MERITS IN THE LIGHT OF THE RULES CONTAINED IN ARTICLE 92 ET SEQ . OR RULES DEVELOPED DURING ADMINISTRATION OF THOSE PROVISIONS . THE NETHERLANDS GOVERNMENT COULD NOT INFER THAT , BY REQUESTING REGULAR PRIOR NOTIFICATION , THE COMMISSION HAD TAKEN A FAVOURABLE VIEW OF THE ADDITIONAL PREMIUM SYSTEM .
THE NETHERLANDS GOVERNMENT COMPLIED WITH THE COMMISSION ' S REQUEST BY INCLUDING THE PRIOR NOTIFICATION PROCEDURE IN ARTICLES 6 ( 7 ) AND 7 ( 3 ) OF CHAPTER V OF THE NETHERLANDS LAW OF 29 JUNE 1978 .
II . BY LETTER DATED 24 JANUARY 1979 THE NETHERLANDS GOVERNMENT INFORMED THE COMMISSION , AS REQUIRED BY THE PROCEDURE , OF ITS INTENTION TO GRANT THE ' ADDITIONAL PREMIUM FOR MAJOR SCHEMES ' TO A NETHERLANDS UNDERTAKING IN THE CHEMICAL FIELD .
THE ASSISTANCE WAS TO BE GRANTED TO THAT UNDERTAKING AS A CONTRIBUTION TO THE CREATION OF CAPACITY TO PRODUCE 60 000 TONNES OF POLYPROPYLENE IN THE EUROPOORT-BOTLEK AREA , WHICH WOULD INVOLVE THE CREATION OF 178 NEW JOBS .
TOTAL INVESTMENT WAS ESTIMATED AT FL 74 MILLION AND THE SCHEME WOULD QUALIFY FOR A SUBSIDY OF FL 1.5 MILLION UNDER THE WIR SYSTEM ( THE ADDITIONAL PREMIUM FOR MAJOR SCHEMES ). HOWEVER , THE SCHEME ' S LOCATION IN THE EUROPOORT AREA WOULD MAKE IT INELIGIBLE FOR REGIONAL AID .
THE NETHERLANDS SCHEME IS DESIGNED TO CREATE ADDITIONAL CAPACITY FOR PRODUCING POLYPROPYLENE , A PRODUCT FOR WHICH THERE IS EXCESS CAPACITY IN THE COMMUNITY .
THE NETHERLANDS MARKET FOR THIS PRODUCT IS IN NO WAY SUFFICIENT TO ABSORB THE NEW OUTPUT FROM THE PROJECTED PLANT . THERE IS THEREFORE A RISK THAT THE SURPLUS CAPACITY WOULD FLOW ON TO THE MARKETS OF OTHER MEMBER STATES WHICH ARE ALREADY SUFFERING FROM EXCESS CAPACITY .
THE RECIPIENT UNDERTAKING , WHICH IS ALREADY ESTABLISHED IN THE EUROPOORT , SEES THIS INVESTMENT AS LEADING TO A PROFITABLE OPERATION WHICH WOULD ALLOW ITS EXISTING MANUFACTURING PROCESSES TO BE MORE CLOSELY INTEGRATED .
III . THE NETHERLANDS GOVERNMENT REPLIED BY TELEX REGISTERED ON 25 MAY 1979 TO THE COMMISSION ' S NOTICE UNDER ARTICLE 93 OF THE EEC TREATY , STRESSING THAT THE WIR SCHEME APPLIED AUTOMATICALLY AND DID NOT PERMIT AID TO BE GRANTED SELECTIVELY IN ACCORDANCE WITH THE DESIRABILITY OF THE PLANNED INVESTMENT , THAT THE EXCESS CAPACITY OF POLYPROPYLENE WAS LIKELY TO HAVE DISAPPEARED BY THE TIME THE NEW PLANT CAME ON STREAM IN TWO YEARS , AND THAT THE INVESTMENT WOULD MAINLY INVOLVE A TYPE OF COPOLYMER WHERE EXCESS CAPACITY WAS LESS SERIOUS .
THE NETHERLANDS GOVERNMENT FURTHER POINTED OUT THAT THE NEW PLANT INVOLVED TECHNICAL INNOVATIONS WHICH WOULD PROMOTE SAVINGS IN THE MANUFACTURING PROCESS .
IV . IN THE COURSE OF CONSULTATIONS WITH INTERESTED PARTIES , THE GOVERNMENT OF A MEMBER STATE ARGUED THAT AN INCREASE IN POLYPROPYLENE CAPACITY WAS LIABLE TO AFFECT TRADE TO AN EXTENT CONTRARY TO THE COMMON INTEREST AND WOULD LEAD TO A MORE SERIOUS DEGREE OF UNDER-UTILIZATION OF CAPACITY THAN THAT ALREADY EXPERIENCED IN