HC Deb 03 March 1980 vol 980 cc25-6W
Mr. Allan Roberts

asked the Secretary of State for Industry (1) what arrangements have been made to ensure that moneys that have been allocated by the European Economic Community regional development fund for expenditure on post office telecommunications in Merseyside are spent in Merseyside as expenditure additional to that already committed to the area from the Post Office's national capital programme;

(2) what arrangements are made to ensure that all European Economic Community regional development fund moneys allocated are spent for the benefit of the areas for which they are intended.

Mr. David Mitchell

Grants are made from the European regional development fund in respect of approved industrial and infrastructure projects. The present arrangements for dealing with the grants from the fund were established under the previous administration in 1975 when the fund started, and they have been continued following the change in Government.

The United Kingdom, like all other member States, submits applications for industrial projects that are already receiving national regional aid. The fund grants are not passed on to the companies making the investments, but are retained as a contribution towards the cost of the national regional aid provided to the companies concerned. The expected fund receipts are taken into account when considering the future levels of national regional aid.

In the case of infrastructure projects, the fund contributions are passed on to the public authorities concerned, but this does not enable them to increase their spending above the existing ceilings. However, the grants are of considerable benefit to the authorities concerned since they do not have to borrow so much to finance their projects and the amount of interest they have to pay may be substantially reduced. All grants from the fund for telecommunications schemes in Merseyside will be used for these schemes.

Mr. Allan Roberts

asked the Secretary of State for Industry what total amount of money has been allocated by the European Economic Community regional development fund for expenditure on Post Office telecommunications in Merseyside.

Mr. David Mitchell

A total of £1,355,180.

Mr. Allan Roberts

asked the Secretary of State for Industry how many grants have been made; and what is the total amounts of money granted, in the current year by the European regional development fund for expenditure on Post Office telecommunications in Merseyside.

Mr. David Mitchell

The fund is administered on the basis of calendar years. In 1980, commitments totalling £20,652,000 have so far been approved in respect of two applications, each of which covers one industrial project in the Merseyside special development area.

In 1979, commitments totalling £28,502,723.80 were approved in respect of nine applications covering 52 separate industrial and infrastructure projects in the Merseyside special development area.