asked the Minister for Finance if it will be permissible within the EEC to allow State-sponsored companies to proceed without repayment of principal or interest, where their funds are provided from the Exchequer.
Ceisteanna—Questions. Oral Answers. - EEC: State-sponsored Companies.
23.
As regards share capital, the answer is in the affirmative. As regards other capital, any concessions such as those mentioned in the question would be subject to examination by the Commission of the EEC in accordance with the provisions of Article 93 of the Rome Treaty with a view to determining whether it was compatible with the Common Market. Pending such examination, it is not possible to say whether such concessions would, in fact, be regarded as a State aid or, if so regarded, whether they would be permissible within the EEC.
When the Minister speaks of share capital, is that confined to ordinary share capital or would it cover preference share capital?
I think it would cover the share capital necessary to pay the capital cost of the erection of the factories and so on.
I take it debentures are excluded?
Yes.
And would the non-payment on them be regarded as a subsidy?
It would, and that would be subject to review by the Commission.
But the non-payment of dividends on ordinary shares would not be so regarded?
That is right.
Has the Minister directed his attention to preference stock?
I think preference would be included——
With debentures?
No, it might be included either way.