HC Deb 29 April 1981 vol 3 cc395-6W
Mr. Straw

asked the Secretary of State for Trade, pursuant to his statement on 26 February, Official Report, c. 989, that action under article 93 of the Treaty of Rome was being taken against the Dutch proposals for a national aid scheme for their textile industry (a) what is the current position with regard to this action, (b) whether the Dutch Government have been required to suspend their scheme pending a decision by the appropriate ECC institution, (c) whether any similar action has been taken by the EEC against the national aid schemes proposed by the French and Belgian Governments for their textile and clothing industries, and, if so, whether implementation of these schemes has been suspended for the time being, and (d) what action Her Majesty's Government have taken with the EEC, and bilaterally with the national Governments concerned in respect of these French, Dutch, and Belgian textile aid schemes.

Mr. Parkinson

The information requested is as follows:

  1. (a) In October 1980 the Commission instituted proceedings under article 93(2) of the Treaty of Rome in respect of the Dutch aid proposals. The Commission also made known its readiness to discuss further with the Dutch authorities those elements of the proposals which it found incompatible with the treaty. I understand that the discussions are still in progress.
  2. (b) The effect of initiating the procedure of article 93(2) against aid proposals is to prevent the member State concerned from putting them into effect pending a final decision.
  3. (c) The Commission is discussing the Belgian and French proposals with those member States but has not so far instituted the procedure of article 93(2). However, article 93(3) of the treaty requires that proposed aids should not be put into effect during the whole period of preliminary consideration by the Commission, and not just where such consideration has led to a decision to initiate the article 93(2) procedure. So far as I am aware the French and Belgian aid proposals have not been put into effect.
  4. (d) The Commission asked all member States to submit their comments before it initiated the article 93(2) procedure in respect of the Dutch proposals. Last December, however, the Commission held a multilateral meeting with member States on the general question of aids to the textile industry. The United Kingdom delegate urged that a restrictive attitude towards such aids was generally appropriate to prevent distortion of competition to the disadvantage of other member States. The 396 Government have taken no bilateral action in respect of the proposals referred to above, the control of State aids being a matter within Community competence.