UK won't get (much) flood compensation from EU after all
Posted, May 07, 2008 @ 00:00
Blair's CAP rebate climb down means only 25% of money will reach flood areas
Brussels, 7th May 2008 -- Only £31m of the £110m EU flood relief grant aimed at helping areas damaged in last summer's floods will actually make it to the UK.
Conservative MEP, Timothy Kirkhope, who led the 2007 campaign to secure money from the EU solidarity fund for natural disasters, revealed that Labour had claimed the £110m grant from the EU Solidarity Fund without saying that nearly three quarters would be siphoned off.
Local Government Minister John Healey has admitted that the problem resulted from the terms of a funding deal – the "abatement" mechanism – dating from 1984. This mechanism ensures part of the payment needs to be returned as a condition of the UK rebate from Europe, secured by Margaret Thatcher to cut Britain's financial contributions to Brussels.
But Timothy Kirkhope turned the blame on Tony Blair, who in December 2005 renegotiated the deal in a trade with other countries to grant more money to the 10 Eastern European nations joining the EU.
Timothy Kirkhope said:
"Blair sold out and we are now seeing the consequences.
"I am very, very angry indeed. The abatement mechanism was in our favour until he reversed it, and now we're being cheated by our own Government.
"They were very triumphant when the money was secured but they must have been well aware then that they would not be receiving anywhere close to all of it. By the time affected communities receive this funding it will hardly be worth the candle."