§ Mr. DenhamTo ask the President of the Board of Trade (1) what action applicable to Hampshire the Government are taking to attract European Community funds for the purpose of defence diversification;
(2) what discussions the Government have held with the European Commission about the diversification of defence industries; and if he will make a statement.
§ Mr. Sainsbury[holding answer 1 March 1993]: At the initiative of the European Parliament 130 million ecu, or about £106 million, comprising 85 million ecu, or £69.3 million, from the European regional development fund and 45 million ecu, or £36.7 million, from the European social fund was entered into the European Community budget for 1993 for a programme to be called CONVER to assist regions affected by the decline in the armaments industry and the closure of military bases. The Government will give careful consideration to the Commission's proposals for implementing this programme, which are expected to be issued shortly. The structural funds regulations require assistance from the ERDF to be concentrated in regions already designated for objectives 1, 2 and 5(b). Since many areas in the United Kingdom which have a high concentration of defence-related firms and military bases, including Hampshire, are not located within such regions, their prospects of benefiting from CONVER seem likely to be limited to assistance from the European social fund, which can be spent anywhere in the Community.