Putting a bid together - FIFG - A Step by Step Guide to Objective One in Cornwall and the Isles of Scilly

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Step 4. Putting a bid together - FIFG

Putting a bid together
These notes explain the principles of making an application for funding from the Financial Instrument for Fisheries Guidance (FIFG), which assists the balance between fish stocks and fishing.

For applications to the other funds - EAGGF, ERDF & ESF - see the relevant sections.

Using these notes
This section is intended to give outline information on the fisheries grants available and how bids need to be put together. Further advice, detailed guidance notes and application forms are available from South West PESCA Ltd, which is facilitating the programme on behalf of Defra.

Clare Leverton
Programme Manager
South West PESCA Ltd
Trevint House
Strangways Villas
Truro, Cornwall
TR1 2PA.
Tel 01872 270333
F ax 01872 242470
admin@swpesca.prestel.co.uk

Information and application forms are also available from Defra - contact:

Department of Environment, Food and Rural Affairs
Fisheries IB
Room 441
Nobel House
17 Smith Square
London
SW1P 3JR.
Tel 020 7238 5314 (answering machine - for application forms)
Tel 020 7238 5710 (enquiries)

Please note that you should not commit yourself to any expenditure on which you may be seeking grant until after your application has been approved and a formal offer letter has been signed and returned. (Exceptions to this rule may be: land purchase; obtaining planning permission; architect/consultancy work; obtaining quotations.)

Funding available
Funding of £10.3 million in FIFG investment to help the fishing industry restructure will be provided over the seven years of the Objective One Programme for Cornwall and the Isles of Scilly.

The eligibility criteria will also be reviewed from time to time during the lifetime of the Programme and projects will be assessed on a competitive basis, so there can be no guarantee that all eligible projects will be awarded grant.

If your application is successful you will get a percentage of the total eligible cost of your project. (The percentage will vary according to the project and the remainder will need to be met by match funding found by the applicant.) Grants will be paid once money has been spent on a project on receipt of a complete and accurate claim and an acceptable progress report.

Eligible activities
FIFG investment is available for:

•	modernisation of fishing vessels to improve product quality; adopt sustainable catching methods; and improve crew comfort and working conditions
•	protection and development of aquatic resources for activities related to fixed or movable structures such as artificial reefs
•	improvement of fishing port facilities
•	processing and marketing of fishery and aquaculture products
•	product promotion
•	projects by members of the trade of collective benefit to the fishing industry, such as projects by fish producer organisations and training
•	innovative measures including studies, pilot projects and demonstration trials aquaculture

For more detailed information - including specific examples, details of grant rates, conditions and the supporting information required for any grant application - please contact South West PESCA Ltd or Defra.

Ineligible activities
The following kind of activities will not be eligible for FIFG grants:

•	construction of new fishing vessels
•	purchase of second hand fishing vessels
•	purchase of fishing quotas
•	early retirement schemes
•	non-fisheries activities such as diversification into tourism, retailing of fish and fish products and support for ancillary industries (e.g. boatyards)

Please note, however, that European Regional Development Fund (ERDF) funding may be available to assist the fishing industry to diversify into non-fisheries related activities. For further details contact the Government Office for the South West on 01752 635000.

Other requirements
As well as falling within one of the activity areas above, there are other requirements your project must meet in order to be eligible for funding. All projects must:

•	not be the subject of an application for another EU grant
•	not duplicate existing, or other planned, activity or expenditure
•	comply with EU and UK legislation

In addition, all projects need to be able to provide evidence of:

•	a funding package that includes match funding from UK public money (Defra provide up to 5% if not other UK funds are available) and, where appropriate, private funds
•	quantifiable outputs and details of clear and attainable targets
•	an additional and sustainable benefit to the industry
•	needing the minimum grant necessary for the project to proceed
•	good value for money

The projects selected for funding will be those which most effectively help the industry to restructure, meet the Cornwall and isles of Scilly fishing industry strategy, and enable eligible activities to take place. Projects will also need to show they are likely to be profitable or cost effective and will stand a higher chance of getting aid if they achieve the following:

•	completion within two years of approval
•	creation of new jobs, or safeguarding existing jobs, and reducing seasonality of employment
•	protection of the environment
•	inclusion of technical innovation

How to apply
Application forms and guidance notes are available from South West PESCA Ltd. Forms can also be downloaded from the Defra website at www.defra.gov.uk/fish/grants.htm and completed on your own computer but will still need to be printed off and signed and dated.

South West PESCA Ltd can provide help to applicants including guidance on filling in application forms, assistance in drafting business plans, information on where to get quotes for equipment etc.

Responsibility for the content of the application and any subsequent information rests with the applicant.

Project proposal or business plan
In addition to completing the application form, you will also need to provide a detailed project proposal or business plan. The amount of information and supporting documentation that you need to provide in this will depend on the type of project for which you are applying for funds but should cover the following points:

•	full description of the project, including how it will operate and be carried out and a business case to show that the investment offers an adequate guarantee of technical and economic viability
•	why the work is needed, expressing the problem(s) to be addressed in qualitative and quantitative terms - details of any market research or other preliminary work to demonstrate the need for the work should be provided

The business plan will also need to include a financial appraisal. This should contain a valuation and balance between costs and benefits of the project and a copy of any quotations and tenders (you would normally need to obtain three formal written quotations or tenders).

The financial appraisal will also need to give details of the extent to which the business/activity involved already takes place within the local fishing industry and confirmation that it will not lead to significant distortion of competition. The appraisal should also state what the financial benefits would be for the applicant and for the industry as a direct result of the project, and for capital works what would happen if the project were not carried out.

The business plan should also set out:

•	your experience of similar projects and results achieved
•	cash flow forecast and accounts
•	for private companies, company accounts for the last three years to show your business is financially sound

You should bear in mind that any grant offer will contain targets and conditions based on your proposal. You should therefore provide specific details of the expected results of the project and likely timescales. You will need to be able to deliver these targets and conditions in order to receive any grant aid allocated to the project and therefore you should consider them in detail in drawing up your proposal.

To support your proposal you should state whether the project would:

•	result in safeguarding jobs which are under threat
•	lead to extra permanent, full-time or part-time jobs or job-equivalents being created in the area
•	result in increased profitability (either in terms of reduced losses or increased returns)
•	lead to increased turnover/demand
•	have other benefits (please specify)

Details of any environmental benefits of a project must also be provided. Examples of such benefits are:

•	the efficient use of energy
•	the efficient use of natural resources (e.g. fish stocks, water)
•	the minimisation/re-use of waste materials (e.g. waste water, fish wastes etc)

You should indicate how the benefits of the project would continue to be delivered after the grant support comes to an end. Benefits should be quantified and your business plan/project proposal must provide details of how you calculated these benefits.

Applications put forward by public bodies and local groups should, if possible, indicate the degree to which the project will contribute to the overall industrial and economic development of the area. You should also summarise how progress will be monitored to ensure that the work is completed on schedule and explain how you will be able to demonstrate that the expected results have been achieved.

Once your application is complete, and you have included all relevant documentation, send it to South West PESCA Ltd at the address at the top of this section.