Cairns signals shake-up in funding for poorest areas
WELSH Secretary Alun Cairns will today signal a major post-Brexit shake-up in regional support for Wales when he takes the Conservative conference stage. The Vale of Glamorgan MP, pictured left, will say that the “old way” of distributing structural funds will come to an end – and claim that communities that received past support have been “let down”.
Making the case for change, he will say: “Simply carrying on with the same spending plans in the same old way after two decades is not an option. But a new structure will give us the opportunity to follow UK priorities, investing in a way that is completely tailored to the Welsh economy.”
Wales received £3.3bn in European structural funds between 2000 and 2013, but Mr Cairns will argue it failed to eliminate the deprivation that blights some of the poorest parts of the country.
He will say: “The outcome of the referendum has naturally raised concerns over the future of what is currently considered EU funding... But again, we must see
this moment as an opportunity to do better for these communities.
“After all, European structural funds are supposed to be a temporary fix, a stimulus for the most deprived parts of Europe. In Wales it was described as a ‘once-in-a-generation opportunity’.
“Sixteen years on and £4bn later, Labour’s mismanagement of the funds in Wales let those communities down. So much was their frustration that those areas which received the most EU funds were the areas which voted strongest to leave.
“And when we consider some of the projects they funded there is little wonder of their anger – if only outcomes had been as important as the money spent.”
A spokesman for First Minister Carwyn Jones said it was an “astonishing paradox” that Mr Cairns “celebrates the good employment figures” but “trashes European funding”.
He said: “The truth is that European-funded programmes, like Jobs Growth Wales, have made a big difference to Welsh businesses and jobseekers. The reason Wales is outstripping other parts of the UK doesn’t have anything to do with the Tories in Westminster.
“Rather than trying to re-write history, he would be better off explaining why he – as Wales’ voice at the cabinet table – chose to sacrifice the interests of our national airport in the current Wales Bill. By voting against the devolution of Air Passenger Duty, he has chosen to side against Welsh economic interests under pressure from his colleagues in England.”
Mr Cairns will use his speech to fire a shot at Mr Jones’ leadership in the wake of the referendum, saying: “The [Welsh] First Minister seeks to present Wales as a victim of the EU referendum.
“He seems to forget that Wales voted to leave, too.
“Whether we like it or not, we must work from that instruction. There are new and exciting opportunities for Wales with the UK being a global leader in free trade.”
Plaid Cymru Treasury spokesman Jonathan Edwards said: “Parts of Wales have qualified for the highest form of European regional support as a result of the disastrous economic policies pursued by successive Tory and Labour Westminster Governments which have deliberately driven policies which geographically polarises wealth. If the Secretary of State was serious about doing things differently he would empower the Welsh Government with the necessary job creation levers so that we can solve our own problems. Instead Wales is offered far fewer fiscal powers than Scotland and Northern Ireland. A hard Brexit will hit the Welsh economy harder than other parts of the British State. With that in mind, it is vital the Secretary of State delivers a full range of job creating powers to Wales. In a hard brexit scenario there is no reason why leavers such as VAT and Corporation Tax be reserved to Westminster.
“As the months proceed we will see if the Secretary of State is a man of vision or just another Westminster Governor General.”