WRITTEN QUESTION No. 3801/98 by Sérgio RIBEIRO Breaking of the contract between Texas-Samsung and the Portuguese Government (SUPPLEMENTARY ANSWER)
Date: 1998-12-22
Institutions: European Parliament, RIBEIRO
Subjects: Community support framework, European Commission, Portugal, cessation of trading, electronic component, investment aid, redemption

C 370/10

Official Journal of the European Communities

EN

21.12.1999

The Las Palmas local authority has not yet begun the compulsory purchase procedure relating to the
‘El Confital e el Rincón’ environmental regeneration project because of the legal framework governing such
purchases, which is now subject to a decision of the Spanish Supreme Court. This programme is linked to
that for the removal of urban black spots and provides for the demolition of 108 insalubrious homes
located in the areas in question.

Naturally, in due course, the compulsory purchase procedure will have to include economic compensation
in accordance with the criteria established by the ‘Ley de Régimen del suelo y valoraciones’ of 1998.

The local authority is preparing an appropriate report on each case, which will be used by the social work
department to determine the exact socio-economic situation of the families affected and grant them aid to
assist them with their removal and rehousing and provide compensation.

(1) OJ C 142, 21.5.1999, p. 147.

(1999/C 370/013)

WRITTEN QUESTION E-3801/98

by Sérgio Ribeiro (GUE/NGL) to the Commission

(22 December 1998)

Subject: Breaking of the contract between Texas-Samsung and the Portuguese Government

Last week the semi-conductor manufacturer Texas Instruments-Samsung Electronic (TISE) informed its
748 employees that its factory at Maia (Portugal) would cease operations by 31 March 1999.

Quite apart from the devastating effect which this decision will have on the local community, the decision
was stated by the company to be irreversible and it represents the breaking of contractual relations with
the Portuguese Government which are based on a framework contract signed in July 1995 for the period
up to 2004, under which substantial financial incentives were made available to joint ventures. Although
the Portuguese Government had already known a week earlier that the company intended to break the
contract unilaterally, it was the company itself which made a public announcement regarding the decision,
whilst details of the contract itself have not been divulged on the grounds that to do so could jeopardise
the negotiating process, in which the most important thing appears to be the repayment of the financial
incentives offered to the company under the framework contract.

Given this situation, which is particularly serious from various perspectives and particularly from the point
of view of the local community, would the Commission state, as a matter of urgency, whether or not it is
aware of the framework contract, whether Community funds are involved and what precautions were
taken to protect public money provided by either the Community or the Portuguese State?

Supplementary answer
given by Mrs Wulf-Mathies on behalf of the Commission

(28 April 1999)

Within the framework of the industry programme known as PEDIP II inside the second Community
support framework for Portugal during the 1994-1999 period, a project promoted by the firm Texas
Samsung in Maia, Portugal, was approved by the Portuguese authorities.

Incentives of 10,6 million euro were paid towards the investment and 5,3 million euro towards the
training. These amounts were co-financed by the European regional development fund and the European
social fund respectively at a rate of 75 %.

The Portuguese authorities have informed the Commission that in order to provide for the refund of the
incentives to the Portuguese authorities the mechanisms provided for in the investment contract signed by
the Portuguese state and the promoter have been activated. The two are now in discussion. If it is not
possible to reach agreement, an arbitration procedure is provided under Portuguese law.

The Commission will
information is made available by the Portuguese authorities.

inform the Honourable Member of the progress in discussions as soon as the