HC Deb 20 February 1995 vol 255 cc92-3W
Mr. Alton

To ask the Secretary of State for the Environment when he expects to respond to the representations made to him by the Merseyside European liaison unit about(a) the additionality requirements for 1995 objective 1 funding, (b) its submission concerning the strategic role of local authorities in determining priorities and (c) the enhancement of private sector participation in the objective I programme; and if he will make a statement.

Mr. Curry

My hon. Friend the Under-Secretary of State replied to the representations from the Merseyside co-ordinating committee—to which the Merseyside European liaison unit reports—on 6 February.

Mr. Alton

To ask the Secretary of State for the Environment what assessment he has made of the extent to which small and medium—sized enterprises are obtaining a proper and adequate response through the objective 1 mechanisms.

Mr. Curry

A major part of the objective 1 programme in Merseyside is focused on the needs of small and medium-sized enterprises. For business advice and support alone, projects approved in principle in the 1994 bidding round will finance a package of assistance worth some £50 million.

Mr. Alton

To ask the Secretary of State for the Environment what evidence he has that competition rules will be breached if EC funds are matched to private sector funds in an objective 1 area; and what discussions he has had with the EC about this.

Mr. Curry

Private sector funds are being matched in objective 1 areas without breaching competition rules. Issues such as the need for state aid clearance are considered and resolved in advance of aid being granted.

Mr. Alton

To ask the Secretary of State for the Environment what steps he is taking to allow the private sector to apply direct for objective 1 funding for large infrastructure and productive investments.

Mr. Curry

The structural funds are used to support projects which provide economic benefits to the area concerned. This will not generally involve direct support for productive investment. Such support is made available through intermediary bodies. Proposals for facilitating the private sector contribution to infrastructure projects part funded by the structural funds have been put to the Commission and their comments are awaited.

Mrs. Jane Kennedy

To ask the Secretary of State for the Environment what steps he is taking to permit private sector companies to apply direct for objective 1 European regional development fund support for large infrastructure projects.

Mr. Curry

I refer the hon. Member to the reply I have given to the hon. Member for Liverpool, Mossley Hill, (Mr. Alton).

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