HAMPSHIRE COUNTY COUNCIL
 
ECONOMY AND EUROPE SUB-COMMITTEE                      ITEM 11
 
26 JUNE 1997
 
KONVER PROGRAMME - UPDATE ON BIDDING
 
REPORT OF THE HEAD OF ECONOMIC DEVELOPMENT
 
Contact:  Paddy Hillary  Ext: 7391
 
1.  Summary
 
    This report updates members on the outcome of bidding from the
    Hampshire area, under the auspices of Hampshire Economic
    Partnership (HEP), for funding under the
    Konver II programme for defence diversification.
2.  Introduction
2.  The Konver programme is a European Structural Funds Community
1   Initiative aimed at accelerating the diversification of economic
    activities in regions heavily dependent on the defence sector.
    Konver I, in 1993/4 attracted £1.1m for Hampshire projects.  The
    Konver II programme was announced in 1995 for funding to December
    1997.
2.  There have been two previous calls for bids under the second
2   Konver programme under which Hampshire has already received
    funding during 1996/97.
2.  The first call under Konver II resulted in £956,000 worth of
3   projects being awarded funding over a three year period.  These
    projects, of which details are given in Appendix 1 to this report,
    included measures to support SMEs (small and medium sized
    enterprises), rehabilitation of former military sites, tourism
    promotion and facilities and training and retraining.
2.  The second call resulted in £1,164,000 worth of funding for
4   Hampshire projects.  Again, these projects cover the areas
    mentioned in para 2.2 and details are given in Appendix 2 to this
    report.
2.  Due to under allocation, and some under spending in the area
5   covered by the Government Office for the South East (GOSE) under
    the first two calls, the GOSE announced a third call in April 97
    and a total of £4m worth of projects have been put forward, for
    outline consideration, by HEP.
3.  Konver II - Third Call
3.  The projects submitted in May were in outline form and a decision
1   was received in early June on those projects considered
    appropriate to go forward to the full bidding stage (see Appendix
    3 for details).  A final decision on funding allocations is
    expected in July 1997.
 
 
3.  Most of the projects submitted are for activities, and therefore
2   funding, over a three year period.  The exception is the section
    of projects for training and retraining which will have to be
    spent during 1997.
3.  One of the projects submitted is to enable more work to be carried
3   out on the analysis of the impact of defence cuts in the Hampshire
    area and on the number of firms and individuals involved.  The HEP
    felt that this is essential to ensure that any future projects can
    be targeted appropriately to achieve maximum benefit for the
    economy as a whole.
 
4.  Konver III
 
    There has been no confirmation, as yet, of a third Konver
    programme although the European Commission have included funding
    in their plans.  Discussions are being held with GOSE to establish
    the new Government's approach to Konver and the likely priorities
    for projects.
5.  Conclusion
5.  Hampshire has been very successful in attracting funds under the
1   Konver programme and in raising the profile of the problems
    suffered in defence dependent areas in both Europe and the UK.
    The continuation of Konver funding, and the targeting of action to
    help local economies to diversify is essential and the latest
    round of projects to be submitted will help maintain this
    momentum.
 
6.  Recommendation
 
    That the successful outcome of £1164000 Call 2 approvals be
    welcomed, and support given to KONVER II 3rd Call bids.
 
 
PHB33197
 
 
                                                                    APPENDIX 1
 
 
KONVER II - 1ST CALL
 
Successful Hampshire Bids
 
Measure 1
Focus on Excellence                         £3,000
Focus on Excellence                         £8,200
                                           £11,200
 
Measure 2
Defence links with Further and Higher        £7,700
Education
Market and Product Development           £187,500
Innovation and Technology Adviser          £70,000
                                         £265,200
 
Measure 3
FAST Feasibility Study                     £25,000
Daedalus                                   £50,000
Sustainability Centre                      £79,345
                                         £154,345
Measure 4
Mary Rose                                £247,000
                                         £247,000
Measure 5
Retraining and reskilling (Highbury)       £45,255
Access and NVQ (St Vincents)               £55,469
CAD/CAM (Basingstoke)                      £87,600
Electronics etc (Basingstoke)            £119,494
Management Placement (TEC)                 £58,500
                                         £278,718
 
                                                                       £956,463
TOTAL
 
 
                                                      APPENDIX 2
 
KONVER II - 2nd Call
 
Project                            Grant allocated
 
Measure 1 - Support to SMEs
Business Support Centre, Havant      149,850
 
Measure 2 - Technology Transfer
Enhanced Economic Development        133,000
Service
 
Measure 3 - Ex-MoD Sites
Priddy's Hard Heritage Area          526,386*
 
Measure 4 - Tourism
Royal Naval Museum Development         49,735
Gosport Peninsula Gateways             86,450
Project                                27,944
Portsmouth Harbour Visitors            75,000**
Centre
Gosport/Fareham Tourist
Initiative
 
Measure 5 - Training etc
Partnership Degree Programme            35,954***
Re-training/Security Guards             40,824
Re-training/Security Installers         39,240
 
                                                     1,163,843
Total
 
 
*     This is conditional upon the agreement of, and close
 co-ordination with English   Partnership for business
 support/tourism development.
 
**    Subject to the approval of the Department of National Heritage
 
***   This is the grant for 1997, approval in principle subject to
 the availability of funds    was also given for 1998 and 1999,
 this amounts to £40,373 and over £20,000 in    1999.

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