HC Deb 31 January 1977 vol 925 cc22-3
16. Mr. Jay

asked the Secretary of State for Industry whether he proposes to proceed with the Government's proposed £25 million industry aid scheme for instruments and automation.

Mr. Alan Williams

Yes, as soon as it has received EEC approval.

Mr. Jay

Will my right hon. Friend assure the House that he will resist any proposals from the EEC to abandon aid to this important industry?

Mr. Williams

I can assure my right hon. Friend that we intend to press this proposal as hard as we can. He will be aware that this is the first occasion, I believe, when the Article 93(2) procedure has been applied to one of our proposals, whereas all the other member countries of the Common Market have had their aid proposals referred on numerous occasions for consultation.

Mr. Nelson

Is it not a fact that, while many of the other Government aids to industry have been allowed, this one has been blocked under Article 93 of the Treaty of Rome? Will the Minister please indicate whether he is satisfied that some of the new and prospective reported proposals of the Government that will be put to the meeting of the NEDC on Wednesday for new specific sectoral assistance do not conflict with Article 93 as well, because many of us have serious doubts that this is a very unfair form of competition?

Mr. Williams

It is in the interests of member countries that competition is on a fair basis between member countries, but equally we have to ensure that we are protecting the interests of our own industries, particularly those in areas of rapidly evolving technology, such as this, and we try to strike a reasonable balance. I think that the fact that this is the first application which has been referred shows that we carry out adequate consultations and go into adequate detail in our studies before putting schemes forward.