§ 3. Mr. Ian Bruce (South Dorset)What recent discussions he has had regarding the matching of European regional funds. [130878]
§ The Secretary of State for Wales (Mr. Paul Murphy)The excellent spending review settlement for Wales announced last week included an additional £421 million for the structural funds programmes in Wales. That settlement unlocks funding within the block to meet match funding requirements.
I have talked with my hon. Friend the Member for Cardiff, West (Mr. Morgan) and the Assembly Finance Secretary, who agree that, as a result of the settlement, no worthwhile objective 1 project will be held back by a lack of resources.
§ Mr. BruceIn the discussions that the right hon. Gentleman has had with the First Secretary, did the First Secretary query whether all the funding is additional and fully matches the European funds? After all, the previous First Secretary had to resign because he could not get that from the Government. Can the right hon. Gentleman confirm that all the match funding represents additional funds over and above the Barnett formula and all the normal streams of funds that go to Wales?
§ Mr. MurphyAs I explained moments ago, the £421 million, which amounts to £1.2 billion or £1.3 billion over nine years, that will come from Brussels is wholly additional to the block and to Barnett. The hon. Gentleman should remind himself that, for the 21 years that structural funding came to this country, not one penny was extra to the block, and it has taken a Labour Government to change that. It comes very rich from the Conservative party to tell us in Wales how to deal with 1098 public finances, given that the hon. Gentleman and the shadow Chancellor would put public services in peril because they intend to cut public finances.
§ Mr. Chris Ruane (Vale of Clwyd)Does my right hon. Friend agree that we have to give the Conservatives some credit for achieving objective 1 for Wales because, in 1979, the economy of Wales was mid-table of the 13 regions of the United Kingdom but, in 1997, when the Conservatives left office, we were bottom of the table?
§ Mr. MurphyI agree with my hon. Friend. As he has said in the past couple of days about objective 1, we must get on with the schemes and projects with the people of Wales. The more we squabble, and the more people whinge about the excellent settlement, the less easy it will be to begin those schemes and projects. It is an excellent settlement for Wales, and we all know it.
§ Mr. Robert Walter (North Dorset)It is clear from the statements made last week that the European Commission's share of funds for objective 1 will be transferred to the National Assembly for Wales. It is also clear that the social fund will be taken from the Department for Education and Employment and given to the National Assembly. As the Secretary of State has said, that provides £421 million over three years, and we do not dispute that figure.
What is not clear is where the additional funding for objective 1 will come from. Where are the match funds that the Prime Minister promised Wales? The Secretary of State has said that they will be met from within the block grant, which exists for health, education, roads and local government. Which programme does he expect the National Assembly to cut to make the match funds available?
§ Mr. MurphyI explained to the hon. Gentleman at some length in the Welsh Grand Committee how we would deal with the funds needed for programme match. They need not necessarily come from the block, but might come, for example, from lottery money, from money from the Department for Education and Employment or from the private sector. Where the match funds come from can vary. The hon. Gentleman seems not to understand—or does not want to understand—that this is a huge and significant breakthrough in how we deal with public finances in Wales. The overall settlement of an extra £2 billion is an enormous improvement on anything that Conservative Governments dreamt of, let alone gave us.
§ Mr. Barry Jones (Alyn and Deeside)My constituency would like access to the funds under discussion, but, in their absence, would be happy to accept a regional grant of £25 million for 1,400 aerospace jobs. Does my right hon. Friend know that a far-away, secretive quango is proving an obstacle to our getting those jobs? How can he help'? Will he talk to the First Secretary and deliver the £25 million grant?
§ Mr. MurphyMy right hon. Friend has rightly raised that matter several times, as he represents Broughton. He is aware that the Government are committed to ensuring the success of the project and have given a loan of more than £500 million. Discussions are still under way in the 1099 National Assembly, and my right hon. Friend can rest assured that I shall take the matter up with my hon. Friend the Member for Cardiff, West (Mr. Morgan).