Members of the committee last week voiced their concerns at early indications suggesting that Scotland could suffer disproportionately to England when plans for Objective 2 areas are finally announced. The MSPs were especially keen to establish how resources will be distributed within Scotland once the final sums are agreed later this year.

Committee Convener Hugh Henry MSP said:

"While I recognise that the Government has given Scotland a broadly favourable allocation under the Assisted Area Status, I was, nevertheless, alarmed at suggestions that there could be a detrimental impact on Scotland when plans for Objective 2 areas are announced.

"MSPs on the committee are anxious to ensure that Scotland receives a fair share of the funds available for Objective 2 to help combat socio-economic problems in areas of industrial decline, urban centres, rural Scotland and fishery-dependent regions.

"It is vital that, as a committee, we represent the views being expressed to us by a wide variety of organisations across Scotland regarding the funding we can expect to receive and how it will be spent.

"This meeting with Mr McConnell is particularly welcome as it offers us an early opportunity to explore thoroughly issues which are of great concern to both the committee and the Executive."

Following last week’s meeting the committee also agreed that Secretary of State for Scotland, John Reid, should be invited to attend a future meeting of the committee to offer his views on regional development funding.

Mr Henry said:

"While I know the Secretary of State, John Reid, has been vigorously arguing Scotland’s case, the European Committee wants to ensure that there is a fair distribution of the reduced European funding the UK receives."

BACKGROUND NOTES

The European Committee is to meet on the August 31, 1999 at 2.00pm in Committee Room 2, Committee Chambers.

The committee’s membership is as follows:

Dennis Canavan, Bruce Crawford, Winnie Ewing, Hugh Henry (convener), Sylvia Jackson, Cathy Jamieson, Margo MacDonald, Maureen Macmillan, David Mundell, Irene Oldfather, Tavish Scott, Ben Wallace and Allan Wilson.

Objective 2 areas receive funding under the European Structural Fund initiative. Eligible areas receive funding from the latest round of funds to help combat socio-economic problems in areas of industrial decline, rural areas, urban areas and fishery-dependent areas. The focus is on economic and social improvement.

Funds will be extended to no more than 18% of the EU’s population. The Commission has fixed a ceiling for the eligible population in the UK at just over 13.8 million people. The list of areas eligible in the UK (and Scotland) is established in a partnership between the Commission and the UK government. Transitional arrangements for deselected areas exist for the period to the end of 2003.