HC Deb 27 July 1999 vol 336 cc110-1
5. Mr. Archy Kirkwood (Roxburgh and Berwickshire)

When he expects to announce the areas in Scotland to be included in the next programme of (a) regional development area aid and (b) European structural funds; and if he will make a statement. [91602]

The Secretary of State for Scotland (Dr. John Reid)

The proposals for a new assisted areas map, including parts of the borders, were announced on 15 July. The safety net for the United Kingdom's coverage secured by the Prime Minister at the Berlin summit enabled the UK Government to propose that 49 per cent. of Scotland's population should be covered by the new map.

As regards objective 2 of the European structural funds, it is important to target the areas to be nominated. Finalising these areas is taking slightly longer than anticipated, but every effort is being made to do so as soon as possible.

Mr. Kirkwood

The reintroduction of regional selective assistance in parts of the Scottish borders region on 15 July was warmly welcomed. However, as I am sure the Secretary of State will acknowledge, not every community in the region can be included in the eligible area map. That puts extra pressure on communities such as Jedburgh in my constituency which have been left out. The local people are perplexed about that, and feel that no one is responding to their needs.

When the European structural funds announcement on objective 2 is made, will the Secretary of State bear that in mind? Will he ensure that the whole Scottish borders region receives some coverage, so that compensating measures can be applied to communities that have not been given assisted area status? Will he also use all his powers to ensure that Members of Parliament are given adequate notice of the announcement, which will probably be made during the recess, and that we do not have to read about it in the newspapers?

Dr. Reid

I will try to ensure that the hon. Gentleman's last request is met to the benefit of hon. Members.

I thank the hon. Gentleman for his comments about the assisted areas map. I think that the solution for Scotland was a fair one, which met Scotland's needs and resulted from the very partnership that I mentioned earlier. Not only did the Prime Minister negotiate a safety net for the United Kingdom, but I assure the hon. Gentleman that the First Minister and I worked closely together. I think that the resulting 49 per cent. coverage was very fair. We should bear in mind that the United Kingdom is now much more prosperous than it was in Europe when the last map was drawn up, and that, owing to the present Government's policies, Scotland is now much more prosperous in the United Kingdom than it was. As I say, I think that the settlement was fair.

As for objective 2, I cannot give the hon. Gentleman guarantees in regard to areas. We must ensure that the method of targeting is as efficient as possible. Because we are now more prosperous, we can expect a diminution in the number of people who will be covered in Scotland. I will, however, attempt to ensure that the hon. Gentleman's comments are brought to the attention of all who are involved in the planning.

Mr. Douglas Alexander (Paisley, South)

I welcome the world-based approach to regional selective assistance, but would the Secretary of State be willing to meet me to discuss the impact of the new approach on my constituency?

Dr. Reid

My hon. Friend has already raised the matter with me informally, and had the courtesy to tell me that he would ask me about it today. I know how keen he is to ensure that the interests of the people of Paisley are protected. I will certainly meet him but, as I think he will accept, the settlement regarding the assisted areas map was very fair from our point of view. We worked it out in partnership with our colleagues in the United Kingdom Parliament.

When a final announcement is made, it will be possible to make some technical adjustments to the map, but I do not hold out the probability of major adjustments.

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