WRITTEN QUESTION E-0408/01

by Bart Staes (Verts/ALE) to the Commission

(15 February 2001)

Subject: Hainaut Objective 1 region

According to the Commission, it is still too soon to say how many businesses based in West Flanders will move their registered offices to Hainaut in order to obtain European subsidies for the programme period 2000-2006. Between 1994 and 1999 about fifty businesses apparently surrendered to the enticement to move from Flanders to Hainaut.

Further research is needed in order to gain a clearer idea of the reasons why managers of businesses in West Flanders decide to move to Hainaut, or indeed decide not to do so. In his reply to Question P-1706/00(1), Commissioner Michel Barnier says that the Community has, however, a particular interest where a firm undertaking a relocation has been supported by public funds either in its present or future location. Nonetheless, the Commission does not intend to carry out such research.

1. Will the Commission after all investigate the reasons why the managers of businesses in West Flanders decide to move to Hainaut, or decide not to do so, in view of the Community's particular interest where a firm undertaking a relocation has been supported by public funds either in its present or future location? If not, why does the Commission refuse to investigate the reasons why the managers of businesses in West Flanders decide to move to Hainaut, or not to do so? What are the Commission's arguments in favour of this refusal, in view of the Community's particular interest where a firm undertaking a relocation has been supported by public funds either in its present or future location?

2. How many applications, and which, have been submitted for Objective 1 assistance to new economic activities in Hainaut since 1 January 2000? When and where were these businesses' registered offices registered? How many of these businesses had previously been operating in the province of West Flanders? How many of these businesses are operating in the province of West Flanders?

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

Joint answer to Written Questions E-0408/01 and E-0459/01 given by Mr Barnier on behalf of the Commission

(18 May 2001)

Within the context of an Objective 1 programme, such as the one for the province of Hainaut in Belgium, support to enterprises can be given only in case of investments which are implemented in the geographical programme area. Whether or not a company has its registered office within or outside the programme area is irrelevant when it comes to the possible eligibility of its investments for support under the programme. Therefore, the Commission is of the opinion that the study suggested by the Honourable Member, which would focus on changes of registered offices, is not a useful way of gauging the possible impacts of the Hainaut Objective 1 programme.

The impact of the programme, in terms of the location of production or service facilities, could be considered only at the level of decisions of companies to invest in the programme area. However, investment decisions are guided by a multitude of factors. It would most probably be difficult, if not impossible, at micro-economic level to single out the role of an Objective 1 programme in such decisions. Moreover, counterbalancing effects would have to be taken into account, since large areas of the province of West-Vlaanderen itself are eligible for support under the Objective 2 programme Kustgebied-Westhoek.

In any case, it would be premature now to consider the question whether the Hainaut 2000-2006 programme will lead to a shift of investments from West-Vlaanderen to Hainaut: this issue could only be addressed after a substantial part of the programme has been implemented.

Concerning the 1994-1999 programming period, the Commission will address a request to the authorities of the Walloon Region, requesting a list of enterprises which have their registered office in West-Flanders and have benefited from support for investments in the context of the 1994-1999 Hainaut Objective 1 programme.