EUROPEAN REGIONAL DEVELOPMENT FUND

That this House notes with concern the Government's refusal of a European Commission offer to extend by six months the deadline for all countries to spend unused 2000 to 2006 European Regional Development Fund (ERDF) money; further notes that as a result £671 million of European funding earmarked to be spent in England's regions has in effect been re-allocated to the Treasury; further notes that almost every other EU member state accepted the invitation and that the Government approved the extension for Scotland, Wales and Northern Ireland; further notes that this decision was made without formally consulting hon. Members or the regions affected; asks Ministers to explain to the House their decision to reject this unprecedented invitation to extend the spending deadline; and calls on the Government to use its unexpected windfall to compensate all the regions that have lost out on vast sums of regeneration money.