Brussels, 08/12/2000 (Agence Europe) - The European Commission authorised a provision in the framework of which the Welsh Development Agency intends to acquire land, development them for commercial use and put them up for sale or rental, at market prices. Through this mechanism, the British authorities intend to put an end to the problems caused by the low level of prices in the market for commercial good in Wales, the market prices being too low to cover the development costs. By proposing developed sites, the authorities hope to make Wales more attractive and, start, increasing the market prices so that private sector investors will be able, as a result, to take over. All the acquisitions by the Agency will be made at market prices or at a lower level, while the construction and related work will be attributed according to Community rules relating to the handing over to the public markets. Once the works are completed, the Agency will sell or rent these goods at market prices. The British authorities estimate the annual spending for this project at around GBP 70 to 75 million.
The Commission authorised this provision given that it does not aim, according to it, to grant State aid as the site will be sold at market values. To make its decision, the Commission based itself on its Communication concerning aid in the sale of land or building by public powers. According to this Communication that sale of land and buildings to the highest bidder or sole bidder, in the framework of the an open and unconditional tender procedure. Having been the object of sufficient advertising is relating to a public sale it undertaken, by definition, at market value and thus does not hide State aid. As the British authorities have undertaken to follow these principals, both for the sale as for the rentals, the Commission feels that this provision does not grant aid to the owners or occupants of the sites in question. Thus it authorised the operation.