EU: Structural and Cohesion Funds

Debate between Baroness Wilcox and Lord Wigley

Wednesday 8th February 2012 Lords Chamber

[Baroness Wilcox]

In the current EU budget period, the United Kingdom has already spent almost half its allocation. If we stopped drawing down the remainder, we would forfeit approximately £1.6 billion and have to break live contracts with costly consequences. We would then not receive back 100 per cent of the unclaimed funds—only two-thirds—due to the rebate process, which, of course, is a preferential deal for the United Kingdom that was politically hard-fought-for and must be protected by us. Any rebated funds to the United Kingdom would not necessarily be available for economic development, so this important area of activity would suffer as a sharp drop in funding occurred.

[Lord Wigley]

My Lords, would the Minister give an assurance that if this money was repatriated, those areas within the United Kingdom now benefiting from European structural funds—such as a large part of Wales because of the low level of income per head—would continue to receive the benefit needed to stimulate their economies?

[Baroness Wilcox]

In saying “if this money was repatriated”, I presume that the noble Lord follows on from the previous question asking us to repatriate it now. The answer is: no, we won’t. Is that not what the noble Lord asked? I am sorry.

[Lord Wigley]

With the leave of the House, that was not what I asked. If it is repatriated, can assurances be given? If they are not given, it is in the interest of these areas to continue to get those funds from Europe.

[Baroness Wilcox]

I apologise for not understanding the question at first. The answer is yes.