Press Release

5th April 2000

"We Cannot Afford to Lose Vital Community Groups" - McNeil

Rescue Package for Vulnerable Voluntary Groups

MSP for Greenock & Inverclyde, Duncan McNeil, today welcomed yesterday’s pledge from Finance Minister, Jack McConnell, to help vulnerable local voluntary sector projects. The projects face uncertainty this summer because of a gap in European funding.

The interruption caused by the closure of the previous European Social Fund programmes and the start of the new ones left many such groups in severe financial difficulties.

"I am glad that the Finance Minister is prepared to look at ways of guaranteeing funding for vulnerable projects over the summer. This will allow them to continue their vital work in the community.

"Up to 100 such projects could legitimately face cash flow difficulties. Some, including a number of Scottish Association for Mental Health projects, have had to issue redundancy notices to their staff and reduce activities – including the provision of valuable training for vulnerable people.

"This three month gap is looming in June. It must not result in the unnecessary closure of crucial projects in Inverclyde. It is good news that officials from the Scottish Executive will meet voluntary organisations and those responsible for European funding plans as a matter of urgency, and recommend a guarantee scheme to the Finance Minister.

"These are people and services we cannot, as a caring society, afford to lose. Vulnerable voluntary groups, which will be applying for funding under the new European Social Fund programmes and which look likely to succeed, will be able to continue their activities.

"Of course, European funding is not a substitute for core funding. However, the groups facing difficulty should not have to abruptly end their programmes causing unnecessary distress to vulnerable trainees. Short-term support now will prevent long-term damage to services which are a long term asset to so many."

ENDS

Notes:

1. The funding gap between the closure of the previous European Structural Fund programmes and the new ones has already been eased by the extension of the previous programmes so that most project sponsors have been assured of continued funding. In the case of the largest programme, Objective 3, this extension extends to May 2000. There remains a gap however, from then until late September when approvals under the new programmes are expected to come through.

2. The European Social Fund provides project sponsors with the grant support to carry out projects involving training and skills development, particularly for the unemployed and groups of individuals who face specific barriers in accessing the labour markets, such as the long term unemployed, disadvantaged minorities and the socially excluded.

 

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