PURNELL ON THE RACK OVER EURO-FUNDING.

PURNELL ON THE RACK OVER EURO-FUNDING.

COULD LEARN FROM CONSTRUCTIVE APPROACH OF TONY McNULTY

Commenting on a report in today's FT that the UK government lost up to £671 million European regional development funds for the English regions to combat recession, SNP MSP Alex Neil – a member of the Scottish Parliament's Finance Committee – said it was now time the Work and Pensions Secretary, James Purnell, publicly retracted his spurious attack on the Scottish Government that the Scottish Government had also lost European funding.

The fact was that the Alex Salmond announced in August 2008 that European Structural Funds would be accelerated and used to provide a direct stimulus to the Scottish economy. This was five months before any approach for England and Wales.

Commenting Mr Neil said:

"This report finally nails the lie that James Purnell has been propagating. It's now time that he retracted his spurious claim and apologised.

"He should not only be apologising to the Scottish Government but to the people of England for losing them £671 million in European regional development funding.

"The reality has now been exposed. The UK government – of which Mr Purnell is a Cabinet member - refused an invitation by the EU to extend the deadline for unused European regional aid programmes.

"Having let down some of England's poorest regions, James Purnell was also completely wrong about the position in Scotland. No matter how often he makes this bogus point, it will remain bogus.

"The fact is that in Scotland, we are accelerating European funds for skills training further and faster than is the case south of the Border.

"Almost 300 Scottish projects are already benefiting from the Scottish Government's quick action, with £200 million already allocated to support economic development, enhance skills, increase turnover and help create new jobs, including an initial £55 million specifically on employment.

"Mr Purnell has made himself look foolish and out of touch. How refreshing that his colleague, Employment Minister Tony McNulty, acknowledges what can be achieved by working constructively with the SNP Government by acknowledging it is doing all it can to tackle the economic situation."