§ Mr. Skeetasked the Secretary of State for Industry (1) if he will list the countries in the EEC which favour a directive proposed by the Commission under which State Governments would be obliged to notify the Commission prior to the transfer of State funds to public corporations; and what is the attitude of the United Kingdom Government;
(2) if he will give a full list of the State industries which are proposed to be covered and those excluded from the operation of a proposed directive covering the State financing of public corporations.
§ Mr. Les HuckfieldThe directive, as drafted, would not cover the activities of public undertakings in the following sectors: rail transport, transport by road224W and inland waterway, posts and telecommunications and the production, transport and distribution of water, gas and electricity. Activities of the British Steel Corporation covered by the Treaty of Paris would also be excluded. Public undertakings in all other sectors would be covered; United Kingdom undertakings would include British Shipbuilders, British Aerospace, the National Enteprise Board and the BNOC. In addition, a number of smaller State undertakings would be included but the Commission has indicated that it intends to redraft the directive to exclude from its scope public undertakings of a non-commercial character.
In the discussions on the Commission's proposed draft directive FRG, the Netherlands and Denmark have indicated their general support for the proposed directive.
The United Kingdom Government have opposed the draft directive in principle. We have sent a submission to the Commission explaining our attitude, which is based on doubts about its legal status. We understand that France and Italy have broadly similar views.