Vol. 446 No. 2
59 Mr. R. Bruton asked the Minister for Enterprise and Employment the value of State aid to Irish Steel for which he has sought approval from the EU Commission; the way in which this application compares with the recently approved package of aid for the Portuguese steel industry to cover restructuring and social costs and environmental investments; and the level of EU contribution to the aid in each case. [1818/94]
An application has not yet been made to the European Commission for approval, under Article 95 of the European Coal and Steel Treaty, for State investment in Irish Steel Ltd. However, management at the company is currently preparing a business and investment plan for submission to the Commission. This plan will have to show beyond doubt that Irish Steel can and will be viable with the benefit of the State investment as otherwise the unanimous approval of member states required under Article 95 will not be secured for the plan.
In regard to Portuguese state aid for its steel company, Siderurgia Nacional, a total aid package of ECU 306.3 million, approximately IR£244 million, was approved under Article 95 of the ECSC Treaty. This aid, which came from the Portuguese state, is designed to help restructure the company both financially and organisationally with privatisation as the ultimate aim.
As soon as Irish Steel finalises its business and investment plan the Government will decide on the amount of State aid requiring Article 95 approval and request approval for it from the European Union.
