§ Mr. John Ellisasked the Minister of Agriculture, Fisheries and Food whether he will take steps to enable applicants in the United Kindom to become eligible for aid under EEC Regulation 355/77 on common measures to improve the conditions under which agricultural products are processed and marketed.
§ Mr. John Silkin:EEC Regulation 355/77 provides for aid to be paid from the European Agricultural Guidance and Guarantee Fund (FEOGA) to supplement the required financial contribution by member States towards the cost of investment projects intended to develop or 284W improve the processing or marketing of agricultural products with long-term benefits to agricultural producers. After a transitional period, projects will need to form part of programmes covering the regions or sectors involved. It is a condition of eligibility that a project must receive a national grant of at least 5 per cent. of the capital costs. The maximum rate of FEOGA aid under the Regulation will be 25 per cent.—exceptionally in certain areas, 30 per cent—which may be available to projects that have attracted national aid of 8 per cent.
I am aware that under the present pattern of United Kingdom grants some worthwhile projects would be denied access to FEOGA aid solely by their ineligibility for the requisite national grant. I have, therefore, arranged for officials of the Agriculture Departments to draw up a scheme under which a qualifying national grant could be awarded to projects selected for aid under EEC Regulation 355/77 where there are no other national grant schemes available to enable them to receive FEOGA aid under this Regulation. The necessary instrument will be laid before Parliament as soon as possible so that this aid may be provided, where necessary, to United Kingdom applicants who wish to be considered under EEC Regulation 355/77 for FEOGA aid in 1978.