§ Mr. Hickmetasked the Secretary of State for Trade and Industry if he will make a statement on the European Community Industrial Council held on 26 March.
§ Mr. Norman LamontThe Council, at which I represented the United Kingdom, confirmed its firm adherence to the deadline of 31 December 1985, beyond which no further payments of aid to the steel industry will be allowed. It agreed a proposal for amendments to the 311W steel aids code, which will extend the deadline for the payment of operating aid from 31 December 1984 to 31 December 1985, and will permit member states to increase the total sums of aid beyond the levels previously fixed in June 1983. All aids will continue to be subject to authorisation by the Commission under the conditions set out in the aids code, extra aids will be available either for financial restructuring or for costs incurred because of capacity reductions.
The Council also discussed the ferrous scrap market. Most member states accepted that, although prices had risen over the last few months, there was no underlying shortage of supply and controls would therefore be inappropriate. However, ministers agreed that a study group should be set up. The Commission will prepare a paper on Spain and the Community scrap market.
The Council indicated acceptance of the Commission's proposals for small increases in the minimum prices for certain steel products. Some member states argued for higher increases, but I supported the Commission's proposal, taking account of the interests of steel users as well as steel producers.
In a discussion on EC/US steel relations, the Council agreed a firm declaration on recent United States protectionist moves on steel imports.
I welcomed a further Commission report on advanced manufacturing technology, stressing the urgency of work in this field, particularly on standards.