntary sector networks (Economic Development Network, Social Economy Network, Planning and Rural Affairs Network, Health, Social Care and Well-being Network, Culture, Sport and Language Network, Education and Lifelong Learning Network, Equality and Human Rights Coalition, Community Justice Network, and Community Networks Group).

4. The response addresses the consultation questions listed in Annex D.

Do you broadly agree with the priority areas identified in this document?

5. WCVA agrees with the two broad priorities (to increase employment and to raise the quality of jobs and GVA for the Welsh economy), and acknowledges that W:AVE presents a strong evidence base for addressing the priorities. The economic development programmes and more detailed action plans resulting from the consultation process must identify clearly the mechanisms for delivering the strategy on the ground. It is recommended that this includes a commitment to working in partnership with voluntary and community organisations to deliver the strategy by establishing clear terms of engagement, including a framework and standards for consultation at national, regional, sub-regional and local levels, to enable voluntary and community organisations to participate in the development and delivery of economic development programmes.

6. The overriding objective, recognised in 4.13, should be to ensure that growth is sustainable in the long term and delivers benefits to all. In relation to the key action “investing to regenerate communities and stimulate economic growth across Wales”(p.5), the regeneration of geographical communities, both urban and rural, and communities of interest facing economic and social disadvantage will be vital to underpinning wider sustainable economic development and social cohesion. Working with local communities to set the economic regeneration agenda, through the Spatial Plan Groups, Community Strategy Partnership and Communities First Partnerships, will be critical to the success of the programmes.

7. The most recent definition of 'rurality', confirms that 36% of the population in Wales lives in rural areas.[1] It is felt that the consultation document does not establish a clear context for economic development in the large rural area of Wales and it does not take account of its significance to economic development.

Do you see any of these areas as being particularly important?

Rural Wales

8. The Foreword states that the recent growth in employment, average earnings and exports “provide an opportunity to support our more disadvantaged communities as they seek to realise their full economic potential…”. In targeting programmes and resources, it is recommended that the Assembly Government should make equal reference to the Welsh Index of Multiple Deprivation and the Wales Rural Observatory maps, which reflect the damaging effects of poverty and social exclusion in rural areas.

9. Point 17 lists the important elements that will provide a blend of support to meet the needs of the locality. In the list EU Structural Funds programmes and Communities First are both mentioned as important financial resources. It is recommended that equal reference should be made to rural areas with mention of the Rural Development Plan and Rural Community Action, Leader+ and Article 33.

10. Point 37 mentions the rural economy as an example of “more general development work”. The rural economy should be recognised, supported, and developed as part of the Welsh economy as a whole, with the need for specific approaches appropriate to rural areas, rather than marginalised as a “sector, cluster or broader grouping”. It is recommended that further detailed work be done on developing a coherent strategic framework for the economic development of rural Wales.

11. The document makes several statements, which tend to focus on the problems of urban areas and fail to take sufficient account of the conditions prevalent in rural Wales:

· Unemployment: There are many communities in the western periphery of rural Wales and small pockets in rural Powys, experiencing problems of high unemployment (i.e. more than 6% in 2001); Anglesey is particularly noticeable in terms of the concentration of high unemployment. This is clearly a problem for large areas of rural Wales[2] as well as for the Valleys communities.

· Economic Inactivity: This is not a problem constrained to the Valley communities. Large areas of Gwynedd, Ceredigion, Pembrokeshire and, especially, Anglesey have real problems of long-term unemployment (above 3.5%).[3]

· Raising Earnings: while the text recognises that average earnings are lower in Wales than in many other parts of the UK, there is no mention of the low wages in rural areas. In terms of rural Wales there is a clear East-West split with border areas of Powys, Monmouthshire, Wrexham, Flintshire and Vale of Glamorgan having higher gross income levels on average than those in West Wales, particularly Gwynedd, Anglesey, Ceredigion and parts of Carmarthenshire.

· Quality of jobs: There is no recognition of the quality of employment in rural areas, with no mention of seasonal work, and employment in rural Wales being characterised by a high proportion of part-time work (19%), self-employment (18%) and multiple job-holding (11%). [4]

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The voluntary sector as a learning provider

12. The consultation document rightly addresses the need to improve the skills and qualifications profile of Wales, citing the requirement to develop the higher end of the Welsh skills profile and to retain people with these skills in Wales, as well as to improve the attainment of qualifications at entry level.

13. 3.59 states that nearly 20% of working age adults in Wales have no qualifications; this suggests a need for significant investment to develop the basic skills of the population, with support mechanisms e.g. good quality affordable childcare, and integrated transport, to enable individuals to undertake training and lifelong learning.

14. All citizens should have equality of opportunity to access lifelong learning activities to enhance their work prospects and to gain the skills and confidence to respond to and benefit from economic change. With the move towards a more centralised, strategic approach to the delivery of lifelong learning, consideration must be given as to how socially excluded people will be engaged in the learning process.

15. Voluntary organisations have an important role to play in providing formal and informal learning experiences to develop basic and employability skills of those individuals furthest from statutory provision. It is recommended that tendering processes for learning initiatives should be open, transparent and widely publicised, and that more flexible and appropriate mechanisms should be designed to enable voluntary and community organisations to increase the provision of community and informal learning initiatives.

16. Evidence suggests that people in employment with low or no skills are least likely to receive training. It is recommended that the Assembly Government must support employers, including voluntary organisations, to ensure adequate investment in training and opportunities for the skills development of the workforce.

17. Under-taking training and lifelong learning can also deliver indirect benefits to the economy, including improved health and well-being, social inclusion and as a catalyst for community development. For example, people with mental health problems or older people may be able to live more independently for longer as a result of training, which means that they would not be so reliant on state support. Training might also enable volunteers to provide services in the community, which otherwise may need to be delivered by the state.

Social enterprise

18. WCVA welcomes the reference to the Social Enterprise Strategy for Wales and the recognition that “social enterprises have an important role to play within the overall economic development strategy” (2.13). However, it is recommended that there should be a stronger acknowledgement of the scope of the impact social enterprises make on the social and economic regeneration of local communities, and greater detail regarding the level and nature of support to be provided to support the growth of a thriving social enterprise culture.

19. Social enterprises are a vital tool in promoting the Lisbon agenda in areas of market failure, and in providing innovative and sustainable job opportunities for disadvantaged people. Usually based in communities, employment opportunities are particularly suitable for economically inactive and unemployed people returning to work (evidence suggests that a high percentage of these groups do not wish to travel more than two miles to work); older people (as identified in W:AVE), disaffected young people, and people with physical and/or mental health problems. Social and community enterprises also have a key role to play in providing services of general economic interest in marginalized communities and those living in isolated rural areas, for example community transport, childcare, recycling, housing, health and social care services.

20. As organisations operating within both a business culture and a social culture, the support needs of social enterprises cut across the services provided by mainstream business support providers, and the services provided by voluntary and community sector infrastructure and development agencies.

21. Most of the support services needed by social enterprises are theoretically available – although not necessarily sufficiently accessible to or utilised by social enterprises. Mainstream business support providers have expertise in areas such as commercial marketing, the regulatory framework, corporate law etc. Voluntary and community sector support agencies have expertise in areas such as trustee development, charity regulation, community engagement and participation, grant acquisition and fund-raising, etc. Both (although not necessarily in the same way) can assist in areas such as management, staff development and training, finance, etc. Both should be directly relevant to social enterprises – who may need to engage with both types of support for different reasons. The important question is whether the existing support agencies of either type are, on their own, sufficiently responsive to social enterprises.

22. In the longer term we need a framework that ensures that:

· Voluntary and community sector support agencies actively promote a social enterprise culture in their work with existing and emerging organisations, and have the skills to do so;

· mainstream business support providers value and actively assist social enterprises to develop and sustain their business activities, and have the skills to do so;

· there are protocols and, if required, additional specialist support, in place to ensure progression and access to services by whatever agency is best placed to provide them.

23. Noting the reference in 3.55 to the Business Eye service gateway, it is recommended that, in the short term, additional specialist social enterprise support services should be made available to address needs that are currently not being met, although there is a danger of duplicating some existing services, and (if not properly co-ordinated with existing providers) complicating rather than clarifying the situation for individual organisations seeking support.

24. Interventions should focus on making social enterprises better businesses through high quality business support and access to appropriate finance and funding (pump-priming grant and loan funding), and encouraging the development of new opportunities in potential growth areas and as part of regeneration programmes. The following actions are recommended:

• a local social enterprise “brokerage” or “case officer” role, formally networking with existing business and voluntary sector support services – someone able to understand, work with and advise a social enterprise through a stage of development, and co-ordinate input from a variety of sources;
• grant and loan funding opportunities should be widely publicised, using a range of voluntary sector intermediary bodies, with clearly defined eligibility criteria and transparent selection processes. High levels of support and assistance should be provided to guide first time applicants and applicants from under-represented groups through the process;
• expertise and support to enable organisations/individuals to research and conduct feasibility studies to explore income generating services or products, supported by a fund to finance social and community enterprise pilot projects;

· more clear and timely information, advice and guidance on state aid regulations on a case-by-case basis, available in Wales at regional level, via a specialist team offering technical advice, with a named point of contact for liaison with the sector.

25. Support is also needed to promote and support the involvement of social enterprises (and the wider voluntary sector) in public sector procurement. The following actions are recommended:

• amend the Code of Practice for Funding the Voluntary Sector to clarify the distinction between procurement and grant-funding; and to explain the procedures to be followed when the rules of procurement apply;

• issue user-friendly guidance for social enterprises, providing a clear outline of the process of public procurement, including advantages and disadvantages of engagement, and a glossary of key terms of reference and jargon;

· issue guidance to public sector commissioners and procurement officers setting out the benefits of procuring services from voluntary and community organisations and social enterprises, and providing advice on removing barriers;

• identify procurement opportunities of potential interest to the third sector and ask WCVA to publicise these on its web site, and through its bulletins and networks;

· provide targeted information and support to marginalized communities including BME communities, disabled people, young people and disadvantaged women;

• host awareness-raising events and training sessions, held in partnership with social and community enterprise intermediary bodies at community venues, including a showcase of good practice in successful public service provision by social enterprises;

· as part of the Assembly Government's secondments programme, second an official experience of procurement to the sector to develop a programme of training and support on procurement and tendering;

· include work on procurement from the voluntary sector, particularly with reference to achieving more citizen-centred public services, as part of the work programme of Value Wales

26. A key strength of the voluntary and community sector is its diversity and variety in addressing a multitude of needs creatively and appropriately. It should be recognised that some social enterprises are reliant on grants to underpin the services they provide for a very specific client base. It is unlikely that these organisations will be able to graduate to full sustainability and the value of these services must continue to be recognised and supported via grants.

Local economic development

27. WCVA welcomes the links throughout the document made to the Wales Spatial Plan,People, Places, Futures, with its recognition of local differences. We also welcome the Assembly Government's commitment to involving stakeholders from the public, private and voluntary sectors in the Spatial Plan Partnerships. However, there is a lack of clarity as to whether wider consultation, beyond the Partnerships, has a role in the spatial planning process. It is recommended that terms of reference be agreed for consultation with the wider sub-regional constituencies, supported by a clear system for communication for feeding information into and out of the Partnerships.

28. WCVA welcomes the mention in 1.30 of the 22 Community Strategies in Wales, as an ideal mechanism to develop small-scale, local community economic initiatives that provide local jobs and support the local economy. Clarification is required as to how Community Strategies will feed into the spatial Area Action Programmes.

29. It is recommended that there is recognition within the framework for economic development that strategies can be equally successfully delivered through small-scale local interventions, particularly in rural areas, but also in deprived urban areas where people might be disengaged from economic creativity.

Are there other areas you think should be given greater prominence?

The role of volunteering in tackling economic inactivity and developing skills

30. Some people face multiple barriers to economic and social participation and will require high levels of individualised support to enable them to play an active and fulfilling role in society. The Assembly Government's commitment to working with the public, private and voluntary sectors, drawing together different forms of support to provide individually tailored solutions and personal advice to enable participation in the labour market (2.22) is therefore very much supported.

31. In line with recommendation 13 of the Economic Development and Transport Committee's report on Economic Inactivity in Wales (April 2005), it is recommended that the Welsh Assembly Government works more closely with the voluntary sector to develop it to fully meet its potential of reducing economic inactivity. Government-led initiatives such as Job Centre Plus are in the main suitable to assist the most readily accessible groups of people, e.g. those willing and ready to work, back into employment. Voluntary organisations are uniquely placed to provide community-based support mechanisms, to encourage people to take the first steps and to assist disadvantaged people to improve their employability through structured and accredited learning opportunities and tailored packages of support.

32. Noting the absence of any voluntary sector case studies on pages 34 and 35, it is recommended that employment initiatives led by the statutory sector, including Job Centre Plus, are encouraged to proactively seek to work more co-operatively with local voluntary organisations to provide a step-by-step approach to integrated employment programmes.

33. If this approach is to be effective it must not stigmatise the unemployed and economically inactive from vulnerable groups and should recognise the need for long-term support measures providing a pathway approach to assist individuals into work. Nor should individuals be put under undue pressure to achieve Government targets by returning to work, and social protection systems should ensure that all citizens are allowed to live in dignity with an adequate minimum income. This approach should be confirmed in the use of “soft” qualitative indicators as well as “hard” targets to move the inactive into work.

34. WCVA welcomes the acknowledgement that many of those who are economically inactive are not in a position to work, due to work limiting health conditions or caring responsibilities (2.5). It is recommended that a greater recognition of those who actively contribute to their communities through a range of activities including volunteering.

35. Often the first route for those seeking to return to the labour market is through volunteering, which provides opportunities to experience real work situations and try out new occupations. Getting involved in voluntary and community action offers participants the opportunity to build confidence and develop skills such as communication, showing initiative, understanding customer needs, ability to follow instructions and team working which can be a critical first step back into employment. These are skills, which were identified in the 2003 Future Skills Wales survey of employers as being of particular importance.

36. It is recommended that the role of volunteering should also be acknowledged as an opportunity for those who are already in paid work to develop a range of transferable skills including management, communication, financial planning and team working. The scope of volunteering opportunities, particularly to develop higher-level skills, includes: board membership/trusteeship; advocacy work and fundraising.

37. The priorities to increase economic activity and GVA in Wales are high-level indications of the increasing wealth of a nation. However, the interplay between the implementation of different policies must be rigorously monitored to ensure that individuals on the ground are able to share in the increased wealth.

38. The transition for unemployed and economically inactive people to move back into the labour market must be carefully managed and supported to ensure that individuals and their families are able to manage any loss of benefits (Incapacity Benefit, Income Support, Housing Benefit etc) as they move into paid employment. Those moving into employment should have security to plan for the future, through sustainable employment opportunities, rather than short-term contracts etc. Incentives to work should be long-term, not short-term solutions.

39. W:AVE makes reference to geographical pay differentials but there is no mention of the need to address pay differentials between different social groups, the gender pay gap, or the problem of low pay more generally, demonstrating little concern for social justice[5]. Where pay is mentioned, it is in terms of the relative absence of higher paid jobs in Wales. The reality is that a considerable proportion of people on low pay rely on in-work benefits to 'top-up' their take home incomes.[6]

40. There are numerous mentions of the quality of jobs, but there is little reference to job security and number of hours worked etc. Whilst the aspiration to improve the quality of employment is very much welcomed, the UK has been described as having an “hour glass” economy, with fewer opportunities for people to move upwards from lower paid jobs. It is vital that people in Wales feel that opportunities for advancement are within their reach and that these opportunities are genuinely accessible to everyone.

41. Potential tools that could help eliminate very low pay are the use of public sector procurement to encourage above minimum pay rates and other good employment practices; exploring the potential of the social economy and providing greater support for Corporate Social Responsibility within the business community in Wales.[7]

42. WCVA is pleased to note section 3.30 relating to transport systems in the context of giving people in deprived communities better access to jobs and services, and particularly, the reference to investment in community transport.

43. Point 1.19 notes that in rural Powys “earnings related to jobs are relatively low, counterbalancing the positive impact of high employment”; it goes on to say that these low wages are the result of “in part the lower overall cost of living in these areas”. However, for many rural areas the cost of living is higher because it has to include transport to access essential services such as health care, supermarkets and banks. In addition public transport is often inadequate or does not exist, making private transport a necessity for even low-income households.

Sustainable development

44. The Assembly Government's intention to develop an economy that responds to sustainable development opportunities, minimises the demands on the environment and maximises the distribution of benefits is clearly supported (p. 29).

45. Whilst the commitment to sustainable development, re-iterated throughout the document, is welcomed, as key principles of the Welsh Assembly Government, equality and diversity, social justice and the Welsh Language must also be clearly referenced in the delivery plans for the economic development strategy.

46. In addition to the sustainable development indicators listed in Annex B, it is recommended that an annual report be produced to evidence how sustainable development is under-pinning every aspect of the economic development strategy. It is also recommended that public procurement could be used to implement the principles of sustainable development.

47. W:AVE notes the imperative to develop a low carbon economy and states that much more needs to be done in order to meet the sustainability challenge (3.39). There is significant scope for the development of renewable energy generating capacity on a micro- and community scale, which could make a significant contribution to the achievement of electricity and heat output targets. It is recommended that the Assembly give consideration to the creation of a Community Renewable Energy Strategy to complement the Energy Routemap and to include the community sector in the development and deployment of the planned microgeneration strategy. WCVA believes it is important that the growth of a distributed, varied, and flexible energy generating and storage infrastructure goes hand in hand with progressive efficiency savings and the provision of better-performing new and refurbished housing. This will both help local supply chains and service industries to develop and will also directly tackle fuel poverty: reducing the displacement expenditure from those on low incomes into the local economy by high fuel costs of imported forms of energy.

48. The Communities First and Rural Community Action programmes are both characterized by a partnership approach to addressing local needs. They bring the statutory sector, with its responsibility for economic development, skills and learning, and health and well being, together with community and voluntary organisations, which have deep roots in their local areas. Their community regeneration approach is a key mechanism for delivering a range of Welsh Assembly Government strategies where public engagement is necessary to a successful outcome.

49. Whilst the principle of working in partnership is core to the ethos and activities of voluntary organisations and has led to increased collaborative working with the public and private sectors, the capacity for voluntary organisations to engage in partnerships is limited. It is recommended that the number of partnerships should be streamlined as far as is possible and should be delivery orientated “strategic alliances”, focused around regional and local strategies.

50. In the context of the merger of the ASPBs with the Assembly Government, and the intention to join up different policy agendas, it is essential for structured cross-departmental discussions to take place between civil servants and other key stakeholders to ensure the effective co-ordination of policies at a strategic level, to ensure that efficient and effective outcomes are delivered on the ground.

If certain areas were prioritised, where would you like to see less attention and action?

51. The Joseph Rowntree survey, “Monitoring Poverty and Social Exclusion in Wales” (December 2006), found that, whilst there has been some progress in alleviating poverty and social exclusion, the methods currently being used are not succeeding in tackling the relationship between poverty and educational outcomes, barriers to work, low paid jobs and access to services. Where these remain particularly intractable, alternatives to the conventional, public sector delivered, strategies must be considered.

52. Whilst it is acknowledged that inward investment is an essential component of the economic development strategy, the value of fostering smaller scale business developments should not be under-estimated. Small businesses, including social enterprise, are essential to creating jobs that are dispersed across Wales, rather than concentrated in urban areas, and are vital to the economic and social well-being of communities, particularly in peripheral rural areas.

Will the set of tracking indicators presented adequately capture progress in achieving strong and sustainable economic growth? If not, should certain indicators be removed or added?

53. The document recognises that “for most people in Wales employment prospects and earnings are the most relevant economic measures of their quality of life.” (1.4). This underlines the need to address in more detail the quality of employment and what constitutes a sustainable job.

54. Using employment rates and income alone, as indicators will not adequately reflect the experience on the ground, where people are often forced to take on multiple jobs and rely on un-secure agency or seasonal work. It is recommended that a supplementary indicator should be used to monitor the increase in the number of hours worked as opposed to measuring growth in the number of jobs.

55. It is recommended that the work of the Wales Rural Observatory should be given equal status to that the Welsh Index of Multiple Deprivation in terms of targeting resources and economic development programmes.

56. Tracking the value of asset development could provide an indication of community-based developments.

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Questions on issues related to Structural Funds

Are these the right priorities for the post-2006 programmes in order to develop the Welsh economy through embracing the Lisbon and Gothenburg agendas?

57. The priorities listed under 4.15 propose to build on the successes of the current Structural Funds programmes for the period 2000-2006. In light of the renewed focus on delivering the Lisbon Strategy, it is recommended that a balanced approach to regional development programmes in Wales is maintained, respecting the three pillars of the Lisbon Strategy, in order to promote social cohesion and economic growth that are sustainable across the Union.

58. The need must be acknowledged for significant levels of support for geographical focal points of deprivation, including isolated rural communities and areas of industrial decline. Rural areas differ from urban areas in that to achieve a viable sustainable economy that can provide employment, interventions will need to be on the small, local scale suitable for the dispersed sparse populations of rural communities, together with a well planned environmentally sound transport infrastructure to ensure that inhabitants, particularly those in the rural hinterland, to have access to employment and essential services such as health and education. In areas of industrial decline an emphasis will need to be put on actions to tackle economic inactivity, on the promotion of social enterprise where other service delivery methods have failed, and on learning as a tool to bring socially excluded groups closer to the labour market.

59. Whilst there will be some differences in the approach, both isolated rural communities and areas of industrial decline are experiencing economic and social problems arising from the fragmentation of communities. In both cases, voluntary and community groups and social enterprises play a vital role in creating and maintaining sustainable communities – organising and delivering locally determined services, involving local people in tackling local needs and priorities and maintaining community life.

60. It is recommended that activity in the Convergence area local and regional stakeholders from the public, private and voluntary sectors should work in partnership to deliver a range of initiatives. Funding mechanisms could include global grants or key funds; contract delivery through regional/local consortia; alternative funding or loan schemes such as Community Development Finance, Communities Investment Fund or Finance Wales, to empower individuals to develop 'bottom up' solutions.

61. It is recognised that funding for the Competitiveness and Growth objective will be limited; therefore funds to deliver community economic regeneration activities should be concentrated on global grants or key funds, which aim to engage with the most disadvantaged groups; and partnership working through regional/local consortia, which enables organisations with shared expertise and interests to play a role in the local delivery of the strategic national agendas, including tackling economic inactivity and skills.

62. The approach to delivering the new programmes will be critical to its achievements. The early establishment of an EU External Stakeholders Group, and subsequent workstream groups, indicates the intention of the Assembly to work with its key stakeholders to plan for the new programmes and WCVA has welcomed the opportunity to participate in these discussions. However, there have been restrictions placed on the circulation of information from these groups and consequently, there has been a lack of engagement with members of the wider voluntary sector. Voluntary organisations have a vital role to play in accessing parts of society that statutory bodies find it difficult to engage with and therefore have a valuable contribution to make not only to delivery, but also to policy development and implementation.

63. It is recommended that the Assembly Government establishes clear terms of engagement for working with voluntary organisations in respect of the design, management and delivery of the programmes, and to retain the partnership principle as central to the Structural Funds programmes in Wales. A further recommendation is for the Assembly to put in place a framework for pre-consultation, involving a wide range of stakeholders to input at an early stage into the development of local, sub-regional and national strategies.

How could strategic projects contributing to headline targets such as raising economic activity be identified and developed at an early stage in readiness for the start of the post-2006 programmes?

64. Firstly, there is a lack of clarity around the precise definition of 'strategic projects', and whether this refers to extending the coverage of existing interventions, or whether 'deeper' interventions, tackling problems in a creative way will be supported. It is recommended that the Welsh European Funding Office (WEFO) issues clear guidance in advance of the new programmes as to the definition of a strategic project. Related to this, it is recommended that WEFO considers how voluntary organisations will be given equality of opportunity to access resources and to participate in the delivery of strategic initiatives.

65. WCVA welcomes the proposed simplification to programme documentation (4.18) and hopes that this will mean simplification for project applicants as well as for the managing authority, WEFO. In addition, it is recommended that monitoring and evaluation requirements should be proportionate to the level of grant secured.

66. A principle for the new programmes in Wales will be to have fewer but “deeper” interventions. Voluntary and community organisations can deliver the desired “deeper” interventions by taking action at local level within a wider strategic framework, reaching out to the most socially excluded and marginalised groups. It is recommended that funding be made available to provide a well-resourced strong co-ordination mechanism to ensure the expertise of voluntary organisations can be brought to the delivery of broader strategic initiatives. Funding and mechanisms should also be made available to ensure that organisations key to the delivery of the programme are able to participate, regardless of size.

The intention is to give greater emphasis to those projects for which effective regional collaboration has developed a project that will address the strategic needs of an areas (for example, Heads of the Valleys). How might such collaboration be best developed?

67. It is understood that the Wales Spatial Plan Partnerships will be instrumental in developing local solutions to local problems. The Partnerships, as well as project sponsors, should be obliged to consult widely to ensure the widest participation of all relevant stakeholders in the development and delivery of initiatives. It is recommended that demonstration of this should be viewed as part of the eligibility criteria and projects that fail to comply with these criteria should not be supported.

68. For the future Structural Fund programmes in Wales, there has been a clear statement of intention to simplify funding streams within the Assembly Government and to implement a system of co-financing i.e. pre-match funding at source. It is appreciated that this approach could mean that the funds are to be spent in a more focused and coherent manner and offer advantages in terms of simplicity and limitation of bureaucracy. However there are concerns that this approach may create unintended barriers that might exclude voluntary organisations from the process and will be to the detriment of innovative actions.

69. Experience collected from England has shown that co-financing has severely disadvantaged the voluntary sector and that access to funds has been restricted. It is recommended that guarantees and systematic evaluation be put in place to ensure that, due to these new arrangements, unintended barriers are not created that might exclude voluntary organisations from accessing the new Structural Funds.

70. It is also recommended that provision should be made in the National Strategic Framework and Operational Programmes for a proportion of the Structural Funds to be made directly accessible to voluntary organisations through a range of methods, including: a 'global grants'/key fund scheme specifically for voluntary sector projects that meet strategic criteria;

· a match funding pot for voluntary organisations to lead on projects, particularly for innovative projects;

· specific capacity building actions, supported by technical assistance funds, that enable voluntary organisations to have equitable opportunity to access funds co-financed by public bodies at source, in order to contribute to the delivery of the strategic public policy agenda.

71. Global grants/key funds are a useful mechanism for ensuring the Structural Funds flow quickly and directly to areas of greatest need, and this approach, particularly when schemes are run by the sector, for the sector, is very much supported. However, it is also vital to ensure that voluntary and community organisations will be able to access larger amounts of money to deliver bigger scale projects.

72. It is recommended that technical assistance funds made available to fund the support infrastructure of project development and aftercare for voluntary sector projects.

73. Gaps in funding are particularly damaging to the long-term, sustainable progress in terms of supporting individuals into employment. When funding comes to an end, organisations often lose employees with valuable skills, knowledge, experience and this impacts further more on client groups where a relationship of trust and confidence has been built over time. It is recommended that the new Structural Funds programmes make provision for continuation funding on successful completion of a review/evaluation of a project after two-three years of operation.

74. In order to ensure the most efficient use of funds, it is recommended that the Assembly Government and WEFO ensure that the priorities of the Convergence and Competitiveness and Employment programmes are complementary to and consistent with the Rural Development Plan, Communities First, Rural Community Action and Article 33.

[1] Definition used by the National Statistics urban/rural classification 2004 and the population derived from the 2001 Census of Population at the level of the 881 electoral divisions in Wales.

[2] “Statistical Report on Rural Wales: Volume 1”, Wales Rural Observatory.

[3] Ibid

[4] 'Key Findings Paper 2 “An Overview of life in rural Wales.” Wales Rural Observatory (September 2004)

[5] “Social Justice in the economy and employment”, Bevan Foundation Policy Paper 8 (January 2006)

[6] Ibid.

[7] Ibid.