30. 9. 83 Official Journal of the European Communities No L 268/51 COMMISSION DECISION of 27 July 1983 concerning the aid that the United Kingdom Government proposes to grani for investment to expand production capacity for polyester film (Only the English text is authentic) (83/487/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having given notice, in accordance with the above- mentioned provision, to the parties concerned to submit their comments and having regard to those comments, Whereas : On 1 February 1983 the United Kingdom Govern- ment notified the Commission of a proposal to award a grant of £ 7 200 000 under section 8 of the Industrial Development Act 1982 to an investment project, costing an estimated £ 35 million, at Dumfries, Scotland, involving expansion of production capacity for polyester film. The investment would modernize the existing produc- tion unit with a capacity of 17 000 tonnes of thin polyester film a year and raise its capacity to 26 000 tonnes a year. On 16 March 1983 the Commission decided to open the procedure provided for in Article 93 (2) of the EEC Treaty in respect of the proposal, as it believed the aid was liable to affect trade between the Member States to an extent contrary to the common interest and did not appear necessary to cause the firm concerned to adopt a course of action that would allow the Commission to apply one of the exceptions to the principle of the incompatibility of State aids with the common market. The United Kingdom Government replied to the opening of the procedure on 3 May and 7 June 1983. In its replies it argued that the aid was necessary since the investment project would not be implemented without it, owing to the firm’s shortage of finance; that it was in the Community’s interest for the project to go ahead since it would strengthen the position of its industry in the sector concerned, against competi- tion from outside the EEC; that the planned expan- sion of capacity would not distort competition as far as other Community producers of polyester film were concerned ; and that the project would create 95 new jobs in the Dumfries area. Two Member State Governments, one trade association representing firms in the industry and one individual competitor of the prospective recipient have said they share the Commission’s concern about the possibility of distortions of competition arising from the planned award. The proposed United Kingdom aid is liable to affect trade between Member States and threatens to distort competition within the meaning of Article 92 (1) of the EEC Treaty by favouring the firm in question and production of polyester film. Article 92 (1) lays down the principle that aid having the features there described is incompatible with the common market. The exceptions from this principle defined in Article 92 (3) specify objectives in the Community interest transcending the interests of the aid recipient. These exceptions must be construed narrowly when any regional or industry aid scheme or any individual award under a general aid scheme is scrutinized. In particular, they may be applied only when the Commission is satisfied that the free play of market forces alone, without the aid, would not induce the prospective aid recipient to adopt a course of action contributing to attainment of one of the said objectives. To apply the exceptions to cases not involving such a compensating benefit would be to give unfair advan- tages to certain Member States and allow trading conditions between Member States to be atfected and competition to be distorted without any justification on grounds of Community interest.