EU Projects Co-Financing Fund
Oct. 28, 2024
Proposal submitted by Koperattiva Produttui taz-Zebbug Limited to the Permanent Secretary for EU Funds Mr. Jonathan Vassallo:
24th October, 2024
Koperattiva Produtturi taz-Zebbug Limited
Proposal for the setting up of an EU Projects Co-Financing Fund
1. The Value of the proposal
A media statement by the Local Councils Association published in the Malta Independent on 1st July 2012 provides a clear understanding of the value of an EU co-financing fund:
Local Councils’ Co-Financing Fund ‘dead’ – LCA
Malta Independent Sunday, 1 July 2012, 00:00Last update: about 12 years ago
The Co-Financing Fund aimed at encouraging local councils to participate in EU-funded projects by way of an annual grant from the government to fund councils’ portions of such projects, has been declared dead by the Local Councils Association (LCA).
According to a notice on the Malta-EU Steering and Action Committee website, the same applies for the co-financing fund applicable to non-governmental organisations. Neither section of the fund, according to the notice, was accepting new applications “until further notice”.
The LCA said it has been officially informed that no more funds are being allocated by Central Government. The fund was established by the government after a proposal submitted by the LCA back in 2008 in order to assist local councils’ participation in EU-funded projects.
The LCA said there were nine pending applications for new projects that have been in process since the first quarter of the year.
“The government used to boast that, through the Co-Financing Fund, local councils were empowered to take part in EU-funded projects as part of their co-financing requirements were paid out of this central fund,” said the LCA.
It added that it will be raising the issue with the Prime Minister, who has now taken over responsibility for local government following the resignation of Minister Carmelo Mifsud Bonnici.
The fund had been established to help pay for local councils’ co-funding of EU projects, since Maltese local councils do not collect any taxes and their revenue depends on an annual grant from the national government, which is tied to various operational budget lines.
Between 2009 and 2011 some €1 million from the Co-Financing Fund helped in the implementation of 50 projects undertaken by various local councils for which they received approximately €18 million in EU funding.
2. Local Councils
It is understood that the EU Projects co-financing fund has been re-established but access to the documents is restricted. From my understanding the access to the fund is made through the following website:
https://localgovernmentdivisioncms.gov.mt/en/DLG/Pages/Cofinancing-funds.aspx
3. Voluntary Organisations
The most recent call for co-financing funds for the voluntary sector was issued on 29th January 2024 through a public call and is located through this weblink:
https://maltacvs.org/latest-news/ngo-co-financing-fund-call-for-proposals-2024-now-open/
4. The Cooperatives Sector: An organisational overview
4.1. Cooperatives are regulated by the Cooperatives Act, which is in the process of being updated through a consultation process. The Minister responsible for Cooperatives is the Minister of the Economy.
4.2. Cooperatives are recognised, registered and regulated by the Cooperatives Board, which is wholly appointed by the Minister.
4.3. The Act/Regulations creates the Central Cooperatives Fund which currently has a government majority and representatives of the two Organisations representing registered cooperatives in Malta and Gozo. This Fund collects 5% from the net revenue of all cooperatives and has a bank balance of more than €4,000,000. The only event that has been organised by the Fund is an event to mark World Cooperatives Day.
4.4. Koperattivi Malta is a cooperative made up of registered cooperatives and has full time staff. It works to encourage the setting up of new cooperatives and support their members in various issues that arise from to time. Km is mainly financed by an allocation from the CCF.
4.5. Malta Cooperative Federation: The Malta Co-operative Federation is an organisation which seeks to aid, advance, expand and unite co-operative societies. The federation consists of a network of new-wave and successful co-operative businesses seeking to promote, strengthen and improve the co-operative model in Malta.
5. EU Funding
5.1. There are various opportunities for cooperatives to participate in EU funded projects in order to undertake research, projects, campaigns, and other initiatives that are covered by the various EU financing streams.
5.2. The Cooperative had to abandon a project under the EAFRD regarding an educational campaign to promote the labelling of organic agricultural products.
5.3. The Cooperative is aware of the IMCAP call for proposals but due to the of co-financing is not applying for such funds.
5.4. The Cooperative has submitted a project about olive tourism that, if awarded, would require a co-financing of more than €24,000.
5.5. The Cooperative is also a member of the consortium of a Horizon Project about Integrated Pest Management, which would also require co-financing.
5.6. The Cooperative has restricted itself from other projects since we cannot afford to undertake EU projects without the financial backing of the co-financing fund.
6. Proposal
6.1. The Cooperative has, through Koperattivi Malta, proposed that the Central Cooperatives Fund, establishes an EU Projects Co-Financing Fund. The Guidelines can be adopted from those applicable to Local Councils and the Voluntary Sector, and issued by the approval of the Board of the CCF.
6.2. Due to the fact that the composition of the Board, and also its functions, are under review under the proposals for a new Cooperatives Act, the CCF Board will not resolve to establish the Co-Financing Fund.
6.3. It is being recommended to set up the fund – for a limited period – under the direct control of the Ministry by appointing an ad hoc Committee and publishing the Operating Guidelines as soon as possible.
6.4. Once the new Cooperatives Act and the composition of the CCF Board is decided upon, the Co-Financing Fund will fall under the control of the CCF Board.
