§ Mr. Farrasked the Secretary of State for Industry, in view of the financial aids offered to the textile and clothing industries in other member states of the European Community, such as France, Italy and Belgium, which distort competition within the European Community, what progress he has made in seeking the removal of such schemes; or whether it is his intention to offer similar stimulation to the United Kingdom industries.
§ Mr. MacGregorThe Government remain seriously concerned about the proliferation of such aid schemes within the Community. It is the responsibility of the European Commission to judge whether aid is compatible with the treaty of Rome and my right hon. Friend has persistently urged the Commission to stop this upward spiral of aid. The Commission has replied that it shares our concern and is taking steps to ensure stricter observance of the relevant aid guidelines. The Commission is currently considering a number of aid proposals by other member states and decisions are expected soon.
Although there is no sectoral aid scheme for textiles and clothing in the United Kingdom and no plans to introduce one, the industry receives support under various assistance schemes applicable to industry as a whole.