§ 7. Mr. Michael Moore (Tweeddale, Ettrick and Lauderdale) (LD)What assessment she has made of the European Commission's third cohesion report. [177757]
§ The Minister for Industry and the Regions (Jacqui Smith)The Government welcome proposals in the report to ensure a greater strategic focus for EU regional policy and the commitment to simplify the delivery mechanisms for structural funds projects. However, we have serious concerns about the proposals for the future size and focus of the structural funds, which fail to meet the objectives that we laid out in our consultation document of last year and our statements to Parliament following that consultation.
§ Mr. MooreThe south of Scotland has an allocation of £50 million for the current European structural funds programme, which is vital for the restructuring of the fragile local economy, especially in the Scottish borders. How will the Minister reconcile the Commission's proposals in the document with the Government's plans and ensure that we continue to receive support after 2007?
§ Jacqui SmithThe important point about the Commission's proposals in that plan is that no money is currently on the table, because time has not yet been agreement on the overall budget. There are now many member states, and the majority of net contributors have made clear their wish to ensure that the EU budget as a whole remains within 1 per cent. of EU gross income. No agreement has been reached about the total amount of money, nor are the data available that would be necessary to determine how any future funds would be distributed. There is no money on the table, but the Government have made it clear—in the guarantee in our document and in subsequent parliamentary statements—that we remain committed to regional policy. If our recommendations are accepted, we will ensure that we increase the resources necessary in the regions and the devolved Administrations to continue the focus on productivity and skills and make the necessary investment to ensure that they are successful.