§ Mr. Nicholas WintertonTo ask the Chancellor of the Duchy of Lancaster (1) whether he has received any representations about discriminatory assistance given to Faserwerk Bottrop GmbH by the Government of the Federal Republic of Germany;
(2) what action he proposes to take in the light of the discriminatory assistance given to Faserwerk Bottrop GmbH by the Government of the Federal Republic of Germany;
(3) if he will make a statement on the implications for progress towards the single European market of the discriminatory assistance given to Faserwerk Bottrop GmbH by the Government of the Federal Republic of Germany;
(4) whether he is aware of any action taken by the European Commission in the case of the discriminatory assistance given to Faserwerk Bottrop GmbH by the Government of the Federal Republic of Germany.
§ Mr. Alan ClarkI have received representations about the assistance given by the Government of the Federal Republic of Germany to Faserwerk Bottrop GmbH and officials have discussed this matter both with the Commission and with representatives of the British polypropylene producers. The proposal to grant aid was properly notified by the Federal German Government to the European Commission. The Commission concluded that the proposed aid would not distort competition within the European Community in synthetic fibres for the traditional textile and clothing sector and was consequently compatible with the common market.
The Government fully support the European Commission in its efforts to ensure rigorous and even-handed enforcement of the state aid rules. This is an important aspect of creating a genuine single European market. I would therefore expect the Commission to apply the same criteria in its assessment of any similar aid proposals, including those for United Kingdom companies which meet the criteria for DTI financial support. Officials will be discussing in greater detail the issues raised by this case with the Commission shortly.