HC Deb 08 March 1978 vol 945 cc1423-4
23. Mr. Dykes

asked the Secretary of State for the Environment what plans he has to make it easier for local and regional authorities to apply for EEC loans and grants under the regional Development Fund and Social Fund.

Mr. Shore

Questions about the Social Fund are for my right hon. Friend the Secretary of State for Employment. Full advice about applications to the Regional Development Fund has been made available to local and other public authorities. I have no reason to believe that the present arrangements are unsatisfactory.

Mr. Dykes

Considering the striking amounts that have been granted by the two funds over recent years—in the case of the Social Fund it has been about £200 million since 1973, and £151 million from the Regional Development Fund since the beginning of that year—will the Secretary of State reconsider his reply and make every effort to ensure that local authorities know the best; and most efficient way of applying for this kind of resource assistance, bearing in mind that there is a gross imbalance now between different areas of the country? Does he agree that some local authorities are well clued up, while others are not? Is it not the job of the Government to make sure that local authorities apply efficiency to the maximum and—

Mr. Speaker

Order. I do not know whether questions are as long as that in the European Parliament.

Mr. Shore

I certainly cannot confirm the hon. Gentleman's figures. I think they may refer to the Social Fund, but of course they are gross figures and they take no account of our contribution. I see no reason why the hon. Gentleman should go out of his way to emphasise what appears to be a gift to this country and quote net figures instead of gross figures.

It does not surprise me that many of the potential participants in the Regional Development Fund—the local authorities and other bodies concerned—are experiencing difficulty in the workings of the fund's administration. I believe that they are becoming more familiar with the way in which it operates, however.

Mr. Fernyhough

Will my right hon. Friend constantly make clear to those who think that the EEC acts as a Santa Claus to Britain that we always pay in more than we get out?

Mr. Shore

My right hon. Friend rightly draws attention to the overall contribution and the net benefit that we gain in terms of cash flow. With the Regional Development Fund, however, it is true that, exceptionally, we gain more than we contribute.

Mr. Marten

Does the Secretary of State recall the report of the Select Committee which looked into the Regional Development Fund and discovered that in the first three years we received £25 million a year? Does he agree that this is a minute amount compared with what our first five years of membership have cost us? Is the right hon. Gentleman aware that that cost is £800 million and that in 1979 and 1980 and beyond it will cost us £800 million a year to belong to the Community? The Regional Development Fund, therefore, is peanuts.

Mr. Shore

The figures quoted by the hon. Gentleman are correct. It is about £20 million a year net to this country, and in terms of regional assistance it ought to be seen also against the background of the sum of about £600 million a year that we ourselves contribute to our regions.