32003D0029

2003/29/ECSC: Commission Decision of 17 July 2002 authorising the United Kingdom to grant aid to eight coal production units for 2001 and for the period from 1 January 2002 to 23 July 2002 (notified under document number C(2002) 2609) (Text with EEA relevance)

Official Journal L 017 , 22/01/2003 P. 0040 - 0043

Commission Decision

of 17 July 2002

authorising the United Kingdom to grant aid to eight coal production units for 2001 and for the period from 1 January 2002 to 23 July 2002

(notified under document number C(2002) 2609)

(Only the English text is authentic)

(Text with EEA relevance)

(2003/29/ECSC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Coal and Steel Community,

Having regard to Commission Decision No 3632/93/ECSC of 28 December 1993 establishing Community rules for State aid to the coal industry(1), and in particular Article 9(4) thereof,

Whereas:

(1) By letter of 28 May 2002, the United Kingdom notified the Commission, in accordance with Article 9(1) of Decision No 3632/93/ECSC, of financial aid which it intends to grant to the coal industry for 2001 and for the period from 1 January 2002 to 23 July 2002.

(2) The United Kingdom also notified the Commission by letter of 5 June 2002, in accordance with Article 9(1) of Decision No 3632/93/ECSC, of financial aid which it intends to grant to the coal industry for 2001.

(3) In the light of the information submitted by the United Kingdom, the Commission is required to take a decision on operating aid amounting to GBP 5588000 to cover the operating losses of five production units for the period from 1 January 2001 to 31 December 2001. It is also required to take a decision on operating aid amounting to GBP 326500 to cover the operating losses of three production units for the period from 1 January 2002 to 23 July 2002. Consequently, the total operating aid on which the Commission is required to take a decision amounts to GBP 5914500.

(4) The financial measures are covered by Article 1 of Decision No 3632/93/ECSC. The Commission must therefore take a decision on these measures pursuant to Article 9(4) of that Decision. The Commission's approval is subject to compliance with the general objectives and criteria laid down in Article 2 and the specific criteria set out in Article 3 of Decision No 3632/93/ECSC and, more generally, to the aid's being compatible with the proper functioning of the common market. In addition, in its assessment the Commission is required to check, in accordance with Article 9(6) of that Decision, whether the measures notified are in conformity with the plan for modernisation, rationalisation and restructuring of the United Kingdom coal industry approved by the Commission by Decision 2001/114/ECSC(2) and Decision 2001/597/ECSC(3) (hereinafter referred to as "the restructuring plan").

(5) The sum of GBP 5914500 which the United Kingdom is proposing to grant to the coal industry under Article 3 of Decision No 3632/93/ECSC is intended to cover the difference between the production cost and the selling price of coal freely agreed between the contracting parties in the light of the conditions prevailing on the world market for coal of similar quality from third countries.

(6) The aid proposed for the period from 1 January 2001 to 31 December 2001 is intended for the following units:

(a) GBP 3819000 for the Tower Colliery production unit of Tower Colliery Ltd;