HL Deb 16 February 1993 vol 542 c68WA
Lord O'Hagan

asked Her Majesty's Government:

How much indigenous coal production is subsidised in each member state of the European Community; and whether such subsidies are permitted under the Treaty of Rome.

Baroness Denton of Wakefield

Information on the proportion of coal production subsidised by member states is not available.

Article 4 of the Treaty of Paris, which governs the Community coal industry, states that are incompatible with the common market in coal. However, a series of decisions has allowed subsidies, subject to the approval of the Commission in all cases, under certain circumstances. The current State Aids Decision (2064/86/ECSC) stipulates that for aid to be authorised by the Commission it must achieve one or more of the following objectives:

  • improvement of the competitiveness of the coal industry, thus helping to ensure greater security of supply;
  • creation of new capacities, providing they are economically viable;
  • solution of social and regional problems related to developments in the coal industry.