HC Deb 09 June 1980 vol 986 cc19-21
16. Mr. Knox

asked the Secretary of State for Industry what was the total value of the grants made to industry in the United Kingdom from the European regional fund in the most recent 12-month period for which figures are available.

Mr. David Mitchell

In the 12 months ending 6 June 1980, grants of £96.5 million from the European regional development fund were approved for the United Kingdom in respect of industrial projects.

Mr. Knox

Does my hon. Friend agree that that figure provides further evidence of the benefits that accrue to this country because of our membership of the EEC, and particularly to those areas affected by the decline of the steel and shipbuilding industries? Is he satisfied that the United Kingdom is receiving its fair share of the 5 per cent. non-quota section of the European regional development fund?

Mr. Spriggs

Tell him what it is costing Britain.

Mr. Mitchell

I agree with my hon. Friend about the benefit to the United Kingdom of EEC membership. With regard to the European Steel and Coal Community, it is true that substantial help towards the problems caused by the retraction of the steel industry will flow from European funds. With regard to my hon. Friend's final point, the answer is that we are anxious to secure for Britain everything that is available from the EEC at present.

Mr. Campbell-Savours

Following the Prime Minister's statement that our budget contributions to the EEC will be reduced in favour of increased regional assistance, will the Under-Secretary tell the House what form that increased regional assistance will take? Perhaps he will make a statement to the House in order to help hon. Members representing regional constituencies.

Mr. Mitchell

I am sure the House will recognise that the arrangements have been so newly made that it is not yet possible to make a detailed statement on the way in which Britain's drawings from Europe will be affected. I assure the hon. Gentleman that every possible means will be explored to obtain whatever is available.

Mr. Hill

Is my hon. Friend aware of the report of the Select Committee on European Legislation &c, in which it was pointed out that over the last two years less than 50 per cent. of the money available was programmed for the United Kingdom because so many schemes were not being put forward in time?

Mr. Mitchell

I am grateful to my hon. Friend for drawing attention to what has been happening. I shall ensure that in the future we shall learn a lesson from what he has said.

Mr. Crowther

Will the hon. Gentleman explain how it is beneficial for Britain to pay phenomenal amounts to the EEC in order to receive back trivial sums, such as £96.5 million? Would it not be far better for the Government to give that sum, and a great deal, to British industry by not paying it to the EEC?

Mr. Mitchell

The hon. Gentleman will know that that is a matter that has exercised Governments of both parties. For the last five years Labour Members and their Government have talked about it. This Government have succeeded in making an agreement that changes the balance substantially in our favour.