WRITTEN QUESTION E-0243/04 by Ilda Figueiredo (GUE/NGL) to the Commission. Relocation and unemployment.
Date: 2004-02-02
Institutions: European Parliament, Provisional data
Subjects: EU employment policy, EU financing, Portugal, clothing industry, collective dismissal, corporate social responsibility, offshoring

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3.4.2004

Will the European Central Bank call on the Italian Central Bank, Bankitalia, to ensure respect for this
principle and the provisions of Articles 101 and 102 of the Treaty on European Union, not least because
some of the Italian banks concerned are Bankitalia shareholders (controllers ‘controlled’)?

Answer given by Mr Monti on behalf of the Commission

(5 March 2004)

In the area of competition policy, the Commission is responsible for the application of Articles 81 and 82
of the EC Treaty.

Article 81 of the EC Treaty prohibits agreements between undertakings, decisions of associations of
undertakings and concerted practices which may affect trade between Member States and which have as
their object or effect the prevention, restriction or distortion of competition within the common market.
According to Article 82 of the EC Treaty, any abuse by one or more undertakings of a dominant position
within the common market or in a substantial part of it shall be prohibited insofar as it may affect trade
between Member States.

The facts described by the Honourable Member do not amount to an infringement of the competition
rules,
in particular articles 81 and 82 of the EC Treaty, since there is no evidence of a prevention,
restriction or distortion of competition or an abuse of a dominant position within the common market or
in a substantial part of it that may affect trade between Member States.

The Commission would like to remind the Honourable Member that it cannot take a position on matters
concerning the European Central Bank.

(2004/C 84 E/0401)

WRITTEN QUESTION E-0243/04

by Ilda Figueiredo (GUE/NGL) to the Commission

(2 February 2004)

Subject: Relocation and unemployment

Yet another multinational in the textile sector (cid:1) Brax Portuguesa, Fábrica de Confecções, Lda. (cid:1) now
appears likely to cease activity, raising the spectre of unemployment for over 400 workers, most of them
women, at its plant in Vila Nova de Gaia (Portugal).

In view of the seriousness of this state of affairs, in a region and a Member State where unemployment is
it is essential that the Commission and the Portuguese government take all possible
constantly rising,
measures to prevent yet another multinational from closing its operations in Portugal and, possibly,
relocating to another European country.

Can the Commission answer the following questions:

1. Were any Community funds received by the firm Brax Portuguesa, Fábrica de Confecções, Lda. of
Aldeia Nova, Serzedo, Vila Nova de Gaia in Portugal? If so, can the Commission provide details?

2. Was any financial support granted by the EU to the parent company or any of its branches? If so, can

the Commission provide details?

3. What measures does the Commission intend to take to put an end to the constant relocations of

multinationals and the resulting unemployment?

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Official Journal of the European Union

C 84 E/343

Supplementary answer
given by Mr Dimas on behalf of the Commission

(31 March 2004)

The Commission informs the Honourable Member that
Confecções, Lda.’ has received the following support.

the company ‘Brax Portuguesa, Fábrica de

1.

European Social Fund (ESF):

Old fund
Ref. 891013 P1

23 146,19

18 937,79

Community Support
Framework
(CSF) II PEDIP II (1)

Community Support
Framework
(CSF) III POEFDS

51 892,73

17 297,58

5 250,68

3 150,40

FSE

OSS

(1)

Specific programme for industrial development in Portugal.

(in euros)

2.

European Regional Development Fund (ERDF) (CSF II):

Programme

Project

Modernisation of the fabric of the economy

Diagnostics and Options for Development

Date of approval

27.07.1995

Location

Operator

Total investment

Eligible investment

ERDF approved

ERDF paid (1)

Vila Nova de Gaia

Brax Portuguesa (cid:1) Fabrica de Confecções LDA

EUR 20 340,60

EUR 20 340,60

EUR 10 171,57

EUR 10 196,2

(1)

The amount paid in euros is higher than the amount approved because of differences in the exchange rate
between the time of approval and the time of payment.

With specific regard to the ESF, the Commission would point out that funding for vocational training is
not subject to requirements for the longevity of the businesses concerned but rather to the access and
eligibility criteria laid down in the rules applying at the time for awarding ESF funding.

The Commission believes that any investment in human resources is very important at national and
regional level. It must be underlined that ESF funding does not support a company as such, but provides
an investment in human capital, so that the training measures from which individuals benefit improve
their employability. Moreover, as far as the Commission knows, the business in question has not infringed
the rules for support from the Structural Funds.

The Commission would also like, firstly, to point out that Council Directive 98/59/EC (1) provides for
information and consultation with the workers’
is
contemplating such redundancies. These consultations should be carried out in good time with a view to
reaching agreement and cover, at least, ways and means of avoiding collective redundancies or reducing
the number of workers affected as well as of mitigating the consequences by recourse to accompanying
social measures. These measures aim,
inter alia, at aid for redeploying or retraining workers made
redundant.

in cases where the employer

representatives

More generally, the Commission advocates the idea that, when deciding on their relocation, enterprises
should always take into account the effects that those decisions could have on their employees as well as
on the social and regional context. This has recently been underlined in the Commission Communication
concerning Corporate Social Responsibility (CSR) (cid:1) A Business Contribution to Sustainable Devel-
opment (2).

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Furthermore, the Commission invited the European social partners to engage in a dialogue on anticipating
and managing change with a view to applying a dynamic approach to the social aspects of corporate
restructuring. The social partners agreed to incorporate this issue in their recently adopted pluriannual
work programme (3) (4).

(1) Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to

collective redundancies, OJ L 225, 12.8.1998.

(2) COM(2002) 347 final.
(3) As a strategic component of employment, training and social development policy.
(4) Social Security’s Budget.

(2004/C 84 E/0402)

WRITTEN QUESTION E-0264/04

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(4 February 2004)

Subject: Community funding for the Greek National Cadastre

Can the Commission indicate the final amount of Community funding for the Greek National Cadastre and
the nature of the measures being funded, stating whether funding is being provided solely under the
‘Information Society’ programme and to what extent it intends to provide additional funding in future?

Answer given by Mr Barnier on behalf of the Commission

(12 March 2004)

On 10 February 2003, the Greek authorities submitted to the Commission a proposal for continuing the
Land Register in Greece. The outline of a business plan aiming to establish an operational land register by
2013, at a total cost of some EUR 500 million, has been agreed in principle.

In accordance with this revised Greek business plan, the land register project is divided into three modules
which can start in parallel but which will be managed as separate groups of deliverables:

(cid:1) the establishment of a digital database of registered property rights presently recorded on paper in

mortgage offices;

(cid:1) the legal validation of registered rights,
property rights clearly to land parcels;

in particular to examine claims by the State, and to link

(cid:1) the preparation and marketing of ancillary products and services.

Since the legal framework determining the circumstances in which the State will claim ownership rights is
still under review, co-financing by the European Regional Development Fund (ERDF) is limited to the first
module.

It covers the following actions:

(cid:1) the creation of an Information Technology (IT) infrastructure for the digital registration of existing
property rights, and to validate state ownership claims. This comprises a digital map of Greece, where
each land parcel can be identified, with its associated rights. It will define the boundaries of areas for
which there is a presumption of state ownership (forest lands, coastal strips), as well as of urban areas
for which the State has recently renounced its claims relating to their past forest status,