Skip to main content

European Regional Development Fund: Fines

Volume 465: debated on Thursday 25 October 2007

To ask the Secretary of State for Communities and Local Government what risk and contingent liabilities her Department has allowed for in relation to potential fines from the European Commission for not correcting the deficiencies in the allocation of European Regional Development Fund funds and potential fraud. (157671)

As stated in the Communities and Local Government annual report 2007, laid before the House on 17 May 2007 (Cm 7094), the Department has a contingent liability in place for £62 million. The Department is working hard to satisfy the European Commission’s concerns and ensure any possible fine would be considerably less than this. The Commission have yet to take final decisions, and it should also be noted that there has never been any suggestion of fraud in the issues raised by the Commission.