§ Mr. LesterTo ask the President of the Board of Trade how the private sector can be involved in European Regional Development Fund projects in the United Kingdom. [25863]
§ Mr. EggarIt is Government policy to encourage private sector participation in projects partly financed by the European regional development fund. This also accords with the aims of the private finance initiative.
We have today introduced new criteria for this purpose. These arrangements will help to provide a significant boost to the regeneration of ERDF areas.
I have tabled a copy of the criteria in the Library of the House. Projects, which may include industrial, transport, environmental, tourism and other economic infrastructure, will need to be of general economic benefit to eligible areas and to meet the other conditions of ERDF grant. Companies wishing to inquire about the possibility of 642W ERDF grant for such projects should contact the Government Office for their English region, or the Scottish Office, Welsh Office, or Northern Ireland Departments.
To encourage maximum private sector involvement, the private sector will be able to make a reasonable profit on investment. Conditions attached to grants will ensure that any excessive profits that might be derived from ERDF grants continue to be used for the general economic benefit of the area and that risks will be shared appropriately between the public and private sectors. Grant will normally be routed through a public sector participant, which will be accountable for proper project administration for grant purposes. Where this is not appropriate, grant may be paid direct to the private sector.
Regional single programming documents, agreed between the Government and the European Commission, set aggregate targets for private sector contributions, alongside totals of public expenditure and of ERDF grant.