Oral Answers to Questions

Nick Harvey Excerpts

Thursday 8th November 2012 Commons Chamber

[Michael Fallon]

I do not wholly accept that criticism. The regional growth fund has been a key part of creating and safeguarding 500,000 new jobs in rounds 1, 2 and 3. I find the logic of the National Audit Office report somewhat perverse. It argues that we should look only at net jobs. If a plant in the hon. Gentleman’s constituency closed with the loss of 500 jobs and 450 of the people affected were subsequently employed elsewhere, he would not stand up in this House and say that he had only lost 50 jobs.

[Sir Nick Harvey (North Devon) (LD)]

Does the Minister agree that new start-ups benefit from grant aid in particular? To that end, will he ensure that the UK takes advantage of EU transition zones in the next funding round, and will he structure them in accordance with the Heseltine recommendations of local flexibility to ensure that new start-ups are not put in a straitjacket and are unable to use them?

[Michael Fallon]

Yes, I will certainly look at that. We are now preparing how we manage and administer the programmes under the new multi-annual financial framework, which will begin in January 2014 and last until 2020. I want to make sure that we have a smaller number of programmes across the United Kingdom and that we therefore minimise the differing costs and start dates under the previous seven-year framework. We need a simpler approach to the cohesion funds, but I certainly take the hon. Gentleman’s point on the importance of the transition regions outside the category A regions.