Shetland Islands Council

Transcription

1 Shetland Islands Council Response to EU Green Paper on Territorial Cohesion Shetland Islands Council is strongly in favour of a territorial dimension to cohesion policy and welcomes the Commission s consultation which gives an opportunity to contribute to the development of the concept of territorial cohesion. We see this as a significant opportunity to improve the effectiveness of EU, national and local policy making through taking account of territorial features and needs. Shetland is the most northerly island group within the UK, lying between latitudes of 60º and 61º North, consisting of 15 inhabited islands and with a total land area of 1,468km². The population is around 22,000 inhabitants with one town, Lerwick, which has 9,000 inhabitants. Its geographic location is equidistant from its main UK port of Aberdeen, Bergen in Norway, and the Faroe Islands. The Shetland Islands are characterised by a number of socio-economic features combining peripherality, sparsity of population, insularity, out-migration, distance from mainland centres of population, and a narrow economic base with limited opportunities for diversification. As part of the Highlands and Islands Structural Funds Programme area, we are grateful for the support to date which has been available through the Cohesion Fund. This has been instrumental in addressing many structural challenges and we hope that such support will continue post-2013, particularly as remoter places will take longer to recover from the current economic recession. From experience, we are acutely aware that many EU policies do not take account of the situation in peripheral areas nor the resulting impacts of polices. We propose that there needs to be much more flexibility in EU policies to take account of the needs of fragile areas and enable them to exploit their potential and address their unique problems, while at the same time maintaining their culture and distinctiveness. Our experience with the EU state aid regime has clearly demonstrated that one size does not fit all. We therefore welcome the Green Paper and see it as a positive step forward in the development of cohesion policy and look forward to the outcomes of the consultation. Alexander J Cluness Convener, Shetland Islands Council Page 1 of 5

2 Q1. Definition Territorial cohesion brings new issues to the fore and puts a new emphasis on existing ones. What is the most appropriate definition of territorial cohesion? What additional elements would it bring to the current approach to economic and social cohesion as practiced by the European Union? Shetland Islands Council welcomes the approach taken in the Green Paper not to propose a definition of territorial cohesion and instead seek input from stakeholders to help define an appropriate meaning and common understanding of the concept. While the specific wording of a definition will require careful consideration, equally important will be its interpretation and application. It is important that within the concept there is appropriate acknowledgement of those parts of the EU which face permanent disadvantages and challenges due to their geography or peripherality. Barriers such as these make growth and cohesion particularly challenging and the ability to participate in the European economy much more difficult. Territorial cohesion should enable areas to address their specific challenges and give them the means to improve their competitiveness in the EU. People should not be disadvantaged because of where they live, instead policy should assist areas in making the best use of their assets and resources. Alongside economic and social cohesion, territorial cohesion will contribute towards more balanced and sustainable regional development and give recognition to the diversity of the EU and the unique circumstances of territories. Increased recognition of territorial characteristics will require EU policies to become much more flexible to be tailored to the specific needs of peripheral areas. Q2. The scale and scope of territorial action Territorial cohesion highlights the need for an integrated approach to addressing problems on an appropriate geographical scale which may require local, regional and even national authorities to cooperate. Is there a role for the EU in promoting territorial cohesion? How could such a role be defined against the background of the principle of subsidiarity? How far should the territorial scale of policy intervention vary according to the nature of the problems addressed? Do areas with specific geographical features require special policy measures? If so, which measures? The EU has a significant role to play in promoting territorial cohesion since it is a key objective of the Lisbon Treaty, if and when it is ratified by Member States. Territorial cohesion should enable all territories to contribute to the EU s economic development, therefore the EU has an important role to play in raising awareness and promoting measures to achieve it. Territorial cohesion will require cooperation and input from stakeholders particularly at local and regional level to ensure effective implementation, therefore the principle of subsidiarity must be promoted rigorously. Page 2 of 5

3 To achieve territorial cohesion requires EU policies to become more flexible to allow them to be adapted to the specific needs and geography of individual territories. There can be no one size fits all approach and in order for cohesion policy to be a success within the EU, there has to be input from local and regional stakeholders. Territorial cohesion should be focused and developed at regional and local level to link in with the regional development programmes which are addressing local issues. Territorial cohesion should also be taken into account in all sectoral policies, not just cohesion policy. There needs to be increased understanding within the European Commission of the impact of EU policies on the very communities where they are applied. Shetland Islands Council is pleased that the Green Paper acknowledges that regions such as islands are very diverse and face particular development challenges. While territorial cohesion concerns all parts of the EU, areas with specific geographic features and permanent handicaps do require appropriate recognition if cohesion policy is to be a success. Contrary to what the Green Paper suggests, it is not only the outermost regions which face demographic and other challenges. Shetland is a prime example of a remote and peripheral area with considerable challenges such as distance from core markets, increased costs for transporting goods and delivery of services, and out-migration resulting in labour shortages, all of which impede growth and cohesion. Shetland is a collection of small, remote islands and as such opportunities for developing a modern diverse economy are very limited therefore islanders have had to make the best use of those resources available to them. For hundreds of years fisheries has been the mainstay of the Shetland economy and currently accounts for more than half the total value of the Shetland economy 1. Despite the importance of this sector to Shetland, and recognition by the Scottish Government of being the most fisheries dependent community in Scotland, current EU state aid regulations prevent Shetland Islands Council from investing in and developing its fisheries sector to ensure the long term prosperity and economic sustainability of the economy. This is a prime example of where a one size fits all approach to policy does not recognise regional and geographic specificities. We propose that a more flexible state aid regime, or special state aid status, is an essential policy measure for areas with specific geographic features million in Source: Shetland in Statistics 2008 Page 3 of 5

4 Q3. Better cooperation Increased cooperation across regional and national borders raises questions of governance. What role should the Commission play in encouraging and supporting territorial cooperation? Is there a need for new forms of territorial cooperation? Is there a need to develop new legislative and management tools to facilitate cooperation, including along the external borders? Territorial cooperation between areas which have similar geographical features is very beneficial to develop shared solutions to common problems. The Commission has a role to play in ensuring the participation of local players who will be responsible for implementing actions. The Interreg territorial cooperation programmes have been successful in enabling regions to cooperate and are fairly comprehensive in coverage and well funded. Any increase in the role of territorial cooperation as a cohesion policy objective should not be used as a reason to reduce the budget of the EU Structural Funds. Rather than extending the remit of the territorial cooperation programmes which are already extensive, Shetland Islands Council would prefer to see significant funds being allocated to the cohesion budget to help address many of the structural challenges that still exist in peripheral regions. Q4. Better coordination Improving territorial cohesion implies better coordination between sectoral and territorial policies and improved coherence between territorial interventions. How can coordination between territorial and sectoral policies be improved? Which sectoral policies should give more consideration to their territorial impact when being designed? What tools could be developed in this regard? How can the coherence of territorial policies be strengthened? How can Community and national policies be better combined to contribute to territorial cohesion? It is recognised that many EU sectoral policies have a direct impact on local communities, for example fisheries policy. If the EU is pursuing the goal of territorial cohesion and acknowledging that there are regions with geographic challenges, then it follows on that all policies need to be flexible enough to be tailored to suit local and regional circumstances. The territorial impact of polices should be assessed at an early stage in the policy process, well before they are implemented, in order to anticipate their effect/impact. This is essential for remote areas which are heavily dependent on certain sectors such as fisheries or agriculture. Cohesion policy needs to be strengthened and should not be used to compensate for the lack of resources of other EU policies. It must have the financial means to address the difficulties of areas whose economies are lagging behind and areas with permanent handicaps. Page 4 of 5

5 EU Competition and State Aid policies have a very significant impact on local communities. State aid can be an important mechanism to provide public financial assistance to local communities, however, as highlighted earlier, experience has shown that these policies in their current format are very inadequate for addressing local circumstances. In light of much reduced EU structural funds, state aid has the potential to be a viable mechanism to alleviate this loss of funding and ensure that local communities do not lose out. A stronger partnership incorporating all levels of governance such as local authorities, would help ensure coherence of territorial policies. There needs to be increased simplification with EU policies to facilitate their implementation at national level. Q5. New territorial partnerships The pursuit of territorial cohesion may also imply wider participation in the design and implementation of policies. Does the pursuit of territorial cohesion require the participation of new actors in policymaking, such as representatives of the social economy, local stakeholders, voluntary organisations and NGOs? How can the desired level of participation be achieved? If territorial cohesion is to be successful then there needs to be engagement with all key stakeholders, particularly local stakeholders who are dealing with the impacts of policies. Consultation and publicising of new policies and giving key stakeholders the opportunity to put forward their views will contribute to the development of stronger and more effective policies. This needs to be done in an open and transparent manner. The Commission also has a role to play in continually assessing the effectiveness of policies implemented. Q6. Improving understanding of territorial cohesion What quantitative/qualitative indicators should be developed at EU level to monitor characteristics and trends in territorial cohesion? Shetland Islands Council proposes that a broad range of indicators should be taken into account when considering territorial cohesion. Environmental, geographical, social and economic indicators are all appropriate indicators which should show demographic trends and give a comprehensive picture of the situation in each area of the EU. Additionally, account should be taken of natural and cultural resources and positive externalities which can demonstrate opportunities within regions. We suggest that data should be made available at NUTS 3 level and below. Page 5 of 5