§ Sir Michael GryllsTo ask the President of the Board of Trade if he will make a statement on the outcome of the Industry Council held on 20 December 1995. [8691]
§ Mr. EggarThe meeting examined further a Commission proposal to authorise the payment of exceptional state aid for Irish Steel under article 95 of the ECSC treaty. This matter was previously discussed by the Council on 7 November 1995, when the Government declined to agree the proposal in view of concerns about possible adverse effects on the United Kingdom steel industry.
Bilateral discussions between the UK and Ireland immediately prior to the 20 December Council resulted in agreement on a revised aid package subject, at the 352W insistence of the UK, to a number of strict conditions. These include, over five years, caps on Irish Steel's overall production, limits on sale of hot rolled products into the EU—under 300kt in the first year—and an undertaking that the company will not, over the same period, extend its current range of finished products. Overall the conditions are stricter than those attached to the previous article 95 decisions of December 1993. The Government believe that these improvements over the original Commission proposal meet the objective of ensuring that jobs in Ireland are not preserved at the expense of jobs in the UK.
The amended proposals was accepted unanimously by member states. Formal approval will take place at a future Council.