18. 2. 80 Official Journal of the European Communities No C 41/1 I (Information) EUROPEAN PARLIAMENT WRITTEN QUESTIONS WITH ANSWER WRITTEN QUESTION No 297/79 by Mr Barry Seal, Mr Megahy and Mr Enright to the Commission of the European Communities (27 July 1979) Subject: Textile industry within the Community 1. In the light of the working documents of December 1977, what progress has been made by the Commission in preparing a comprehensive strategic plan for the textile industry within the EEC? 2. As the forecast halt in the decline in the numbers of people employed in the textile industry has not materialized, which alternate industries is the Commission proposing to encourage to provide new replacement jobs in the textile regions of the EEC? 3. As member countries of the EEC give aid to their textile industries in diverse ways, is the Commission planning to introduce an active Community policy to control such aid to ensure fair competition? It not, why? 4. Is the Commission preparing plans to ensure that environmental standards in the textile industry are enforced in all EEC countries and any hidden subsidies in the environmental area are equalized throughout the Community? Answer (11 January 1980) 1. In the context of the report on some structural In the application of the general guidelines the following aspects of growth (*), the Commission's communication factors are relevant: to the Council (2) set out general guidelines for adapting ^, ., ,,,.., , ,, the textile and clothing industries to the changing ~ The textile and clothing mdustnes should contmue to ... t - »• i ^ occupy an important place in the economy ot the conditions or international competition. _ V3 • £, ,r , /.. Community. The only guarantee tor maintaining (») Doc. COM(78) 255 final, 22. 6. 1978. )obs in tne lon8 term is meir capability to regain and (2) Doc. COM(78) 362 final. maintain a highly competitive position. No C 41/2 Official Journal of the European Communities 18. 2. 80 — The heterogenous nature of the sub-sectors, in terms The Community has adopted a framework for its of activities which vary widely from highly capital external trade (the Multi-Fibre Agreement and what intensive to very labour intensive as well as in the size might follow it, the tariff negotiations within the MTNs) of the undertakings, creates specific problems as well which constitutes a factor which the strategy of as offering opportunities in individual sub-sectors enterprises should take into account. Furthermore it is a and for firms within a sub-sector. matter of acting in such a way that the enterprises in these industries can operate in as favourable an environment as possible, in order to be able to organize — The initiative in adapting to changing conditions, their activities at a satisfactory level of competitiveness. which is an ongoing process, lies in the first instance with the undertakings themselves. It is assisted by a common policy which aims to create an external In this context two particular points have already environment as favourable to the industries as our emerged from the consultations mentioned above: international obligations make possible. 1. a- second programme for research in the — In the restructuring and diversification which are textile/clothing industry; part of the process of adaptation, the guidelines for the management of the European Social Fund for 1980 to 1982 (*) give priority to operations 2. the setting up of an information system which would assemble information of use to 'in favour of persons having to leave the textile and — undertakings, in order to improve their clothing sectors in order to pursue activities in management information and thus be in a another sector of economic activity and carried out stronger competitive position, in textile producing areas with a particularly high unemployment rate, or — the Commission, in order to ensure that its activities are appropriate to the evolving situation in the industries concerned. in favour of persons employed in the textile and clothing sectors who, as a result of structural adaptation measures, are retrained for jobs in 2. In the view of the Commission the prime mover of another branch of the same sector showing prospects progress and adaptation in the industry is of viability at Community level in the foreseeable entrepreneurial skill and drive. Thus the Commission future. Training operations which lead directly to will concentrate on helping undertakings in this respect, employment in branches considered particularly e.g. encouraging the exchange of information, sensitive because of the high level of market supporting pilot projects, contributing towards the penetration by low-priced imports, or for which a financing of market research, etc. critical situation is recognized on the basis of the internal Community market, can only be considered in so far as the products involved are capable of The process of diversification in areas heavily dependent achieving satisfactory competitivity, particularly as on textiles or clothing is supported by Community regards average costs.' schemes such as FEDER, FSE, etc. and by the EIB. It needs to take full account of local situations and must therefore rely on local initiative which may be assisted In close collaboration with Comitextil and the European by national or Community funds in appropriate Clothing Manufacturers Association, a number of circumstances. The Commission recognizes the problem consultations were arranged in order to examine these of declining job opportunities in textiles and clothing, it matters. Parallel discussions are being held with the trade is addressing itself, in cooperation with its social unions. partners, to identifying the causes of a trend in the Community which diverges from that observed in some other industrialised countries. All participants agreed that there was a need for a balanced adjustment to the changing economic scene and 3. National aids for the textile and clothing industries the consequences of technological progress. This should have been subject since 1971 to a Community take into account the varied characteristics of the textile framework which defines the objectives and modalities and clothing industry as regards location, the type of which need to be satisfied. The Commission applies the enterprise and the structure of the labour force. It was principles of this framework to all aid projects which are also agreed to hold regular consultations to discuss submitted and monitors, in accordance with the topics of common interest with both sides of industry. provisions of Article 93 of the Treaty, the application of any schemes and of existing aids. In the report which the (») OJ No C 159, 26. 6. 1979, p. 4. Commission makes annually to Parliament on 18. 2. 80 Official Journal of the European Communities No C 41/3 competition policy, it includes the position which it has States. Aids given to textile or clothing enterprises, as is adopted in cases falling within this context. die case for those granted to other industries, in respect of the protection of the environment are subject to the 4. The Commission is not aware of measures framework established by the Commission ^ and concerning environmental standards which are specific communicated to the Member States on 6 November to the textiles and clothing industries of the Member 1974. WRITTEN QUESTION No 470/79 by Mr Verhaegen to the Commission of the European Communities (11 September 1979) Subject: Retail prices and farm prices Information compiled by the European Communities' Statistical Office shows that in all Member States retail prices rose more rapidly in the first half of 1979 that in the first half of 1978. On a year-to-year basis the percentage increase in the highest for 20 months. Can the Commission state: 1. The main reasons for this trend in the individual Member States? 2. What proportion of the overall increase in retail prices in the first half of 1978 and the first half of 1979 respectively was due to increases in the price of food, and what proportion was due to the amount paid for agricultural products to the producer? Answer (16 January 1980) 1. The more rapid rise in consumer prices noted in all Benelux countries the currency appreciation which had Member States between the first half of 1978 and the mitigated the rise in import prices in 1978, ceased to do first half of 1979 made itself felt to different extents but so in 1979. In Ireland the trend was accentuated by the was the result of one set of circumstances: the direct reduction of subsidies on foods which took effect at the repercussion of the increase in oil prices, the surge in the beginning of the year and the introduction of a 2 % tax price of services, the dearer manufactured articles due on certain agricultural products produced in Ireland and partly to higher world prices for raw materials, and the supplied by the producers for processing, storage or rise in food prices caused by the severe weather in many export. In Denmark prices have been catching up parts at the beginning of the year. Special factors in some following the abandonment of the price freeze at the end Member States have aggravated the trend: in Italy and of March. the United Kingdom, for example, the substantial rise in rents and the cost of housing has been an aggravating 2. Changes in the total cost of living and the cost of factor, as was in France the increase in public sector food in the first six months of 1978 and in the same prices; in the Federal Republic of Germany and in the period of 1979: No C 41/4 Official Journal of the European Communities 18. 2. 80 1978 1979 Total living Food Total living Food costs costs Germany + 2-2% + 2-8% + 3-7% + 3-3% France + 50% + 3-9% + 55% + 4-4% Italy + 60% + 61% + 7-9% — Netherlands + 21% -1-8% + 2-6% + 20% Belgium + 1-4% -1-8% + 20% -0-8% Luxembourg + 20% + 11% + 2-8% + 1-7% United Kingdom + 4-7% + 5-7% + 7-6% + 8-4% Ireland + 3-2% + 4-5% + 7-5% + 9-5% Denmark + 3 0% + 1-5% + 4-4% + 1-4% EUR 9 + 41% + 4-1% + 60% — With the exception of the United Kingdom, Ireland and Italy it can be seen that the increases in food prices are generally lower than those in the total cost of living.