WRITTEN QUESTION E-0374/03 by José Ribeiro e Castro (UEN) to the Commission. Closure of Clarks factory in Portugal and Community funds.
Date: 2003-02-13
Institutions: European Parliament, Provisional data
Subjects: EU aid, Portugal, aid system, cessation of trading, footwear industry, fund (EU), multinational enterprise, support policy, terms for aid

14.8.2003

EN

Official Journal of the European Union

C 192 E/177

(2003/C 192 E/214)

WRITTEN QUESTION E-0366/03

by Luciano Caveri (ELDR) to the Commission

(12 February 2003)

Subject: Directive on railway tunnels

The recent rail accident at Tenda (Alpes Maritimes), irrespective of the assessment to be made by the
French judicial authorities currently dealing with it, raises the issue of safety in railway tunnels. Since the
directive on road tunnels was recently presented to Parliament, can the Commission say whether a similar
initiative is envisaged for railway tunnels? Can it also say what the timescale and contents might be?

Answer given by Mrs de Palacio on behalf of the Commission

(12 March 2003)

In the context of the implementation of Directive 2001/16/EC of the European Parliament and of the
Council of 19 March 2001 on interoperability of the trans-European conventional rail system (1), the
Commission is planning to adopt a technical specification for interoperability (TSI) in the area of railway
tunnel safety.

To this end, and as provided for under Article 6(1) of the abovementioned Directive, a mandate was given
in October 2002 to the European Association for Railway Interoperability (AEIF). Under this mandate, the
AEIF is required to come up with a draft technical interoperability specification within thirty months.

As provided for in Article 6 of the Directive, this draft will be the subject of a cost-benefit analysis and of
consultations between both sides of industry. It will then be submitted for an opinion to the Committee set
up pursuant to Article 21 of that Directive. There are plans for the adoption of such a TSI during the
course of 2005.

(1) OJ L 110, 20.4.2001.

(2003/C 192 E/215)

WRITTEN QUESTION E-0374/03

by José Ribeiro e Castro (UEN) to the Commission

(13 February 2003)

Subject: Closure of Clarks factory in Portugal and Community funds

The announcement of the forthcoming closure of a shoe factory belonging to the British multinational
C & J Clark, in Castelo de Paiva in northern Portugal, has received widespread coverage in the Portuguese
media. This unexpected closure will make almost 600 workers redundant, with extremely severe
repercussions on the social
level for the households of those who live and work in the municipality
(which is, furthermore, located in a region classified as ‘Objective 1’ under the Structural Funds). This
company received substantial amounts from both national and Community funds in connection with the
establishment of this factory in 1988 and its operations in Castelo de Paiva, on the understanding that it
would continue its activities up to at least 2007.

It appears, besides, that the company C & J Clark is an ‘old hand’ at this kind of practice, the strategy being
to relocate the Portuguese factory in Romania with the aim of receiving fresh Community funds. In
addition, this company has received financial support despite the fact that it resorts to subcontracting.

Is the Commission in possession of information, and, notably, business records, which could disqualify the
group Clarks or C & J Clark from receiving any direct or indirect Community funding in the future, in view
of its financial record in its dealings with the EU (or, previously, the EEC) and its past practices? Does the
Commission keep records concerning the firms, entrepreneurs or groups that receive direct or indirect aid
from Community funds, so as to ensure that the beneficiaries do not subsequently break their agreements,
thus acting contrary to both important social and economic interests and the Union’s own financial
interests? Should this not be the case, does the Commission not have both the duty and the facilities to

C 192 E/178

Official Journal of the European Union

EN

14.8.2003

maintain such a record, with the above objective? What other instruments are available to the Commission
with a view to ensuring that it is not accused of objectively ‘rewarding’ or stimulating business decisions
which have adverse social and economic effects, operating in breach of existing agreements and running
counter to the EU’s financial interests, by turning a blind eye to abusive and opportunistic practices, or
even encouraging such practices?

(2003/C 192 E/216)

WRITTEN QUESTION E-0375/03

by José Ribeiro e Castro (UEN) to the Commission

(13 February 2003)

Subject: Closure of Clarks factory in Portugal and Community funds

The announcement of the forthcoming closure of a shoe factory belonging to the British multinational
C & J Clark, in Castelo de Paiva in northern Portugal, has received widespread coverage in the Portuguese
media. This unexpected closure will make almost 600 workers redundant, with extremely severe
repercussions on the social
level for the households of those who live and work in the municipality
(which is, furthermore, located in a region classified as ‘Objective 1’ under the Structural Funds).

This footwear multinational received substantial amounts from both national and Community funds in
connection with the establishment of this factory in 1988 and its operations in Castelo de Paiva.
in 1989 C & J Clark concluded an investment
According to the Portuguese Ministry of the Economy,
contract with the Portuguese state to the value of PTE 1 billion (ca EUR 5 million), while also receiving
PTE 121 million (ca EUR 600 000) under the First Community Support Framework,
in return for an
undertaking to create 618 jobs. In addition, in 2000 the company signed a protocol with the municipal
council of Castelo de Paiva granting it certain privileges in return for committing itself to continuing its
operations in the municipality up to at least 2007.

In 2001, the same company closed down a plant having similar characteristics in Arouca, a municipality
near Castelo de Paiva, making some 400 workers redundant.

Has the Commission taken any action against C & J Clark in the wake of the adverse social and economic
effects of the closure of its factories in Arouca and, now, Castelo de Paiva? Is the Commission in
possession of any data which would entitle it to consider this company’s business practices as fraudulent,
given the fact that, despite having received Community funding (whether directly or indirectly, be it on an
exclusive basis or in conjunction with other forms of national aid), it has gone on to close the factory or
factories concerned, even before the deadlines agreed when the aids or financial incentives were granted?
Should the Commission not possess such data, does it not consider it essential in the future to fight and
punish business practices which are damaging, not only to important social and economic interests but
also to the EU’s own financial interests?

(2003/C 192 E/217)

WRITTEN QUESTION E-0377/03

by José Ribeiro e Castro (UEN) to the Commission

(13 February 2003)

Subject: Closure of Clarks factory in Portugal and Community funds

The announcement of the forthcoming closure of a shoe factory belonging to the British multinational
C & J Clark, in Castelo de Paiva in northern Portugal, has received widespread coverage in the Portuguese
media. This unexpected closure will make almost 600 workers redundant, with extremely severe
repercussions on the social
level for the households of those who live and work in the municipality
(which is, furthermore, located in a region classified as ‘Objective 1’ under the Structural Funds).