18th November 2010

Adrian has challenged the Minister for Business, Innovation and Skills over the Government's plans for funding earmarked for West Midlands industry.

He asked the Minister in the House of Commons today (18th November 2010) about the Government's plans to ensure that cash from the European Regional Development Fund will be used to support the regional economy and not simply go to the Treasury.

You can read more about this issue in this article in the Birmingham Post-

http://www.birminghampost.net/birmingham-business/birmingham-business-news/businesslatest/2010/11/26/50m-eu-cash-for-west-midlands-may-go-to-treasury-instead-65233-27723961/

The full text of Adrian's question and the answer from the Minister is below:

Mr Adrian Bailey: What assessment he has made of t

he effects of the abolition of regional development agencies on access to unspent funding from the European regional development fund.

The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport: My Department is working with the Department for Communities and Local Government to develop new delivery structures for the European regional development fund to replace the RDAs. We aim to ensure that the programmes continue to be implemented with minimal disruption.

Mr Bailey: I thank the Minister for his reply. In the west midlands, £113 million of ERDF money is still as yet unallocated. About 40% has historically been allocated to projects through the regional development agency, but the RDA is now to go, and there is no sign on the horizon of an alternative delivery mechanism. Can the
Minister assure us that mechanisms will be found to spend that money before 2013, or will it go to the Treasury?

Mr Vaizey: That money will be spent. Local enterprise partnerships and local authorities can apply for it, and we intend to announce a new delivery mechanism next spring.