§ Mr. Austin Mitchellasked the Prime Minister what assessment she has made of the cost-effectiveness of money spent by the European Economic Community in the United Kingdom regions and money spent by Her Majesty's Government for the same purpose; and if she will make a statement.
§ The Prime MinisterEuropean Economic Community expenditure on behalf of the regions of the United Kingdom, through the European regional development fund, contributes essentially towards national public expenditure in the regions concerned. Evaluation of the effectiveness of this public expenditure, which is almost exclusively in the assisted areas, is the responsibility of several Departments. Published studies include an assessment of the effects of regional industrial policy (1960 to 1981), a study of the effects of regional financial assistance on firms' investment decisions and a study of industry's early reaction to the new regional development grants scheme introduced in November 1984.
§ Mr. Austin Mitchellasked the Prime Minister whether the Government are prepared to increase the United Kingdom contribution to the EEC budget to enable more money to be provided by the EEC institutions for the benefit of the regions in the United Kingdom; and whether she will publish in the Official Report any assessment she has made of the comparative advantage of (a) EEC controlled and (b) Her Majesty's Government's expenditure in regional development.
§ The Prime MinisterThe future level of funding for regional development throughout the European Community needs to be decided as part of the general debate on the Community's future financing. European Community regional expenditure fully supports the546W Government's own regional objectives while enabling a higher level of United Kingdom spending to be sustained than would be possible without such receipts.