Blair ally backs Wales' fight for more Euro cash - why won't Rhodri?

12.00.00am BST (GMT +0100) Tue 14th Sep 2004

Welsh Liberal Democrat Assembly leader Mike German has congratulated European Commissioner Peter Mandelson for standing up for Wales in a way that the country's own elected leader has not.

European Commissioner Mandelson, better known as a friend of Tony Blair than as a friend of Wales, has criticised UK Treasury proposals which would lead to Wales missing out on further European money following the current Objective One scheme in 2006. Mr German has been encouraging First Minister Rhodri Morgan to do the same thing for months, but Mr Morgan has consistently refused.

Mike German said: "We live in a strange world where Peter Mandelson is proving to be a more effective voice for Wales' interests than our own First Minister. If Mandelson can tell the Treasury it should be supporting EU plans to invest in areas with lower than average prosperity levels - like West Wales and the Valleys - then I fail to understand why Rhodri Morgan cannot.

Last year Welsh Liberal Democrats revealed that supporting the Treasury's position of opting out of regeneration programmes like Objective One would risk losing out on more than £100m of European aid a year.

Mr German added: "Rhodri Morgan says he wants the best deal for Wales. Now that a senior figure within the Labour party has broken cover, perhaps he will have the courage to join the fight and campaign for West Wales and the Valleys to get another shot of money. Recent EU figures show a growing gap between the prosperous parts of Wales, and those needing more help. We must not miss this chance to help our most deprived communities."

The European Commission and UK Treasury have different ideas about the size and scope of the next wave of European funding after the 2006. Figures produced by the Assembly's European and External Affairs Committee suggest that the UK government's proposal to provide its own aid to poorer areas would only add around £66m to Wales' annual budget. However, the commission's proposals could see Wales receive up to £180m a year.