asked the Minister for Industry and Commerce how entry to the EEC will affect the question of grants, interest free loans, special taxation relief or other aids or subventions to industrial enterprise.
Ceisteanna—Questions. Oral Answers. - Membership of EEC.
46.
State aids which distort or threaten to distort competition are, to the extent to which they adversely affect trade between member States, deemed to be incompatible with the Common Market. On joining the European Communities, our State aids would come under review by the EEC Commission which, subject to the overriding authority of the council, decides what aids can be allowed and which have to be eliminated or adapted. As is mentioned in the White Paper— Paragraph 4.29—we would maintain that, having regard to the purposes of these incentives for industrial development and the circumstances of the Irish economy, they are not incompatible with the objectives of the Treaty of Rome.
Our system of tax relief on export profits would come up for consideration in the context of a prohibition in the Rome Treaty of exemptions or repayments of direct taxes in respect of exports to other member States, except where approved by the EEC Council for a limited period. As indicated in the White Paper—Paragraph 8.3—the Government would hope that it would be possible to secure the council's agreement to the retention of these measures.
Would these measures be the subject of negotiations prior to entry or would they be determined if and when we become a member?
No. They would be subject to negotiation.
Before a final decision is made as to our admission or otherwise?
Yes.
Am I right in interpreting the Minister's reply as follows: I gathered that tax reliefs on exports would appear to be particularly vulnerable on entering the EEC. Is that a correct interpretation of the reply?
As I have said, they are subjects which would certainly have to be discussed in relation to our application for entry.
Is there not a precedent in regard to this? Surely the Minister should be able to find out what exactly is the situation without talking about negotiations, which is, in my opinion, entirely wrong. Negotiations will not take place on something which has already been agreed on with other countries. Is the Minister referring to "special terms"?
There are a number of issues which will need to be discussed.
These things will be the subject of negotiations?
Yes.