§ Mr. Hickmetasked the Secretary of Trade and Industry if he will make a statement on the progress made at the recent European Community Council of Industry Ministers.
§ Mr. Giles ShawThe Industry Council met under my chairmanship on 18 November. The Parliamentary Under-Secretary of State for Industry represented the United Kingdom.
From the Chair I welcomed the decision of the Council to help establish the internal market by recommending action to co-ordinate the introduction of a Community-wide integrated services digital network (ISDN) in telecommunications. Such a pan-European network will benefit domestic and business users because connection times will be reduced, and multiple voice and data services will be handled on a single line. It will also create opportunities for manufacturers to supply equipment to a truly European market.
On steel, the Council welcomed a report from the Commission on Eurofer's recent proposals to reduce steelmaking capacity, and invited Eurofer in consultation with the independent producers to submit more detailed plans by 1 March 1987. In the light of these developments, the Council agreed to liberalise category Ic (galvanised sheet) from quotas from 1 January 1987, but decided to postpone further consideration of the ether Commission proposals for quota liberalisation until its next meeting in March 1987.
The Council made considerable progress towards agreeing a new directive on state aids to shipbuilding to operate from 1 January 1987. We have been arguing for some time for a directive which forces all member states fully to disclose their aids and which catches all indirect aids to shipowners which are disguised subsidies to shipbuilding. We are now close to achieving this major objective.
On the level of aid the Council concluded that although a level of at least 26 per cent. of cost—that is 35 per cent. of the resulting price—commanded strong support, there were also those in favour of a higher ceiling or possibly two ceilings. Negotiations on the directive are therefore to continue and a further Council has been arranged for 22 December.