§ Mr. Ashleyasked the Secretary of State for Trade and Industry how much Belgian sanitary ware was imported in 1979 and 1983; what proportion of the imports came from the Belgian company Boch SA; whether he has any evidence that Boch SA was given state aid by the Belgian Government on terms contrary to the treaty of Rome; what representations his Department has received about alleged dumping of the Belgian sanitary ware; what action he has taken; and if he will make a statement.
§ Mr. ChannonImports of sanitary ware from Belgium (and Luxembourg) totalled £175,595 in 1979 and £2,788,706 in 1983. Statistics of imports of the products of individual companies are not easily obtainable.
On 16 February 1983 the European Commission took a formal decision that state aid in the form of the acquisition of a holding amounting to BF 475 million in Boch SA was incompatible with the Common Market within the meaning of article 92 of the EEC treaty and must therefore be withdrawn. On 28 February 1984 the Commission brought an action before the European Court of Justice against Belgium to declare that by not complying within the prescribed period with that decision Belgium had failed to fulfil its obligations under the treaty.
On 24 October 1984 the European Commission took a further formal decision that state aid granted to Boch SA in the form of a subscription of BF 83 million of new capital was incompatible with the Common Market within the meaning of article 92 of the treaty and must therefore be withdrawn. On 11 February 1985 Belgium brought an action before the European Court of Justice against the Commission to have that decision declared void.
My Department has received a number of complaints about imports of subsidised Belgian sanitary ware.
We have repeatedly made clear to the Commission our concern about the distortions of competition resulting from the state aid that has been granted; about its impact on intra-Community trade; and about the adverse effects on United Kingdom producers. I last raised this matter with Commissioner Sutherland on 28 February.
It is wholly unsatisfactory that this aid should have been granted in the first place and that this situation should not yet have been dealt with effectively. We shall continue to press the Commission to bring matters to an early and acceptable conclusion.