Exiting the European Union (Structural and Investment Funds)

Simon Clarke Excerpts

Tuesday 19th February 2019 Commons Chamber

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

It is a pleasure to speak in this afternoon’s debate and I warmly welcome the statutory instrument, which, as we heard from the Minister, preserves the effect of structural funds through to the end of the 2014 to 2020 period, whether we have a deal or no deal, in true Noel Edmonds style.

I very much hope that there will be a deal, and I underscore again my commitment to the Brady amendment, on which we voted on 29 January, and the Malthouse compromise, which is attached to that. However, if the EU is not disposed to be reasonable, then as a matter of law we will leave the EU with no deal. It is important and right that we ensure that at that point our law continues to operate and that important funding streams continue to be devoted to addressing the aims for which they have been set up. The EU structural funds are, of course, a very important source of funding.

I have always slightly objected to the concept of EU largesse that is implicit in the concept of structural funds. As the UK is, of course, a net contributor to the European Union, that is in effect our money being washed through the EU institutions back into our country. As we know, in a number of European nations the EU structural funds have been the subject of very considerable abuse over the years, which was one of the drivers of frustration with the EU in the first place.

In our country, where the money is generally well spent, there is nothing to fear. Moreover, once we have left the European Union we will be able to ensure that the money goes to our priorities. Of course, that is why the shared prosperity fund is so important. It is something the Prime Minister spoke about a week before the 2017 general election, in Guisborough in my constituency. She outlined her clear commitment to ensuring that the amount of money devolved through EU regional development funding will be matched by the UK once we have left. We warmly welcome that, because the north-east has been a net beneficiary of that funding, and my goodness, there is a lot that we could be doing with it.

We know that the shared prosperity fund will be used to drive the local industrial strategies that the Government quite rightly want to establish. I think that is working very well, and I am glad that it has not emerged as a continuation of the ’70s policy of picking winners. Instead, it is about empowering local devolution to make a real difference in supporting industry.

In the Tees Valley we have a really exciting proposition under our Mayor, Ben Houchen, who has a clear plan for projects such as the South Tees development corporation on the former Redcar steelworks site. Making sure that we have serious, sustained and long-term funding in place for such projects is essential if we are to continue to close the gap between London and the regions. That is something that all of us in this House support, and I am confident that, thanks not least to this SI, we will continue to be able to achieve it. Whether on transport, jobs or education and skills, there is a tremendous amount of work that can be done.

I do not think that there is anything to fear from leaving the framework of the EU and its structural funding. Instead, I think that this is a classic example of how taking back control can work for the benefit of the UK, and indeed of those parts of the UK that voted most heavily to leave in the 2016 referendum. It is worth noting that Teesside voted by two thirds to leave, and in some cases more, so there is real confidence among its population that we should indeed take control of this funding.

I am optimistic. I am grateful to the Government for putting in place a clear plan to ensure that there is no discontinuity on exit day, however we end up leaving. I am grateful to the Minister, because I know that he and I take a somewhat different view on some aspects of the debate, but he has none the less approached this work with great professionalism. He continues to deliver good, sensible legislation to ensure that, in all circumstances, our country should have nothing to fear.

[Brendan O'Hara (Argyll and Bute) (SNP)]

Like the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), we will not oppose this SI this afternoon, but we do share many of the deep concerns, particularly in relation to what exactly the UK shared prosperity fund will be and what it will mean. Of course, this SI would not be necessary if the Government would simply take the threat of a no-deal Brexit off the table. They could, if they so choose, remove that threat today, but instead they have decided—very cynically, in my opinion—that it is too politically useful to have as a tool in order to bludgeon MPs into supporting a deal that we have already rejected as the clock runs down towards 29 March. However, if the Government insist on preparing for the possibility of a catastrophic no-deal scenario, then yes, this SI does allow for the transfer of regulations in order to ensure the continued roll-out of the European agricultural fund for rural development and the European maritime and fisheries fund. The SI will continue to allow payments until their closure after the end of the current 2014-20 programming period.

It is worth pointing out the huge importance of those funds to communities right across Scotland, particularly in remote and peripheral areas such as my Argyll and Bute constituency. The EU structural funds in Scotland are worth up to €941 million across the EU budget period, for use in economic development. Over £500 million a year comes to Scotland from the common agricultural policy in the form of direct payments to farm businesses and rural development funding. The UK Government have provided short-term guarantees to replace most CAP funding until 2022 following Brexit, but no firm commitments have been given about replacing the CAP in the long term.

[Mr Simon Clarke]

It is important to note that the Agriculture Bill provides for ensuring that environmental incentives are aligned with good practice in agricultural management. I think that hon. Members of all parties want that. It will be a welcome change from the way in which the CAP simply rewarded the largest farmers.

[Brendan O'Hara]

The hon. Gentleman makes the important point that we are discussing the SI before Report stage of the Agriculture Bill. I will come back to that. I do not necessarily defend the way in which the CAP is administered—the way in which every pound is allocated—but it is important to recognise the amount of money and support that the CAP gives UK agriculture, particularly those less favoured area support scheme parts of my west of Scotland constituency.