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									ORKNEY LEADER PROGRAMME 2007-13


          BUSINESS PLAN


ORKNEY ISLANDS LOCAL ACTION GROUP


         NOVEMBER 2007
                Orkney LEADER Programme 2007-13

                                    Business Plan
Contents:                                                               Page Number:


  Section 1.0    :   Introduction                                              1

  Section 2.0    :   Lessons from the Northern Isles LEADER+ Evaluation        4

  Section 3.0    :   Local Development Strategy                                9

  Section 4.0    :   Activities, Target Groups and Project Categories         13

  Section 5.0    :   Implementation and Delivery                              17

  Section 6.0    :   Communications and Publicity Strategy                    21

  Section 7.0    :   Financial Plan                                           23

  Section 8.0    :   Monitoring and Evaluation                                25
1.0      INTRODUCTION

1.1      This Business Plan for Orkney LEADER 2007-13 should be read in conjunction with
         the Local Development Strategy for Orkney, which details what the Programme is
         expected to achieve and gives the rationale for its priorities. The Business Plan
         covers the disbursement in Orkney of both LEADER funding and Convergence
         funding (see Section 8). The term “LEADER Programme” should be taken to
         encompass both funding sources.

         Partnership Details

1.2      Local Action Group Name:       Orkney Islands Local Action Group

1.3      Contact Details:   Phyllis Harvey
                            Orkney Islands Council
                            School Place
                            Kirkwall
                            Orkney KW15 1NY
                            Tel: 01856 873535
                            Email: phyllis.harvey@orkney.gov.uk

1.4      There are 21 members of the Local Action Group as follows:

            Name                      Organisation                    Interest / Focus
        Phyllis Harvey            Orkney Islands Council        Local Authority – EU Liaison
         Alan Younie                 Rural Payment &                Rural Development
                                 Inspectorate Directorate
        George Baikie          Scottish Agricultural College              Agriculture
        Kenny Slater             National Farmers Union                   Agriculture
        Tim Hartmann           North Island Environmental                Environment
      Barbara Robertson         Voluntary Action Orkney             Voluntary and Social
        Samantha Hill             Orkney Tourism Group                Tourism Industry
      Rosemary Seagrief        Sanday Development Trust         Island Development Trusts
                                                                   (Initiative at the Edge)
       Kate Townsend                Eday Partnership            Island Development Trusts
                                                                   (Initiative at the Edge)
          Mark Hull            Orkney Renewable Energy            Renewables Sector and
                               Forum & Rousay, Egislsay        Non Initiative at the Edge Island
                                and Wyre Development                 Development Trust
                                        Trust
          Erik Firth             Orkney Business Ring                   Agriculture
                                                                   Food and Drink Sector
      Barbara Foulkes                 VisitOrkney                     Tourism Sector
      Ronnie Johnson              Orkney College / UHI              Youth, Research etc
      Ken Harris-Jones                NHS Orkney                      Health Services
       Eileen Linklater          Orkney Islands Council             Community Planning
      Ruth Kirkpatrick                HIE Orkney                    Economic and Skills
                                                                       Development
Chessa Llewellyn-White                 HIE Orkney                  Community Economic
                                                                       Development
       Malcolm Graves            Orkney Islands Council            Community Education
        Esther Pawley           Scottish Natural Heritage            Natural Heritage
         Fiona Tully              Women’s Aid Orkney                      Women
            TBC                 Orkney Youth Parliament                    Youth
1.5   The following Local Action Group members also sit on the Northern Isles RPAC:

         Phyllis Harvey, Orkney Islands Council
         Chessa Llewellyn-White, HIE Orkney
         Alan Younie, Scottish Government

1.6   The lead agency for the Orkney Islands LEADER Programme will be Orkney Islands
      Council.

      Local Action Group Area

1.7   A map of the Orkney Islands is provided overleaf. Orkney lies off the north east coast
      of mainland Scotland and comprises some 70 islands, of which 18 are inhabited.
      Lying on latitude 59 degrees north – which is only 150 miles south of Greenland –
      Orkney is, at its widest, 30 miles from east to west, and at its longest, 53 miles from
      north to south. With a total coastline of approximately 570 miles, the islands cover an
      area of 974 square kilometres (376 square miles), of which the “mainland” island
      comprises more than half. Orkney’s total population is around 19,800, 20 people per
      square kilometre – which compares with 65 people per square kilometre in Scotland
      and 246 per square kilometre in the UK.

1.8   The Orkney LEADER Programme will cover the whole of Orkney. The datazones
      covering the Orkney Islands LAG area are:

                   SO1004946            SO1004955            SO1004964
                   SO1004947            SO1004956            SO1004965
                   SO1004948            SO1004957            SO1004966
                   SO1004949            SO1004958            SO1004967
                   SO1004950            SO1004959            SO1004968
                   SO1004951            SO1004960            SO1004969
                   SO1004952            SO1004961            SO1004970
                   SO1004953            SO1004962            SO1004971
                   SO1004954            SO1004963            SO1004972

              Source: Scottish Neighbourhood Statistics (www.sns.gov.uk)
Map of Orkney
2.0     LESSONS FROM THE NORTHERN ISLES LEADER+ EVALUATION

2.1     The Northern Isles LEADER+ Programme 2002-06 covered both Orkney and
        Shetland, and the Evaluation of the Programme carried out by Steve Westbrook,
        Sandy Anderson and Stuart Brownlee (6 September 2007) assessed both the
        Programme overall and the Orkney component of the Programme.

2.2     The conclusions of the consultants and the key lessons learned from the Programme
        are reproduced below.

        The Northern Isles Programme

2.3     In both Orkney and Shetland, the LEADER+ Programme was successful in:

           Providing funding for a wide range of projects that broadly matched the intentions
            for the Programme as expressed in the Business Plan, in terms of both themes
            and targeted beneficiaries. Key themes were ICT, Culture and Heritage and
            Renewable Energy. Key beneficiaries were young people, women and micro
            businesses.

           Building capacity for the future, within particular sectors of activity and in priority
            geographical areas; with a focus on strengthening the skills and expertise of
            voluntary and not-for-profit organisations and people new to business.

           Attracting more match funding than had been budgeted, while achieving high
            additionality.

           Backing a number of genuinely innovative projects, often involving new
            technology, that in many cases could be developed further in the future.

           Encouraging visits to other areas as an integral aspect of projects, and bringing
            specialists to the islands to share their expertise.

           Preparing the ground for future development projects through studies, successful
            small-scale projects and pilot projects.

           Creating a significant number of both short and longer term jobs, in part through
            expenditures on project supplies and services within the local economies
            (although the Programme did not have a strong business or employment
            development focus per se).

           Building and maintaining partnerships through the Local Action Group and Local
            Action Teams – although the disadvantages of operating a joint Programme
            between Orkney and Shetland probably outweighed the advantages.

  2.4       Collaborative projects within the UK and with communities or business sectors in
            other countries were not a strong feature of the Programme. Facilitating strong
            joint projects is time-intensive, however, and more activity on this front would
            have stretched the staff resources allocated to the Programme.
      Key Lessons

2.5   On the basis of their evaluation, the findings of the mid-term evaluation, the
      discussions held with those closely involved in managing the Programme, attending
      LAG and LAT meetings, and planning and implementing projects, the consultants
      summarised key lessons for future Programmes as follows:

      Programme Planning

         The theme “The use of new know-how and new technologies” constrained
          applications in Orkney, and the broader “Quality of Life” theme, when introduced,
          enabled local communities and interest groups to pursue their priorities, which
          observes the bottom-up LEADER principle.

         Setting detailed targets prior to receiving applications is inherently difficult and
          compromises the bottom-up principle. Ranges would be more appropriate.

         The indicative projects given in the Business Plan did not match actual projects
          very closely, and it is considered more useful to identify themes and already
          determined priorities rather than indicative projects, except where it is desirable to
          follow up previously supported projects.

         Consideration should be given to ways of transferring successful projects from
          previous Programmes (from Orkney and Shetland and elsewhere).

         To achieve bottom-up planning, as wide a range as possible of local area,
          sectoral and theme representatives should be brought into the process.

         The community portal websites developed in both areas through LEADER+,
          www.orkneycommunities.co.uk and www.shetlandcommunities.org, should
          provide an excellent promotional tool.

         Reviewing and adjusting the Programme at an interim stage enables new
          priorities and opportunities to be addressed, and the Business Plan should be
          updated to reflect these changes.

         Planning national and international collaboration in advance or early in the
          Programme helps good projects to be devised.

         One reason for the success of the LEADER+ Programme in Orkney and Shetland
          was that integration with the areas’ CED Programmes and other funding sources
          was achieved through the local Partnerships, i.e. worthwhile projects that did not
          fit the LEADER criteria could be directed to other sources. It will thus be
          important to plan the new LEADER Programme to integrate with the Community
          Planning Partnerships, Regional Project Assessment Committees and other
          delivery mechanisms of the Scotland Rural Development Programme. Similarly,
          integration with the delivery of the new Highlands and Islands Convergence
          Programme, especially through its strategic delivery bodies, HIE, UHI and the
          Community Planning Partnerships, will be important.
   The Programme budget should incorporate anticipated match funding rather than
    the minimum required level.

    Programme Management

   Ways should be found of involving LAG members more actively in assessing
    applications. Also, their responsibilities should be clarified.

   Staff resources should be sufficient to enable hand-holding during project
    implementation by relatively inexperienced project managers.

   Indicators (especially outputs and impacts) should be defined to reduce
    inconsistencies between projects.

   Successful applicants should be obliged to keep records that demonstrate how
    their projects are achieving against their own objectives and targets, but
    excessive and arbitrary detail on indicators should not be expected at application
    stage.

   For cost-effectiveness and because the areas have different priorities, Orkney
    and Shetland should have separate Programmes. The relationships that have
    been established, however, should be built upon through partnership projects
    where appropriate.

    Assessment of Applications

   Staff recommendations on projects were generally robust, and the resources
    deployed on project assessment should not be reduced.

   Additionality should be assessed particularly closely where LEADER funding is a
    small proportion of total project costs, and outputs should only be assigned to the
    LEADER element in a project (where this can meaningfully be identified).

   Displacement, deadweight and leakage should be explicitly considered at
    application stage – not only as selection criteria but also to help indicate ways in
    which these might be minimised in project implementation.

   Applications by island-wide representative bodies should demonstrate grass roots
    consultation.

   As the Programme proceeds and the budget runs down, attention should be
    given to the balance of approvals against the Business Plan, although relatively
    weak projects should not be approved simply because there has been a lack of
    applications on particular themes.

   Applicants should indicate how anticipated outputs relate to their project and how
    they were quantified / estimated.
           Monitoring and Evaluation

          Detailed definitions of indicators, and realistic targets once this has been done,
           will help greatly in effective monitoring and evaluation, and give Programme
           managers and applicants more confidence that monitoring data will be used.

          Programme officers and relevant agency staff should visit assisted projects
           during their implementation as far as is practical.

          As in the LEADER+ Programme, Business Plan targets should be adjusted as
           experience is gained. Targets should be challenging but achievable.

          Longitudinal research on the impacts of previously assisted projects would help in
           assessing comparable applications submitted to later Programmes, and in
           assessing applications that build on previous LEADER projects.

2.6    The main conclusions on the implementation of the Programme in Orkney are
       reproduced below.

2.7    The original theme of the Northern Isles LEADER+ Programme, “The use of new
       know-how and new technologies”, was not quickly taken up by community groups and
       Orkney was relatively slow in developing projects. Only three projects were approved
       in the first year and a relatively small financial commitment was made in the second
       year. The majority of the early applications were driven by organisations such as
       Orkney Enterprise and the Council. As the Programme developed, and especially
       with the addition of the quality of life theme, community based applications increased.

2.8    No Action 2 projects originated in Orkney, although there were a number of projects
       that involved joint working between Orkney and Shetland.

2.9    There was a good spread across activities, with the following particularly prevalent:

              Community group projects                             39
              Training projects                                    24
              Heritage/environmental/interpretation projects       19
              ICT/new technologies projects                        18
              Cultural / heritage events / projects                16

2.10   Orkney projects contributed well to the overall aim and objectives of the Business
       Plan, although sometimes the ICT or new technologies aspect was tenuous. The
       Programme enriched the socio-economic life of the islands and contributed to
       voluntary sector development. Without the strong umbrella community-based arts
       and heritage organisations that Shetland has, the contribution to innovative activity in
       the creative industries, culture, heritage, environment, indigenous craft industries and
       related rural tourism was less than in Shetland.

2.11   The outputs from Orkney projects contributed well to the overall Northern Isles
       Programme targets, especially in terms of target groups assisted and the number of
       training days. The aggregate outputs include some from projects which have
       reported a very high return, and the output indicators suffer from being largely
       undefined. The extent of the advice and/or assistance will vary considerably from
       project to project and a high proportion of the training days relate to one project.
       However, other projects are likely to have unreported outputs. This reflects
       inconsistency in recording and reporting outputs that is not confined to Orkney or the
       Northern Isles Programme.

2.12   From our knowledge of the 55 projects assisted in Orkney, and assuming that these
       will be reasonably successful in achieving their purposes, the consultants estimated
       that the Programme as a whole will have supported approximately 50 full time
       equivalent job years of work in Orkney, and that longer term job generation could
       exceed 120 full time equivalent job years; although realising some of this
       employment will require further agency support.

2.13   Especially in the later years of the Programme, when applications from local
       development trusts began to come forward, the benefits of the Programme were
       spread across the islands. Projects were assisted from areas such as Sanday,
       Westray, North Ronaldsay and Stronsay, and experience and confidence from
       carrying out successful projects bodes well for future LEADER programmes.

2.14   Of the 55 projects assisted, the consultants considered that: 20 were clearly bottom-
       up, 19 involved a significant degree of innovation, 34 received significant strategic
       guidance from relevant agencies, 28 have a high potential for transferability (within
       Orkney or in other areas) and 11 (to-date) have been mainstreamed. This represents
       a good commitment to the key LEADER principles, although it does reflect the fact
       that many of the early projects were led from the centre.

2.15   The project leaders interviewed as part of the Evaluation were enthusiastic about
       LEADER+ and the support they received in developing their applications. A number
       were anticipating that the next LEADER Programme would help them take their
       projects to a further stage.
3.0    LOCAL DEVELOPMENT STRATEGY

3.1    The Orkney LEADER Programme will be informed by the Vision for Orkney set out in
       the recently produced Community Plan (Orkney 2020 : Our Vision):

       “An Orkney where we all have a place within a caring community, living in a
       healthy environment and supported by a thriving economy.”

3.2    The Programme will be guided by the Plan’s 6 key principles:

            Promoting survival
            Promoting sustainability
            Promoting equalities
            Working together
            Working with communities
            Working to deliver better services

3.3    The Programme will fit as appropriate with the key objectives of the Community Plan
       under its 8 priority themes which are listed below.

       (1)      Health and Wellbeing

                Aim:          A healthy and caring community with health and social care
                              services for all who need them.

                Objectives:      Promote health equality

                                 Make healthier lifestyle choices easier choices

                                 Shift the balance of care and raise awareness of wider
                                  influences on health and wellbeing

                                 Challenge discrimination, promote diversity and prioritise
                                  safety and support for the most vulnerable

                                 Take positive action to minimise the harmful effects of drugs,
                                  alcohol and smoking

      (2)       Housing

                Aim:          To ensure that everybody in Orkney has a suitable home

                Objectives:      Maintain up-to-date information on housing demand and
                                  ensure an adequate supply of affordable housing

                                 Work towards housing that is fully accessible, above the
                                  tolerable standard, energy efficient and contributes to a high
                                  quality built environment

                                 Identify land suitable for housing development in the right
                                  locations and in sufficient quantity to meet future housing
                                  needs

                               Assist in the regeneration of Orkney’s towns, villages, and
                              Isles
(3)   Transport and Travel

      Aim:         An effective and efficient transportation network that supports
                   the economic vitality, community wellbeing and environmental
                   integrity of all of Orkney

      Objectives:     Ensure travel opportunities meet the needs of the whole
                       community

                      Integrate various means of travel around Orkney

                      Increase levels of active travel

                      Reduce traffic in sensitive areas

(4)   Environment

      Aim:         A natural environment which is protected, enhanced and
                   sustainably managed to combat climate change

      Objectives:  Maintain good environmental quality for water, air and land

                      Protect and enhance biological diversity in Orkney

                      Safeguard sustainable use and management of Orkney’s
                       natural resources

                      Promote the waste hierarchy of reduce, reuse and recycle

                      Promote energy efficiency and all forms of sustainable local
                       renewable energy

                      Raise community awareness of the natural environment and
                       environmental issues

(5)   Economy

      Aim:         Help the people and businesses of Orkney to achieve their full
                   potential on a long term, sustainable basis

      Objectives:     Empower Orkney’s fragile communities to develop a
                       sustainable economic base

                      Ensure that Orkney’s economy is fully integrated within the
                       global economy

                      Encourage a culture of enterprise which provides the right
                       economic conditions for businesses to achieve dynamic and
                       sustainable growth
(6)   Learning

      Aim:          A learning culture in which everyone develops:

                    -   enthusiasm and motivation for learning
                    -   determination to reach high standards of achievement
                    -   an openness to new thinking and ideas

      Objectives:      Ensure learning is for all

                       Make learning about the whole person

                       Encourage learning for life

                       Promote learning as the shared responsibility of the whole
                        community

(7)   Culture

      Aim:          Enhanced cultural activity enabling heritage, arts and sport to
                    grow and thrive in Orkney

      Objectives:      The safeguarding, collecting, preserving, conserving and
                        interpretation of Orkney’s heritage

                       A culture which values, develops and encourages artistic
                        excellence, innovation and participation in all art forms

                       A community which values, develops and encourages sport
                        and physical activity whether it be at a recreational,
                        competitive or elite level

(8)   Keeping Orkney Safe

      Aim:          A community where everyone may live, work, visit and play
                    safely, without undue fear or risk of harm

      Objectives:      Ensure that everyone travelling within Orkney can do so
                        safely

                       Reduce the incidence of accidents and ill-health caused at
                        work, in the home and during leisure activities

                       Ensure a co-ordinated and effective response capability to
                        any emergency occurring or affecting our community

                       Reduce crime, other anti-social behaviour and the effect it
                        has on our community
      The LEADER Strategy

3.4   Orkney’s Local Development Strategy relates principally to the following Scottish
      LEADER themes:

             Revitalising Communities
             Progressive Rural Economy

3.5   The needs that will be addressed through these themes were identified through the
      consultation that has been undertaken for this LEADER bid and relevant consultation
      undertaken in recent years for other plans and initiatives, and lessons learned from
      previous programmes.

3.6   In summary, these priority needs are:

         Increase average earnings in the islands, particularly through raising the earnings
          of the low paid and the under-employed. This will help to keep young people in
          Orkney as well as raising average annual incomes closer to the national average.

         Reduce under-employment, which is particularly evident in agriculture, tourism
          and arts and crafts (all important to Orkney in terms of employment). This relates
          to the self employed, part-time employees and people employed seasonally and
          casually.

         Sustain, and if possible increase, population levels in fragile areas, with a focus
          on people of working age.

         Improve the age structure of the Orkney population, especially in local areas
          where the imbalance is particularly marked. The 15-44 age group is under-
          represented in Orkney, and projections anticipate an increasingly ageing
          population. Within this age group, young people aged 26-30 are particularly
          under-represented – for example having left Orkney to attend University and not
          returned.

         Improve provision for young people in both economic and social spheres. Orkney
          needs to keep or attract back more active and talented young people for an
          improved economy and to revive local communities.

         Increase enterprise and career prospects amongst women.                   Women’s
          involvement in agriculture has reduced, and there are limited opportunities
          currently in other sectors for challenging and reasonably well paid work.
4.0   ACTIVITIES, TARGET GROUPS AND PROJECT CATEGORIES

4.1   The activities that will be supported under Actions 1 and 2 of the LEADER
      Programme and through the Convergence Programme will focus (though not
      exclusively) on the following key areas of opportunity identified through the research
      and consultation undertaken for this Bid:

           Value-added production;
           Farm restructuring, including diversification and quality improvement
           initiatives;
           Tourism, culture and heritage projects;
           Renewable energy; and
           Creative industries

4.2   These opportunities will often be taken forward through social enterprises and
      collaborative projects within and between sectors.

4.3   The Orkney LAG has designated the following as target groups:

         Young people (aged up to 25)
         Young people (aged 26-30), who are under-represented in Orkney
         Women
         The lower paid (including the under-employed)
         Those of working age living in (or moving to) particularly fragile areas

4.4   Indicative projects are listed below first under Local Development Strategies, and
      secondly under Co-operation (where joint projects are developed with other areas,
      nationally and internationally).

      (1) Local Development Strategies

          Value-added Production
          Exploration of market opportunities
          Continued development of the Orkney brand image
          Pilot projects for new food products
          Targeted infrastructure projects to improve the quality of farm and food
          production

          Farm Diversification
          Development of farm buildings for creative industries space
          Research the commercial potential of product ideas for partnerships between
          farms
          Demonstration projects (including alternative livestock and crops, and rural
          tourism-related projects)
          Development of information pack on successful projects elsewhere
          Pilot willow growing for heating (involving Orkney College / SAC)

          Tourism, Culture & Heritage
          Assist groups to research, record and interpret their local heritage
          Training in heritage interpretation, guiding, etc
          Audio tours of visitor attractions
          Promotion of tourism as a career to school pupils
          Creation of paths to sites of historical or environmental interest
          Creation of themed trails
          Joint marketing initiatives between Orkney islands
Innovative short-break packages
Summer school initiatives
Follow-up projects to studies undertaken under LEADER+, including sea angling,
freshwater fishing and the cruise liner market
Development of projects based on genealogy (e.g. Orkney’s links with Canada
and the Hudson Bay Company)
Development of new yacht berthing facilities in the islands
Tourism audit of the islands

Renewable Energy
Initial feasibility studies for new installations
Small scale experimental projects
Learning journeys to areas with successful community renewables projects

Creative Industries
Business development support scheme for artists
Partnership projects between artists
Local craft centres
Creation of work for new festivals and events
Creation of gallery spaces in existing buildings (e.g. shops, transport terminals,
hotels)

Other Small Scale Industry
Exploration of spin-off commercial activity potential for Orkney College
Collaborations to develop new processes
Development of local markets for local products

Transport
New community transport provision
Research the potential to introduce additional ferry and other public transport
provision for tourists
Learning visits to see innovative island transport solutions

IT
Advice on e-business development
Assist new businesses to develop websites
Development of a data-sharing project started under LEADER+, which also
includes profiles of Orkney communities
Networking projects between island groups
Remote access to training courses / materials (e.g. video-conferencing from
learning centres at Community Schools)
Webcam links between remote sites and visitor centres
Portal for craft workers

Amenity
Health and fitness facilities in community centres
Transfer of unviable public services into commercial premises
Creation of space for shared community / social services

Youth
New youth facilities on islands
Group exchange projects with other areas
Visits to see successful rural youth projects in other areas

Development Planning
   Develop sectoral strategies
   Assist communities in preparing Development Plans
   Research new project ideas that fit community Development Plan themes
   Visits to other areas with projects underway
   Development of a Community Engagement Strategy for Orkney

   Business Support
   Advisory services for youth business development
   Pilot co-operation projects between new / small businesses
   Advice on the ranges of co-operative enterprise structures and approaches
   Produce materials for migrant workers
   Secondments of staff to small businesses in priority sectors / areas
   Innovative childcare provision
   Advisory services on marketing (including direct selling and branding)
   Advice on how to undertake skills surveys

   Enterprise Development
   Raise profile of the self employment option amongst school pupils
   Support home working pilot projects
   College business placements

   Environmental Sustainability
   Pilot recycling projects
   Visits to other areas to research good practice

(2) Co-operation

   Tourism

   Joint marketing with other island groups

   Friends Across Oceans – a proposed project aiming to provide sustainable
   tourism to peripheral areas and preserve the unique culture of the communities

   Joint marketing and event development with other traditional boat groups in
   Scotland and further afield (Orkney Boat Museum)

   Collaborative projects based on new approaches for the sustainable development
   of visitor centres and other heritage projects (building on the experience gained in
   Orkney through the CREST programme)

   Natural Heritage

   Joint projects with other areas in Britain and Europe that try new ways to enhance
   access to bird watching sites and interpret birdlife

   Cultural Heritage

   Archaeological project with a group in Wales

   Joint marketing of military heritage (First and Second World War), with other
   areas in the UK with significant military heritage sites such as those around
   Scapa Flow. These areas could include the Channel Islands and Dover.
          Traditional music and literature projects with Norwegian groups based on Orkney
          and Norway’s common Norse heritage.

          A music summer school, bringing together musicians from Orkney, Glasgow and
          Stornoway, with reciprocal visits in other years.

          Renewable Energy

          Sharing experience with community-based projects in other peripheral areas (e.g.
          those involved in trial projects establishing willow coppices)

          IT / Communications

          Community radio / recording training project – with an English Trust

          Value Added

          Wool project involving Lithuania – Sanday Spinners

          Food and drink project – follow up from learning journey to Holland under
          LEADER+

          Environmental Sustainability

          Recycling

          Local Partnership

          Joint projects with Shetland, building on links made through LEADER+

      Support for Communities and Other Groups

4.5   As the underlying purpose of the Programme is to promote the long term
      sustainability of Orkney’s rural communities, it is recognised that there will be a
      significant and continuing requirement for “hand holding”. This is explicitly allowed
      for in the Programme budget and will comprise a combination of Programme
      management staff time, specialist adviser time and networking between experienced
      and less experienced groups within Orkney.

4.6   This support will help:

         Communities and interest groups without development plans and proposals to
          produce these
         Development Trusts and other groups (e.g. heritage societies) to turn their
          aspirations into projects
         Groups to identify projects elsewhere from which they could learn
         Identify the need for training and other capacity building
         Groups whose projects have been approved to implement these efficiently and
          with a view to their legacy

4.7   Developing sustainable community facilities, in conjunction with projects funded
      through other Programmes (including Rural Development Contracts), will be a high
      priority for the Programme, to complement economic development initiatives and give
      the Programme’s target groups an improved quality of life as well as employment and
      improved employability.
5.0   IMPLEMENTATION AND DELIVERY

      Management Structure

5.1   The Local Action Group will comprise 21 members as listed in Section 1. It is
      anticipated that the Chair of the Local Action Group will be an HIE Orkney staff
      member.

5.2   The Local Action Group will meet at least quarterly and will be responsible for the
      strategic management of the Programme and for all decisions on grant applications.

5.3   As lead agency, Orkney Islands Council will be responsible for all staffing and
      financial matters relating to the Programme.

      Financial Management

5.4   This will include:

         Receiving payments from the Scottish Government (a LEADER Programme bank
          account will be opened by the Council);

         Receiving and paying grant claims from successful applicants;

         Paying staff salaries and other LAG operating costs;

         Maintaining financial records and controls, and submitting returns to the
          Scottish Government as required.

5.5   The Programme will operate under the Council’s financial regulations. The Director of
      Finance and Housing, for the purposes of Section 95 of the Local Government
      (Scotland) Act 1973, is responsible for the proper administration of the Council’s
      financial affairs. The Policy and Resources Committee is responsible to the Council
      for regulation and controlling the finances of the Council. These regulations set down
      the standards that the Council requires from all officers and members of the Council.

5.6   All Council officers and members will observe the highest standards of probity when
      dealing with the Council’s finances.

5.7   The observance of Financial Regulations is policed as follows:

      Responsibility

5.8   Every Committee, Sub-Committee, Member of the Council, Officer and Agent of the
      Council to whom these Regulations apply will observe the provisions of these
      Financial Regulations. It will be the duty of the Chief Executive, the Assistant Chief
      Executive and Service Directors to secure compliance with these Regulations, by
      ensuring that all employees and agents of the Council are made aware of them and
      their individual requirement to conform in full. Any breach of the Financial
      Regulations could be considered gross misconduct and may invoke subsequent
      disciplinary action in accordance with the Council’s approved and agreed disciplinary
      procedures.

      Breach of Regulations
5.9    Any breach of these regulations must, immediately upon discovery, be reported to the
       Director of Finance and Housing, who will discuss the matter with the relevant Service
       Director, Chief Executive and/or the Assistant Chief Executive as may be appropriate
       in order to determine the appropriate action to be taken.

       Application and Approval Procedures

5.10   Applications for grant aid will be made on a standard application form developed by
       the Scottish Government. The application form and guidance notes will be available
       in digital and hard copy formats. A monitoring form will be issued as part of the
       application pack.

5.11   Programme staff will check applications for eligibility and, if necessary, will contact
       applicants in order to seek clarification about points in the application and/or request
       further information.

       Project Prioritisation

5.12   As a general guiding principle, the Programme will be targeted at Orkney’s fragile
       areas (including the outer islands). Projects in Kirkwall will only be assisted if they:

           Serve Orkney as a whole; and/or
           Meet the needs of at least one of the Programme’s target groups.

       Selection Criteria

5.13   Staff will prepare a recommendation about each application based on the following
       criteria (following Scottish Government) guidance:

       1.   The project should contribute to at least one of the Local Development Strategy
            objectives;

       2.   The project should be based on an identified need or opportunity, with evidence
            of this;

       3.   The project should be “additional” – it could not proceed without LEADER
            funding (or not at the scale envisaged, or within the timescale proposed);

       4.   State Aid limits must not be exceeded;

       5.   The project should complement other activity and not displace or duplicate the
            work of other organisations or local businesses;

       6.   The project should fit the budget priorities of the Programme current at the time
            of application;

       7.   The project should benefit at least one of the target groups in the Strategy, with
            an indication of how many beneficiaries of different types there would be (giving
            the basis for these numbers);

       8.   There should be a viable project proposal based on need, the availability of
            match funding (even if this is not in place), innovation, management capacity,
            value for money and likely sustainability over time;

       9.   The way (or ways) in which the project is innovative should be demonstrated;
       10. The project should show evidence of significant community support;

       11. The project must meet all equal opportunities policies and regulations;

       12. The project should have no (or minimal) negative environmental impact and
           ideally would have a positive environmental impact;

       13. Applicants should show how they have drawn on relevant good practice (within
           Orkney or elsewhere) in drawing up the project;

       14. There should potentially be wider benefits from the project, eg. ideas and
           approaches that can be transferred to other projects, programmes or areas;

       15. The project should help to build the capacity (physical, organisational, business)
           of local communities or communities of interest, and create a platform for further
           development beyond the life of the LEADER Programme;

       16. LEADER should be the most appropriate funding mechanism for the project.

5.14   Staff will prepare a paper on each application providing a project description, an
       evaluation of its fit with the Local Development Strategy and the above criteria, and a
       recommendation. Case papers will be distributed to Local Action Group members at
       least one week in advance of the quarterly meetings at which applications will be
       considered.

5.15   In addition to this quarterly meetings cycle, it will be possible in certain circumstances
       (e.g. to meet the deadlines of potential match funders) to distribute application papers
       to LAG members for decision-making by e-mail.

5.16   Orkney Islands Council, on behalf of the LAG, will issue a Grant Offer letter to
       successful applicants, which will include all relevant conditions and stipulate:

          The name and address of the applicant;

          The amount of grant offered;

          A list of eligible items of expenditure;

          Terms and mechanisms for repayment in event of any breach in the conditions of
           offer.

5.17   Successful applicants will also be sent information about grant claim procedures and
       deadlines.

5.18   The Grant Offer letters will be signed by authorised Orkney Islands Council staff
       under the Council’s delegated authority procedures.

5.19   Unsuccessful applicants will be informed of the LAG’s decision verbally, with
       confirmation by letter and, where appropriate, LEADER staff will explain the reasons
       for failure and provide advice on the merits or otherwise of re-shaping the project for
       re-submission, or seeking alternative funding sources.
5.20   Once a project has received LEADER grant aid, Programme staff will monitor its
       implementation and ensure that grant payments are made within the stipulated time
       periods. Monitoring will also cover keeping track of progress towards output targets.

       Eligibility and Funding Rates

5.21   In addition to the Local Action Group, the following are entitled to apply for grant
       funding:

          Properly constituted organisations and social enterprises;

          Private individuals where sponsored by public bodies, clubs and societies;

          Business partnerships and capital companies;

          Public agencies;

          Collaboration between groups and individuals listed above in an appropriately
           legally constituted form.

5.22   Scottish Government funding guidelines would be adhered to, ie. LEADER grant aid
       will not normally exceed 50% of total eligible costs with the exception of UK trans-
       regional and trans-national projects where up to 70% of total eligible costs could be
       funded.

5.23   The Scottish Government Grant requirements (for example, as they relate to Funding
       Restrictions and other issues) would be strictly followed.

       State Aids

5.24   The Programme Manager will ensure that all State Aid regulations are complied with.
       Orkney Islands Council staff will provide support and advice to the Programme on all
       State Aid matters.
6.    COMMUNICATIONS AND PUBLICITY STRATEGY

      Objectives

6.1   The main objectives of the Communications and Publicity Strategy will be to:

         Promote the work of the LAG and knowledge of the objectives of Orkney’s
          LEADER Strategy;

         Introduce the LEADER Programme to the Orkney public and improve public
          understanding of the Programme during its lifespan;

         Encourage organisations, especially those associated with or working to help the
          Strategy’s target groups, to make applications for LEADER assistance;

         Create and maintain a positive and lively profile for the LEADER Programme.

      Communication Tools

6.2   A range of means will be used to address the Communications and Publicity
      Strategy’s objectives, including:

         Websites;

         Leaflets and other print material;

       Press releases (and the organisation of events to help maximise the impact of
      press releases);

         Events and meetings (for the general public and target groups);

         Local radio and television opportunities.

6.3   The Orkney LEADER section on the Orkney community website will contain:

         Introductory material about LEADER;

         The Local Development Strategy and Business Plan;

         A Notice Board with details of upcoming meetings, events, etc;

         A list with details of all approved projects;

         A case history section providing snippets on the implementation and operation of
          assisted projects (which could include best practice examples from other LAGs);

         A chatroom/feedback area;

         Application material (application form and guidance notes);

         Links to other relevant websites.

6.4   Leaflets and other print material will be produced for the general promotion of
      LEADER and for specific promotions aimed at the Programme’s target groups. All
       print material and other communications tools will be badged with the official LEADER
       and EU logos.

6.5    Press releases will be prepared to highlight project approvals and significant
       milestones in project implementation, and to celebrate successful projects. Press
       releases will be distributed to the local and regional media.

6.6    Orkney has five local media outlets: two weekly newspapers (The Orcadian and
       Orkney Today), one daily newspaper (The Press & Journal), one radio station (BBC
       Radio Orkney) and one regional television company (STV). The Scotsman has a
       staff reporter based in Inverness who regularly covers issues relating to Orkney. The
       Herald and Daily Record also have staff in Inverness and Aberdeen who occasionally
       cover news stories in Orkney.

6.7    Other channels for communication with local community groups include Orkney
       Islands Council’s Community Council Liaison officer who is in regular contact with all
       of Orkney’s Community Councils, and Voluntary Action Orkney.

6.8    The Communications Programme will feature a range of events, including general
       public meetings and sessions focussed on particular target groups. Such events will
       take place throughout Orkney and will be particularly important in the initial phase of
       the Programme. This should both stimulate interest in LEADER and generate
       applications for LEADER financial assistance.

6.9    It is also planned to hold meetings (up to 3 times per year) with key target groups as
       the Programme proceeds. These meetings will be partly used to gather information,
       which will be fed into the ongoing monitoring and management of the Programme.

6.10   LEADER staff will also participate in the Scottish LEADER network, which will provide
       an opportunity to communicate the Orkney experience outside of Orkney. UK-wide
       and transnational meetings will provide similar opportunities.

       Communications Style and Approach

6.11   All written material (including text on the web site) will be in plain English with as little
       jargon as possible.

6.12   The website will be attractive, informative and user friendly, with interactive features.
       Website use (e.g. number of hits and pages visited) will be carefully monitored.

6.13   Local media representatives will be briefed to help create an informed and positive
       attitude to LEADER.

       Resources

6.14   Orkney LEADER staff will take responsibility for communications, with professional
       support and advice from OIC’s Press Officer and partner staff with press and PR
       experience.
7.0   FINANCIAL PLAN

      Convergence Funding

7.1   The EAGGF during 2000-2006 was included in the Highlands and Islands Transitional
      Programme and funded such schemes as ABDS and PMGS. As the 2007-2013
      Programmes for the Highlands and Islands are single fund programmes, they no
      longer include EAGGF (now known as EAFRD); however this is the element in the
      overall SRDP which compensates for the exclusion of EAFRD from the main
      ERDF/ESF Convergence Programmes.

7.2   Due to the importance of agriculture in Orkney, Orkney secured a much higher
      percentage of each grant than it would have had it been allocated by population. This
      historic uptake of these grants will hopefully be taken into consideration in allocating
      funds for the Convergence element of LEADER.

7.3   Orkney proposes to use part of the Convergence fund to support the agricultural
      community in Orkney. How this will be executed will be better known once SRDP
      measures are finalised.

      LAG Operating Costs

7.4   The operating costs of the LAG are estimated as shown below (inclusive of inflation at
      3% p.a.). The higher costs in the first year relate to gearing up, including staff
      recruitment. The 2013 costs include an allowance of c£20,000 for staffing and other
      costs that would be incurred in 2014. Should these 2014 costs be greater than this,
      there could be an equivalent saving in 2008, depending on when the Programme
      starts.


      Match Funding

7.5   Orkney Islands Council will provide the match funding for the staffing and other
      administrative costs of the Programme.

7.6   Match funding for LEADER and Convergence Fund assisted projects will come from a
      wide range of sources, notably:

         Orkney Islands Council (indicatively c£900,000)

         HIE Orkney (indicatively c£600,000)

         Scottish Natural Heritage (indicatively c£250,000)

         Historic Scotland

         Highlands and Islands Community Energy Company

         Lottery Funds – principally The Big Lottery and the Heritage Lottery Fund, and
          Awards for All for small scale projects (indicatively £900,000 in total)

         Hi Trans

         RSPB and other natural heritage-related groups
            Business contributions

            Charitable funding (from sources such as the Esmee Fairbairn Foundation and
             the Tudor Trust)

            Donations from large local businesses such as Talisman Energy, operators of the
             Flotta oil terminal

7.7   Where potential financial contributions are given above, these are indicative and
      based on budgets that the relevant agencies consider that they are likely to have
      available for qualifying projects, past experience, and potential commitments (e.g.
      Lottery funding towards Scapa Flow projects through the Landscape Partnership
      Scheme as noted in the Local Development Strategy).

7.8   All non public sector applicants will be expected to fund a minimum of 5% from non-
      public sector sources (which could include the value of voluntary time).

      Schemes

7.9   Where appropriate, schemes may be considered by the LAG as a means of
      disbursing funding for particular types of project and promoting applications. For
      example, two potential schemes will be considered initially:

      (i)       A small grants scheme – based on the Cairngorms LEADER+ Programme
                Small Grants Scheme, which enabled applicants to access a fund for small
                projects if they met the scheme’s criteria through a simplified application
                process and without the need to seek match funding separately from a range
                of other sources.

      (ii)      A farm entrants scheme that would dovetail with assistance provided through
                Rural Development Contracts. It is envisaged that top-up funding might be
                provided for specific additional outcomes through the Scottish Agricultural
                College.
8.0   MONITORING AND EVALUATION

      General

8.1   Good monitoring and evaluation are at the heart of efficient and effective Programme
      implementation, and important also in transferring knowledge on projects and ideas
      between communities and potential applicants.

8.2   A Monitoring and Evaluation Framework will be established at the outset of the
      Orkney LEADER Programme. The Framework will be consistent with Annex 9
      Monitoring and Evaluation from the LEADER 2007-13 Guidance Notes prepared by
      the Scottish Executive.

8.3   Monitoring will be based on financial and other records maintained by the Programme
      team, and information on implementation, performance and impact collected from
      assisted projects via the application form, feedback forms (covering activities,
      outputs, outcomes and information to aid impact assessment) and other mechanisms.

8.4   Orkney’s Monitoring and Evaluation Framework will be constructed using the
      following hierarchy:

          Inputs:           The actual resources (financial and human) committed to the
                            project, which could differ from the approval)

          Activities:       What was delivered, e.g. number of training courses held

          Outputs:          The physical outputs, e.g. number of people who participated in
                            training courses

          Results:          The immediate outcome from a project, e.g. the number of
                            people who completed a training course successfully

          Outcomes:         The next stage of benefit, e.g. the number of people who gain
                            employment through their training qualification

          Impacts:          The overall net impact of a project, taking into account
                            additionality, displacement and multiplier effects, e.g. the net
                            additional employment in Orkney that would not have occurred
                            without the project. Impacts increase the longer the time period
                            over which they are assessed.

8.5   Monitoring reports will be produced quarterly and annually. Financial expenditure by
      Action and Year will be carefully tracked. This information will be used to inform both
      the day-to-day and strategic management of the Programme. Impacts, Activities,
      Outputs and Results will be tracked regularly, but Outcomes and Impacts will
      generally only be possible to assess through detailed evaluations. These will be
      evaluations of the Programme as a whole and will include separate evaluations of
      major projects and a sample of representative smaller scale projects, tracking their
      benefits from outputs through to net medium term impacts.

8.6   This monitoring material will provide the basis for regular reports to the Scottish
      Government, and will also provide the type of information required by EC auditors.

8.7   The following will also be monitored:
          Media coverage of the Programme and assisted projects;

          Local perceptions and attitudes towards the Programme. This will be tracked
           through a programme of periodic local meetings and focus groups (both involving
           Orkney’s general population and the Programme’s target groups).

8.8    The impacts of the Programme will be assessed through a Mid-Term Evaluation in
       2010 and a Final Evaluation in 2013. Both of these evaluations will be carried out by
       independent contractors. A budget allocation has been made for this work.

8.9    The findings of the Mid-Term Evaluation will enable effective strategic management of
       the Programme, and will allow issues such as financial overspend/ under spend,
       inadequacies in Programme delivery, and constraints on Programme impact to be
       addressed to ensure that the overall targets for the Programme (for its whole life) are
       met.

       Indicative Indicators and Targets

8.10   Initial targets for key indicators are given below based on experience from the
       LEADER+, CED and other programmes in the recent past, and assuming that the
       funding applied for through this Bid is received in full.

8.11   These indicators and targets will be adjusted:

           Through feedback from the Scottish Government on this Bid – including the
            actual LEADER and Convergence funding allocated to Orkney, advice on
            indicator definitions, and notification of indicators for which information will
            require to be collected systematically across rural Scotland (with definitions).

           Through early operational experience. Once the new Programme has been
            promoted widely and applications begin to be submitted, the likely uptake of
            funding by category of project over at least the first two years of Programme
            operation will become clearer.

           In the light of the Orkney priorities set and the types of assistance likely to be
            provided through Rural Development Contracts, to the Community Planning
            Partnership through ERDF, and from other emerging funding programmes. The
            Business Plan will be comprehensively revised once the scope and funding
            priorities of these other programmes have been finalised, e.g. in mid 2008.

           In response to the findings and recommendations of the Mid Term Review of the
            Programme.

8.12   It is emphasised, however, that LEADER is essentially a bottom-up programme that
       will reflect communities’ and sectoral priorities as these evolve over the six year
       period, and will need to respond to issues and opportunities that arise. The LAG
       would not wish, therefore, to be target-driven; although it will be important to monitor
       success in assisting the Programme’s target groups and in taking forward the main
       themes of the Programme. The indicators and targets will, therefore, be used as
       operational benchmarks and refined and revised as the Programme progresses (at
       least annually).

8.13   Baselines are given below where existing data permits. Other baselines for relevant
       indicators will be quantified in the early stages of the Programme – through
       commissioned surveys and analysis in some cases.
           (1)       Target Groups

                                                                    6 Year              Baseline
            Indicator                                           Initial Target        (Number of
                                                                                         People
                                                                                   in Target Group)
            Young people (aged up to 25) assisted                    1,500             2,600 (est)
            Young people (aged 26-30) assisted                        375               500 (est)
            Women assisted                                           1,000                4,975
            Lower paid / under-employed assisted
            to increase their income                                  125              750 (est)
            Working age people assisted who live
            in or move to particularly fragile areas                 250              1,500 (est)

8.14       For a member of a target group to qualify as “assisted”, they should have benefited in
           a significant way. Records will be kept of target group beneficiaries by category of
           project (see (2) below). It will not be possible to track how many times particular
           individuals will benefit through different projects, but Programme monitoring and
           project approval criteria will ensure a high penetration rate of each target group
           across Orkney to maximise the number of different people who benefit from the
           Programme. There are overlaps between the indicators given above, i.e. an
           individual will often fall into more than one target group.

           (2)       Activities


                      Activity Indicators                              Initial 6 Year Target
                      Value-added projects                                       20
                      Farms restructured                                         15
                      Tourism projects                                           30
                      Cultural projects                                          25
                      Heritage projects                                          25
                      Renewable energy projects                                  15
                      Creative industries projects                               20
                      Transport projects                                          7
                      Other      community      enterprise                       15
                      projects
                      Feasibility studies                                         20
                      Market research studies                                     15
                      Trial projects                                              12
                      Promotional projects                                        10





    These areas will be defined for the purposes of quantifying this indicator.
                Other development projects                         15
                Enterprise development projects                    12
                Training projects                                  20
                Business support projects                          7
                Youth projects                                     20
                Amenity projects                                   20
                Environmental         sustainability               10
                projects
                Development planning projects                      15
                Other projects                                     15
                                                                  363

                Output Indicators
                Number of businesses given advice                 150
                Number of community enterprises                    15
                started
                Number of other new enterprises                    20
                Number of person training days                   2,500
                Number of community activities                    100
                generated or enhanced
                Number          of        communities              20
                participating in projects
                Number      of     childcare    places             50
                provided
                Number of exchanges with other                     12
                areas
                Length of path network created /                 20 km
                improved
                Number       of    new      community               4
                transport services
                Jobs created – on farm                          15 fte’s
                Jobs created – off farm                         55 fte’s
                Training course completions                      1,000
                New      products      or    processes             40
                developed
                Best practice models transferred                   20
                Number of communities with
                improved capacity                                  15

                Outcome & Impact Indicators
                Net jobs created (fte job years)                  200
                Population retained / increased                   500
                Business turnover increased (over              £4 million
                5 years)
                Additional tourists attracted to                500 p.a.
                Orkney                                         (by 2013)
                Additional tourist trips to islands            1,000 p.a.
                and other fragile areas (existing              (by 2013)
                and new Orkney visitors)

8.15   The targets above are considered achievable over the six year period, aided by:

          Assistance that the three project staff will provide to applicants
          The advanced stage of local area development plans, with many projects “ready
           to go”

          Projects to which LEADER can add value that will emerge from initiatives such as
           the Scapa Flow Landscape Development Scheme

8.16   Small projects assisted through schemes or umbrella projects are included in the
       targets. Particular projects could count towards a number of activity and output
       indicators.

8.17   Over the six year period, some groups with successful projects will submit follow-up
       projects that will build on their initial projects and promote long term sustainability. A
       balance will be maintained between such follow-up projects and the intention to
       spread the benefits of the LEADER Programme across all priority areas within Orkney
       and to maximise the number of people in the target groups whom the Programme will
       help.

8.18   All indicators will be defined prior to the start of the Programme to enable useful
       monitoring data to be gathered. For example, a “new enterprise” could be a
       collaborative venture or a farm diversification project.

8.19   Programme evaluations will also assess the qualitative impacts from assisted projects
       in aggregate – including aspects such as improvements in quality of life, community
       confidence, business prospects, and the increase in strength of particular sectors.

								
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