Thank you for your letter of 17 October 2007[3] following consideration by Sub-Committee A of the abovementioned Commission proposal. I am pleased to provide further information on the amounts of assistance requested, the market forces affecting the car industry and other pending applications.

  The two applications in question each include a co-ordinated package of eligible personalised services to be provided to redundant workers, and a breakdown of the estimated costs. The specific amounts relate to the various measures (re-training, job-search assistance) which the French authorities have chosen to provide, and towards which a financial contribution from the European Globalisation Adjustment Fund (EGF) is requested. (In accordance with the EGF Regulation, this contribution may not exceed 50% of the total estimated costs.) These measures will depend on the age, qualifications, skills and experience of the redundant workers, and so the amount of assistance requested for personalised services will vary accordingly.

  The car industry is by nature a global industry subject to global market forces, and although few of the leading firms are UK-owned, seven of the world's leading car makers—and 19 of the top twenty global parts makers —manufacture in the UK because they regard it as a good place to do business. While companies will make their own decisions as to how best organise to take advantage of the opportunities, and deal with the challenges, of globalisation, the Government also has an important role to play in ensuring that companies and workers are well placed to prosper in a competitive global environment. The UK is in a strong position to respond to the new challenges. Where businesses do fail, UK case studies show that most of those· affected by redundancies, including those on a large scale, will move back into work quickly through their own job-search efforts, or with the help of Government labour market services such as Job Centre Plus and the Rapid Response Service.

  The UK would be entitled to submit an application to the EGF if the relevant criteria were met. The decision on whether to submit such an application would be taken by DWP ministers in consultation with colleagues in other departments.

  There are currently eight applications pending for assistance from the EGF—one from Germany, one from Finland, three from Italy, and one each from Malta, Spain and Portugal.

  Also, to update you on the progress of this dossier, following several discussions in Council Budget Committee, a qualified majority emerged in support of the proposal, which was finally adopted by Council at ECOFIN on 9 October. The UK abstained.

  I hope you find this helpful.

29 November 2007