Shipbuilding Temporary Assistance Program Regulations — 6
6 (1) The shipbuilding grant for an eligible ship of not more than 25,000 tons gross tonnage shall be an amount not exceeding (a) 17 per cent of the approved cost when the contract date applicable to the eligible ship is not later than September 30, 1971; (b) 16 1/2 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing October 1, 1971 and ending December 31, 1971; (c) 16 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing January 1, 1972 and ending March 31, 1972; (d) 15 1/2 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing April 1, 1972 and ending March 31, 1973; and (e) 17 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing April 1, 1973 and ending March 31, 1975. (2) The shipbuilding grant for an eligible ship of more than 25,000 tons gross tonnage shall be an amount not exceeding (a) 14 per cent of the approved cost when the contract date applicable to the eligible ship is not later than September 30, 1971; (b) 13 1/2 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing October 1, 1971 and ending December 31, l971; (c) 13 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing January 1, 1972 and ending March 31, 1972; (d) 12 1/2 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing April 1, 1972 and ending March 31, 1973; and (e) 17 per cent of the approved cost when the contract date applicable to the eligible ship is within the period commencing April 1, 1973 and ending March 31, 1975. (3) Subject to subsection (5), the Minister shall, before paying the balance of a shipbuilding grant, pursuant to an agreement entered into under section 4, determine the cost of the eligible ship in respect of which the payment is to be made for the purpose of calculating the balance of the grant, which cost shall be the lower of (a) the maximum approved cost; and (b) the amount obtained by an audit of costs pursuant to paragraph 7(b). (4) Where, (a) an amount equal to the whole or any part of the proceeds of disposition of any vessel described in subsection 13(15) of the Income Tax Act is used by a person for replacement in accordance with subparagraph (a)(i) of that subsection, the approved cost of the replacement shall, if the replacement is an eligible ship in respect of which a shipbuilding grant is to be paid under these Regulations, be reduced by an amount equal to the amount used for replacement; or (b) a vessel is acquired as a replacement under such circumstances that the Minister may pay out all or any part of a deposit under subsection 13(19) of the Income Tax Act , the approved cost of such replacement shall, if the replacement is an eligible ship in respect of which a shipbuilding grant is to be paid under these Regulations, be reduced by the amount that bears the same relationship to the proceeds of disposition of the vessel disposed of as the amount that may be paid out by the Minister under subsection 13(19) of the Income Tax Act bears to the amount of the deposit described in that subsection. (5) The Minister shall, before entering into any agreement under these Regulations, determine the maximum amount of the approved cost, which maximum amount shall not exceed the amount obtained by dividing the contract price of the eligible ship by (a) 0.830 when the shipbuilding grant is to be paid under paragraphs (1)(a) and (e) and paragraph (2)(e); (b) 0.835 when the shipbuilding grant is to be paid under paragraph (1)(b); (c) 0.840 when the shipbuilding grant is to be paid under paragraph (1)(c); (d) 0.845 when the shipbuilding grant is to be paid under paragraph (1)(d); (e) 0.860 when th