HC Deb 15 June 2000 vol 351 cc1094-5
7. Mr. Bob Blizzard (Waveney)

What preparations his Department is making for implementation of the new assisted areas map. [124587]

The Minister for Trade (Mr. Richard Caborn)

As I said earlier, my right hon. Friend the Secretary of State announced on 21 December last year that we would be giving indicative offers of regional selective assistance. We have done that, and we hope to make that assistance available as soon as the European Union clears the map.

Mr. Blizzard

My constituents are delighted that the Government have designated Lowestoft for assisted area status—unlike the previous Government, who did not seem to know where Lowestoft was.

However, in the expectation that the European Union will soon clear the map, and given the length of time that has passed since the original announcement, will my right hon. Friend authorise a relaunch in the region? He will know that a number of the assisted areas on the east coast contain fabrication yards that are having to adjust to the smaller scale of the North sea oil and gas industry. Does he agree that it is essential that those businesses get help from assisted area funds, to enable them to restructure and diversify? Will he ensure that the Government regional offices and the RDAs recognise that as a priority?

Mr. Caborn

First, I congratulate my hon. Friend and those colleagues who represent that part of the eastern region on the exhibition in the Upper Waiting Hall about oil and gas industry exploration, which I had the privilege to open on Monday. I suggest to my hon. Friend that it would be far better if the companies that want to get involved in applications for RSA put their plans forward so that we can evaluate them. I hope that they will be part of the reconstruction of a sector of the economy that has been neglected for many years. I think it is now coming round, and restructuring will allow it to have a very bright future.

Mr. Owen Paterson (North Shropshire)

How much has the presentation of an ineligible map to the EU cost the British taxpayer?

Mr. Caborn

I cannot reply to the hon. Gentleman now, but I shall find out the answer and write to him. I can assure him, however, that seven years ago, when the previous Administration carried out this exercise, they did so in a far more party political way. That is one thing that the present Government cannot be accused of, as we have conducted wide consultation through the regional development agencies and the Government offices for the regions. Indeed, we had to withdraw the July map because it was said that we had tried to get more than our fair share. We then went back to consultation, in which many people participated. The process has not been part of a political fix, as it was under the previous Administration seven years ago.

Mr. John Cryer (Hornchurch)

My right hon. Friend will know that Rainham, in my constituency, has been removed from assisted area status. Rainham is bang next to the Ford Dagenham factory, and since that decision was taken, the management of Ford have decided to end car production at Dagenham, with the potential loss of thousands of jobs. Will my hon. Friend reconsider that decision and reverse it?

Mr. Caborn

As my hon. Friend knows, we have set up a working party to look at Dagenham. However, once the map has been cleared—we are asking the Commission to clear it as speedily as possible—it will apply for the next seven years. The point that my hon. Friend has raised will be taken on board by the working party that has been set up to look at the fallout from Dagenham.