WRITTEN QUESTION E-0197/03 by Manuel dos Santos (PSE)and Helena Torres Marques (PSE) to the Commission. Company closure and relocation.
Date: 2003-01-31
Institutions: European Parliament, Provisional data
Subjects: EU aid, EU policy, Portugal, aid to undertakings, cessation of trading, footwear industry, transfer of businesses

15.1.2004

EN

Official Journal of the European Union

C 11 E/73

The Commission considers that assistance for and protection of vulnerable children should also be seen in
the wider context of poverty eradication, therefore, in the framework of the Community’s development co-
operation. Children are an important focal group of the Community’s external aid, in particular in sectoral
policies such as education and health.

The Community is increasing its support to universal and compulsory primary education in all developing
countries as part of its commitments to the education for all framework and the millennium development
goals on education and gender equality. It sees this as one of the most efficient means currently at its
disposal to draw children out of the vicious circle of exploitation.

(1) COM(2001) 416 final.
(2) OJ C 165, 8.6.2001.

(2004/C 11 E/074)

WRITTEN QUESTION E-0197/03

by Manuel dos Santos (PSE)
and Helena Torres Marques (PSE) to the Commission

(31 January 2003)

Subject: Company closure and relocation

According to reports in the Portuguese press the footwear company C. & J. Clark has begun the process of
relocating a factory currently operating in Portugal
(in Castelo de Paiva) to India and to an eastern
European country. As an immediate consequence, approximately 600 workers will lose their jobs.

The company in question previously signed a contract with the Portuguese Government under which it is
required to remain in operation until 2007. In exchange it receives a significant level of incentives in the
form of Community support for the setting up of companies in the EU’s poorest countries.

In view of the serious losses which Portugal will suffer as a result of this state of affairs (with especial
regard to employment and social cohesion in a particularly depressed economic area, namely Castelo de
Paiva) and taking into account what has occurred in the case of previous such relocations, will the
Commission answer the following questions:

1. Was it notified regarding this relocation?

2. Will it agree to make inquiries into this state of affairs?

3. Can the financial incentives granted in order to encourage the company to locate to Portugal continue

to be paid now that the company has demonstrated a complete failure to honour its commitments?

4.

Is it actually possible for those incentives to be replaced by others of the same value and nature which
encourage relocation within Europe, thereby damaging the economy of a Member State?

Answer given by Ms Diamantopoulou on behalf of the Commission

(12 March 2003)

The Commission has no specific information on the intention of the enterprise concerned to relocate from
Portugal to India or an eastern European country, but it wishes to draw the Honourable Member’s
attention to its answer to Written Question P-0089/03 from Ms Bastos (1), and in particular to the aspects
concerning the Community provisions applicable in this area.

(1) See page 67.