§ Lord McCluskeyasked Her Majesty"s Government:
Whether they will consider allocating funds as an interim measure to ease the short-term problems created by the current delay in payments under the European Social Fund Objective 3, allowing at least part of the voluntary sector programme to proceed; and
Whether they intend to compensate voluntary sector bodies who suffer material financial loss through having to fund from other sources, such as borrowing, projects which should be funded by advances of the approved European Social Fund 84WA Objective 3 funds, given that advances of 50 per cent. of European Social Fund funding are normally made by March; and
Whether they consider that the delays in agreeing and announcing the voluntary sector budget for 1994 European Social Fund Objective 3 are likely to cause (a) serious delays in starting new projects for disabled and disadvantaged clients and groups, (b) serious cashflow problems for voluntary sector organisations, and (c) particular problems for the many voluntary organisations trying to achieve continuity into the present programme of schemes established under the previous budget.
§ The Parliamentary Under-Secretary of State, Department of Employment (Lord Henley)The 1993 operational year for Objective 3 projects was extended until 31 March to allow activity to continue while a response was awaited from the Commission on the GB Objective 3 Plan, submitted to them last November. This has helped voluntary sector organisations amongst others to continue their work. The Government continues to press for a swift decision on the plan. However, until priorities for support have been agreed with the Commission it is not possible to approve formally any projects for 1994. No resources can be made available for individual projects until funds are received from the Commission.
§ Lord McCluskeyasked Her Majesty"s Government:
What are the reasons for the delay in agreeing and announcing the voluntary sector budget for the current year (January to December 1994) of the European Social Fund Objective 3; and
When they expect the voluntary sector budget for the current year (January to December 1994) of the European Social Fund Objective 3 to be (a) agreed, announced; and
When they expect voluntary sector organisations to secure the first advanced payments of their approved funding under the European Social Fund Objective 3, to run training projects for disabled and disadvantaged clients and groups.
§ Lord HenleyThe delay has occurred because the European Commission are still considering the GB Objective 3 Plan which was submitted to them last November. Although the Government have pressed consistently for speedy progress, formal negotiations have yet to be opened. It will not be possible to settle sectoral allocations until priorities for support have been agreed with the Commission, and money can only be made available to applicants thereafter, once funds have been released by the Commission.