Claims Tories may 'barter away cash'
Jan 28 2010 by Adrian Pearson, The Journal
FEARS have been voiced that a Conservative Government could barter away millions of pounds in European regional handouts in exchange for greater political powers.
The move would put thousands of jobs at risk as politicians give up on money intended to revitalise the North East economy, opponents say.
Sources at the European Commission say they are keeping “one eye on the possibility” a new Tory Government would be prepared to sacrifice a European jobs fund which is currently worth £250m up to 2013.
That pot is already set to reduce when regional funds are next handed out three years from now, as rich countries allow more cash to be diverted to help poorer Eastern European nations.
But European Commission staff have told The Journal they are concerned the Tories may be prepared to take no further cash in exchange for a greater say in policies currently agreed at an EU level.
The current round of Euro funds is expected to create or safeguard 28,000 new jobs, start 3,000 new businesses and increase the North East’s productivity by £1.1bn per annum.
One North East, which currently spends the fund, are already preparing for a future without the vital cash. Deputy chief executive Malcolm Page said last week he wanted to use the interest from repayments on a regional loan pot to ensure there was a £100m legacy fund to replace the Euro cash.
