§ Mr. John Grantasked the Secretary of State for Employment if he will seek changes in the European social fund and European regional development fund to allow inner city areas of high unemployment such as Islington to benefit.
§ Mr. AlisonThe European social fund is currently undergoing a major review. The Government support the broad aim of the European Commission that the review should lead to a fund which will concentrate aid on areas where the need is greatest. The Commission has proposed that bulk of fund aid should be allocated to schemes in areas arranged in a 'league table' according to their level of unemployement and (inversely) of gross domestic product. It has also proposed a provision, to be used exceptionally, whereby fund support could be given to schemes in unemployment 'black spots' which are situated in areas which would not otherwise benefit under the league table.
The Government broadly welcome both these proposals, but is proposing that the definition of a black spot should be less stringent than that proposed by the 17W commission (ie a locality with an unemployment rate which is at least three times as great as the relevant national average).
The overall interest of the United Kingdom in the European regional development fund is the joint responsibility of my right hon. Friends the Secretaries of State for Industry and for the Environment. I would refer the hon. Member to the reply given by my hon. Friend the Under-Secretary of State fo Industry to questions on this subject from the hon. Member for Caernarvon (Mr. Wigley) on 31 January.—[Vol. 36, c. 10–11.]