HC Deb 20 March 1990 vol 169 cc591-2W
Mr. Teddy Taylor

To ask the Secretary of State for Trade and Industry what advice he has received from the European Economic Community Commissioner about future levels of aid for rural areas after 1991; and if he will make a statement.

Mr. Douglas Hogg

The European Commission has proposed a total "indicative appropriation" of 335 mecu for 1989–1993 grants to United Kingdom rural areas from the Community's three structural funds under their "objective No. 5(b)" (the development of rural areas). The proposal implies in particular that the United Kingdom rural areas concerned would receive no new European regional development fund assistance after their present programmes of grant from that fund expire in 1991 or 1992.

The Government have therefore asked the Commission to reconsider its proposal. Discussions between Government Departments and the Commission are continuing, and I cannot predict the outcome. My right hon. Friends and I will make further representations to the Commission, as necessary, at the appropriate stage.

Grants under the funds' objectives Nos. 3 (combating long-term unemployment), 4 (integration of young people into employment) and 5(a) (adjustment of agricultural structures) are also available in the areas concerned, and are not at issue.