European Structural Funds

Part of the debate – in the Scottish Parliament at 4:51 pm on 24 January 2002.

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Photo of Peter Peacock Peter Peacock Labour 4:51, 24 January 2002

Match funding has never been a serious problem in Scotland. We have always been able to use the European funds that are available. Although finding the cash is a challenge for local authorities or enterprise companies, they have nonetheless found the cash and given priority to that kind of expenditure in ways that have brought benefits to their communities.

David Davidson mentioned economic development and the potential for further use of European funds. There are many good examples of that in the private sector. Perhaps the most recent and striking example is the development of the Vestas Wind Systems factory in Kintyre, which produces wind turbines. Significant sums of money are going into that from the European Union, the enterprise companies and private investment. We want more of that.

David Davidson also mentioned the transparency of the decision-making process, as did Tavish Scott. Under European rules, we are required to ensure that we advertise well the resources that are available from European funds. We seek to do that. If there are difficulties, we are more than happy to review the procedures. Irene Oldfather said that because of the existence of the Parliament and its committees, European funds—among many other aspects of Scottish life—are subject to more rigorous scrutiny than they were before the Parliament. I welcome that scrutiny; there is much to be said for drawing out such matters in public.

I have given answers to the smaller points that were made, but members made two central points recurrently. One was on enlargement and its implications; the other was on what we will do about the next round of European funds. For the reasons that I set out in my opening speech, we support the process of enlargement; it will lead to the development of Europe, of the marketplace and of peace and security in Europe. Inevitably, enlargement will mean that the European Union will engage with countries whose gross domestic product measures are significantly below those of Scotland.