Annexes to COM(1981)538 -

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

dossier COM(1981)538 - .
document COM(1981)538 EN
date September 23, 1981
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

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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

(1) Information not(supplied*    ,'/■

(2) No special scheme for shipowners.    '    1    .    ’

(3) 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 -

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.

./ . . ' ; . .
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