HC Deb 18 December 1991 vol 201 cc186-7W
Mr. Anthony Coombs

To ask the Secretary of State for Trade and Industry what contacts he has had with the European Commission about the framework for control of state aids in the Community in the fibre, textile and clothing industries; and if he will make a statement.

Mr. Sainsbury

My Department maintains contact with the Commission on all state aids matters, including the rules affecting the textile and clothing sectors. The synthetic fibres discipline which has served United Kingdom industry well was renewed on 11 July 1991 for a further year. The Department will continue to monitor its application.

Mr. Anthony Coombs

To ask the Secretary of State for Trade and Industry whether the European Commission has yet succeeded in enforcing the repayment by the Beaulieu carpet group in Belgium of illegally granted subsidies; what information he has on other instances where textile and clothing companies in EC member states have not yet complied with Commission decisions that illegal aid must he repaid; and if he will make a statement.

Mr. Sainsbury

I fully share the hon. Member's concern that in a number of cases in the textile and clothing sector illegal aid has not yet been repaid. The Beaulieu case referred to by my hon. Friend is at present before the Belgian courts for resolution. The Department takes every opportunity to press the Commission to remedy this unsatisfactory state of affairs. As a result of the treaty agreed at Maastricht the European Court will in due course have the power to fine member states not complying with its judgments. I hope that this will ensure swifter compliance in future.