CELEX: 51984PC0715(03)
Language: en
Date: 1984-12-14
Title: PROPOSAL FOR A COUNCIL REGULATION AMENDING REGULATION ( EEC ) NO 2619/80 INSTITUTING A SPECIFIC COMMUNITY REGIONAL DEVELOPMENT MEASURE CONTRIBUTING TO THE IMPROVEMENT OF THE ECONOMIC AND SOCIAL SITUATION OF THE BORDER AREAS OF IRELAND AND NORTHERN IRELAND

No C 70/4                              Official Journal of the European Communities                                18. 3. 85
              Proposal for a Council Regulation amending Regulation (EEC) No 2619/80 instituting a
              specific Community regional development measure contributing to the improvement of the
                   economic and social situation of the border areas of Ireland and Northern Ireland
                                                     COM(84) 715 final
                          (Submitted by the Commission to the Council on 21 December 1984)
                                                         (85/C 70/03
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                          Whereas the Member States concerned have provided the
                                                                  Commission with information on regional problems
                                                                  which might be the subject of a specific measure;
Having regard to the Treaty establishing the European             whereas taking account of the extent of difficulties both
Economic Community,                                               economic and in the matter of employment, the specific
                                                                  measure in force should be extended to those zones
                                                                  particularly concerned by these problems and should be
Having regard to Council Regulation (EEC) No 724/75
                                                                  supplemented by new provisions;
of 18 March 1975 establishing a European Regional
Development Fund( ] ), as last amended by Regulation
(EEC) No 3325/80 (2), and in particular Article 13 (3)            Whereas the encouragement of small and medium-sized
thereof,                                                          undertakings (hereinafter referred to as 'SMUs') could be
                                                                  accelerated by allowing them better to adapt their
Having regard to the proposal from the Commission,                production potential, in particular through investment
                                                                  aids, and by facilitating access to innovation and risk
                                                                  capital;
Having regard      to the opinion       of the    European
Parliament,
                                                                  Whereas economic promotion in the zones concerned
                                                                  should be further stimulated by especially active
Having regard to the opinion of the Economic and Social           management of the public aids and services available,
Committee,                                                        particularly those provided for under the special
                                                                  programme; whereas, to this end, there is a need to
                                                                  establish or extend services responsible for informing
Whereas Article 13 of Regulation (EEC) No 724/75                  existing or potential undertakings of the availability of
provides, independently of the national allocations of            such aids and services and to help those undertakings to
resources fixed by Article 2 (3) (a) of that Regulation,          take advantage of them;
for participation by the Fund in financing specific
Community regional development measures; whereas the
Council has stated its willingness to examine, within this        Whereas the natural gas supply and consumption in some
framework, on a proposal from the Commission, any                 of these areas located in Ireland could, while enabling
requests for aid relating to border problems in the most          the economic development base of these areas to be
deserving regions of the Community submitted jointly by           reinforced, contribute to the realization of Community
two or more Member States concerned;                              energy policy objectives by reducing dependence on
                                                                  oil, by increasing security of energy supply through
                                                                  diversification of energy resources, and by improving the
Whereas under the said Article 13, the Council adopted            balance of trade of the Member State concerned;
on 7 October 1980, Regulation (EEC) No 2619/80 (3),
the measure instituted by that Regulation being
hereinafter referred to as 'the specific measure';                Whereas, to this effect, necessary infrastructure
                                                                  operations should be provided for with a view to
                                                                  increasing the availability of natural gas through the
Whereas, pursuant to that Regulation and in particular            development of transport and distribution networks and
Article 3 thereof, the Commission has approved special            through feasibility studies, as well as a package of
programmes relating to certain border areas in Ireland,           measures intended to stimulate the use of gas in the
on the one hand, and Northern Ireland on the other, and           industrial and service sectors, comprising consultancy aid
has at the same time allocated appropriations to those            and technical assistance, aid for the promotion of
programmes;                                                       consumer awareness and aid to investment in SMUs;
(')  OJ NoL 73, 21. 3. 1975, p. 1.
(32) OJ No L 349, 23. 12. 1980, p. 10.                            Whereas, in order to accelerate the implementation of the
( ) OJ No L 271, 15. 10. 1980, p. 28.                             special programmes, the rules laid down by Regulation
 ---pagebreak--- 18. 3. 85                             Official Journal of the European Communities                                   No C 70/5
(EEC) No 2619/80 concerning budgetary commitments,                   oil, by increasing security of energy supply through
payment of aid from the Fund and advances made from                  diversification of energy resources, and by improving
the Fund should be amended;                                          the balance of trade of the Member State
                                                                     concerned.'
Whereas additional financial resources are required
to implement the specific measure so extended and
strengthened;
                                                                                             Article 4
Whereas each of the Member States concerned should
submit to the Commission an amended special                      The following paragraph 2a is inserted in Article 3:
programme,                                                           '2a.      The preparation and implementation of the
                                                                     special programme shall be closely coordinated with
                                                                     national and Community policies and financial
                                                                     instruments, in particular the European Agricultural
HAS ADOPTED THIS REGULATION:                                         Guidance and Guarantee Fund (EAGGF) Guidance
                                                                     Section, the Social Fund, the European Investment
                                                                     Bank and the new Community instrument.'
                        SECTION 1
                          Article I
                                                                                             Article 5
Regulation (EEC) No 2619/80 is hereby amended in
accordance with the following Articles.                          The following paragraph 6a is inserted in Article 3:
                                                                     '6a.     When approving the special programme, the
                                                                     Commission shall satisfy itself that the programme is
                          Article 2                                  compatible with Article 20 of the Fund Regulation.'
Article 2 is replaced by the following:
                                                                                             Article 6
     'Article 2
     The specific measure shall apply to the following           Article 3 (8) is replaced by the following:
     border areas:                                                   '8.     Once it has been approved, the special
                                                                     programme shall be published for information by the
    Ireland:                                                         Commission.'
    the Counties of Donegal, Leitrim, Cavan, Monaghan,
     Louth and Sligo;
                                                                                             Article 7
     Northern Ireland:
     the District Council Areas of Ballymoney, Coleraine,        The introductory sentence to Article 4 is replaced by the
     Moyle, Cookstown, Armagh, Banbridge, Craigavon,             following:
     Dungannon,      Fermanagh,      Derry,      Limavady,
    Magherafelt, Newry and Mourne,                 Omagh,            'For all the areas referred to in Article 2, the Fund shall
    Strabane.'                                                       contribute, within the framework of the special
                                                                     programme, to the following operations:'.
                          Article 3                                                          Article 8
The following subparagraph is added to Article 3 (2):
                                                                 The following points are added to Article 4:
    'Moreover, the aim of the special programme, in
                                                                      '8. Aids to investment in SMUs designed to create
    certain areas located in Ireland, shall be the
                                                                          new undertakings or to assist the adaptation of
    strengthening of economic competitiveness and
                                                                          production to market potential by existing
    growth potential, by the improvement of the regional
                                                                          undertakings when justified by the analyses
   energy situation, through the development of natural
                                                                          mentioned under point 7 (a) or other satisfactory
   gas supply and demand, by means of appropriate
                                                                          evidence. Such investment may also concern
   measures in the fields of investment, technical
                                                                          common         services    for     a     number    of
   assistance and consultancy services and the promotion
                                                                          undertakings;
   of potential consumer awareness. It shall also be
   aimed at contributing to the realization of Community              9. Promotion       of   innovation    in   industry   and
   energy policy objectives, by reducing dependence on                    services:
 ---pagebreak--- No C 70/6                              Official Journal of the European Communities                                 18. 3. 85
       — collection of information relating to product                    (c) analysis of market potential for existing and
           and technological innovation and its                                new products linked to the use of natural
           dissemination among undertakings operating                          gas;
           in the zones covered by the specific measure,
           which may include experimental work on                         (d) identification, acquisition and transfer of
           such innovation,                                                    technology aiming at new high performance
                                                                               use of natural gas.
       — encouragement of the introduction of product
           and technological innovation in SMUs;
                                                                      14. Investment aids to SMUs
   10. Better access for SMUs to risk capital;
                                                                          Encouragement of investments in order to assist
                                                                          existing and new SMUs in:
  11. Setting up or development of                 economic
       promotion agencies responsible for:
                                                                          (a) the conversion of existing equipment
       — opening up possibilities, through direct                             operating on oil-based products and the
           contacts at local level, for economic ventures                     adoption of new equipment for the use of
           by giving advice about access to available                         natural gas;
           public aids and services, particularly those
           provided for under the special programme,                      (b) the adoption of new products and improved
           and                                                                production processes made possible by the
                                                                              use of natural gas.
       — contributing to the success of these ventures
           by helping existing or potential undertakings
           to take advantage of such aids and services.              15. Promotion of consumer awareness
                                                                          Publicity and information campaigns to make
        Moreover, for the Counties of Leitrim, Cavan,
                                                                          potential users aware of the availability and
       Monaghan, Louth and Sligo, the Fund may
                                                                          advantages of natural gas and of the measures
       contribute, within the framework of the special
                                                                          envisaged under the special programme. These
       programme, to the following operations:
                                                                          campaigns will include the organization of
                                                                          seminars, courses and conferences, propagation
  12. Infrastructure                                                      of standards and demonstration projects to
                                                                          highlight in particular the benefits of
       (a) investments in the extension of the existing                   high-performance gas equipment.'
            gas transmission pipeline system from Dublin
            to viable centres in the counties mentioned
            above, including the urban centres of
            Dundalk and Sligo;
                                                                                           Article 9
       (b) investments in distribution networks in the
            centres referred to under (a) in order to
                                                                  The following points are added to Article 5 (1):
            supply industrial, commercial and other
            consumers with natural gas;
                                                                     '(k) operations relating to investment under point 8
       (c) studies in order to examine the commercial                     of Article 4: 5 0 % of the public expenditure
            and technical feasibility as well as financial                resulting from the granting of aid to the
            viability of the supply of natural gas to                     investment. Such aid may contain a
            centres in the centres referred to in (a).                    supplementary element compared to the most
                                                                          favourable existing regional arrangements. The
                                                                          supplementary aid which is to be borne by the
  13. Consultancy and technical assistance                                Community for four years may be up to 10 % of
                                                                          the cost of the investment. The public aid may
       Making available to industrial and service                         take the form of a capital grant or an interest
       activities, with a view to facilitating adaptation to              rebate;
       natural gas and encouraging exploitation of new
       products and process possibilities, technical
                                                                      (1) operations concerning the collection and
       assistance and services in the following fields:
                                                                          dissemination of information on innovation
       (a) assessment of the technical implications and                   under the first indent of point 9 of Article 4: aid
           benefits and costs of conversion to natural                    covering part of the operating costs of bodies
           gas;                                                           engaged in such activities, provided that these
                                                                          activities are new and concern specifically the
       (b) identification of new products and processes                   zones covered by Article 2. The aid shall last for
           dependent on natural gas;                                      three years and be degressive. It shall cover 70 %
 ---pagebreak--- 18. 3. 85                               Official Journal of the European Communities                                  No C 7 0 / 7
         of the operating costs in the first year and shall                 (iv) operations under point 13 (d) of Article 4:
         not exceed 55% of the total cost over the                                  5 0 % of the public expenditure resulting
         three-year period;                                                         from the granting of aid to feasibility
                                                                                    studies; the contribution of the Community
    (m) operations for implementing innovation under                                is limited to 120 000 ECU for any one
         the second indent of point 9 of Article 4: 70 % of                         project;
         the cost of feasibility studies that may concern all
         aspects,     including     commercial,      of   the            (r) for operations relating to investment under point
         implementation of innovation, limited to                             14 of Article 4: 5 0 % of the public expenditure
         120 000 ECU per study. These studies must be                         resulting from the granting of aid to investment
         undertaken by or on behalf of undertakings                           in equipment for conversion to natural gas (for
         situated in the zones covered by Article 2;                          existing firms), investment in equipment related
                                                                              to natural gas (for new firms), and investment in
    (n) operations relating to risk capital under point 10
                                                                              equipment related to the adoption of new
         of Article 4: contribution towards the operating
                                                                              products and production processes (for existing
         costs of financial institutions providing risk
                                                                              and new firms). Public aid may take the form of a
         capital for SMUs. The contribution shall be 70 %
                                                                              capital grant or an interest rebate;
         of the costs of risk evaluation studies carried out
         by or on behalf of the financial institutions.                 (s) operations relating to promotion of awareness
         These studies may also examine commercial                            under point 15 of Article 4: aid covering part of
         aspects;                                                             the cost of publicity and information campaigns.
    (o) operations relating to economic promotion                             This aid shall last for five years and shall be
        under point 11 of Article 4: aid covering a part of                   degressive. It sjiall cover 60 % of expenditure in
        the operating costs arising from the activities of                    the first year and shall not exceed 5 0 % of the
        promoters. The aid shall last for five years and                      total expenditure over the five-year period.'
         shall be degressive. It shall cover 6 0 % of
        operating costs in the first year and shall not
        exceed 5 0 % of the total expenditure per                                              Article 10
        promoter over the five-year period. These
        activities, which must be new and concern
                                                                   Article 5 (2) is replaced by the following:
        specifically the zones referred to in Article 2, may
        be entrusted by the Member State concerned to
                                                                       '2.     In the case of the aid referred to in paragraph 1
        special bodies;
                                                                       (a), (c), (d), (f), (k), (p) and (r), aggregation of aid
    (p) for infrastructure:                                            from the quota and non-quota sections of the Fund is
                                                                       excluded.'
           (i) operations relating to investments in the
               transmission pipeline under point 12 (a) of
               Article 4: 5 0 % of the public expenditure,
          (ii) operations relating to investments in                                           Article 11
               distribution networks under point 12 (b) of
               Article 4: 5 0 % of the public expenditure          The last sentence of Article 5 (3) is replaced by the
               linked to the grant of interest rebates on          following:
               loans in order to facilitate the financing of
               those networks,                                         'The aids referred to in paragraph 1 (h) and (j), and
        (iii) operations relatingto studies under point 12             (m) where they directly benefit undertakings, as well
               (c) of Article 4: 5 0 % of the public                   as those referred to in (q) (iii), may not have the effect
               expenditure resulting from the granting of              of reducing the share paid by undertakings to less than
               aid to these studies;                                   2 0 % of total expenditure.'
   (q) for economic           consultancy     and   technical
        assistance:
           (i) operations under point 13 (a) of Article 4:                                     Article 12
               5 0 % of the public expenditure resulting
               from the granting of aid to these studies,          Article 5 (5) is replaced by the following:
          (ii) operations under point 13 (a) of Article 4:             '5.     Budgetary commitments relating to the
               50% of the public expenditure resulting                 financing of the special programme shall be
               from the granting of aid to the costs of                implemented by annual tranche. The first tranche
               research and development work; the                      shall be committed at the time of the Commission's
               contribution of the Community is limited to             acceptance of the programme. The commitment of
                120 000 ECU for any one project,                       subsequent annual tranches shall be made according
        (iii) operations under point 13 (b) of Article 4:             to budgetary availability and progress on the
               5 0 % of the public studies,                           programme.'
 ---pagebreak--- No C 70/8                              Official Journal of the European Communities                                 18. 3. 85
                           Article 13                                 measures to be implemented in order to adapt and
                                                                      develop production, management and organization
The introductory sentence to Article 6 (1) is replaced by             servies, information on innovation and for
the following:                                                        implementing it, and access to risk capital. Analysis
                                                                      of the state of energy supply, and an evaluation of the
   '1.      The amount of the Fund contribution in respect            potential natural gas demand by type of consumers,
   of the measures included in the special programme                  particularly as concerns industry. In respect of
   shall be paid to the Member State concerned or                     natural gas consumption, analysis of the situation
   directly, and in accordance with the latter's                      and the needs of industry by sector and of their
   instructions, to the bodies responsible for their                  economic consultancy and technical assistance
   implementation, according to the following rules:'.                requirements, and those of SMUs concerning
                                                                      investments.'
                                                                  2. The following subparagraph (v) is added at point
                           Article 14
                                                                       2(a):
Article 6 (1) (c) is replaced by the following:                       '(v) description and location of the planned
                                                                             extensions of natural gas transport and
    '(c) at the request of a Member State, advances may                      distribution networks'.
          be granted for each annual tranche according to
          progress made on operations and budgetary
          availability.
          From the beginning of operations, a 6 0 %                                        SECTION 2
          advance on the Fund contribution concerning the
          first annual tranche may be paid by the
          Commission. Where the Member State certifies                                     Article 17
          that half this first tranche has been spent, a
          second advance, of 25%, may be paid by the              1.     Ireland and the United Kingdom shall adapt the
          Commission.                                             special programmes referred to in Article 3 of Regulation
                                                                  (EEC) No 2619/80 in accordance with the amendments
          When payment of the following annual tranche            introduced by Section 1 of this Regulation.
          has begun, advances may be paid under the terms
          of the preceding subparagraphs.                         2.     The adapted special programmes shall be approved
          The balance of each annual tranche shall be paid        by the Commission in accordance with Article 3 (6) of
          at the request of the Member State when it has          Regulation (EEC) No 2619/80.
          certified that the operations corresponding to the
          tranche in question may be considered as                3.     Without prejudice to Article 5 (4) of Regulation
          finished, and on presentation of the amount of          (EEC) No 2619/80, the amount of the Fund's assistance
          public expenditure which has been incurred.'            to the adapted special programmes may not exceed the
                                                                  amount fixed by the Commission at the time of approval
                                                                  of the programmes.
                           Article IS
                                                                  4.     The duration of the adapted special programmes
Article 6 (5) is replaced by the following:                       shall be extended until the end of the fifth year starting
                                                                  from the 60th day following the date on which this
   '5.      When each special programme has been                  Regulation enters into force.
   implemented, a report including information on the
   number and nature of the jobs created and maintained           5.     Expenditure arising from the special programmes
   shall be presented by the Commission to the Regional           thus adapted which is incurred from the date of entry into
   Policy Committee and to the European Parliament.'              force of this Regulation shall be eligible.
                           Article 16                                                       Article 18
The Annex is amended as follows:                                  This Regulation shall enter into force on the day
                                                                  following its publication in the Official Journal of the
1. The second sentence in point 1 (a) is replaced by the          European Communities.
     following:
     'Analysis of the situation and needs of SMUs                 This Regulation shall be binding in its entirety and
     particularly as concerns market potential and                directly applicable in all Member States.