HC Deb 22 March 1978 vol 946 cc562-3W
Mr. Newens

asked the Secretary of State for the Environment if he has made any decision about the allocation of the funds the European Economic Community have offered for the alleviation of damage caused by the recent bad weather; and if he will make a statement.

Mr. Shore

The damage caused by the severe weather between November and February this winter has affected, in varying degrees, many of the people who live and have their livelihood in areas which bore the brunt of the storms.

The full extent of the damage cannot be known for some time, but it is already clear that some local authorities, in bearing the main burden of dealing with the emergencies in their areas, will incur heavy and unexpected costs in restoring essential services and giving relief to those in need.

My right hon. and learned Friend the Secretary of State for Wales and I have already announced that the Government will give special financial assistance at the rate of 75 per cent. of their expenditure beyond the product of a 1p rate to those local authorities which would otherwise have to bear an undue burden.

The Government have given very careful consideration to the best use which can be made of the extra assistance provided by the EEC and have concluded that, apart from special assistance to farmers, who have suffered particularly severe livestock losses, the fund should provide further help to the most severely affected local authorities in the northwest, east, south-east and south-west of England and in Wales which have already demonstrated their need by incurring exceptional expenditure beyond the product of a 1p rate. The EEC money will be used to top up the United Kingdom Government's own assistance and will be distributed according to the severity of the burden remaining to be borne by local ratepayers. The amount of EEC money to be allocated to local authorities will be determined when the losses to agriculture and other interests respectively have been assessed.

My right hon. Friend the Secretary of State for Scotland is making a statement about the allocation of the EEC funds in Scotland.