asked the Minister for Industry, Trade, Commerce and Tourism if he will make a statement on the future position of Irish Steel in view of the EC requirement that the deadline of 31 December 1985, for the payment of all aid be strictly adhered to and in the light of the recent EC decision not to sanction additional aids for the steel industry in any country with a debt service higher than 4-5 per cent of turnover, especially given the fact that in the year ended June 1984, its financial charges amounted to more than 30 per cent of turnover, with substantial losses projected for the year ending June 1985.
Written Answers. - Irish Steel Future.
568.
On 26 March 1985, the Council of Industry Ministers gave its assent to the European Commission's proposal to extend the deadline for payment of operating aids to the steel industry by one year to 31 December 1985 and to allow member states to notify the Commission of proposals for additional operating aids. The Council also re-affirmed the requirement that all State aids to the Community steel industry be terminated by 31 December 1985. The Commission subsequently adopted a Decision(1) amending the expiry dates for the notification, authorisation and payment of operating aids to the steel industry. Under this Decision additional aid may be authorised by the Commission only for carrying out financial restructuring to reduce debt service charges to the level borne by undertakings that were profitable in 1984 or for covering costs occasioned by capacity reductions. The Commission will not authorise additional aid for a steel undertaking in excess of that which would reduce debt service charges of the undetaking to below 4-5 per cent of sales turnover.
Officials in my Department are at present examining the implications of the Commission Decision insofar as Irish Steel Limited is concerned.
(1) Footnote: Commission Decision No. 1018/85/ECSC of 19 April 1985 (Official Journal No. L 110 of 23 April 1985).