HC Deb 29 January 1998 vol 305 c499
16. Mr. Barnes

What representations he has received recently from the alliance for regional aid; and if he will make a statement. [24197]

Mr. Andrew Smith

I met representatives of the alliance for regional aid in August last year. We discussed the reform of the European structural funds and the criteria for their allocation. The Government are seeking arrangements which are fair, affordable, efficient and durable, and which take due account of United Kingdom regional interests.

Mr. Barnes

The alliance for regional aid is worried that £1,000 million a year, which we have been receiving from the European regional development fund under objective 1 and objective 2 assistance, may begin to disappear. One of the factors involved is the unemployment figures that are presented to the European Union. We still operate on the fiddled method that the Conservatives introduced. It must therefore be made clear to the EU that unemployment is higher than the official record shows. We might need to adjust the figures to show that that is so.

Mr. Smith

The Government have been making the point about the importance of accurate unemployment statistics. We are seeking to re-establish public credibility and confidence in unemployment figures, which were so shamefully undermined by successive changes and fiddles when the Conservatives were in government. The review has properly been conducted by the Office for National Statistics at arm's length from the Government precisely so that it could not be subject to any charge of political interference or manipulation—nor has it been. My hon. Friend and the House can expect an announcement from the Office for National Statistics in the very near future. In the meantime, the Government will continue to fight for a fair deal for the United Kingdom regions in our negotiations with Europe.