HC Deb 04 November 1999 vol 337 cc466-7
5. Mr. Harry Barnes (North-East Derbyshire)

What representations he has received in response to proposals he has submitted to the European Union for Objective 2 funding. [95826]

The Minister for Trade (Mr. Richard Caborn)

My Department has received over 30 representations since submitting our proposals to the European Commission on the new United Kingdom objective 2 areas for 2000 to 2006. Two of the representations were from my hon. Friend.

Mr. Barnes

I welcome my good friend the Minister to his new position. Is he aware that—according to the index of local deprivation and the Coalfield Alliance's coalfield index—Holmewood, Hasland and Clay Cross, south in my constituency are areas of high deprivation, and that Wingerworth and Clay Cross, north are former coalfield areas? Is he also aware that north-east Derbyshire has lost 70 per cent. of its objective 2 funding? Does he agree that the loss of that funding is made even harder to bear by the fact that areas near us, in South Yorkshire, seem to be doing quite well in obtaining objective 1 status, and that other areas, in parts of the east midlands, have also received a good settlement? Will he re-examine the situation in north-east Derbyshire to determine whether a fresh case on objective 2 could be made to the European Commission?

Mr. Caborn

My hon. Friend, as I said, made two representations to the Department, and I responded in some detail to him on those. We have now responded to requests covering 1.71 million people in the coalfield communities, and I am sure that he will appreciate that we have conducted the most extensive consultation in trying to ensure that, in implementing our regeneration strategy, all regeneration moneys—from the single regeneration budget, assisted area status, the new deal for communities, and structural funds—are used to deal comprehensively with any structural weaknesses. The Government have responded to 91 per cent. of the requests made by regional development agencies in the English regions. Indeed, 91 per cent. of north-east Derbyshire that has received objective 2 funding is covered by both the objective 2 submissions and the transitional arrangements.

Mr. Graham Brady (Altrincham and Sale, West)

Now that, for the first time in a generation, Britain has higher tax rates than Germany, does the Minister realise that the Government are rendering huge swathes of British business and economic life uncompetitive? Surely that fact will lead to a need for massive European assistance across Britain, and not only in the coalfield areas to which he referred.

Mr. Caborn

That does not accord with the facts. On Wednesday, 3 November, the business section of The Journal, a Tyneside newspaper, stated: Half of Tyneside manufacturing firms are reporting fuller order books than six months ago and their optimism about the future is growing. Eight out of 10 companies"—

Mr. Brady

What about Germany?

Mr. Caborn

These are the facts. The article states: Eight out of 10 companies expect both their domestic and export orders to rise or at least stay the same in the coming months, according to the latest TEC 200 Tyneside Economic Trends survey. The article describes not a decline, but the first good news that north-east England has had for many years.