NORTH EAST MISSES OUT ON EU FUNDING WINDFALL

12.00.00am GMT Wed 14th Jan 2009

Fiona with local campaigners Mike Barker and Martin Swainston

A Lib Dem MEP is shocked that the North East region will miss out on an EU funding windfall because of a 'money grabbing' decision made by the Government down in London.

The European Commission has offered a six month extension on its December 2008 deadline to all countries for unused funds, as part of a £178bn economic stimulus package.

But the Government has decided not to let English regions apply - despite the fact Scotland, Northern Ireland and Wales are set to benefit from the money. What is more, the value of the grant is set to rise by a fifth because of the fall of the pound compared to the Euro

Lib Dem MEP Fiona Hall said: "North East England has always struggled to get the kind of funding it deserves from central Government.

"It is ridiculous that the region has been denied these funds because the Government doesn't think the money can be spent within the set deadlines.

"This is a poor excuse and a smokescreen for a money grabbing Government trying to find funds from anywhere to help settle its financial problems.

"It is more likely that the Government has realised that any unclaimed money can be taken off the UK's contribution to the EU, going right back into Whitehall pockets, rather than being spent on projects vital to the North East."

The EU said the UK had claimed only 14.8bn of its 16.4bn total for 2000-6 by the 2008 deadline.