EU Funding (Rotherham and Barnsley)

Debate between Michael Fallon and Clive Betts

Monday 1st July 2013 Commons Chamber

[Michael Fallon]

Let me be clear: overall, Cheshire is not getting more than Merseyside. The issue for Merseyside is very simple, as it is for South Yorkshire. I cannot justify to the House why either South Yorkshire or Merseyside should get more than the Tees Valley, Durham or Lincolnshire, which are poorer regions.

[Mr Clive Betts (Sheffield South East) (Lab)]

Does the Minister accept this basic fact: over the seven-year period of the spending review, comparing the last spending review round with the round to come, South Yorkshire will get less than half the previous amount, whereas Scotland and Wales will get 95% of the previous amount? Are not those facts true?

[Michael Fallon]

What is true is that South Yorkshire is transitioning. It was a poorer region and is now becoming a wealthier region. Let me repeat: in each of the next seven years, South Yorkshire will get more than in the past three years. Really, we need to be very clear about this.

Oral Answers to Questions

Debate between Michael Fallon and Clive Betts

Thursday 8th November 2012 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

18. What recent estimate he has made of the number of jobs that will be created by the regional growth fund.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

The regional growth fund will generate over half a million gross jobs over the period 2011-2021, with 80% of the impact coming in the first five years. Some 300,000 jobs will be delivered by projects and programmes in rounds 1 and 2, and 240,000 from bids selected for round 3. In rounds 1 and 2, eight out of 10 projects and programmes have now started and 149 bidders have now signed final agreements.

[Mr Betts]

When the regional development agencies were in existence, they provided important match funding to enable European regional development fund money to be properly used. When the Communities and Local Government Committee looked at this, we suggested that a portion of the regional growth fund be earmarked to ensure that all our ERDF money could be properly spent. That suggestion was turned down. If we do not spend all the ERDF money to ensure that we create the maximum number of jobs, will it be the Minister’s responsibility or that of his colleagues in the Department for Communities and Local Government?

[Michael Fallon]

We are certainly looking at how we can spend money better in the next seven-year framework. There has been underspend, not least because there were so many programmes. I am trying to rationalise and simplify them, working with colleagues in the three other Departments affected. The House will want to note that the regional development agency Yorkshire Forward employed 434 people and spent a large amount of public money, but did not leverage in anything like the amount of private sector money that the new regional growth fund is doing.