WRITTEN QUESTION E-0951/00

by Bart Staes (Verts/ALE) to the Commission

(29 March 2000)

Subject: The Objective 2 region of Hainaut

The awarding of Objective 2 aid to the Walloon province of Hainaut is leading to the relocation of firms which have been established for many years in the neighbouring province of Western Flanders. The businesses operators in question acknowledge that the removal of their activities to Hainaut is entirely dependent on their obtaining Objective 2 subsidies. If these business operators do not obtain any European aid, they will keep their operations in Western Flanders. In order to be considered for such aid they have to have their company headquarters in Hainaut.

1. How many applications have been made since 1 January 2000 for Objective 2 aid for new economic operations in Hainaut, and to what do they relate?

2. When and where were the company headquarters of these firms registered?

3. (a) How many of these firms were formerly operating in the province of Western Flanders?

(b) How many of these firms are currently operating in Western Flanders?

4. Have the firms in question expressly been asked whether their relocation from Western Flanders to Hainaut is dependent on the award of Objective 2 aid?

(a) If so, how many West Flanders operators would choose to move their operations to Hainaut without Objective 2 aid?

(b) If not, will the Commission ask these business operators to what extent their relocation is dependent upon Objective 2 aid?

5. Is the Commission prepared to take measures to prevent the relocation of West Flanders firms to Hainaut?

(a) If so, what measures?

(b) If not, why not?

Supplementary answer given by Mr Barnier on behalf of the Commission

(22 January 2001)

During the 2000-2006 programming period, the Walloon province of Hainaut will receive Structural Funds aid under Objective 1, not Objective 2.

To that end, on 15 May 2000 the Commission approved the single programming document (SPD) submitted by the regional authorities. A task force comprising representatives from the authorities, university lecturers, delegates from employers' associations and an outside consultant will be responsible for appraising projects submitted under the new programming exercise.

Investment aid features among the programming document's principal measures, but at this stage it is too soon to say how many businesses will benefit from such aid and certainly too soon to say exactly how many businesses currently based in West Flanders might relocate their headquarters to Hainaut.

During the 1994-1999 programming period, investment support was available under two schemes: aid for setting up businesses, and aid for expanding businesses. The statistics available show that assistance under one or other of those schemes was given to about fifty businesses located in Flanders, accounting for approximately 7 % of all investment projects supported under Objective 1.

The statistics provided by the Walloon Region relate only to aid approved between 1995 and 1999. Various places in Hainaut are involved, but those which recur most frequently are the towns Mouscron, Tournai and Comines.

The regional authorities responsible have not yet updated the figures needed to answer the Honourable Member's questions about Flemish businesses' previous and current activities.

Neither the Commission nor the Walloon Region authorities investigated the motives of the businesses which applied for investment aid and which set up their headquarters in the province of Hainaut so as to receive that assistance. The Commission does not intend to undertake such an investigation.

The Commission is responsible for ensuring that investment aid schemes which regions or national authorities introduce comply with the competition rules laid down by the EC Treaty. During the negotiation of programmes, the Commission also examines whether development plans are consistent with the general guidelines which it has proposed to Member States.

On the general issue of relocation, the Commission would ask the Honourable Member to refer to the answers given to Written Questions E-1396/99 by Mrs Keppelhoff-Wiechert(1), E-1446/99 by Mr Meijer(2), P-1805/99 by Mrs Figueiredo(3) and P-1706/00 by Mrs Randzio-Plath(4).

(1) OJ C 170 E, 20.6.2000.

(2) OJ C 203 E, 18.7.2000.

(3) OJ C 219 E, 1.8.2000.

(4) OJ C 81 E, 13.3.2001, p. 75.