§ Mr. Marlowasked the Secretary of State for Trade what representations he has received as to subsidies or unfair trading practices by Italian exporters to the United Kingdom; and what steps he intends to take.
§ Mr. NottI have received representations on behalf of a number of industries to the effect that their Italian competitors seem to be enabled by Government subsidies to compete "unfairly".
Trade within the Community must be fair as well as free. It is, in fact, regulated by the competition rules of the Community treaties, which prescribe not only a standard of "fairness" but a framework of law to enforce it.
Specifically, article 92(1) of the Treaty of Rome in general forbids all State aids which distort competition in trade between member States or threaten to do so. This applies equally to Italy, the United Kingdom and all other member States.
The primary responsibility for enforcing observance of the treaty competition rules rests with the Commission, acting on behalf of the Community as a whole. Particularly since it has to determine the requirements of the law, rather than make a subjective judgment of "fairness", the Commission can act only on evidence; it cannot proceed on the basis of unsubstantiated presumptions. Moreover, evidence is required of a specific breach of the Community treaties. According to the law, "unfair" competition within the Community can only be understood in this sense.
For a recent example of action that can be taken against unauthorised State aids (in this case, Italian legislation amounting to an aid to the textile, clothing, footwear, leather and other industries) my hon. Friend may like to refer to the Commission's Decision 80/932/EEC of 15 September 1980 (Official Journal No. L264/28 of 8 October).
I remain very ready to look into all evidence of breaches of the Community competition rules that come to my notice, and my officials will assist, wherever appropriate, with the presentation of such evidence to the Commission. I must, however, normally look to the British industry concerned to furnish the bulk of the necessary evidence. If my hon. Friend has any information which would assist, I should be pleased to receive it.