HC Deb 09 December 1981 vol 14 cc845-6
1. Mr. Knox

asked the Secretary of State for Scotland what percentage of total European regional development fund grants to the United Kingdom has gone to Scotland since the inception of the fund in 1975.

The Under-Secretary of State for Scotland (Mr. Alexander Fletcher)

Since the European regional development fund was set up in 1975, approximately 25 per cent. of the grant-aid allocated to the United Kingdom has related to projects in Scotland.

Mr. Knox

Does not that suggest that Scotland is doing very well out of the European regional development fund? What steps is my hon. Friend taking to publicise the grants?

Mr. Fletcher

I am grateful for the consistency with which my hon. Friend provides the opportunity to publicise these excellent arrangements. I am sure that he will be interested to know that the total of grants and loans allocated to Scotland from Community sources is now more than £1,000 million.

Mr. Grimond

Can the Minister confirm that the EEC has now offered funds for agricultural development in the Highlands and Islands? If that is so, what is the amount of the offer, and are the Government accepting it?

Mr. Fletcher

The right hon. Gentleman may be aware that there is an EEC project in the Western Isles. I think that the total sum amounts to about £20 million. The right hon. Gentleman might wonder why the right hon. Member for Western Isles (Mr. Stewart), whose constituency is receiving that aid, has so far been unable to express some gratitude to the EEC for that.

Mr. Corrie

Will my hon. Friend confirm that if we had not joined the EEC we would not be receiving the grants, and that many projects would not have been started in Scotland?

Mr. Fletcher

My hon. Friend is correct. The Labour Party's policy of withdrawal from the European Community, if put into practice, would severely damage exports, reduce inward investment and, as a result, increase unemployment in Scotland.

Mr. Harry Ewing

Does the Minister accept that the awarding of the regional grants, as distinct from the loans, depends entirely on the Government giving aid to the various assisted areas? Does the Minister further accept that, once the Government's policy of abolishing the assisted area status of many areas in Scotland, including parts of the Central region, is fully implemented, those areas will no longer qualify for the regional aid about which he is boasting?

Mr. Fletcher

I agree with the first part of the hon. Gentleman's question. With regard to the second part, he will be aware that it is Government policy to ensure that regional aid is given to those parts of the United Kingdom that are in most need, and that that relates our own regional development areas to the EEC regional development fund. He will also know that, since the Government came into office, Scotland has had a larger share of development area regions than any other part of the United Kingdom.

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