Hampshire MEP Tells Commission To Toughen Up Rules On Subsidies

9.00.00am UTC (GMT +0000) Wed 4th Jun 2003

Chris Huhne MEP at the Pirelli Site in Bishopstoke

Hampshire MEP Chris Huhne told Commissioner Mario Monti to toughen up the rules on unfair government subsidies following 300 job losses at Bishopstoke last year.

Mr Huhne said he was disgusted that the Commission had been unable to stop the £50 million paid to Pirelli by the Italian government thanks to a technicality in the rules. 'This must never happen again' he said.

'These rules are meant to protect workers against sackings due to job poaching in other member states, but they have completely failed in this case' said Mr Huhne who met Commissioner Monti yesterday in Strasbourg.

'I pressed the Commissioner to toughen up the rules so that in future the Commission can take account of any likely downturn in a market. When it approved the Italian aid to Pirelli, it was only able to look at the last five years of sales figures, which showed a boom' Mr Huhne said.

Mr Huhne also confirmed that the Commission could still reopen the case if there was proof that second-hand equipment had been shipped from Bishopstoke to Battipaglia instead of Pirelli buying new.

'I appeal for any employee or ex-employee to come forward with evidence, which will be treated in confidence' said Mr Huhne.

Notes to editors: Chris Huhne MEP is deputy leader of the UK Lib Dems in the European Parliament and economic spokesman of the European Liberal Democrats. Commissioner Monti reports to the Economic and Monetary Affairs committee of the European Parliament, on which Mr Huhne sits.