WRITTEN QUESTION E-0377/03 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

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).

14.8.2003

EN

Official Journal of the European Union

C 192 E/179

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 from numerous sources that the company C & J Clark is an ‘old hand’ at this kind of financial
opportunism: it is claimed that it has on several other occasions received Community funds aiding its
operations at different plants in a number of EU Member States, only to close many of those plants at a
later date, with adverse social and economic consequences for the Member States and regions where it had
operated.

Can the Commission provide information (with dates) on the amounts granted directly or indirectly from
Community funds to undertakings belonging to this group (Clarks or C & J Clark), since 1985, in aid to
their footwear plants in Member States of the European Union (or, earlier, the EEC)? Can it name the
plants concerned? Can the Commission state whether the plants which have received funding are all still in
operation or have their future guaranteed until, say, 2010? Can it state how many factories have been
closed, are to be closed in the near future, or, for whatever reason, do not have their future guaranteed?

(2003/C 192 E/218)

WRITTEN QUESTION E-0378/03

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
level for the households of those who live and work in the municipality
repercussions on the social
(which is, furthermore, located in a region classified as ‘Objective 1’ under the Structural Funds).

The footwear multinational concerned 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.

Is the Commission monitoring these disturbing social and economic developments in Castelo de Paiva
(northern Portugal) arising from the decision of the multinational C & J Clark to close its shoe factory in
that locality? Can the Commission provide information (with dates) on the amounts granted directly or
indirectly from Community funds in aid for the establishment and operation of this company’s Portuguese
factory (or factories), for monies granted both to its Portuguese branch (Clark (cid:1) Fábrica de Calçado, Lda.)
and to the parent company or the group (Clarks or C & J Clark)?

Joint answer
to Written Questions E-0374/03, E-0375/03, E-0377/03 and E-0378/03
given by Mrs Diamantopoulou on behalf of the Commission

(28 March 2003)

In relation to the period covered by the Community support frameworks 2000-2006, the rules in force
regarding the Structural Funds provide for the following measures:

(cid:1) first, in the Guidelines on national regional aid (1998), the Commission stipulated provisions which
oblige recipients to maintain any investment or job arising from such aid in the assisted region for a
period of five years. In the Commission’s view, the five-year period stipulated in points 4.10 and 4.14