HL Deb 24 November 1981 vol 425 c748WA
Lord Irving of Dartford

asked Her Majesty's Government:

Whether the total sums received in grants in aid from the EEC Regional and Social Fund have meant additional investment over and above those amounts Her Majesty's Government would in any case have spent; and whether Her Majesty's Government will indicate how these amounts are shown to be additional expenditure in departmental estimates; and

Whether in view of the statement in paragraph 37 of the European Communities Select Committee's Report (14th Report 1980–81 H.L. 93) that "no evidence has come to hand during the Committee's enquiry which shows convincingly that the United Kingdom Government adheres to the principle of additionality" they will indicate what steps are being taken to ensure that amounts received from the EEC Regional and Social Fund provide additional investment to that which would in any case have taken place.

Lord Cockfield

The Government's public expenditure plans are set taking account of expected receipts from the European Regional Development Fund and Social Fund. Receipts from these funds allow expenditure to be higher than would otherwise be possible given the Government's objectives for total public expenditure and for the PSBR. The receipts do thus allow additional expenditure over that which would otherwise have taken place.

Receipts from the Regional Development Fund for projects supported by central Government are included in the Supply Estimates as Appropriations in Aid of the relevant Votes; the gross provision for these Votes is thus higher than the net provision by the amount of the RDF receipts (and any other appropriations in aid). Receipts for local authority projects are passed on to the local authority concerned; the payment to the local authority is recorded as an agency payment in the Supply Estimate and is matched against the RDF receipts to give a token net provision. Receipts from the Social Fund are treated similarly.