HC Deb 08 July 1988 vol 136 cc760-1W
Mr. Macdonald

To ask the Secretary of State for Scotland what is the total number of inquiries received by his Department over the past five years on the eligibility of private companies for European regional development fund mobile infrastructure funding; what is the total number of occasions in those five years on which his Department have responded that private companies are not eligible for such funding; and if he will make a statement.

Mr. Lang

My Department receives numerous inquiries and meets frequently various organisations on matters relating to the European regional development fund. The number of inquiries relating specifically to the eligibility of private companies for mobile infrastructure funding is not available but there have been several such inquiries since Scotland first secured funding for the Hebridean Isles ferry in 1984—the first country to do so. The regulation governing the operation of the fund provides for assistance only to public authorities or other authorities responsible in the same way as a public authority for carrying out infrastructure investments. Inquirers are informed accordingly.

Recently, and in the light of various privatisation measures, the European commission has indicated a willingness to consider applications from privatised industries. However, the criteria applied, which include a requirement for statutory or other similar control over the company, are such that it is unlikely that most privately owned companies and their investments can qualify for assistance.

Mr. Macdonald

To ask the Secretary of State for Scotland whether privately owned transport companies are eligible for European regional development fund mobile infrastructure funding.

Mr. Lang

The regulation governing the operation of the European regional development fund allows aid for infrastructure projects to go to public authorities or to any other organisation responsible in the same way as a public authority for carrying out infrastructure projects. It is unlikely, therefore, that most privately owned transport companies would be eligible.