Objective One must re-focus to bring lasting wealth - German

12.00.00am GMT Mon 23rd Jan 2006

Welsh Liberal Democrats are warning that Wales' poorest areas will continue to lag the rest of Europe behind unless there is a change of emphasis in the second round of Objective One funding.

The second round of European funding is due to start in 2007, and Mike German, Assembly leader of the Welsh Liberal Democrats and a former Minister for Economic Development, is warning that unless planning starts in earnest now, the next programme risks wasting a golden opportunity.

Mr German said: "We are being given a second chance to bring the economy of West Wales and the Valleys up to the kind of levels we are seeing in the rest of the UK and Europe. It is vital that we learn the lessons of the first programme to ensure that we create real, lasting prosperity for these areas.

"To do that, the planning has to start now and I believe we must give a greater priority to building the infrastructure of these areas. Investing, for example, in the valley lines network, would make it easier for people living in the valleys to find well paid work in the cities along the M4.

"In rural areas, we need to overcome the disadvantages of distance by powering up our Broadband networks. On the internet Machynleth is the same distance from the global markets as Cardiff or the Caribbean. By investing in IT infrastructure we can bridge the gap to the world."

Mr German also called on the Labour Assembly Government to lobby harder for so-called match funding from the UK treasury.

"The UK government could make a major contribution to closing the gaps between rich and poor by giving Wales extra money. EU funds have to be 'matched' by money from home. If the UK government gave Wales extra cash, it would mean we would not have to raid our own block grant to provide match funding.

"Yet the Labour Assembly Government hasn't even asked for match funding.

"Labour in Wales treats it as a victory that the treasury passes on the European money we are entitled to receive. Instead of congratulating themselves for getting what we are due, they should be lobbying hard for what we need."

Notes:

The Welsh Liberal Democrat Amendments to Wednesday's debate in full:

Add point at end of motion:

Calls on the Welsh Assembly Government to make representations to the UK Government to secure match-funding for the next round of structural funding.

Add point at end of motion:

Requires the Welsh Assembly Government to produce a report to be debated in plenary on the lessons learnt in the present round of European structural funds.

Add point at end of motion:

Calls on the Welsh Assembly Government to give greater priority to infrastructure projects in the next round of structural funding.

Add point at end of motion:

Calls for the simplification of the application process for accessing European funding.