92000E3148(01)

WRITTEN QUESTION E-3148/00

by Ilda Figueiredo (GUE/NGL) to the Commission

(6 October 2000)

Subject: Use of Community funds

The Portuguese company Electro Moagem do Marco S.A., which has approximately 70 employees, has been active for over 70 years in the food sector and is based in Marco de Canaveses (Portugal), an inland region with little industrial development.

The company, which holds a quality certificate issued by the Portuguese Quality Institute in 1999, has allegedly received a significant amount of Community funding for modernisation purposes. However, its employees are not being paid at the moment and the company is threatened with bankruptcy.

Would the Commission provide the following information: Did Electro Moagem do Marco S.A. actually receive Community funding? If so, how much? Has the use to which that funding was put been monitored, with particular reference to the protection of jobs?

Supplementary answer given by Mr Barnier on behalf of the Commission

(4 July 2001)

Electro Moagem do Marco SA has received Structural Fund aid as follows:

- Two projects were approved under the PNCIPA/SIBR (regional incentive scheme included in the Community support framework for the Objective 1 Portuguese regions during the 1989-1993 programming period. The European Regional Development Fund's contribution to these was PTE 51 and 98 million respectively (about 750 000).

- Under the Industry (PEDIP) subprogramme of the Economic fabric operational programme included in the Community support framework for the Objective 1 regions during the 1994-1999 programming period two projects were approved:

- an enterprise certification project (included in measure 3.7) the ERDF contribution was PTE 5 700 000 (about 28 500);

- an investment project (included in measure 3.3) casting PTE 1 400 000 000 with an ERDF contribution of PTE 406 000 000 ( 2 030 000) in the form of reimbursable aid. This project is now being cancelled owing to the promoter's failure to meet his contractual obligations. The payments made amount to PTE 324 800 000 (about 1 620 000).

Lastly three projects were approved under the RETEX Community Initiative (for diversification in regions heavily dependent on the textile and clothing sector) during the 1994-1999 programming period:

- a technological modernisation project for the company (included in subprogramme A Access to capital); the ERDF contribution was PTE 25 000 000 ( 125 000);

- a strategy formulation study (ERDF contribution PTE 3 400 000/ 17 000) and a project to identify the company's strong and weak points the ERDF contribution to which of 6 500 has not been paid since the project is being cancelled. Both these projects fell under subprogramme C Productivity and technical assistance.

As with all projects aided from the Structural Funds these aids were examined in line with the Fund regulations. Since job creation was not an immediate purpose of any of the projects the job protection aspect was not specifically checked on.