Government blocks EU job creation - Duff

1.30.00pm BST (GMT +0100) Mon 18th May 2009

The Labour government has prevented the creation of hundreds of jobs in the East of England when it refused to extend the deadline for regions to apply for £630m of EU funding, according to figures released by the Liberal Democrats.

The European Commission offered to extend the deadline for regional bodies to apply for money from the European Regional Development Fund, but the government failed to take up the offer. Extra money has become available because of the fall of the value of the pound against the euro.

Both Scotland and Wales accepted the extension of the applications period and will therefore be eligible for funding that could create or sustain thousands of new jobs.

Commenting, Liberal Democrat Euro MP for the region, Andrew Duff said:

"The government has turned down nearly £15m from the EU's regional development fund that could have come to this region. This is particularly foolish at a time of economic recession and growing unemployment.

"Our regional economy badly needs more European investment. For the Treasury to block this opportunity to create jobs is madness - but it is sadly typical of this government's inability to exploit to the full all the benefits of our EU membership.

"Lib Dems have no such inhibitions. We believe we are stronger together working with our European assets and partners to rebuild the economy of the East of England."

ENDS

Notes to Editors

1) The European Regional Development Fund is aimed at economic regeneration projects primarily in the public sector (Government departments, Regional Development Agencies (RDA), local authorities, FE/HE establishments, other public bodies and voluntary sector organisations). Private sector companies can work in partnership with these bodies.

Applications are made to and monitored by EEDA. At national level the Department of Communities and Local Government remains ultimately responsible for the management of the programme.