Annexes to COM(1982)645 -

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dossier COM(1982)645 - .
document COM(1982)645 EN
date October 12, 1982
Annex I.

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

AMEX I

AID GRAFTED TO SHIPBUILDING IN THE EEC

1

1. Aid to investment: Article 3 of the 5"th Directive on aid to

shipbuilding

i

Period: July - December 1981

Member

State
Amount of investment

(millions)
Nature of aid

(millions)
Effect on production capacity
R.F. Germany1)DM 55.250DM 5.657Reconversion measures out of shipbuilding ("Lander" programme Lower Saxony)
2)DM 15.120DM 3.024Construction of workshops in the engineering and electrical sector (Regions] programme Lower Saxony)
3)DM I6.O65DM 7.4OORationalization measures -automation of production (National programme Investment credits 1981/82
Belgium--
Denmark--
France--
Greece--
Ireland--
Italy-' -
Netherlands--
United

Kingdom
- ■-

2. Protection aid; Articles 6 + 7 of the 5th Directive on aid to shipbuilding.

Period: July - December 1981

^Moreover, for budgetary reasons 2B eligible cases (grt. 70*320) were not aided in t.be reference period.

2

Plus price guarantee, estimated at 3*4/6*

^Plus shipbuilders* Relief, 2^6*

3. Aid to shipowners : «rt. 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 ~ Deoember 196| .
Total volumeFor buildings in national yardsFor building in other EEC countri< 3For buildings in third country yards.
GRTnational

currency

(millions
GRTnational

currency,

(millions]
GRT

.
national

currency

millions
GRTnational

currency

(million^
R.F. Germany1A28-1.6221512,6528.1.6221542,65

391,80
1

1
B424.829391,80424.829
C709.4911934,45709.45119 34,45
BelgiumA15.0842839,515.9842639,5------
B---------
C1V»842819,515.9842839,5
DenmarkA127.1003290127.1003290-----
B3.3001103.300110— -
C130.4003400130.4003400
FranceA199.037795,383.757480,1115.280J18,r

‘15,2
B----115.280
C199.0 37795,383.757480,1
Greece .A--
B-mm
C--
IrelandA--— ...
B--
C--
ItalyA--216,0?

216,07
B--
C--
NetherlandsA194.694882,84118.694">6,77--76.000
B---666,77
C194.694882,84118.694--76.000
A114.66';2 39,8H4.6652 39,b
United gB-
C114.6652 39,8114.6652 39,8
(1) the figures given relate to the whole of 1981* The decisions on shipowners* aids are taken in the seoond half of the year.

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

— OECD conditions.    -

b) Average effect of a1dP*r contract (Full year 1981 - Yearly communication)

Member -    |

State    |
Total

Average
For building

In nat.yards
For building In other EEC countriesFor building In    |

third country yards
R.F.A.9-92$9.93$
Belgium^
Denmark-
France14.62$14.90$•J14.29$
Greece--
2

Ireland
Italy3*
Neth«rlan<*„ 5.5$5.5$- 5.5$

a
2

U.K. .
t.

(1) Information not supplied# ■

(2) No special scheme for shipowners#

(3) The information provided ty the Italian authorities is based on different criteria than those used by the other Member States and is not oomparable#

\

List of aids and interventions for shipbuilding:

Annex 2

a) Aids to shipbuilding

May 1982
DescriptionLevel of interventionRemarks
Germany l) National - direct aid for building t

fund of DM 660 M
Max. 20 $ of contract price (average

10 $) after 1.1.1981 max. 15 % (average 7»5 $)
For orders taken between

1.12.78 and 31.12.1981
2) Hamburg — allocation of DM 35 m for investment in the port of Hamburg and conversion of the shipbuilding sector to ship-repair and other sectors (1978 - 1983)
DM 31 m for investment on publioly-owned land DM 4 m for investments on private land.
3) Lower— — subsidies up to DM 3 0

Saxony    ‘
Fbr diversification measures (out of shipbuilding)
Ireland •    ^ direct aid for construction

Prance    — direct aid for construction
24.5$ of contract price

23% of contract price
Notification of a case prolonging this scheme in 1981

Maximum, inoluding cost escalation
Netherlands — direct aid for construction

Unitid Kingdom — single refund of oertain

taxes (shipbuilder's relief)
1    2$ of oontract price (1980* 15$) 2C$ for exceptional oases

2    $ of the construction cost
The Commission opened the procedurl of Art. 93(2) EEC in respeet of the prolongation of this scheme for the

period 1981/84 •
— Direct aid for construction* Intervention Fluid of £. 55 Mio (July 1981 - July 1982)Max. 25 $ of contract price (including shipbuilder's relief)July    1981 - July 1982
Italy — direct aid for construction25$ of contract price (30$ for the Mezzogiorno region)The proposed Italian aid scheme has been notified. The Commissio 1 opened the procedure of Art. 93(2; EEC in respect of this aid scheme
b) Credit facilities for sales
Description of aidQualifying transactionsLevel of interventionRemarks
Germany- interest rebate
All sales

* * . ■ 1
- maximum interest rebate 2X(limit OECD conditions) (1)
special scheme for ships
Belgium .- interest rebate

r
Sales to other Member States and third countries- OECD conditions
special scheme

« .
Denmark- preferential    .

credit
All sales- OECD conditions
special scheme for ships
France    '- preferential credit
Sales to other Member States and third countries- OECD conditions
general scheme
Ireland- preferential credit
All sales- OECD conditions
special scheme for ships
Italy

l    •    '
- preferential credit
i

All sales
- OECD conditions
special scheme for ships
Netherlands
- interest rebate
All sales- maximum interest rebate 2*(3,5X for small ships) limit OECD Conditions
special scheme for sfcips
United Kingdom- preferential credit
Export sales- OECD conditions
general scheme
H) Repayment pence* 8 1/2 years, interest rate 8 X, down payment 20 X.
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 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
Prance- Government takes responsability
— intervention relates to 80 %
for inorease in cost between ordering and delivery on fixed price sales to third country owners.of the cost for an increase in excess of 6,5 %•
- a premium of 0,5 % per year is paid
when the threshold is not exceeded
Description of aidLevel of interventionRemarks
Italy- Government takes responsability
— intervention relates to amAvailable, but never
for increase in cost betweenannual increase between 5used for shipbuilding
ordering and delivery,

—    the premium is within the band

0,1 to 1,25 % of the cost of the Bhip,

- this scheme is applied only to exports.
and 15 % of the cost.to date,    .