Allister debates city funding
24 March 2009
Speaking in a debate in the European Parliament on Cohesion Funding and specifically urban needs, Traditional Unionist MEP Jim Allister contrasted the benefit brought by the previous EU URBAN Programme with the ineffectiveness of the present arrangements under JESSICA (The Joint European Support for Sustainable Investment in City Areas). Under JESSICA venture capital funds, guarantee funds or loan funds can be available, but, unlike URBAN, no hard cash. JESSICA is a tool to assist private/public partnerships by providing fiscal leverage, but in the current downturn such theory, warned Mr Allister, is often of little practical effect.
Belfast, particularly North Belfast, had benefitted from an extensive URBAN II Programme, which saw regeneration and business incubation supported. But it has now run its course.
In his remarks in the debate Mr Allister said:-
"In Belfast I have seen the distinct benefit of the URBAN Programme. Hence, I regret its passing, particularly since nothing comparable has taken its place.
The switch of focus to public/private partnerships is a poor substitute, with access to JESSICA doing little to soften the blow, at least so far. In truth we moved away from URBAN without a practical substitute in place. In the present economic climate the prospect of JESSICA producing the anticipated leverage effect is diminishing, leaving an unfilled gap in many cities where urban redevelopment and investment are still needed.
The gap between lip service in government strategies and delivery on the ground is widening with every tightening of the fiscal belt. Thus the absence of specific funding for urban spend in this 2007-13 programme is being increasingly felt."
