Oral Answers to Questions

Lord Vaizey of Didcot Excerpts

Thursday 18th November 2010 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

15. What assessment he has made of the 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 Business, Innovation and Skills (Mr Edward Vaizey)]

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.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

16. Whether the proceeds from the sale of High Speed 1 will be added to the start-up capital for the green investment bank.

--- Later in debate ---

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

18. What assessment he has made of the prospects for private sector job creation in Halifax; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Vaizey)]

In the recent spending review, the Government set out their framework for fostering private sector growth both by ensuring macro-economic stability and efficient and dynamic markets and by prioritising Government activity to support growth. The White Paper on local growth also sets out the actions that the Government are taking to foster private sector growth, and Halifax is covered by the Leeds city region local enterprise partnership, which is currently being taken forward.

[Mrs Riordan]

I thank the Minister for his reply. A very high proportion of my Halifax constituents are employed in the public sector, and job losses in that sector would devastate the local economy. I fight for every job in Halifax. Will the Minister outline what his Department is doing to increase investment and encourage job creation in northern towns like Halifax?

[Mr Vaizey]

I hear what the hon. Lady has to say, and I have no doubt that she fights hard for her constituents. I hope that she will therefore support not only the Leeds city region LEP but the regional growth fund, which exists to promote private sector growth, as well as a whole host of other measures such as the reduction in corporation tax, the national insurance holiday and the sustained investment in transport infrastructure, all of which will also help to create jobs.

[Richard Graham (Gloucester) (Con)]

19. What his Department’s policy is on the future of the post office network.