§ Mr. Hickmetasked the Secretary of State for Trade and Industry (1) if he will identify those indirect state aids in the European Economic Community which are given to European Economic Community steel producers; and what steps he is taking to ensure that they are eliminated;
(2) if he will make a statement on the implications of the indirect state aid in the European Economic Community, identified in the report of the National Economic Development Office, for the British Steel Corporation and independent British steel producers.
§ Mr. Peter MorrisonI welcome the report prepared by Environmental Resources Ltd. for the National Economic Development Office on indirect aids to steel firms as an important contribution on this very difficult subject. As it makes clear, the identification, quantification and elimination of indirect aids is not straightforward, since the aid is provided to another industry or activity. Since the 25 July 1985 Council of Ministers, the United Kingdom has emphasised that the relative importance of indirect aids would increase after most direct aids were prohibited at the end of 1985. At the 29 October Council of Ministers, the Commission undertook to reinforce its monitoring of indirect aids which might have a distortive effect on competition in the steel industry. The United Kingdom fully supports the Commission's intention to minimise distortions to competition.