NORTH EAST EURO MPs PUSH FOR FAIRER REGIONAL FUNDING

12.00.00am BST (GMT +0100) Wed 25th May 2005

Representatives from County Durham and Tees Valley, including Euro MEPs Fiona Hall and Stephen Hughes, met with Regional Policy Commissioner Danuta Hübner yesterday to present the case for funding changes which would benefit the region.

Areas which have a GDP of less than 75% of the "EU 15", (the 15 member states which formed the European Union until ten additional states joined in May 2004) are entitled to more generous regional funding. On raw statistics, Durham Tees Valley would qualify for this funding. But because a proportion of the UK's total off-shore earnings are nominally allocated to each UK region, Durham Tees Valley comes in at just over the 75% figure and narrowly misses out on the extra cash.

Speaking after the meeting, Fiona Hall said:

"The purpose of the meeting with Commissioner Hübner was to argue the case that offshore GDP should not be added on to the regional GDP calculation. This extra figure is there simply for accounting purposes. Durham Tees Valley does not benefit from offshore GDP so it is not fair to include it in the calculations"

Stephen Hughes commented:

"Key decisions will be made in the coming weeks on our region's eligibility for continued funding through to 2013. We presented a compelling case to Commissioner Hubner - we've done a lot to rebuild our economy following the loss of our coal, steel and much of our shipbuilding industry but much remains to be done. The funding we get should reflect the true state of our regional wealth. Sadly that still lags well behind the EU average."

Stephen Hughes and Fiona Hall said that the Commissioner listened sympathetically to the Durham Tees Valley case and promised to take up the matter with the statistical body, Eurostat. But the MEPs underlined that the role of the UK Government will be crucial.

Looking to the next few months Fiona Hall said:

"The government must press for this change as a priority. With the UK taking the presidency of the EU in July, the Government is in a position to push the issue both in the Regional Statistics Working Group and in the Council of Ministers. North East MPs should make clear to Ministers that this change to the funding rules is vital for Durham Tees Valley."

Stephen Hughes added:

"We will work together with the local authorities to highlight the importance of this to the region's MP's and Government."