Explanatory Memorandum to COM(1982)123 -

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dossier COM(1982)123 - .
source COM(1982)123 EN
date 16-03-1982
ARCHIVES HISTORIQUES DE LA COMMISSION

COLLECTION RELIEE DES DOCUMENTS 'COM'

COM (82)123

Vol. 1982/0043

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

C0MC82) 123 final

Brussels,26. March 1982

AID GRANTED TO SHIPBUILDING IN THE EEC

(Report of the Commission to the Council)

/

/v

C0M(82) 123 final
COM A $3

1.

Report of the Commission to the Council


1. In approving Directive 8l/363/&EC on State aid to shipbuilding, the Council asked the Commission to lay before it regular reports

on the aids given to this sector (Articles 3, 6, 7 and 8 of the Directive). . .

2. The report for the first half of 1981 is attached as Annex I.

3. Also attached (Annex II) is a schedule of current aid schemes in favour of shipbuilding.

2.

ANHEXI


AID GRAFTED TO SHIPBUILDING IN THE EEC

1 „ Aid to investment s Article 3 of the 5^ Directive OR aid to

3.

shipbuilding



2 ' Production aid : Articles 6 ♦ 7 of the 5th Directive on aid to

shipbuilding.

Period: January -June 1951." ‘ j

' ‘ I

i

Member—Number ofEstimated proportion
Statecasesgrtof contract price
R.F. Germany67414*9751.436 to 1536 ’
Belgium--
Denmark--
Prance27206,735

(cgrt)
1% to 19$ (l)
Greece-
Ireland-
Italy210,87018.52%o
Netherlands1671,2002.6% to 28% (2)
United Kingdom (4)1165,1606.4% to 23% (3)

'

Plus price garantee, estimated at 3'4%•

(2) The maximum level of aid is normally 20%, A rate of 28% was applied - exceptionally for an order of two product tankers.

Plus Shipbuilder’s Relief, 2f%o.

Corrigendum: period July—December 1980s 242,996 grt (lO cases).

- 3 -

5o Aic’ to -'-ners : art. 8 of the 5th Directive on aids to .shipbuilding.

a) -.alum* of contrAst* . , . . i .

A :"Toatracts^aTdeoU—8 : centrset* refused. C* Ton*I, veluw* of 'ontr#et*.

Period; January — •june 1981 • . . ■' '

Total volumeFor Building in national yardsPor "building in other EEC countrii

[For building in third country

ix&zte
GRTNational

currency

(millions
ORTi&tional

currency

fnilliflaa.
GRTnational

currency
GRTnational

currency

(million!
Al

1
iT <11
R.F. Germany

(D
BtIL.......
GI1f

1

1
Belgium *■f*.00

o
! 4 700
81!4004.7.J0
:I---
/•1 81 4004 70081 4004 700:l"
Denmarka

n
1171.2001.985171 ,?001 .985l
, 8!■ 8.C0C5008.000500
r

c
}: ** 179 2002. 485
179 2002.435r> n
L

France
' Ai 35 924136.72.10015a8,;33 82412C*9
►, . B_, 1k
n35 924136.7'. 2:10015.833.824!

. . 1.20.9
Greecej A•''

1
B-'•J
C----t
IrelandA
B' ■
Ci

i
Italy^ ■ '
T B,,[M; ■
C_' — '; .
NetherlandsAL? LLL229,442.444229,4
8752.8752.8r• ,
C42.519232.242-519232.2. 1-
UnitedA36 25041.236 25041.2!

1.....
Kingdom (2), ,B11

f.
C36 250 141.236250141.2’ • ,,


.EH:


0) All decisions on shipowners aid 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.

£i

i • • ■

[•”' •• t • , ri ri

. 1981

4.

a) Aids to shipbuilding

DescriptionLevel of interventionRemarks
Germany l) National - direct aid for building iMax, 20 % of contract price (averageRor orders taken between
fund of EM 660 M10 %) (after 1.1,1981 max. 15 %1.12.78 and 31.12.1931
average 7'5 %)
2) Hamburg — allocation of EM 35 m
DM 31 m for investment on
- for investment in the
publicly-owned land EM 4 ■
.....* port of Hamburg andfor investments on private land.
) conversion of the ship*-
1 building sector to ship* repair and other sectors
• (1978 - 1983)
• 3) Lower— — subsidies up to DM 3 m .
' ITTMT.I’.TT. 'IT 1 .: Ror diversification measures
Saxony -■ ... ......„(out of shipbuilding)
Ireland ** direct aid for construction24*5% of contract priceNotification of a case prolonging
this scheme in 1981
Trance • ** direct aid for construction23$ of contract priceMaximum, including cost escalation
Tether lands — direct aid- for construction15 % of contract price (20 % for.Dp to end I98O; for 1981 aid will i
exceptional cases)be granted provisionally at 75%
2 % of the construction costof the level of the previous year.
Tnitid Kingdom — single refund of certain• - •
taxes (shipbuilder's relief)-
- - — Direct aid for construction.
Max, 25 % of contract price.....3 July , 1981 - July 1982
....... Intervention Rind of £67*5 m(including shipbuilder's relief) : ::
up to 1* July 19Slj
£ 55 m July 1981 - July 1932• '
Italy. - -The proposed Italian aid scheme
has not yet been notified to the Commission#
b> Credit facilities for sales- 2 -
Description of aidQualifying transactionsLevel of interventionRemarks |
Germanya *

interest rebate
Allsales- maximum interest rebate
'*- - i
■ - ‘ * „ ;■ # •2%(lirait OECD ccr.di-for ships |
„ ■ *4 .i
' • #

. . . .
tions) Cl)

.
s

** * •" '
Belgium interest rebate
* . ' .

Sales to other Member
I " OECD conditionsi +

special scheme j
. . 3 r '• • ----;! 1 .“1iT'. .1 •
States and third coun-1 -2. ■ " _ ; . . j
% .*
t ■tries* -
Denmark- preferential
All sales ......j * ©ECD conditions 'special scheme
. •. -creditfor ships
France . '* preferential credit
Sales to other Member 0ECD conditions
general scheme
. ‘ -
States and third’ _ .
1

? • '
■ ....... ~ .countries -* ' ' - .
| Ireland preferential credit
All sales -' OECD conditionsspecial scheme
1‘ • . - ...... • ;for ships
Italy preferential credit
All sales- ©ICD conditions
| special scheme
1 •

l. • * • •
. •; ............ _ ; ^ - j
[ ‘ . • ^1 for ships
1 Netherlands- interest rebate
All sales- maximum3 interest
special scheme
United Kingcfca-preferential creditExport salesrebate 2X0,5% for small ships) limit OECD Conditions

- OECD conditions '
for ships

general scheme
(1) Repayment period 8 1/2 years, interest rate 8 X, down payment 20 1.

5.

c) Credit facilities for purchase involving aid to shipbuilding

Description of aidLevel of InterventionRemarks
Belgium— credit facilities for Belgian owners— credit at 5 or 6 % for 15 yeare (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 j

- 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
France— 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 6,5 %>

. _ ! 3

' ' • . 3 .
I*..; • 3 - '
— a premium of 1 % per year is paid when the threshold is not exceeded.... ......
Description of aidLevel of interventionRemarks
*:oly— Government takes responsability for increase in cost between ordering and delivery.— 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.
■ - ' "
— this scheme is applied only to exports.-