HL Deb 06 April 1989 vol 505 cc1192-3

3.15 p.m.

Lord Dormand of Easington asked Her Majesty's Government:

What provisions are being made concerning regional policy to meet the changes expected in 1992.

Lord Strathclyde

My Lords, major changes in the focus of the DTI's policies were made early last year. Regional policy now operates within a framework of measures designed to promote enterprise and business development throughout the country and to encourage firms to take full advantage of the opportunities of 1992. Our enterprise initiative is particularly relevant to the regions and our Europe Open for Business Campaign is aimed at encouraging all firms to take action now to ensure they benefit from the opportunities the single market will bring.

Lord Dormand of Easington

My Lords, if that is the case, is the Minister aware that under objective 2 of the new criteria for the EC structural fund, the regions of this country are said to be in greater industrial decline than in any other areas of the EC? In such circumstances, and because of those findings, will the Minister comment on two matters? First, will the Government include those areas, now specified under the arrangements I have just mentioned —incidentally, they involve 1.5 million people—which do not currently qualify for national assistance schemes? Secondly, will the Government adhere to their often repeated promise that this EC funding will be in addition to the funds obtained through regional assistance in this country?

Lord Strathclyde

My Lords, just before Easter the Commission announced the definitive list of areas which will benefit from the ERDF as declining industrial areas—objective 2. Nearly all our assisted areas will be eligible. In addition, a number of additional areas will qualify for the first time. There were, however, some disappointing omissions. We hope that in the future we shall be able to do something about that.

Lord Taylor of Gryfe

My Lords, does the Minister agree that in order to take advantage of the opportunities of 1992, no region should be disadvantaged against any other part of the United Kingdom? In those circumstances, will the Minister say something about the introduction of a uniform business rate as Scottish enterprises are paying five and six times the rates levied on industries in other parts of the country? Is that not a serious disadvantage, and does it not conflict with the Minister's profession of support for positive regional policies?

Lord Strathclyde

My Lords, if the Question on the Order Paper had anything to do with the business rate, I should have been delighted to reply to the question of the noble Lord. However, I am afraid the Question on the Order Paper is directly concerned with regional policy. Therefore, I shall decline.

Lord Williams of Elvel

My Lords, how does the noble Lord reconcile what he said about regional policy with the cut in real terms, announced in the recent public expenditure White Paper, of £30 million? Is that an adequate preparation for 1992?

Lord Strathclyde

My Lords, the changes announced last year were not designed specifically to reduce expenditure, but rather to make it more effective through being targeted on those areas where it would be most effectively used. I speak particularly of smaller firms. It is by such targeting that we shall see substantially greater growth in the future.

Lord Dormand of Easington

My Lords, I asked the Minister two rather narrow, specific questions. Will he be so good as to answer them now? They were certainly relevant to the Question on the Order Paper.

Lord Strathclyde

My Lords, I thought that I had answered the questions by saying that nearly all our assisted areas will be eligible, although, from our discussions with the Commission, some were not included in the ERDF areas. I thought that that covered the point which the noble Lord raised.