# CE2004084EN.01040801.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/408 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/408

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(2004/C 84 E/0474)

WRITTEN QUESTION E-0464/04

by José Ribeiro e Castro (UEN) to the Commission

(23 February 2004)

Subject:   ‘Brax’ — sackings and relocation

Subject:

The German ready-to-wear ‘Brax’ factory in Vila Noa de Gaia (Portugal) has closed its doors, throwing 430 people out of work. The workers accuse the company of leaving the process of transferring production to another country where labour is cheaper (Bulgaria and Poland). Portuguese social security and labour minister has publicly stated that this is a case of ‘arbitrary closure and shirking of responsibilities’ [encerramento selvagem e de abandono], and that the Portuguese Government is going to take Brax to court, as well as suggesting that reparations will be sought from the company for misuse of Community funds. The Minister has also announced that he would activate the salary guarantee fund, so that the 430 Brax workers could receive their backpay, and thus not lose their contractual link with the firm, should a new investor be found for the factory.

The Commission:

| — | Is it monitoring this serious situation? |
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Is it monitoring this serious situation?

| — | What is the total amount (and the dates) of the subsidies directly or indirectly originating from Community sources which were granted for the building and equipping of the Brax factory in Portugal, whether these were granted to the firm operating in Portugal or to the possible mother-firm or industrial group? What are the dates and sums of the direct or indirect Community subsidies granted to the group's companies for its factories in the various countries of the European Union (or, earlier, the EEC) and the enlargement countries? |
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What is the total amount (and the dates) of the subsidies directly or indirectly originating from Community sources which were granted for the building and equipping of the Brax factory in Portugal, whether these were granted to the firm operating in Portugal or to the possible mother-firm or industrial group? What are the dates and sums of the direct or indirect Community subsidies granted to the group's companies for its factories in the various countries of the European Union (or, earlier, the EEC) and the enlargement countries?

| — | Has the Commission already taken any measures against Brax in view of the extremely deleterious social and economic impact of the closure of the Vila Nova de Gaia factory? Does the Commission possess any evidence that the company's administration behaved in a fraudulent manner in respect of Community funds? |
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Has the Commission already taken any measures against Brax in view of the extremely deleterious social and economic impact of the closure of the Vila Nova de Gaia factory? Does the Commission possess any evidence that the company's administration behaved in a fraudulent manner in respect of Community funds?

| — | Is the Commission in a position to guarantee that since Brax was directly or indirectly granted Community funding in respect of its Portuguese factory, the group will not receive any other Community funds, directly or indirectly, for possible relocation? |
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Is the Commission in a position to guarantee that since Brax was directly or indirectly granted Community funding in respect of its Portuguese factory, the group will not receive any other Community funds, directly or indirectly, for possible relocation?

| — | What other measures has the Commission taken or does it intend to take with regard to this case? |
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What other measures has the Commission taken or does it intend to take with regard to this case?

Answer given by Mr Dimas on behalf of the Commission

(2 April 2004)

(2 April 2004)

The Commission would refer the Honourable Member to its answer to written E-0243/04 by Mrs Figueiredo (1).

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(1)  See page 343.

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