HC Deb 09 March 1976 vol 907 cc149-50W
Mr. Lomas

asked the Secretary of State for the Environment what sources of EEC financial assistance are available to local authorities in the field of industrial development.

Mr. John Silkin

Local authorities may be eligible for financial assistance from the following EEC sources: the European Social Fund, the European Regional Development Fund, the European Coal and Steel Community, the European Agricultural Guidance and Guarantee Fund and the European Investment Bank. Assistance in the field of industrial development would be subject to eligibility under the appropriate scheme.

Mr. Lomas

asked the Secretary of State for the Environment what is the current level of help given to local authorities from the European Regional Development Fund; what are the criteria for such financial assistance; and if he will show in the Official Report the amount granted to the Government or to local authorities.

Mr. John Silkin

The Fund regulation sets out conditions of eligibility and certain essential criteria. The main types of project eligible for aid from the Fund are investments in—

  1. (a) industrial or service activities benefiting from State regional aids which create at least 10 new jobs or maintain existing jobs.
  2. (b) infrastructure projects directly linked with the development of such activities.

In the former case the rate of grant is 20 per cent. of the investment cost, so long as this does not exceed 50 per cent. of the State regional aid: in the latter case the rate is a maximum of 30 per cent. of expenditure incurred by public authorities, depending on the total cost of the project.

So far commitments from the Fund relating to projects in the United Kingdom have amounted to £38.9 million, of which £5.9 million has been in respect of local authority projects.