§ Mr. Roger EvansTo ask the President of the Board of Trade if he intends to introduce a regional challenge as part of the way in which the European regional development fund will be deployed; and if he will make a statement.
§ Mr. HeseltineIt is my intention to introduce, consistently with the council regulations, a new competitive element in the way that ERDF money is allocated in objective 1, 2 and 5b areas of England. Under this regional challenge, modelled on the city challenge concept, a proportion of ERDF money, to be determined in agreement with the Commission, would be allocated separately by competition on the basis of local regeneration or development proposals submitted by local partnerships. 205W Competition would take place only within each community support framework area. The distribution of the structural funds between the regions would not be affected.
I believe that this initiative will stimulate local communities to work together to produce imaginative proposals, encourage a more coherent overall approach to local issues, lever in significantly increased private sector funding and enhance value for money. Relevant United Kingdom public expenditure programmes, including the single regeneration budget, will in principle be available within existing public expenditure provision to contribute towards successful bids alongside the ERDF and other resources. The arrangements will be administrated in each region by the integrated regional offices.
Regional challenge should enhance the effectiveness of the structural funds in each community support framework area. The initiative will be worked up in consultation with the local partnerships and with the agreement of the Commission, with the aim of introducing it when the community support frameworks are adopted later this year.
My right hon. Friend the Secretary of State for Wales intends to open discussions immediately on the introduction of a separate regional challenge scheme in the Principality.