MP’s cash questions for PM

Jan 24 2009 by The Journal

THE Prime Minister has been asked to explain why his party has diverted European cash meant for the North East back to central Government.

Berwick MP Sir Alan Beith yesterday accused the Prime Minister of presiding over a system in which Scotland receives extra EU cash but the North East of England is denied the same funds.

This week The Journal revealed how up to £60m in European regeneration cash would not be handed over to the North East because the Government did not want to have to find an equivalent amount in match funding. Ministers instead allowed Scotland, Wales and Northern Ireland to keep the money.

During prime minister’s questions yesterday Sir Alan said: “Your constituents may well benefit from substantial extra European regeneration funding because Scotland, along with Wales and Northern Ireland, has put in a bid to get unused European money, which is available for hard-hit areas.

“Will you now reconsider the Government’s decision not to make a similar application for the north of England, which desperately needs this investment?”

Mr Brown appeared to change the subject when he replied that the Government had successfully lobbied for the European Investment Bank to double its support for environmentally-friendly cars and manufacturing processes, which should benefit the north of England.

He said: “I’m not aware that a North East company has had any application rejected for European Investment Bank support.

“I hope they will put these applications forward and I’m very happy to talk to you about the economy of the North East and what we can do to help it.”

Sir Alan later said he was disappointed the PM “did not answer the basic question about why the North East was not able to bid for these funds, given our need for investment in transport projects like dualling the A1, replacement school buildings and infrastructure”.