Explanatory Memorandum to COM(1981)538 -

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(1981)538 - .
source COM(1981)538 EN
date 23-09-1981
ARCHIVES HISTORIQUES DE LA COMMISSION

COLLECTION RELIEE DES DOCUMENTS 'COM'

1.

COM (81)538


Vol. 1981/0161

Disclaimer

Conformement au reglement (CEE, Euratom) n° 354/83 du Conseil du ler fevrier 1983 concernant I’ouverture au public des archives historiques de la Communaute economique europeenne et de la Communaute europeenne de I’energie atomique (JO L 43 du 15.2.1983, p.

1), tel que modifie par le reglement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 (JO L 243 du 27.9.2003, p.

1), ce dossier est ouvert au public. Le cas echeant, les documents classifies presents dans ce dossier ont ete declassifies conformement a I’article 5 dudit reglement.

In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning the opening to the public of the historical archives of the European Economic Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p.

1), as amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 27.9.2003, p.

1), this file is open to the public. Where necessary, classified documents in this file have been declassified in conformity with Article 5 of the aforementioned regulation.

In Obereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar 1983 uber die Freigabe der historischen Archive der Europaischen Wirtschaftsgemeinschaft und der Europaischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S.

1), geandert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003 (ABI. L 243 vom 27.9.2003, S.

1), ist diese Datei der Offentlichkeit zuganglich. Soweit erforderlich, wurden die Verschlusssachen in dieser Datei in Obereinstimmung mit Artikel 5 der genannten Verordnung freigegeben.
COMMISSION OF THE EUROPEAN COMMUNITIES


2.

C0M(81) 538 final Brussels, 24 September 1981



C0M(81) 538 final


Cov^v £ 3*3

Report of the Commission to the Council

1. In approving Directive 78/338/EEC on State aid to shipbulding, \

the Council asked the Commission to lay before it regular reports on the aids given to-this sector. (Articles 4,6, 7 and 8 of the Directive) , •

2. The report for the second half of 1980 is attached as Annex 1.

3. Also attached (Annex 2) is a schedule of current aid schemes in

favour of shipbuilding./ '

ANNEX I

AID GRANTED TO SHIPBUILDING IN THE EEC

1. Production aid : Articles 6 + 7 of the 4th Directive on aid to ' shipbuilding.

Period July — December 1980
Member- Number ofgrt tEstimated proportion of
State Casescontract price
FR.Germany37- -

• 392 180
1.4 to 20$ ’
Belgium--
Denmarkmm .. ■ ■
France10174 9658$ to 22$
Ireland-(griO(Plus price guarantee, estimated at 3$)
Italy6 va 31011.81$ to 18.89$ ■'
Netherlands ..* 3.
33 560 CV3.2$ to 5.15J

> \
United' . - . ‘
Kingdom -9171 99615$ to 23$
*. -(Plus Shipbuilder's Relief, 2$)

V

'\

2. Aid to investment : Article 4 of the 4th Directive on aid to

' ShipbuiIding

Period July — December 1980

Member- .

State . •
Amount of investmentNature of . aidEffect on production capacity
R.F. Germany

Belgium
DM 34*5 m (1)10of the -amount of the investment (max, DM 5m), Grant of an amount of

DM 1.5 m.
Increase of production capacity in the offshore sector and adaptation of ship ^repair facilities, •
Denmark
France. •- • . ' ' ‘
Ireland~ ; •- -• * V ' _ ' . T
Italy5,96 m Lit, Direct aid 10%

. *
Investments implemented from 1974 to 1976 at Monfalcone,
NetherlandsV- '
United Kingdom

t , •
; ‘r. • . , • '
(l) Part of the restructuring of the Hamburg shipyards.

. : - 3 - ■

3. Aid to shipowners : art. 8 of the 4th Directive on aids to shipbuilding.

a) Volume of contracts

A : Contracts aided. 8- : contracts refused. C; Total volume of contracts.

Period July - December I960. .
-- '1

Total volume !
for Buildings In national yardsfor BuUdlngi in other EEC countriefar Bui Idinqs in s third country yards.
. .GRTnational

currency

'millions
GRTnational

currency,

(millions,
GRTnational

currency

(millions
GRTnational

currency

(millions'
F.ft.Germany (1)A447 9161 479 ,44-7 9161 479j
B240 399170238 4011531 99317 100
C688 3151 649686 3171 1631 99817 100
3elgiumA209 0003 000.209 0003 000- '
B----'
C209 0003 000209 0003 000
DenmarkA158 1001.250158 1001.250
B- ■-- ■
C158 1001.250158 1001.250-
FranceA'23 7440.218 4500.1615 2940.05
- - 'B--
C23 7440.218 4500.16.15 2940.05
IrelandA--‘ --
B-- '-- "-
• -C
ItalyA187 645112 887173 945■ -1130023 9152 4002 158
8-- .
--
C187 645112 887173 9451130023 9152 4002 158
NetherlandsA-232 590808118 390455.9114 200352.1
B6007.46007.4
C233 190815.4118990463.3114 200352.1
United

Kingdom
A372 187221.472372.187221.472
(2) .
B----
C372 187.221.47?372 187221.472_
(1) The figures given relate to the whole of 1980* The decisions on shipowners* aids are

taken in the second half of the year. '

(2) The British scheme applies only to British owners who place orders in a national shipyard

— OECD conditions* •

a) !fwU y<ir 1*80 Yeorty ceiAffluftlct %; v A#-

. % ' • . - ' ‘ ■ ’ • ■ • ■ ’ -

Member - . State |

. ', J
Tota i. AverageFor ouiiJing

; i na1 .y „<■ ds .

i ' .

1 ■
FT FC 'ID.RJ -N CT -...R ISC -

countries.

-
1

For build :na ir ‘

third country -£

1 . '

L
R.F.A. ,. 12#12#' - • ' _

1 . '

1
- ' I
' ;

3elg > um(l)
/ " 1

- ’ f
| iJcr.iTiark

1
5.7#5.7#. _' . . ' ' ' ■ . - ' " <
. • ‘ "

fiance
11.3# '

t
■ 11.6#• ■ 10# ;
' Ireland (2)_ -■ -> ■ .' ' ' ‘ , • ' \

’ * ‘ ■ ' • - • ' i

' ' ' l
‘ Italy (3)1■■ ■- . •■ - - • - ‘• ^ . ' '
Nether ^ncs5 x 1.1#

1 . _
5 x 1.1#-'-V .. - ,
■ ILK. (2)

i •
J. ■ > ■. • / 1

' \ ' - , "

' ■ . - ' • ’ . ' 1

_ ■ . '$

' ' • • *
T

Information not(supplied* ,'/■

No special scheme for shipowners. ' 1 . ’

The information provided by the Italian authorities is "based on different criteria than those used "by the- other Member States and is not comparable*

. ' - V ' -

a) Aids to shipbuilding . • ■ ' July. 1981

. DescriptionLevel of intervention .Remarks . ,
Germany l) National - direct aid for building :Max. 20 % of contract price (averageFor orders taken between
fund of DM 660 M10 %) (after I.I.I98I max. 15 %1.12.78 and 31.12.1981
average 7,5
2) Hamburg — allocation of DM 35 m
- ‘ ' . - * .
DM 31 m for investment,on ,
for investment in thepublicly-owned land DM 4 m
N port of Hamburg andfor investments on private land.
conversion of the ship-
building sector to ship-
' repair and other sectors
(1978 - 1983) '
3) Lower- - subsidies up to DM 3 m
For diversification measures
Saxony(out of shipbuilding)
Ireland . —• direct ^id for construction24.555 of contract priceNotification of a case prolonging
this scheme in 1981 .
France — direct aid for construction2355 of contract price .Maximum, including cost escalation
Netherlands - direct aid for construction15 % of contract price (20 % for ,J ,Up to end 1980j Measures proposed
exceptional cases)for 1981 have not yet been
. ■ ‘ ■ . 'hotified .
United Kingdom — single refund of certain2 % of the construction cost. ’ . ’ . ^
taxes (shipbuilder's relief)- ’ ,
- Direct aid for construction.
Max. 25 % of contract priceJuly' r 1981 - July 1982
Intervention Fund of £ 67'5 m(including shipbuilder's relief)
- up to’ i. July 1981
£ 55 m July 1981 - July 1982. ■ - ., ' ■' .
Italy 1 . .. ' * ’ i % • - 1 ’ • - •The proposed Italian aid scheme
- ' ■has not yet been notified to the
Commission,
b) Credit facilities for sales
\-:--Description of aidQualifying transactionsLevel of interventionRemarks
. Germany .“interest rebateAll sales

* r .

' •' . ’ - t
- maximum interest rebate 2X(limit OECD conditions) (1)
\ 1 , ' .

Special scheme for ships ,

' * • !

I- „ •
Belgium- interest rebate

' . • \ ‘

r ' • ‘ .
Sales to other Member States and third countries- OECD conditions
special scheme

' • . ' " '
Denmark •~ preferential creditAll salesOECD conditionsspecial scheme for ships
France . ‘- preferential credit
Sales to other Member States and third countries -- OECD conditions

’ i ' '
general scheme
Ireland ■ '- preferential credit

■■ ' i ■ -
All sales- OECD conditions,
special scheme .for ships
Italy* preferential credit
All sales ~- OECD conditions
special scheme for ships
Netherlands- interest rebate
All sales- maximum interest rebate 2X13,5% for small ships) * limit OECD Conditions
special scheme for ships
United Kingdom- preferential credit
Export sales- OECD conditions ‘
general scheme

--——
(1> Repayment period B 1/2 years, interest rate 8 X, down payment 20 X.

- 3 -

3.

c) Credit facilities for purchase involving aid to shipbuilding


Description of aid ■Level of InterventionRemarks • '
Belgium— credit facilities for Belgian owners

' ' , * "
— credit at 5 or 6 $ for 15 years (with one year's grace period)on 90 % of contract price
Denmark

\ "
— credit facilities for Danish owners on purchase of ships in a Community yard- credit at 8 % for 14 years (with 4 years moratorium on repayment) on 80 % of contract price.
' ■ • /
United Kingdom- credit facilities for the purchase of schips by British owners in

British yards (home-credit scheme)
— OECD conditions of 18.7.74

- in addition, a subvention scheme has been introduced under Section 25 of the

Industry Act 1975 .
The application of this scheme must not result in conditions more, favorable than those contained in the

OECD understanding
d) Price guarantee mechanisms^ ,
\

> . v / • .
?
Prance .— Government takes responsability -for increase in cost between ordering and delivery on fixed price sales to third country owners.— intervention relates to 80 % . of the cost for an increase in excess of 7'5 %•

/ ' ,
— a premium of 0,5 °k per year is paid when the threshold is not exceeded. • ■ ' . •

.'Description of aidLevel of intervention ,Remarks
Italy- Government takes responsability for increase in cost between ' ordering and delivery.
1 • . , i ‘ .

- intervention relates to an annual increase between 5 ■

and 15 % of the cost.
Available, but never used for shipbuilding to date. \
— the premium is within the band

0.1 to 1.25 of the cost of the ship. ' . . - .
' i ■ ' .\ - '
this scheme is applied only to ' exports.

./ . . ' ; . .
> - . /■ .v ■

V - ' ' : . V .
" l . ■ \