HC Deb 21 May 1980 vol 985 cc265-6W
Mr. Arnold

asked the Lord Privy Seal whether he will seek an amendment to the present European regional development fund regulation so as to remove the link between areas qualifying for grants under the quota section of the fund and those in receipt of United Kingdom regional funds.

Sir Ian Gilmour

The Government's regional policy was set out in a statement to the House by my right hon. Friend the Secretary of State for Industry on 17 July 1979. Regional policy is focused on Northern Ireland and the assisted areas of Great Britain which have been designated as the areas of greatest need where aid should be. concentrated. The Community's regional policy is designed to complement national policies. We have therefore no plans at present to seek an amendment of the provision in the present fund regulation which requires that regions which may benefit from the quota section shall be limited to areas aided by member States.—[Vol. 970, c. 1302–3.]

Mr. Arnold

asked the Lord Privy Seal when next the European Council will examine the European Commission's proposals on the regional development fund regulation.

Sir Ian Gilmour

It is for the Presidency to decide the agenda for the Coun- cil of Ministers. We have not yet been notified when the Commission's proposals for the non-quota section are next to be discussed by the Council.

Mr. Arnold

asked the Lord Privy Seal if he will confirm that the non-quota section of the European regional development fund is not in principle restricted to areas already receiving national regional assistance.

Sir Ian Gilmour

I can confirm that in principle the non-quota section is not restricted to areas already in receipt of national regional aids. Specific measures proposed by the Commission and agreed by the Council in implementation of the non-quota section will determine the geographic basis on which the limited moneys available will be distributed. The United Kingdom areas covered by the present Commission proposals lie within Northern Ireland or the assisted areas of Great Britain.

Mr. Arnold

asked the Lord Privy Seal whether he will seek an increase in the non-quota section of the European regional development fund to a figure above the present level of 5 per cent.

Sir Ian Gilmour

Commission proposals for the non-quota section have yet to be agreed by the Council. We therefore have no experience of the operation of a non-quota section, and it would be premature to seek any increase in the present level of 5 per cent. of the total fund.

Mr. Arnold

asked the Lord Privy Seal if he will take steps to increase the United Kingdom's opportunities for securing net receipts from the European regional development fund.

Sir Ian Gilmour

The Government attach importance to the European regional development fund as a means of furthering convergence within the European Community aid of aiding less prosperous regions. The present fund regulation, which provides that the United Kingdom should receive 27.03 per cent. of the quota section, requires that the Council re-examine the regulation before 1 January 1981. In those negotiations which must also provide for the accession of Greece to the Community on that date, we will strive to maintain an appropriate net benefit for the United Kingdom.