EU PROPOSAL TO REFORM REGIONAL STATE AID

Early day motion 1807, tabled 25 October 2004 by Jeff Ennis (Labour). Signed by 48 members.

That this House notes with concern the European Commission's current proposals for the reform of regional state aids, which would end the ability of the Government to provide financial support to larger firms for projects that create or protect jobs in the whole of the North East, the whole of the Midlands, the whole of central Scotland and large parts of Yorkshire, the North West and Wales, and would reduce the allowable aid in the few remaining eligible areas; regards state aid to firms in less prosperous areas as an essential, proportionate and targeted tool to help promote regional development; and calls on the Government to oppose the current proposals and impress upon the Commission the importance of new rules that are consistent with the shared objective of narrowing the difference in growth and prosperity between regions.

Signatures by party: Labour 39, Liberal Democrat 5, Labour/Co-operative 2, Plaid Cymru 1, Scottish National Party 1.