West Wales and the Valleys regions are suffering increasing poverty and now have a life expectancy, in some districts, five years lower than that in the more prosperous areas of eastern Wales.

Growing divide

The MP for Clywd West, Gareth Thomas, called on the minister responsible for EU funding, Barbara Roche, to ensure that the growing East-West divide in Wales was stopped and that West Wales received "fair play".

Mr Thomas said the standard of living in the region was 68% of the EU average and that as a result health and the people's quality of life suffered.

On any criteria he said the region should be eligible for priority development grants from the EU under the its structural funding policy.

"I am convinced that West Wales and Valleys meets the criteria for structural funding: earnings are low, unemployment is high. The drop in the prices for livestock has exacerbated the situation. European funding could make a real difference."

The situation is particularly urgent as inward investment is dropping in the region, said Mr Thomas, despite what he described as the good work of the Welsh Development Agency.

'Best deal for Wales'

The minister declined to outline any firm action to back West Wales bid for EU funding except to say she hoped to secure the best deal from the EU "for the UK as a whole including Wales". Structural funding she said was a: "very important issue for the United Kingdom".

Roche: working for the "best deal"

Ms Roche said that as part of the reform of the EU, currently under discussion at the Cardiff summit as it prepares for enlargement, the structural funding programme was under review.

The negotiations, which are set to continue into 1999, over structural funds would be, she said, "long and complex" with no agreement yet reached on who should be eligible for the EU grants.

"We are still someway from the discussions on eligibility criteria and financial issues and should certainly not try to prejudge their outcome."