The Economy Committee takes evidence on European structural and investment funds
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The division of funds is a fundamentally political decisions, Prof Fothergill says.
First there will be a high level carve up between the nations of the UK, he states.
The Scottish government will then have a fairly broad remit, within UK guidelines, about how it allocates that money, Prof Fothergill suggests.
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Prof Bachtler says Scotland should be thinking about why we want a regional policy.
In the UK the reason for this is about economic growth but elsewhere in Europe, the cornerstone of regional policy is about social justice, he states.
SNP MSP Gillian Martin
SNP MSP Gillian Martin asks about resilience against economic shocks.
Robin Smail from EU Structural Funds says the UK will no longer have to follow audit procedures of the EU, suggesting it might make sense to have a separate crisis fund.
This already exists in the EU but it could be more flexible and more targeted to meet the UK's needs, he adds.
Linda Stewart of UHI says better indicators need to be brought in, adding that GDP is a "blunt instrument".
Ms Stewart agrees with Prof Bachtler about needing to consider why regional policies are being used.
When looking at ESIF we must also consider what is going to happen to agricultural and fisheries fund too, she adds.
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Prof Steve Fothergill
Prof Steve Fothergill says a Shared Prosperity Fund must be backed by £1.5bn per year or else there will be cuts.
The money is there because the UK government will no longer be sending cash to Brussels, he argues.
Professor Steve Fothergill points out the UK government promised a less bureaucratic fund in its manifesto.
The Sheffield Hallam University academic says that's the only government statement on this issue so far.
Robin Smail tells MSPs Scotland should be working with its partnership now to develop its part of the Shared Prosperity Fund.
Image source, bbc"Now is the time," he says.
Mr Smail warns Scotland will probably be working with a lower level of funding as the Treasury will claw back funds.
Professor Steve Fothergill disagrees arguing Mr Smail is "accepting defeat before we fight the battle".
Consultation, allocation mechanisms and institutional arrangements are three aspects that must be considered for a Shared Prosperity Fund, Prof Bachtler says.
In terms of money it will be important to ensure there are no breaks, he explains.
Decentralisation, predictability in funding, partnership, integration and accountability should be central to any such fund.
Linda Stewart of UHI
Linda Stewart of UHI agrees there is a "real urgency" in terms of securing funding to prevent breaks.
Whatever we put together will not work unless stakeholders are fully bought into it and able to deliver, she adds.
There will still be structural issues post-Brexit, such as geography and demography, but there will also be opportunity, such as around renewable energy, she suggests.
Ms Stewart states that putting something new in place will be a challenge, but one worth taking on.
SNP MSP Colin Beattie asks about the Shared Prosperity Fund and how it should operate.
The UK government has pledged to create a UK Shared Prosperity Fund to replace ESIF.
Professor Steve Fothergill answers it must be ready by 1 January 2021 so there is no hiatus.
Image source, bbcThere must be a smooth transition, he argues.
The academic thinks the UK government will probably launch a consultation on the Shared Prosperity Fund in the autumn of this year.
He tells MSPs he believes the timing of this committee's inquiry is fortunate as it could shape the UK government's policy.
From the Scottish government website on ESIFs:, external
The ESIFs are intended to achieve EU priorities in areas such as employment, innovation, education, poverty reduction and climate change/renewable energy.
They align with our priorities for Scotland, of reducing poverty and social exclusion, boosting educational attainment and skills development, growing employment levels, economic activity and innovation, and addressing climate change through increased use of renewable energy.
More information on the ESIFs can be found on the European Commission website, external.
2007-2013 programmes
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Labour MSP Jackie Baillie asks about how the voluntary sector engages with managing authorities.
She expresses concern about underspend and clawback.
UHI's Linda Stewart says there are "undoubtedly" difficulties in the Highlands and islands.
Many of the issues are primarily around how long the process has taken, which has had a knock on effect on spend and targets, she explains.
However, collaboration between agencies and managing authorities has led to solutions, Ms Stewart adds.
But she warns that small voluntary sector organisations without the resource or historical understanding of how the programmes work would find it more difficult to address these issues.
Let's grab the opportunities here at phase two to sort things out, urges the UHI representative.
Professor Steve Fothergill points out that in England some of the units are as small a half a million people.
Prof Fothergill tells the committee that every area outwith London is smaller than Scotland.
Image source, Getty ImagesProfessor John Bachtler argues he would be less complementary about the UK's record than Robin Smail.
The academic says the impact of Brexit could have profound sectoral impacts on Scotland.
Image source, PAFrom the Scottish government website on ESIFs:, external
The Scottish government distributes the ESIFs to lead partners through Strategic Interventions (SIs): large-scale allocations of more than €15 million, structured around specific themes and with specific aims.
Lead partners are policy directorates, agencies and local authorities with the capacity and capability to manage the funds and provide match funding of their own to increase the overall levels of investment.
The government works with lead partners to divide the SI and match funding into smaller amounts known as Operations.
Individual projects and organisations then apply to lead partners to access the funds, and awards are made to projects most likely to achieve the stated aims of the SI.
The government works with the lead partners to ensure the funds are awarded, monitored and evaluated in accordance with ESIF regulations.
Robin Smail of EU Structural Funds says British programmes generally are "exemplary" for their strategy, design, application of the partnership principle, delivery mechanisms and evaluation practices.
British and Scottish programmes have been the best, he claims.
Linda Stewart of UHI
Labour MSP Jackie Baillie says it seems little has changed since she herself wrote ESIF applications in terms of barriers.
Linda Stewart of UHI suggests there is a lot of potential in the structures and there are solutions.
Let's not lose sight of the incredible good work ESIF has done, particularly in the Highlands and islands, since the 1990s, she argues.
Image source, bbcRobin Smail from EU Structural Funds
Professor John Bachtler says there is now an opportunity to ask what are the domestic priorities.
Professor Steve Fothergill argues outwith the Highlands and Islands there is a huge diversity, contrasting Aberdeen GDP with Glasgow.
The academic from Sheffield Hallam University points out in England there is a much more targeted approach.
Robin Smail from EU Structural Funds says as the level of funding has gone down in smaller states, there has been more centralisation.
Mr Smail tells the committee Scotland is big enough to have sub regions, pointing out the problems in some rural areas are "absolutely massive".
From the Scottish government website on ESIFs:, external
For the period from 2014 to 2020 we received €476 million from the ERDF and €465 million from the ESF. These funds are being used to:
Image source, Getty Images/Thinkstock/ BBCWe are managing the funds by:
Linda Stewart from the University of Highlands and Islands argues that it is a notoriously difficult balance to strike in ESIF.
Ms Stewart points out that in the Highlands and Islands there was not sufficient control in how to prioritise and deliver the funds.
Shared national strategies must be mixed with a more granular approach, she states.
From the Scottish government website on ESIFs:, external
The European Structural and Investment Funds (ESIFs) are the European Union's main way of investing in 'smart, sustainable and inclusive' growth in its member states.
We are the Managing Authority for two ESIFs in Scotland:
We distribute these funds to lead partners, such as policy directorates, agencies and local authorities, who distribute the funding between individual projects and organisations.
Applications for funding should be made directly to a relevant ESIF lead partner organisation, external. The performance of funded programmes is monitored by the Joint Programme Monitoring Committee (JPMC), external.
Find the latest news on the ESIF blog, external.
Professor Steve Fothergill from Sheffield Hallam University
Green MSP Andy Wightman asks about the sub-regions in England.
Professor Steve Fothergill from Sheffield Hallam University says the English situation is distinct from the Scottish situation, as in England each fund is managed by local enterprise partnerships (LEPs).
In England there is targeting towards the poorest areas but not in Scotland, he adds.
Robin Smail of EU Structural Funds
Robin Smail of EU Structural Funds says when the regional enterprise agencies were abolished in England, LEPs were put in place.
These carry out the functions of a managing authority though they will frequently use intermediate bodies, he explains.