ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81)354
Vol.1981/0111

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amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
GeneralSecretariatCOM(81)354 final
Brussels..,..,*---6thJuly1981
FOROFFICIAL USEONLY
.REQUESTFORASSENT,PURSUANT TOART.562a)OFTHE
ECSCTREATYTOGRANTING AGLOBALLOANTOTHE"WELSH
DEVELOPMENT AGENCY''U.K.
(Communication fromtheCommissiontotheCouncil)
COM(81)354final

Communication tothe Council
Subject :Request forassent ,pursuant toArt .562a)oftheECSC Treaty
togranting aglobal loan totheWelsh Development Agency .UK.
I. THE INTERMEDIARY FINANCIAL AGENCYNo.323
Appl icant
IWelsh Development Agency (WDA )
Registered office Pontypridd ,MidGlamorgaji
Parent company of
appl icant
II.BENEFICIAMES
Field ofactivity ofthe
beneficiariesTheWDAisastatutory corporation setup
bytheWDAAct1975 *Ithasnever hada
capital structure inthe commercial sense
butdraws capital funds from thegovernment
asneeded andsubject togovernment approval .
Forinvestment inbusinesses ,theAgency is
advanced such funds intheform ofloans
(from theNational Loans Fund (NLF))orpublic
dividend capital (PDC).Forother capital
expenditure ,itdraws grant inaid .There is
nooutside shareholding intheAgency andits
Board isappointed bytheSecretary ofState
for Wales .
Small andmedium –sized firms that extend
existing facilities and/orgenerate new
activities .
Industrial and service activities .
west .P~cdeloLo>200,B-i040Brussels-TcIcohonff350040-358040-Telegraphiccd-.'-oss:COME':&

-2-
111 ■THE_PROJEÇT
Procédure
TheCommission will make £5M(about 9.26 MioECU)available totheWelsh
Development Agency .Theloan will bedisbursed within aperiod ofthree
years inthenumber oftranches appropriate tothesub-loans approved .
Thesubsidiary loans will beapproved bytheCommission 'sServices in
accordance with thecriteria andobjectives published bytheCommission
(Official Journal No.C178/2of27July 1977andOfficial Journal
No.C82/8of29March 1979).
TheWelsh Development Agency will report totheCommission every six
months ontheusetowhich theglobal loan hasbeen put .Itwill also
report annually onthere-employment ofex-ECSC workers bythe
beneficiaries ofthe loan .
' I
Global amount oftheinvestment :Atleast £10M "<_+18.53 MioECU )
IV.IHE_REGION
Project location :Industrial South Wales andNorth East Wales .
Unemployment rate :Ranging from 12%(Newport TWA )to17.9%
(Ebbw Vale TTWA )at12Feb .1981 .
National aid status of
project area :Assisted areas and/orsteel conversion areas .
TheECSC industry hasbeen animportant source ofemployment inthearea .

-3-
V. CONFORMITY WITH ART .56OFTHE ECSC TREATY
ECSC redundancies in
project area Steel employment inWales hasfallen from
over 67000in1975 "to37000 "bytheend
ofI98O .TheBSC *scurrent Corporate Plan
proposal involves some 6000further job
losses atplants inWales ofwhich 4000
were dueto "beimplemented bytheendof
March 1981 .Inaddition private steel
makers' problems remain acute andthere
hasbeen onemajor closure atLlanelli
just inMarch 1981 with theloss of1100
jobs .
Job creation ofproject
Training:Atleast 4°3 jobs suitable forformer
ECSC workers .
:Through Manpower Services Commission
and loan beneficiaries .
TheCommission considers that the request complies with Art .562a)
of*theECSC Treaty .
VI.GLOBAL LOAN
Loan requested
Loan granted
Interest rebate
Job basis ofinterest rebate£5M
The Commission hasapproved aLoan
of£5M (+_9.26 MioECU )
orequivalent totheabove mentioned
company inaccordance with Art .56
operating policies (O.J. No.C82/8
of29March ,1979 ).
3%points peryear forfive years on
9.26 MioECU
463 jobs suitable forandtobeoffered
inpriority toex-ECSC workers .
VII .COUNCIL ASSENT
TheCommission invites theCouncil togive itsassent totheforegoing
decision .