HL Deb 15 February 1983 vol 439 cc211-2WA
Baroness Hornsby-Smith

asked Her Majesty's Government:

What action they propose to take to protect the British textile industry in the light of the massive subsidies provided for the French, Belgian and Italian textile industries which distort competition and result in imports from these countries being tendered at prices below the true cost of production.

Lord Trefgarne

It is the responsibility of the European Commission to judge whether or not schemes of assistance are compatible with the state aid provisions of the Treaty of Rome. The Government remain seriously concerned that the introduction of new sectoral aid schemes for textiles in some member states could adversely affect the competitive position of the industry in others and have persistently urged the Commission to stop the upward spiral of aid. The Commission has replied that its shares this concern and is taking steps to ensure stricter observance of the relevant aid guidelines. The Commission is currently considering a number of aid proposals by other member states and decisions are expected soon.