WRITTEN QUESTION E-1090/99

by Francis Decourrière (PPE) to the Commission

(21 April 1999)

Subject: Objective 1 - relocation within the European Union

The firm Pontiac Coil, which manufactures solenoids (electromagnetic coils), decided to open a factory in February 1998 on the Fonds Saint-Jacques industrial estate in Feignies.

The Group of Communes of the Sambre Valley (Communauté de communes du Val de Sambre (CCVS)) had premises built for the use of Pontiac Coil, funded partially by an Objective 1 subsidy of 1,6 billion francs in the framework of Priority 1 (Stimulation of economic activity) - Sub-priority 1 (Industrial competitiveness) - Measure 3 (Business start-up structure and premises).

Pontiac Coil itself received funding of 2,8 million francs from the European Union, under FDPMI/Resider, towards the cost of its plant (15 million francs).

Over a weekend, without informing the local authorities concerned or its staff (10 employees, 2 of them with contracts of indeterminate duration and 8 with a promise of employment at the end of their access-to-employment traineeships), Pontiac Coil moved its equipment to England with a view to concentrating its activities there.

1. How does the Commission propose to remedy this situation, which is extremely damaging to the CCVS since it had no budget to cover the premises built for Pontiac?

2. How can the CCVS become the beneficiary of the funds?

3. What steps will the Commission take to ensure that Pontiac Coil repays the funding received?

4. What measures and guarantees are available to the Commission to prevent a company that behaves in this unprincipled way from receiving European funding again?

Answer given by Mrs Wulf-Mathies on behalf of the Commission

(6 May 1999)

Study of the file on Pontiac Coil's move from Feignies (Nord Pas de Calais) to the United Kingdom, and the position concerning the Community grants for which the company was eligible, suggests that the grant of FRF 2,8 million (towards total expenditure of FRF 9,33 million) initially earmarked from the development fund for small and medium-sized enterprises has not yet been paid. This operation will be de-programmed at the next Monitoring Committee meeting.

In the case of the assistance towards factory premises, the Group of Communes of the Sambre Valley has qualified for a grant of FRF 1,6 million within a volume of FRF 7,87 million. The Group can keep this funding, in the hope that a new tenant will be found.

On a more general note, the regulations currently in preparation for the new programming period (2000-06) will take account of this issue of business relocations, so as to improve the rules on regional assistance. The new provisions, which will include in particular a minimum-stay clause for investments, will aim to concentrate budget resources in employment blackspots while avoiding competition and grant escalation between different areas.