Local Euro MP calls for clarification of Minister's flood statement

11.54.36am BST (GMT +0100) Wed 14th May 2008

Local Liberal Democrat Euro MP, Diana Wallis, has called for clarification of the Government's recent flood statement.

Speaking in Brussels today, Diana Wallis MEP remarked:

"John Healey MP, the Minister for Local Government, wrote to me last week explaining how a new flood Restoration Fund will assist the important work being done in the region to repair the damage caused by the unprecedented floods last year.

"However, he has only introduced confusion and dismay by bringing the UK's rebate into the equation.

"The European Commission announced in 2007 - which was subsequently approved by my colleagues in the European Parliament - that the UK should be awarded Euro 162 million from the EU's Solidarity Fund to reimburse certain categories of flood relief operations. At the exchange rate applied, this equates to £110 million.

"As this is a reimbursement mechanism, it should be made available in its entirety to the various areas in the UK that were affected by the floods.

"The fact this money will count as a receipt for the UK, and as such will be taken into account when calculating the UK's rebate for 2007, should not lead to a reduction of monies available to the regions.

"However, the Minister's Statement to the House on 6 May said that the net gain to the UK would only be £31m as this money will count as a receipt for abatement mechanism purposes.

"The £110m awarded by the EU is a real budget and all of that money should be made available to the local authorities affected. The fact that it will have a net effect on our rebate is something that the Treasury should absorb and not pass on to the affected areas. This did not happen to Portugal, Austria and Greece when they were awarded money from the EU's Solidarity Fund."

Diana Wallis concluded:

"John Healey should clarify his statement. I am seeking reassurance that the flood affected areas in the Yorkshire and the Humber region will be able to submit all eligible claims for reimbursement."

Related Link:

Listen to Diana Wallis speak to local radio and television about the Minister's floods statement.