FINANCIAL ADMINISTRATION OF EUROPEAN REGIONAL
DEVELOPMENT FUND: CLOSURES
(19626)
12020/98
—
| Special Report No. 14/98 of the Court of Auditors on the closure of the forms of ERDF assistance together with the Commission's replies.
|
| Legal base:
| — |
| Department:
| Trade and Industry |
| Basis of consideration:
| Minister's letter of 2 April 2000
|
| Previous Committee Report:
| HC 34-vi (1998-99), paragraph 5 (20 January 1999)
|
| To be discussed in Council:
| Not applicable |
| Committee's assessment:
| Politically important
|
| Committee's decision:
| Cleared |
Background
7.1 This Special Report from the European
Court of Auditors (ECA) is concerned with the closure of programmes
jointly funded by the European Regional Development Fund (ERDF)
— one of the four Structural Funds. It draws attention to
improvements which should be made in the financial administration
of the ERDF. When we last considered it — almost fifteen
months ago — we did not clear it, but asked the Government
to inform us of any comments made on the report by the Council's
Budget Committee (which was due to discuss it as part of the ECA
Annual Report for 1997).
The Minister's letter
7.2 The Minister for Trade (The Rt Hon Richard
Caborn) has now responded. He thanks us for our patience, tells
us that the Budget Committee has now discussed the ECA reports
and gives their conclusions as follows:
"The Council welcomes the Commission's adoption
of eligibility data-sheets and the strengthening of the co-ordination
between the Commission and the Member States permitted by,
inter alia, the formal agreements concluded between them in
the field of control.
"The Council notes that the Commission will
make available its report on the manner in which net financial
corrections have been effected so that, in the light of the comments
made by the Court of Auditors and, if appropriate, the case law
of the Court of Justice, the consequence of past experience may
be drawn."
Conclusion
7.3 The Minister does well to thank us
for our patience. However, we understand that the delay was caused,
in part, by his hoping to see the report referred to in his letter
before completing his response.
7.4 In the event, the comments of the
Budget Committee do not take us much further. Given the time lapse,
we now clear the document. However, we shall continue to take
a close interest in the administration of the ERDF.
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