Orkney LEADER Programme

1. Orkney LEADER Programme

2. LEADER Definition & Objectives • LEADER = Liaison Entre Actions de Development Economique Rurale (Links between activities developing the rural economy) • Bottom-up method of delivering support for rural development • Achieved through implementing a local rural development strategy • Support aimed primarily at small-scale, community driven projects • Projects need to be pilot and innovative in nature and must demonstrate sustainability • Aims to increase the capacity of local rural community and business networks • Wishes to build knowledge and skills • Try to encourage innovation and co-operation in order to tackle local development objectives

3. LEADER Eligibility • The following are entitled to apply for funding: • Properly constituted community groups • Properly constituted social enterprises • Voluntary organisations • Private individuals business partnerships and capital companies where sponsored financially by public bodies, clubs and societies thus ensuring a wider community benefit than a pure economic benefit • Public agencies • Local Action Group members • Collaborations between groups, private companies and individuals listed above in an appropriately legally constituted form

4. LEADER Funds • Makes up 5% (approx.) of the Scotland Rural Development Programme (SRDP) budget (around £38 million) • An additional £19.2 million Convergence Funding has been awarded to 7 regions in the Highlands and Islands in recognition of its previous status as a disadvantaged and remote area • Approx. £58 million for Scotland (divided between 20 regions) • Orkney = £2.11 million • £0.57 million = LEADER • £1.54 million = Convergence Fund • Funding for applications open until 2013

5. LEADER Funds Within Orkney • Orkney LEADER can fund up to 50% of total eligible costs of a project • £0.57 million LEADER fund @ 50% (public match) • £1.54 million Convergence fund @ 50% (no public match) • This additional fund is all European money set at 50% intervention rate and which must be co-financed at 50% by public match funding • Grants made from the convergence fund to community groups can therefore be no greater than 47.5% since 5% must come from applicant and Convergence element must be matched by public funds

6. LEADER Funding Criteria • Minimum project cost of £1,000 applies • Maximum LEADER grant awarded traditionally under £125,000 per project • Minimum of 5% total project costs provided from own funds (offset if public sector are lead applicant) • Evidence of match funding must be provided prior to the issue of the final approval letter offering LEADER grant • Maximum length of LEADER funding – 2 years (if project is longer, would need to re-apply at end of year 2)

7. LEADER Eligible Expenditure • Projects fall into two categories: • Capital – site acquisition / preparation, materials, fixtures and fittings, etc and • Revenue – staff / travel costs, consultancy fees, equipment, marketing, etc

8. LEADER General Rules • Revenue-generating projects must demonstrate their profitability (expectation must be for projects to be successful and capable of being sustainable in their own right). Profits generated and retained must be used for future running of the project • Retrospective approval is not allowed • Sports facilities should not be funded unless there is a wider community benefit. Funding for sports is generally available elsewhere • Post Offices are funded directly from the UK Government, are reserved to the UK government under the Devolution (Scotland) Act and thus LEADER support cannot be given to Post Offices

9. LEADER Criteria in Orkney • Overall aim of Orkney LEADER Programme: • “To assist communities to achieve their aspirations for economic and social development through supporting projects of an innovative nature that will increase their long term sustainability – economic, social and environmental” • Two main themes for Orkney LEADER: • Revitalising Communities • Progressive Rural Economy • Main target groups for Orkney LEADER: • Young people (under 25, and 25 – 30) • Women • Lower paid (inc. under-employed) • Economically active living/moving to fragile areas

10. LEADER Selection Criteria • The specific elements which comprise the selection criteria include the following: • Fit with the overall SRDP, and regional objectives and also the local development strategy (at least one of the objectives) • Viability (based on need within Orkney) • Target groups (at least one of the identified groups for Orkney) • Additionality (could not proceed without LEADER funding on such a scale) • Value added by project (without displacement or duplication) • Innovation • Sustainability (after LEADER funding ceases) • Economic impact and value for money • Community support • Environmental impact (where appropriate) • Exit/continuation strategy

11. LEADER – Potential Projects • Revitalising Communities: • Rural transport initiatives • Providing new or developing community facilities • Remote access IT provision to training courses/materials • Improving access to areas of high environmental amenity • Innovative approaches to local rural services • Co-ordinating service provision and integrating delivery • Progressive Rural Economy: • Feasibility studies • Collaborative research and new product/service development • Marketing/publicity • Workshops/training (survival of old skills/dev. of new) • Knowledge transfer (including advice and mentoring) • Rural diversification (e.g. micro enterprises in new industries)

12. LEADER Local Action Group • LEADER funding awarded by Orkney Local Action Group (LAG) • LAG made up of representatives from: • Local council • Local enterprise co. • Community groups • Voluntary/other public agencies • Business people • LAGs make decisions quarterly, on projects which are community driven and have a wide economic benefit

13. LEADER Monitoring & Project Conclusion • Focused monitoring process so success of LEADER against core local objectives can be measured • Detailed reporting on progress/spend requested by Scottish Government on a quarterly basis • Acknowledgement of LEADER assistance in project is mandatory • All records must be kept for 5 years after conclusion of SRDP in 2015 • Application for additional / consecutive projects is welcomed

14. Progress to date • 29 projects received funding since start of Programme in February 2009. • In 5th round in March 2010 10 projects awarded over £200,000 • Total awarded to date over £580,000(over 20% of the total)

15. Range of projects • Trials of a Fast Boat service between the North Isles • Furnishing of the Former Light Keeper’s Cottages on North Ronaldsay • Second Phase of successful Connect Project • Details of all projects on Orkney LEADER Web page

16. Outputs • 33 Posts created • 23.24 FTE • 74 training places • Increase in capacity of Community Groups to secure funding and deliver projects.

17. Further Information • Alister Brown, Development Officer (LEADER Programme) • Orkney Islands Council, School Place, Kirkwall, KW15 1NY • Tel: 01856 873535 ext. 2855 • E: alister.brown@orkney.gov.uk • Websites: • http://www.orkneycommunities.co.uk/LEADER • http://www.scotland.gov.uk/Topics/Rural/SRDP/LEADER