§ Mr. Charles KennedyTo ask the Secretary of State for Scotland whether the eligibility for financial assistance under highlands and islands objective 1 status allow for applications for maintenance of rail services regionally; and if he will make a statement.
§ Lord James Douglas-HamiltonUnder the highlands and islands objective 1 programme, assistance from the European regional development fund can be provided towards rail infrastructure projects. EC funds cannot be used to provide a revenue subsidy.
§ Mr. Charles KennedyTo ask the Secretary of State for Scotland if he will detail the incidence of, and extent to which, highlands and islands objective 1 European funding has resulted in corresponding reductions in his Department's financial allocations and expenditure within the area; and if he will make a statement.
§ Lord James Douglas-HamiltonEuropean Community spending, including that in the highlands and islands under objective 1, is dealt with in the public expenditure survey as an integral part of the expenditure programmes for which I have responsibility. EC rules on additionality preclude the use of objective 1 funds to substitute for other forms of public expenditure.