Regional Development (Hansard, 20 October 1975)

§ 4. Mr. Blaker
asked the Secretary of State for Industry if he is satisfied with the operation of the Regional Development Fund of the EEC; and if he will make a statement.

§ The Minister of State, Department of Industry (Mr. Gregor Mackenzie)
Yes, Sir. United Kingdom applications worth some £9 million from the fund have already been approved.

§ Mr. Blaker
Will the moneys to be received from the fund increase the funds available in the regions of the United Kingdom, or will they go direct to the Treasury?

§ Mr. Mackenzie
I think that it is well known now that the receipts from the fund will allow us to finance larger programmes than would otherwise have been possible. It has already been announced by my right hon. Friend the Chancellor of the Exchequer that he was able to agree to the increased factory programme because of the money we expect to receive from the fund.

§ Mr. William Hamilton
Does my hon. Friend agree that there has been a widespread welcome in Scotland for the sums being made available by the EEC, for 61 projects in all? Will my hon. Friend seek to give the maximum publicity to the naming and identifying of those projects, and will he tell the House how they were chosen and by whom?

§ Mr. Mackenzie
We shall seek to publicise as best we can the projects which my hon. Friend mentioned. I think that he will appreciate that it is rather early in the day to make a full assessment of the contributions that we receive. As a fellow Scot, I have great hopes for the future of the fund, which I think will be of considerable value not only to Scotland but to Wales and other assisted areas.

§ Mrs. Bain
There are those of us in the House who would be content to see Scotland as a nation and not a region—a situation that we hope to rectify fairly soon. Does the Minister agree that any aid from the European Community should be used in addition to the funds from the United Kingdom Government, and should not replace them? Does he agree that that is a matter of particular importance in Scotland, especially in the West and the areas of deprivation and extreme poverty? Can the Minister guarantee that when the Scottish Assembly is established EEC funds for regional aid will go direct to that body?

§ Mr. Mackenzie
The question of the Scottish Assembly will be the subject of a White Paper to be published by the Government later this year. We shall no doubt have ample opportunity to discuss all its rôles then. As I said in my reply to my hon. Friend the Member for Fife, Central (Mr. Hamilton), we firmly believe that the money—it is modest in amount as yet, but we hope that it will grow in the years ahead—will be of considerable value to places such as Scotland.

§ Mr. Marten
Will the Minister clarify his reply to my hon. Friend the Member for Blackpool, South (Mr. Blaker)? Will the money go into the Treasury first and then go to the various regions? Is there no possibility of its going to the regions direct and then into the projects direct, so that we can all see exactly what happens?

§ Mr. Mackenzie
I made it clear to the hon. Member for Blackpool, South (Mr. Blaker) that we are not giving the money to individual firms. It will go into the Treasury and will be used by the Treasury to increase our regional policy funds. I gave the example of the money going into advance factories—something for which both sides of the House constantly press me.

§ 17. Mr. William Hamilton
asked the Secretary of State for Industry what progress has been made towards the development of a European regional aid policy more attuned to the needs of the United Kingdom.

§ Mr. Gregor Mackenzie
As the White Paper on Membership of the European Community indicated, new principles have been agreed for the co-ordination of regional aids within the Community which will allow the United Kingdom to continue to take effective measures adjusted to the particular needs of our regions. The European Regional Development Fund will contribute to the cost of these.

§ Mr. Hamilton
Will the Minister now answer the question which I put to him, namely, how the 61 projects in Scotland projected for next year were chosen, and on what criteria? Is he yet in a position to say how many new jobs will be created or existing jobs preserved?

§ Mr. Mackenzie
The question of applications in respect of Scotland is dealt with by my right hon. Friend the Secretary of State for Scotland, and those matters should properly be addressed to him. These matters are identified by the Scottish Office in consultation with the Department of Industry.

§ Mr. Henderson
Will the anticipated European regional aid policy have any more effect than the Labour Government's regional aid policy has had so far?

§ Mr. Mackenzie
The regional fund may make only a modest contribution, but it is helpful and will assist Scotland, Wales and other parts of the United Kingdom.

§ Mr. Trotter
Will the Minister give a clear assurance that all the funds made available in Europe will be spent on additional schemes in the regions? If 8 that is not done, will it not be regarded as cheating by our European colleagues?

§ Mr. Mackenzie
We cannot pass on every single red cent to each individual project. We have decided over a period of time that this matter is best dealt with by increasing the amount of money to be spent on regional development. The advance factory project, which my right hon. Friend the Chancellor of the Exchequer recently announced is a good example of this activity.