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Northern Ireland: Small Firms Capital Allowance

Volume 607: debated on Thursday 9 December 1999

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asked Her Majesty's Government:Further to the Written Answer by Lord McIntosh of Haringey on 25 November (

WA 15), what representations were made by Ministers to the European Commission before the latter decided that the non-agriculture elements of the small firms in Northern Ireland capital allowance were judged to be incompatible with state aid rules; and whether Her Majesty's Government will publish the exchanges that took place with the Commission before their decision was made. [HL136]

The question is based on the premise that the non-agricultural elements of the proposal were judged to be incompatible with state aid rules. That is not the case: the European Commission decided on 25 June 1999 that the nonagricultural elements of the scheme were compatible with the state aid rules.These state aid approvals followed extensive discussions at official level between the UK and the European Commission to ensure that the scheme was compatible with the treaty. The Commission's decisions on state aids are published in the official journal.