A4-0043/95

Proposal for a Council Regulation on the grant of financial assistance to Portugal for a specific programme for the modernization of the Portuguese textile and clothing industry (COM(94)0562 - C4-0014/95 - 94/0280(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Title

>Original text>

Proposal for a Council Regulation (EC) on the grant of financial assistance to Portugal for a specific programme for the modernization of the Portuguese textile and clothing industry

>Text following EP vote>

Proposal for a Council Regulation (EC) establishing a programme for the modernization of the Portuguese textile and clothing industry

(Amendment 2)

Recital -1 (new)

>Text following EP vote>

Whereas the necessary exceptional measures to enable the Portuguese textile industry to adapt to the new requirements of the international situation should form part of the Community's general action to achieve economic and social cohesion;

(Amendment 3)

Recital -1a (new)

>Text following EP vote>

Whereas Community action to achieve economic and social cohesion must be taken in compliance with the rules of free competition; whereas this programme is an exceptional measure and Community assistance must accordingly be limited to the necessary measures to enable the Portuguese textile industry to adapt to the new requirements of the international situation;

(Amendment 4)

Recital 1

>Original text>

Whereas a large part of the Portuguese textile and clothing industry is highly vulnerable in the face of current and future international competition and the weight of this sector in the economic fabric of some Portuguese regions might jeopardize the economic and social cohesion of the Community;

>Text following EP vote>

Whereas the Portuguese textile and clothing industry, which accounts for a third of the jobs in Portuguese industry and a third of the country's industrial exports, is highly vulnerable in the face of the increase in international competition resulting from the GATT agreements; whereas the implications thereof in this sector, which is of importance to the economic fabric of some Portuguese regions might jeopardize the economic and social cohesion of the Community;

(Amendment 5)

Recital 1a (new)

>Text following EP vote>

Whereas the programme for the Portuguese textile and clothing industry must effectively contribute to vocational training, the modernization of undertakings, the adaptation of the industry to Community environmental legislation and financial and management advice aimed at improving the quality of this productive apparatus;

(Amendment 6)

Recital 2

>Original text>

Whereas, at its meeting of 15 December 1993, the Council approved the Commission's intention to allocate ECU 400 million to the modernization of the Portuguese textile and clothing industry;

>Text following EP vote>

Whereas, at its meeting of 15 December 1993, the Council decided, on a proposal from the Commission, to adopt a specific aid programme to the value of ECU 400 million for the modernization of the Portuguese textile and clothing industry;

(Amendment 7)

Recital 3

>Original text>

Whereas the Commission published Notice 94/C/180/04 to the Member States laying down guidelines for the initiative concerning the modernization of the Portuguese textile and clothing industry in the Official Journal of the European Communities1;

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1 OJ C 180, 1.7.1994, p. 15.

>Text following EP vote>

Whereas the establishment of a specific programme for the modernization of the Portuguese textile and clothing industry will help to strengthen the economic and social cohesion of the Community;

(Amendment 8)

Recital 3a (new)

>Text following EP vote>

Having regard to paragraph 14 of the European Parliament's resolution of 3 May 1994 on the draft notice from the Commission to the Member States setting the guidelines for the modernization of the textile and clothing industry in Portugal1;

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1 OJ C 205, 25.7.1994, p. 121.

(Amendment 9)

Recital 4

>Original text>

Whereas the Budgetary Authority has agreed to enter ECU 400 million for the period 1995 to 1999 into one of the chapters of Section 3 of the financial perspective annexed to the Interinstitutional Agreement of 29 October 1993 on budgetary discipline and improvement of the budgetary procedure;

>Text following EP vote>

Whereas the Budgetary Authority has agreed to enter ECU 400 million into the new budget heading entitled 'Programme for the modernization of the Portuguese textile and clothing industry', which is included in a new chapter of Section 3 of the financial perspective annexed to the Interinstitutional Agreement of 29 October 1993 on budgetary discipline and improvement of the budgetary procedure;

(Amendment 10)

Recital 5

>Original text>

Whereas the provisions governing the use of these resources should be laid down;

>Text following EP vote>

Whereas the Commission, pursuant to Article 3(1) and (3) of the current Financial Regulation, has submitted the financial statement including the likely schedule of annual requirements for the duration of the programme;

(Amendment 11)

Recital 6

>Original text>

Whereas, in order to simplify the administration of these resources, which should be entrusted to the Commission, and to ensure consistency with the Community's other structural measures, the Commission should apply the appropriate provisions governing the Structural Funds, in particular Regulations (EEC) No 2052/88, as amended by Regulation (EC) No 2081/93, (EEC) No 4253/88, as amended by Regulation (EEC) No 2082/93, (EEC) No 4254/88, as amended by Regulation (EEC) No 2083/93, (EEC) No 4255/88, as amended by Regulation (EEC) No 2084/93 and (EEC) No 1866/90, as last amended by Regulation (EC) No 2745/94;

>Text following EP vote>

Whereas, in order to simplify the administration of these resources, which should be entrusted to the Commission, and to ensure consistency with the Community's other structural measures, the Commission should apply by analogy the appropriate provisions governing the Structural Funds, in particular Regulations (EEC) No 2052/88, as amended by Regulation (EC) No 2081/93, (EEC) No 4253/88, as amended by Regulation (EEC) No 2082/93, (EEC) No 4254/88, as amended by Regulation (EEC) No 2083/93, (EEC) No 4255/88, as amended by Regulation (EEC) No 2084/93 and (EEC) No 1866/90, as last amended by Regulation (EC) No 2745/94;

(Amendment 12)

Article 2

>Original text>

The eligible measures, conditions for granting Community assistance and implementing provisions shall be those set out in the Commission's Notice 94/C/180/04.

>Text following EP vote>

The eligible measures, conditions for granting Community assistance and implementing provisions shall be those set out in the Annex.

(Amendment 13)

Article 3

>Original text>

The specific Portuguese textile programme shall be jointly financed by the Member State and the Community. The total Community contribution to the programme shall be ECU 400 million in 1994 prices. There may also be loans from the European Investment Bank. In order to facilitate this type of financing, Portuguese undertakings shall qualify for interest subsidies to be financed, up to ECU 100 million, from the allocation provided for this initiative.

>Text following EP vote>

The specific Portuguese textile programme shall be jointly financed by the Member State and the Community. The total Community contribution to the programme shall be ECU 400 million in 1994 prices. This amount shall be the reference amount for the budgetary authority in the framework of the annual budgetary procedure.

Portuguese undertakings shall qualify for interest subsidies in respect of loans granted by the European Investment Bank or other financial bodies, paid out of the allocation provided for in the above paragraph up to a total of ECU 100 million.

>Text following EP vote>

Each year the financial statement, updated on the basis of the budgetary authority's decisions and the state of implementation of the appropriations authorized, shall be forwarded to the budgetary authority at the same time as the preliminary draft budget.

(Amendment 14)

Article 3a (new)

>Text following EP vote>

Community assistance shall be granted to measures required to promote productivity, value added and the maintenance of employment levels in the Portuguese textile industry in the face of the new requirements of the international situation.

(Amendment 15)

Article 4

>Original text>

The provisions governing the Structural Funds, particularly those concerning rates of assistance, eligibility of expenditure, monitoring, evaluation, financial execution and control and indexation shall apply.

>Text following EP vote>

The provisions governing the Structural Funds, particularly those concerning the principle of partnership with the regional and local authorities and both sides of industry, together with rates of assistance, eligibility of expenditure, monitoring, evaluation, financial execution and control and indexation shall apply by analogy.

(Amendment 16)

Article 4a (new)

>Text following EP vote>

The Commission shall, by 31 December 1997 at the latest, submit to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions a report on the implementation of this Regulation and, in 1999, a general assessment report.

(Amendments 19 and 17)

Annex (new)

>Text following EP vote>

IMPLEMENTING PROVISIONS

1. The grant of Community aid under this Regulation shall be subject to approval by the Commission of a strategy of adaptation for the textile and clothing industry for the period 1994-1999, to be submitted by the Portuguese authorities. The strategy will be accompanied by rules governing aid for undertakings.

>Text following EP vote>

Eligible measures

2. The measures shall cover undertakings in the textile and clothing sector at present established on Portuguese territory. The programme submitted by the Portuguese authorities shall comprise a balanced set of measures consistent with the general framework of regional development in Portugal and the overall strategy for the adaptation of the textile and clothing sector, centering on the preparation and implementation of individual modernization plans for the undertakings in the sector, the development of cooperation between undertakings and an increase in available services.

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Eligible measures may have the following purposes:

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(a) Aid for the financing of external expert assessments intended to assist undertakings in preparing their modernization and conversion plans and improving their specialist know-how, e.g. in the fields of design, quality policy, computer-assisted design and production, marketing, internal business organization, employee health and safety and environmental protection;

>Text following EP vote>

(b) Retraining of personnel threatened by unemployment or already unemployed, through vocational training measures linked to the preparation and implementation of modernization plans.

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(c) In the case of SMEs which already have a modernization or conversion plan drawn up with the aid of external experts, a temporary contribution towards the financing of the salaries of engineers, technicians or management personnel employed to assist in the implementation of those plans;

>Text following EP vote>

(d) The financing of business modernization plans to cover non-material investment, improvements in technical know-how or material investment including equipment intended directly for production.

>Text following EP vote>

Investment in production equipment will be promoted only by providing access for undertakings to risk capital and to loans from the EIB with interest subsidies and guarantee funds;

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(e) The setting-up of supervisory and advisory teams for the textile and clothing sector responsible for making businesses more aware of the need to improve their know-how and helping them to develop cooperation amongst themselves and with their suppliers and clients;

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(f) Aid for the adaptation of textile and clothing undertakings to comply with Community environmental law intended to reduce pollution by the industry through the treatment and recycling of liquid effluents and industrial waste and technical assistance for the development of less polluting production or maintenance processes.

>Text following EP vote>

Conditions for granting Community assistance

3. When each decision on the financing of business modernization plans is taken, the Portuguese authorities responsible for regulating the aid shall verify that the plans are consistent with the overall adaptation strategy agreed with the Commission. They shall make the grant conditional upon subsequent compliance with the agreed plan. The provisions governing the examination of aid applications, monitoring the implementation of the adaptation plans and the penalties to be applied in the event of failure to comply with the conditions for aid shall be determined by joint agreement between the Portuguese authorities and the Commission of the European Communities.

>Text following EP vote>

Investment projects financed under this initiative shall form part of the existing horizontal aid schemes in Portugal. Thus the projects must meet the eligibility criteria laid down for those schemes. For this reason no specific aid scheme shall be established for the textile and clothing sector.

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Undertakings receiving aid must prove that they comply with national law on working conditions.

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The Community's contribution to financing the programme

4. The Portuguese textile operational programme shall be co-financed by the Member State and the Community. The total Community contribution to this programme for the period 1994-1999 shall be ECU 400 million. There may also be loans from the European Investment Bank. In order to facilitate this type of financing, Portuguese undertakings shall qualify for interest subsidies to be financed up to ECU 100 million from the allocation earmarked for this programme.

>Text following EP vote>

Implementation

5. Portugal shall submit a detailed proposal for the operational programme within four months of the date of publication of this Regulation in the Official Journal of the European Communities. Proposals for operational programmes received after this date need not be taken into consideration by the Commission.

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Every six months, the Commission and the Portuguese authorities shall check for compliance with the overall strategy agreed with the Commission within the appropriate monitoring committee on the basis of reports on the progress of programme implementation and, where appropriate, independent assessments.

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The regional and local authorities and the social partners shall be involved in the preparation and implementation of the operational programme, notably by including representatives in the monitoring committee.

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Proposals shall include an appreciation of the situation indicating the objectives to be attained and a timetable, criteria and procedures for implementation, monitoring and assessment. During and at the end of the planning period the Commission shall evaluate, in partnership with the Member States, the results of the programmes submitted. The European Parliament, the Management Committee for Community initiatives and the monitoring committees shall be informed of the results of such assessments and the action taken in response to them.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation on the grant of financial assistance to Portugal for a specific programme for the modernization of the Portuguese textile and clothing industry (COM(94)0562 - C4-0014/95 - 94/0280(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(94)0562 - C4- 0014/95 - 94/0280(CNS) ((OJ C 373, 29.12.1994, p. 14.)),

- having been consulted by the Council pursuant to Article 130b of the EC Treaty (C4-0014/95),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Regional Policy and the opinions of the Committee on Budgets and the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0043/95),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

3. Instructs its President to forward this opinion to the Council and Commission.