HC Deb 27 April 1994 vol 242 cc238-9
13. Sir David Knox

To ask the Secretary of State for Scotland what is the total value of grants that Scotland has received from the European regional fund since its inception.

Mr. Stewart

Since the inception of the European regional development fund in 1975, Scotland has benefited from awards totalling almost £1.2 billion.

Sir David Knox

Does not that show the European Community's commitment, through the structural funds, to Scotland's needs? Can my hon. Friend tell us how different parts of Scotland will benefit over the next few years?

Mr. Stewart

My hon. Friend is right to point to the figures, which underline the European Community's commitment to Scotland through those funds. He asked about the benefits over the next few years. The highlands and islands will receive £240 million over six years, under objective 1 status. The west and east of Scotland will receive £330 million between them over the next three years, under objective 2 status. As my hon. Friend the Minister for Industry announced earlier this week, £108 million will be available to Dumfries and Galloway, Borders, north and west Grampian and rural Stirling and uplands Tayside over the next six years, under objective 5b status. That shows that there will be significant benefits throughout Scotland.

Ms Rachel Squire

Does the Minister agree that no amount of European regional funding can compensate the Scottish economy, and particularly the Fife economy, for the Government's anti-Rosyth bias and for the broken promises and policies which have led to mass unemployment? Does he further agree that no amount of European regional funds can compensate for the loss of 6,712 jobs which are related to Rosyth naval base? Will he commit himself to ensuring that the Prime Minister keeps the clear and categorical commitment that he made in 1991 that Rosyth naval base would stay operational?

Mr. Stewart

I wholly reject the hon. Lady's allegation that the Government are in some way anti-Rosyth. The case for the dockyard and the base has been put forward with great vigour by my right hon. and hon. Friends.

In relation to the specific question of the future of the naval base, the hon. Lady will know from the statement of my right hon. and learned Friend the Secretary of State for Defence that the Ministry is examining all aspects of defence support activity, of which naval infrastructure is just one area. It is regrettable that there has been a great deal of what I fear may be damaging speculation.

Mr. Bill Walker

Is my hon. Friend aware that, while I welcome the money from the European Union that will come to uplands Tayside, I do not forget that every pound which comes from the European Union costs the taxpayers in the United Kingdom in excess of £1.60 to get it back? Is not it important to recognise that we are getting our own money back, albeit considerably reduced in value?

Mr. Stewart

I do not want to get involved in an extended answer to my hon. Friend's arithmetic. His views on the matter are always put with great vigour and robustness, but I am glad that he welcomes the assistance to north Tayside and his constituency.

Mr. Kirkwood

While I welcome the capital allocation from Europe that the Minister has just announced in terms of objective 5b for the Borders, may I ask the Minister to accept that the cuts in capital consents for the Borders region for next year make it impossible—nearly—for the council to take any advantage of those funds because, of course, European funds must be matched from national resources?

Mr. Stewart

European structural funding for the Borders, as elsewhere, is fully additional to the bodies which receive it, and for local authorities that means additional section 94 consent. Matching funding, to which the hon. Gentleman is referring, must come from each organisation's existing capital expenditure plans. I believe that that acts to encourage value for money from European-funded projects.

Mr. George Robertson

May I return to the statement by the Minister on the damaging speculation about Rosyth, especially in relation to potential claims against the European regional fund? I agree with the Minister that the speculation about Rosyth is extremely damaging, and no more damaging than to the thousands of human beings in that part of the world whose jobs depend on it.

I remind the Minister of the words of the Secretary of State for Scotland in 1991: I am glad that the Prime Minister has recognised the strength of the arguments for Rosyth and the case I advanced in support". Will the pledges about Rosyth be repeated here today? Will the Secretary of State for Scotland and the Minister tell the House that they stand by the commitments to Rosyth, or will this go down as yet another broken promise in the encyclopaedia of deception of which the Government are guilty?

Mr. Stewart

The hon. Gentleman is being pretty ingenious—but, of course, in order—in asking that question in relation to European regional development funds. My right hon. Friend the Secretary of State for Scotland and my right hon. and learned Friend the Secretary of State for Defence have made the position absolutely clear.