§ Jacqui SmithTo ask the President of the Board of Trade if she will make a statement on the outcome of the EU Industry Council held in Brussels on 13 November. [19651]
§ Mrs. BeckettThe Council reached political agreement on the Draft Article 94 Regulation on State Aid. This will enable the Commission to bring forward state aid block exemption regulations under which member states would not need to seek prior approval for individual aid schemes and awards and in return would publish details of these state aids in the Official Journal and submit annual reports to the Commission.
A constructive first discussion of the new shipbuilding aid regime took place. The Council agreed on a two step approach to replacing the Seventh Directive on shipbuilding aid. Step one, previously agreed at the Industry Council in Luxembourg on 24 April, would involve the extension of the current regime on which the first exchange of views took place. The Commission's proposed new regime would end operating aid in 2000, introduce regional investment and innovation aid and tighten criteria for restructuring and closure aid.
The Commission presented its Communication on the treatment of ECSC funds after expiry of the Treaty in 2002. It felt that the simplest solution was for outstanding reserves to be transferred to the Communities under the Commission's supervision to be used for coal and steel sector research in line with the conclusions of the Amsterdam European Council. The Commission's proposals met with general approval. However some member states suggested that an independent foundation should be established to manage the assets and the research programme. Another suggested that further work was needed on the roles of the Commission and member states in managing the funds with further reflection on the impact of future Community enlargement. The Council concluded that the Communication should be referred to Coreper for further work leading to a more detailed discussion at a future Council.
The Presidency introduced its note on the future competitiveness work programme, continuing into the UK and Austrian presidencies. I mentioned that I planned to hold a competitiveness dinner on 6 May to which I will invite Industry Ministers and members of the Competitiveness Advisory Group. Austria will use informal Industry Council to involve representatives of small and medium enterprises.
Debates also took place on research and development, Aerospace and the Information Society. The Council agreed the conclusions on Electronic Commerce. There were presentations on SMEs, the Construction Industry and the Textile Industry.