HC Deb 22 November 1984 vol 68 cc223-4W
Mr. Gould

asked the Secretary of State for Trade and Industry what proportion of the funds allocated to the United Kingdom from the European regional development fund so far in the current year has gone to British Telecom; how much it has received in sterling terms; for what purposes it has received such assistance; and what account was taken in making this allocation of British Telecom's new status as a privately-owned enterprise.

Mr. Lamont

The commitments so far allocated to the United Kingdom under the "quota" section of the European regional development fund for industrial and infrastructure projects for this year total £145,491,621, of which £29,732,120 is for British Telecom projects. The proportional assistance for British Telecom is, however, likely to be very much lower by the end of the year as a further £203,239,514 has been sought by the United Kingdom, none of which concerns British Telecom. The payments will be made as the projects progress.

The projects can in the main be described as modernisation and replacement of obsolescent networks. A full list of all projects given commitment this year is in British Business 25 May 1984 and 21 September 1984.

Allocations of European regional development fund resources are a matter for the European Commission, but the Government have thought it right to continue to make use of European regional development fund assistance available for British Telecom projects and applications have been approved by the Commission.

Mr. Corbett

asked the Secretary of State for Trade and Industry what consideration is given to the present profitability of a firm applying for a grant from the European regional development fund before his Department comments on it.

Mr. Norman Lamont

Finns in the United Kingdom allocated grants under the European regional development fund for industrial projects must first be in receipt of United Kingdom regional aid and must therefore already have satisfied the financial criteria of the regional aid schemes.

Mr. Corbett

asked the Secretary of State for Trade and Industry whether he will estimate the number of new jobs which will be created, and in which industries and areas, from the grant of £15 million from the European regional development fund to improve roads and telecommunications links in the west midlands.

Mr. Norman Lamont

In order to qualify for European regional development fund aid, an infrastructure project must contribute to the development of the region concerned. The project will help to bring about the level of infrastructure required to enable industrial users to create or maintain employment, but it is not possible to estimate the number of jobs created by this.

Mr. Corbett

asked the Secretary of State for Trade and Industry whether he sought or received any assurances from British Telecom on redundancies before commenting on its application for grant from the European regional development fund.

Mr. Norman Lamont

No. The European regional development fund rules provide that British Telecom projects may qualify for assistance if they contribute to the development of the region and the aim is to provide the level of infrastructure necessary to enable industrial users to create or maintain employment.

Mr. Corbett

asked the Secretary of State for Trade and Industry whether he will estimate the number of jobs likely to be created by the allocation of £7.42 million to British Telecom from the European regional development fund to improve telecommunications in the west midlands.

Mr. Norman Lamont

It is not possible to estimate the number of jobs created by this allocation.

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