§ Mr. AltonTo ask the President of the Board of Trade what steps he is taking to allow the private sector to match funding for European regional development funding and European social funding.
§ Mr. EggarMy right hon. Friends and I have agreed with the European Commission target figures for private sector contributions to the regional single programmes co-financed by the ERDF and ESF. The Merseyside programme, for example, envisages private contributions totalling 368 mecu alongside ERDF and ESF grant of 813 mecu: 816 mecu domestic public finance is also required for this programme.
§ Mr. AltonTo ask the President of the Board of Trade what models the Government have developed of how the private sector should he encouraged to access the European regional development fund; what models have been submitted to the EC; what discussions have taken place or are planned on this issue between Her Majesty's Government and the Commission; and what plans Her 31W Majesty's Government have to introduce agreed changes in time for approval of 1995 submissions.
§ Mr. EggarThe Government wish to maximise the private sector contribution to projects to which the ERDF makes grants and has put to the Commission proposals for facilitating this while ensuring that projects are of general economic benefit to the areas concerned and that ERDF grants do not lead to excessive profit. The Commission's comments are awaited. Any changes to current practice will be introduced as soon as they are agreed. The timetables for considering applications vary from region to region.
§ Mrs. Jane KennedyTo ask the President of the Board of Trade (1) what consultations he has had or intends to have with the European Commission concerning procedures through which the private sector could access the European regional development fund;
(2) if he will allow private sector companies to match finance for projects obtained from the European regional development fund and the European social fund.
§ Mr. EggarI refer the hon. Member to the reply I gave to the hon. Member for Liverpool, Mossley Hill (Mr. Alton) today.
§ Mrs. Jane KennedyTo ask the President of the Board of Trade what assessment he has made of the application of European Commission rules concerning the private sector's ability to wholly match finance projects eligible for European regional development fund support in objective 1 regions of other European Union member states.
§ Mr. EggarSome individual projects, in other member states as in Merseyside, may be financed exclusively by the private sector and the ERDF. However, the European Commission has in each case agreed with the Governments concerned that the aggregate of projects will be co-financed by specified amounts of national, including regional and local, as applicable in each case, public sector money, and as any private sector finance.
Following are the aggregate figures in mecu for those single programming documents which show ERDF projects separately from those co-financed by other European structural funds:
ERDF Private National public Flevoland (Netherlands) 80 181 423 French Guiana 92 0 78 Guadeloupe (France) 160 37 223 Hainaut (France) 307 210 374 Martinique (France) 166 43 123 Réunion (France) 320 118 229 Merseyside 475 289 480