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European Union funding is available to areas of the union

23rd April 1998, Page 46
23rd April 1998
Page 46
Page 47
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Page 46, 23rd April 1998 — European Union funding is available to areas of the union
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Which of the following most accurately describes the problem?

which are designated poor areas. Northern Ireland and the Highlands of Scotland have benefited so far but the Objective 1 zone map is being redrawn. Is this good news for hauliers and what will happen to those just outside? In the early 1970s Sheffield was booming. Britain ate Sunday lunch with cutlery made in its factories, and its mills turned out thousands of tons of steel annually. But the past 20 years have been an unbroken story of industrial decline.

Maybe one or two redundant steelworkers have managed to scrape together a living as male strippers as depicted in the film The Full Monty, which was set in the city. It's more probable that they've wound up on the dole, with little prospect of finding work.

However, help may be at hand from the European Union. Its £20bn programme of financial support for the poorest regions of the union is being reformed, and this means South Yorkshire looks set to be accorded Objective 1 status as one of the most deprived areas.

To achieve it—if achievement it can be called—a region has to have a Gross Domestic Product per head of population that is less than 75% of the European average. Merseyside, Northern Ireland, and the Highlands and Islands of Scotland are all currently designated as Objective 1 areas, and are scheduled to receive £1,573m between them in the five years to the end of 1999.

The Irish and Scottish regions look set to lose their designation now their per capita GDP has risen above the threshold, but will benefit from six to seven-year phase-out periods if this happens. They may also be eligible for some Objective 2 funding, although this is less generous.

Final decisions on eligibility are likely to be taken later this year or in early 1999. The new proposals will cover 2000 to 2006.

The Euro cash can be used in many ways. These include improving the infrastructure, retraining the long-term unemployed, securing investment which creates jobs, and developing ports.

EU funding can account for only part of the funds raised for a particular project, although it's a generous 75% where Objective 1 is concerned. The balance has to come from national or local government, private industry or a combination of all three.

It's worth noting that some parts of South Yorkshire are designated as Assisted Areas (including Barnsley, Doncaster, Mexborough and Rotherham) or as Intermediate Areas (including Sheffield). Manufacturing and some service industry projects in these places may qualify for Regional Selective Assistance grants from the Department of Trade & Industry • Transport companies are unlikely to benefit directly from Objective 1 cash, but they're likely to benefit indirect ly. Gavin Hine, representation manager at Sheffield Chamber of Commerce, believes that Objective 1 funding could help bring about much-needed improvements to the road network in and around the city; good news for industry, and good news for the hauliers.

"I hope it means the ring road will be fin ished," he says. "We must be the only place in the country with half a ring road.

"The result is that the city centre ends up grid-locked. That's bad news if you're trying to deliver goods to the shops.

"It's difficult to quantify how far the lack of a decent infrastructure has helped bring about the decline of the area," he continues.

Tut it seems to be the case that there are sites which have not been developed because trans port links are poor."

Distribution centre Any improvement to the road network has to be accompanied by a well-thought-out traffic management plan which involves, for example, park-and-ride schemes, says Hine.

Without this there's a danger that the new roads will simply attract more cars and will end up as congested as the present network, he warns.

'We want them built so it will be easier for trucks to transport products to and from factories," he says. "That is what will be of benefit, although I agree that weaning people away from their cars is a problem."

Get it right, and Sheffield could become a cost-effective distribution centre, says Hine.

"It's six miles from the Ml, close to the M62, and there's a big rail port at Doncaster (also in South Yorks) which isn't very far away. We're in a good location."

Road Haulage Association northern region director Geoff Dunning agrees that South Yorkshire's roads require a makeover. "The Sheffield to Manchester route definitely needs improving, although there is a national park in the way, which is a problem," he says. "Remember, however, that any investment will need the agreement of the British Government—and it's not that keen on roads." However, the section of the rail link between Sheffield and St Pancras that runs through South Yorkshire could certainly benefit. There's no denying that Objective 1 status can have a significant impact on a locality, as Highlands & Islands Enterprise, the development agency for the northern half of Scotland, is happy to testify. It says the funding has benefited the telecoms infrastructure, allowing analogue exchanges to be upgraded to digital, and digital exchanges to be kitted out with stateof-the-art technology.

Room for improvement Stornaway has benefited from a new ferry terminal, and there have been causeway and bridge improvements throughout the Western Isles. Highlands & Islands is fighting to hang on to Objective 1 zoning, while admitting that it's also something of a stigma. Its spokesman argues that although much progress has been made, there's still a lot to be done.

"After all, we only have one airport that takes direct flights from England, only two rail routes into the area, and only three road routes," he comments.

One of the problems with Objective 1 is what hap pens if you're just out side the designated territory. Haulier Arthur Wilson runs AE Wilson, which specialises in transporting roofing tiles. He's not far from Doncaster, but his business is in North Lincolnshire. This enjoying such generous European largesse, despite the fact that it is as bad as anywhere else in northern England; if not worse.

"We have a big industrial estate that's just half a mile from the motorway (the M180) but trucks leaving the estate have to go for several miles before they can actually get on to it," he explains. "To gain access our own trucks have to go down roads which are little better than back roads."

Transport operators further afield may also be forgiven for being surprised that their county hasn't received Objective 1 classification. With tin mining finished, fishing and farming in decline, a small industrial base, and relying heavily on tourism, Cornwall feels neglected by both Brussels and central government; and with some justification.

"We're isolated and forgotten down here. Nobody takes any notice of Cornwall, and there's no work for the local people," reckons Robert Barnard. He used to haul for South Crofty tin mine, which has just closed.

"The quarrying has nearly all gone too," says Andrew Newport. "There's less and less industry in West Cornwall, and less and less work."

"Never mind about putting freight back onto the railways," be he says. "What we ought to doing is getting people back onto the railways."

That's a challenge that's going to be difficult to overcome; even with the most generous Objective 1 grants. • by Steve Banner


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