European Regional Development Funds

HC Deb 22 January 1992 vol 202 cc307-8

11. Mr. Robert Hicks

To ask the Secretary of State for the Environment whether he has any plans to alter the arrangements governing the payment of European regional development funds to local authorities; and if he will make a statement.

Mr. Heseltine

It is well known that there are differences between the Government and the European Commission concerning interpretation of the additionality requirement. The issue has been subject to extensive discussion. We shall, of course, make an announcement as soon as our differences with the Commission are resolved.

Mr. Hicks

I hope that that gives cause for encouragement. Is my right hon. Friend aware that in those regions which have been identified as in need of additional financial aid because of their social and economic requirements, there is considerable disappointment and, indeed, frustration about the fact that we cannot take up our full allocations? Is he aware, for example, that in Devon and Cornwall there is a shortfall of £7.5 million? In the Plymouth travel-to-work area we have been able to use only £3 million of the £11 million allocated under the RENAVAL programme because of the reduction in the work load of Devonport dockyard. May I impress upon my right hon. Friend the need for urgency to resolve the problem?

Mr. Heseltine

I fully understand the concern and care of my hon. Friend in representing his area. I hear what he says. Perhaps it is the Labour party which should bring pressure to bear upon a former Secretary of State for Scotland who is now denying this country the benefit of these funds.

Mr. John D. Taylor

Since European regional aid is supposed to be for additional public expenditure in the regions, why do the Conservative Government prevent regional aid going to local authorities throughout the United Kingdom?

Mr. Heseltine

The right hon. Gentleman must know that very substantial increases in assistance have been provided through one Government programme or another to deal with the sort of issues that the matter covers. The Government have expressed the clear view that that has enabled additional funding to flow because we took into account the potential of the ERDF scheme. Anyone who has the slightest doubt about the force of these arguments should remember the eloquence with which they were expressed by Commissioner Millan when he was Secretary of State for Scotland.

Mr. Andy Stewart

While Bruce Millan plays politics in Brussels, it is left to the British Government to give additional resources to coalfield areas. For example, in my constituency alone in the last financial year we received £0.5 million from British Coal Enterprise Ltd., £3 million in land reclamation grants and almost £1 million from the rural development programme. Will my right hon. Friend confirm that those valuable resources will be available in the coming year?

Mr. Heseltine

No one has fought harder than my hon. Friend to bring resources to deserving areas. I do not think that we should deny Commissioner Millan the opportunity to play politics in Brussels. Certainly there will be no job for him in government in this country.