WRITTEN QUESTION P-0957/04 by Ilda Figueiredo (GUE/NGL) to the Commission. The stated intention of deactivating Sorefame-Bombardier.
Date: 2004-03-23
Institutions: European Parliament, Provisional data
Subjects: EU aid, Portugal, State aid, aid to undertakings, cessation of trading, control of State aid, public investment, vehicle, vehicle parts

3.4.2004

EN

Official Journal of the European Union

C 84 E/699

Answer given by Mr Liikanen on behalf of the Commission

(15 April 2004)

The Commission is closely monitoring developments on the world market for raw materials, particularly
the impact of increasing demand from Asia on the market and on the prices of these products in EU
countries. The steel industry is one of the industrial sectors most affected at the moment because of the
simultaneous increase in the prices of all the raw materials it needs, in particular scrap, coke and ferro-
alloys.

The Commission shares the Honourable Member’s view that some of the difficulties the Italian steel
industry is currently facing could be linked to the spectacular industrial development in China and its
increasing demand for raw materials, which has led to tensions on the market and a sharp increase in
world prices.

For this reason the Commission has contacted the Chinese authorities in order to examine possible
solutions to problems directly linked to trade measures adopted by the Chinese Government, in particular
export licences for coke. China is the main world exporter of this raw material, but because of increasing
demand from the domestic market it has recently tried to limit its exports by adopting restrictive trade
measures. The Commission has approached the Chinese authorities concerning the compatibility of such
measures with the World Trade Organisation (WTO) rules.

The problem of scrap is different. The EU is a major producer and exporter of scrap and is not
experiencing any difficulties with supply. However, in the present situation of rapidly increasing world
prices, speculative behaviour may appear at all levels of the collection and distribution chain of this raw
material and is likely to magnify any minor market imbalances. Italy has a structural deficit in scrap, so as
the market situation changes it suffers more immediatley and directly than most of its EU partners.

The classification of scrap as waste derives from Community legislation aimed at regulating recycling in
accordance with environmental principles. It is the responsibility of the national and local authorities to
implement
this legislation in accordance with the provisions in the framework Directive on waste
management (1).

The Commission would assure the Honourable Member of its continuing commitment to closely monitor
developments on the raw materials market, using all the means available to it to make sure that world
trade in these products develops in accordance with the rules on open and fair competition.

(1) Council Directive 75/442/EEC of 15 July 1975 on waste, OJ L 194 of 25.7.1975.

(2004/C 84 E/0786)

WRITTEN QUESTION P-0957/04

by Ilda Figueiredo (GUE/NGL) to the Commission

(23 March 2004)

Subject: The stated intention of deactivating Sorefame-Bombardier

Following my question of 28 November 2003 (E-3672/03 (1)), my worst expectations appear to have been
fulfilled, with the announcement from Bombardier that it intends to shut down completely or drastically
reduce some of its plants in Europe, and specifically Sorefame-Bombardier, in Amadora, Portugal.

As I stated before,
this is a high-quality, high-capacity and high-tech company manufacturing and
assembling rolling stock, and currently employs some 550 workers, and provides employment for a
further thousand workers in subcontracted companies.

C 84 E/700

Official Journal of the European Union

EN

3.4.2004

if they were
The situation is all the stranger, given that in Portugal, there are some projects which,
implemented, could resolve the problem, namely the Lisbon and Porto metro strategic expansion plans,
and the Porto suburban trains, amongst other large-scale projects, some of
them supported with
Community funding.

Given what has happened in other EU Member States:

1. What measures does the Commission intend to take, in terms of support mechanisms for companies,
‘inter alia’, to guarantee Sorefame-Bombardier employment
public investment, public competitions,
and high-quality production, and thus help to prevent the worsening of the economic recession in
Portugal?

2. Does the Commission intend to adopt measures to stimulate Portuguese contracts with Sorefame-
Bombardier, to prevent the stopping of assembly lines in the near future, and consequent impact on
jobs, given that Portugal currently suffers from the highest unemployment growth figures in the EU?

3. Does the Commission not believe that what is happening with Sorefame-Bombardier in Portugal,
amongst many other examples, makes it clear that there has to be public intervention in companies of
fundamental strategic importance, i.e. multinationals, in order to guarantee employment, production
and development?

(1) OJ C 78 E, 27.3.2004.

Answer given by Mr Fischler on behalf of the Commission

(21 April 2004)

On the social impact of Bombardier’s planned closing of European plants, we can add nothing to what we
have already told the Honourable Member in our reply to question E-3672/03 (1).

Suitable measures to help revive strategic industrial sectors such as the one to which the Honourable
Member refers are a responsibility of the Portuguese authorities, which have reached agreement with us on
introduction of mechanisms for supporting enterprises in that sector and on public investment (under the
Economy and Transport Operational Programmes we have approved (2)). All action of this type must be in
line with Community rules and policies, e.g. on public contracts.

(1) OJ C 78 E, 27.3.2004.
(2) C(2000)1774, 28.7.2000; C(2000)2382, 28.7.2000.

(2004/C 84 E/0787)

WRITTEN QUESTION P-0966/04

by Hiltrud Breyer (Verts/ALE) to the Commission

(23 March 2004)

Subject: Chimney sweep monopoly

The regional monopoly of chimney sweeps that pertains in Germany is in breach of the EU rules on
freedom of establishment (Article 43) and freedom to provide services (Article 49) in the EC Treaty. The
author welcomes the fact that the Commission has launched infringement proceedings.