WRITTEN QUESTION E-3149/00

by Ilda Figueiredo (GUE/NGL) to the Commission

(6 October 2000)

Subject: Application of Community funds

The Portuguese industrial company Preceram S.A., which is based in Pombal (Portugal) and is active in the ceramics sector, still uses highly polluting manufacturing processes which, as illustrated in reports drawn up by specialists at the Beira Litoral Regional Directorate for Agriculture, do enormous damage to local farmers, although the latter have never been offered any kind of compensation. The crops which they grow (pine trees, vines, maize and fruit) regularly display serious deformities and clear signs of charring.

The company has allegedly received Community funding for the purpose of introducing anti-pollution technologies but, according to the local farmers, nothing has changed.

Would the Commission therefore provide information concerning any Community funding which the company may have received and the action which is due to be taken in order to prevent the farmland in the area around the factory from being further polluted?

Supplementary answer given by Mr Barnier on behalf of the Commission

(1 August 2001)

The Portuguese company Preceram Indústrias de Construção has received Structural Fund aid under the following Community measures.

One project was approved under PNCIAP/SIBR (a regional incentive scheme), which was included in the Community Support framework for Portuguese Objective 1 regions during the 1989-1993 programming period. The contribution from the European Regional Development Fund (ERDF) was PTE 133,8 million (about 670 000).

Under the Operational Programme for the modernisation of the economic fabric, which was included in the Community Support framework for Portuguese Objective 1 regions during the 1994-1999 programming period, four projects were approved under the following measures:

- a project for diagnosis and strategic analysis under measure 3.1 of the Industry subprogramme (PEDIP). The ERDF contribution was 17 000;

- a project for innovation and internationalisation of the company's structures under measure 3.3 of the Industry subprogramme (PEDIP). The ERDF contribution, which took the form of an interest-rate subsidy, was around 375 000, while the European Social Fund contributed 180 000;

- a project for technological modernisation of the company under measure 3.5 of the Industry subprogramme (PEDIP). The ERDF contribution was around 154 000;

- a project for diagnosis and internationalisation strategy under measure 1 of the Commerce and Services subprogramme. The ERDF contribution was around 36 000.

An ERDF contribution of around 112 000 was granted for a project to increase company productivity under Subprogramme C (Productivity and technical assistance) of the Retex Community initiative(1).

None of the above projects involved direct investments in the environmental field. However, some investments realised did lead to improvements, in particular by reducing the rate of ash and unburnt particles generated during the manufacturing process.

According to information from the Portuguese Directorate-General for the Environment, the company has implemented measures to comply with environmental legislation in force. Problems still remaining should be solved fairly soon, in particular thanks to the use of natural gas.

(1) Conversion of the textile industry.