92000E1173

WRITTEN QUESTION E-1173/00

by Malcolm Harbour (PPE-DE) to the Commission

(12 April 2000)

Subject: Information society funding in the automotive sector

In view of the restructuring taking place in the West Midlands car industry, as a result of the break up of the Rover Group by BMW,

could the Commission please consider providing special funding for information society projects to the West Midlands region focusing on activities where jobs could be created for the skilled workforce now facing unemployment?

Answer given by Mr Barnier on behalf of the Commission

(8 June 2000)

Support for economic development programmes under the European structural funds will be significant in the West Midlands over the 2000-2006 period. The development of the information society is one of the Commission's priorities following the e-Europe initiative launched at the Lisbon European Council and permeates many of the European funding initiatives. The Commission will be seeking to ensure that in the next generation of structural funds programmes for the region, the development of the information society is properly taken on board, in line with the e-Europe initiative.

First, a large part of the West Midlands region is eligible for structural fund support under the headings of Objective 2 and Objective 2 Phasing-out. With an allocation of over 850 M, the West Midlands programme will be the biggest in the United Kingdom under Objective 2 in the 2000-2006 period.

The West Midlands Objective 2 development plan has recently been submitted by the authorities in the Member State to the Commission and identifies the following four priorities: (1) developing a diverse and dynamic business base; (2) creating a learning and skilful region; (3) creating the infrastructure and conditions for growth; (4) regenerating communities. Support for innovation and the development of the information society will be one of the cross-cutting themes of the programme. Within these priorities, the following activities may be envisaged: support for training in the use of and the promotion of information and communications technology; support for high technology SMEs including specialist business support; and start up capital through grants, loans or equity financing. The draft plan underlines the need to create jobs and assesses each of the proposed priorities identified above in terms of the creation of new jobs.

Secondly, the West Midlands will receive a share of the Objective 3 programme worth 4 500 million in total in the United Kingdom. Together with Objective 2, this funding can be used to support the redeployment of the skilled personnel previously employed in the car industry.

In addition to these amounts, the West Midlands could also receive support for innovative projects including more in the field of the information society. The Commission is currently developing a set of guidelines in relation to these actions.