This contradicts earlier advice from the Treasury to the UK government to deduct 60% of the £110 million from the EU Social fund payment to cover 'losses' due to the UK's special 'abatement mechanism'.
Glyn Ford, Labour MEP for the South West of England, said: "The European Commission has confirmed that the full amount of the European Social Fund money will be allocated and spent on flood relief measures in the regions affected by last summer's floods. This is great news for the regions which are still recovering from last year's floods. If you can't deduct 2/3 of farmer's payments, why on earth should you try it with flood victims?"
Notes to editors:
Please see the written question and answer below:
WRITTEN QUESTION E-2888/08
by Glyn Ford MEP to the Commission
Subject: UK abatement mechanisms
Can the Commission confirm that on 7 April it agreed to pay the UK £110 million from the Solidarity Fund as part of the cost of recovery from last summer's floods? Can the Commission confirm that the money will only go to the British Government if proof is provided that the full amount is allocated and spent after 7 April on flood relief measures and that a two-thirds 'deduction' to cover 'losses' due to the UK's special 'abatement mechanism' would not be in order?
Answer given by Commissioner Danuta Hübner on behalf of the Commission (26.6.2008)
On 10 December 2007 the Commission decided to respond favourably to the United Kingdom's (UK's) application for financial assistance from the EU Solidarity Fund (EUSF) following the flooding disaster in England, Northern Ireland and Wales during the summer 2007. Consequently, the Commission proposed to the EU budgetary authority (the European Parliament and the Council) to mobilise an amount of €162,387,985 from the EUSF. On 7 April 2008 the budgetary authority approved this amount by adopting the corresponding amending budget proposal.
The amount can be paid out to the UK as soon as the Commission is able to adopt the formal grant decision and an Implementation Agreement with the UK to be signed by the Member of the Commission responsible for Regional policy and the responsible UK Minister. On 20 May 2008 the UK authorities provided the necessary information for these two decisions to go ahead.
From the date of the payment by the Commission the UK will have one year to spend the grant on eligible operations as defined by the EUSF Regulation and specified in the Implementation agreement. The UK will then have to report to the Commission on the full use of the money and certify the completeness and regularity of the payments made. The Commission may audit the correct use of the grant. Any amounts not spent or spent for ineligible operations will be recovered by the Commission.
The UK correction mechanism does not in any way impact the payments made to the UK from the EUSF. Summarising, the UK correction is an ex-post mechanism which reimburses to the UK part of the difference between what the UK has paid to and received from the EU budget in the preceding year. As such, any payment made to recipients in the UK (structural funds, income support to farmers, research, Erasmus, etc...) has the effect of reducing the size of the UK correction in the following year. The issue of 'netting out' payments from the EU budget to take into account the effect on the UK correction is no more in order for EUSF payments than it is for any other payments from the EU budget to the UK.
For more information please call the European Parliamentary Labour Party press officer, Silke Thomson on +32 479 790 053.
European Parliamentary Labour Party, European Parliament, Rue Wiertz, 1047 BRUSSELS, Belgium
