HC Deb 29 April 1994 vol 242 cc344-5W
Mr. Amess

To ask the President of the Board of Trade if he will make a statement on the outcome of the meeting of the EC Industry Council held in Luxembourg on 22 April.

Mr. Jenkin

To ask the President of the Board of Trade if he will make a statement on the Industry Council meeting in Luxembourg held on Friday 22 April.

Mr. Sainsbury

The main item on the agenda of the Industry Council held on 22 April was steel. Commissioner Van Miert gave an interim report, in advance of the full report expected on 1 May, on monitoring of the conditions attaching to the six state aid cases agreed by the Council last December—Ilva, Ekostahl, Freital, Siderurgia Nacional, CSI and Sidenor. I was supported by several other member states in underlining the importance the United Kingdom attaches to rigorous monitoring to ensure that the conditions agreed by the December Council are met.

Commissioner Bangemann gave a report on progress towards restructuring of the EC steel industry. There was agreement to prolong until the autumn the support measures—which include enhanced European Coal and Steel Community social aid, market monitoring, a more liberal approach to mergers and joint ventures, and external measures—agreed in February last year. I suggested additional references in the conclusions agreed by the Council to the importance of monitoring of the steel state aid cases and these were accepted.

The Council reached a satisfactory agreement to reduce steadily ECSC lending activities in the run-up to the expiry of the treaty of Paris in 2002. Importantly, it also ensures progress towards phasing out of the ECSC levy before 2002. The agreement by the Council allowed certain loan applications, which have been blocked pending resolution of this issue, to be approved.

There was a wide-ranging debate on industrial competitiveness in the context of the follow-up to the Delors White Paper on growth, competitiveness and employment published last December. I underlined the importance of increased labour market flexibility and reduced labour costs as a means of improving competitiveness, as well as the need to minimise the burden of regulation on business.

The Council agreed conclusions on the textile and clothing industries and a resolution on the automobile industry.

Commissioner Vanni d'Archirafi presented an outline of an integrated programme for small and medium-sized enterprises which sets out areas for joint action with member states and a two-pronged Community contribution relating to improving the environment for SMEs, and some support measures. I reminded the Commission that the main responsibility for SME policy lies with member states but I undertook to consider the proposals when they are spelt out in greater detail. I was able to welcome the importance the Commission was now attaching to deregulation.

To end the Council there was a brief discussion of the Commission's annual report on competition. No votes were taken.

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