§ Mrs. EwingTo ask the Secretary of State for Scotland (1) if she will make a statement on his Department's response to the latest proposed eligibility criteria for European Structural Funds, with particular reference to those relating to Objective 1 funding; [36334]
(2)if he will list the European Council of Ministers meetings he has attended since 1 May 1997 at which the future of structural funding and Objective 1 funding for the Highlands and Islands have been discussed; [36335]
(3)if he will list the meetings (a) he and (b) his officials have had with the European Commission to discuss structural funds and the future of Objective 1 Funding for the Highlands and Islands; [36336]
(4)what recent representations he has made to the European Commission concerning the proposed eligibility for areas awarded Objective 1 status; if he will publish his Department's correspondence with the European Commission on this subject since 1 May; and if he will place in the Library a copy of the documentation he has provided to the European Commission with regard to the Highlands and Islands future Objective 1 status. [36337]
§ Mr. Dewar[holding answer 27 March 1998]: The Government welcome the European Commission's draft Regulations and the objectives to contain the costs of the Funds and improve their administration and effectiveness. But the Government do not believe the proposals as they stand represent a fair basis for reform. We will work hard with the Commission and other Member States to ensure a fair deal for the UK and Scotland. The draft regulations published on 18 March propose that Objective 1 regions shall continue to be determined at NUTS level II on the basis of per capita GDP of less than 75 per cent. of the Community average. The Highlands and Islands are unlikely to qualify on that basis. However, the 560W Government have and will continue to press for the region to be treated in the same way as other areas of sparse population within the EU. It is important to note that the Commission proposals will now be subject to detailed scrutiny and negotiation by the Member States. What is finally agreed may vary somewhat from the draft Regulations.
The Prime Minister and Cabinet colleagues have supported the case for Objective I status for the Highlands and Islands at meetings and in correspondence with President Santer and European Commissioners. I myself met with President Santer on 18 September 1997, with Commissioner Wulf-Mathies on 8 January 1998 and 8 October 1997, and with Commissioner Flynn on 1 December. Discussion of European Structural funds formed part of the agenda on each occasion. The subject also formed part of the agenda at the Luxembourg European council in December 1997 and is likely to be discussed at the Cardiff Summit in June. Reform of the Structural Funds will be the subject of the second day of the Informal meeting of Ministers to be held in Glasgow on 9 June 1998 at which I will be present. There have been no other European Council of Ministers meetings at which the future of the Structural Funds has been discussed.
Scottish Office officials are in regular contact with the European Commission regarding the implementation of the Structural Fund programmes and the Commission proposals for the next round. The Scottish Office is also in close consultation with the Department of Trade and Industry, who co-ordinate priorities for negotiations on Structural Fund reform on behalf of the UK as a whole.
Ministerial colleagues have written to Commissioners in recent months in connection with the reform process. It is not normal practice to publish such correspondence. The Highlands and Islands European Partnership have produced substantive material in support of the case for continued Objective 1 status based on comparability with the existing Objective 6 areas. I will arrange for copies of the documentation to be placed in the Library.