RESTRICTED
WORLD TRADE S/WPGR/W/16/Add.1
23June1997
ORGANIZATION
(97-2768)
Working Party onGATS Rules Original: English
COMMUNICATION FROM NORWAY
Response totheQuestions Relevant totheInformation Exchange Required
Under theSubsidies Negotiating Mandate
Addendum
Thefollowing communication isbeing circulated attherequest ofthedelegation ofNorway
toMembers oftheWorking Party onGATS Rules.
_________________
NORWEGIAN SUBSIDY PROGRAMMES/SCHEMES RELATED TOTRADE INSERVICES
Enclosure Icovers existing subsidy programmes/schemes which contain alltypeofsectors
(including services). Duetostatistical datalimitations, itisimpossible tospecify thesubsides paid
outtothese programmes.
Enclosure IIcovers existing subsidy programmes/schemes onlyrelated toservices.
General remarks onduration andlegalbasis:
Support measures aregenerally decided bytheStorting (theParliament) eachyearonthebasis
oftheGovernments Budget Proposal. Allbudget decisions aremade forasingle fiscal year. In
enclosure Ispecific additional legislations arereferred toinrelevant cases. Duration isstated incases
ofexplicitlytime-limitedschemes/programmes.Inothercasestheterm"Durationhasnotbeenspecified"
isused.
Inrelation totheimplementation oftheAgreement ontheEuropean Economic Area
(theEEA Agreement), theNorwegian Storting andtheGovernment haveadopted ActNo.117of
27November 1992 toStateaidandRegulations concerning implementations oftheprovisions ofthe
EEA Agreement relating toState aid.S/WPGR/W/16/Add.1
Page2
ENCLOSURE I
1. RESEARCH AND DEVELOPMENT SCHEMES
1.1 Industrial R&D programmes andprojects
1.1.1 Authority responsible forthesubsidy:
TheMinistry ofIndustry andEnergy grants money toTheResearch Council ofNorway (NFR).
NFR administers thescheme.
1.1.2 Legislation under which itisgranted:
Theyearly State Budget approved bytheParliament.
TheStatutes oftheResearch Council ofNorway.
1.1.3 Policy objective ofthesubsidy:
Research anddevelopment.
1.1.4 Form ofthesubsidy:
Grants.
1.1.5 Towhom andhowthesubsidy ispaid:
Allfirms areeligible, regardless ofbranch, region orsize.
Conditions applying from 01.04.95:
Costeligible foraidare:Personnel cost,materials andsupplies related toR&D, instruments
andequipment, consultancy services, etc.Only costs directly related totheaccomplishment
oftheprojects areeligible. Maximum aidintensity: 50percentforbasic industrial research
and25percentforapplied research anddevelopment. SMEs (maximum 250employees is
oneoutofthreecriteria) mayobtain anadditional 10percentage points. TheResearch Council
ofNorway hastherighttopublish thetitleoftheprojects, itsfinancial contribution, ashort
resume andachieved results. Projects supported byother stateaidschemes donotnormally
receive support from NFR. Totheextent thatthisoccurs, theaidceilings referred toabove
apply tothecombined aid.
1.1.6. Duration:
Starting date: 1991. Duration hasnotbeenspecified.
1.1.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.S/WPGR/W/16/Add.1
Page3
1.2 Public Research andDevelopment Contracts
1.2.1 Authority responsible forthesubsidy:
TheMinistry ofIndustry andEnergy. TheNorwegian Industrial andRegional Development
Fund (SND) isresponsible fortheadministration ofthisscheme.
1.2.2 Legislation under which itisgranted:
Theyearly State budget.
Guidelines forpublic R&D-contracts andIndustry R&D-contracts approved bytheMinistry
ofIndustry andEnergy 30.03.95.
1.2.3 Policy objective ofthesubsidy:
Reinforce thecapabilities ofNorwegian industries tosatisfy theneeds ofpublic entities.
Improve thequality andeffectiveness ofservices supplied bypublic entities byimplementing
newandimproved technology.
1.2.4 Form ofthesubsidy:
Grants.
1.2.5 Towhom andhowthesubsidy ispaid:
Apublic R&D contract isanagreement between aNorwegian enterprise andapublic authority
thatasksforthedevelopment ofanewproduct orprocess. Therecipient ofthesubsidy is
theproducer. Theprojects must represent something substantially new.
Thebulkoftheprojects willtypically bewithin thestage ofbasic industrial research and/or
applied research.
Conditions applying from 01.04.95:
Costs eligible foraidare:Personal costs, overhead, current costs, consultancy andequivalent
services andinstrument andequipment. Only costsdirectly related totheaccomplishment of
theprojects areeligible. Maximum aidintensity: 50percentforbasic industrial research
and25percentforapplied research anddevelopment. SMEs (maximum 250employees is
oneoutofthree criteria) mayobtain anadditional 10percentage points.
1.2.6 Duration ofthesubsidy:
Starting date: 1968. Duration hasnotbeenspecified.
1.2.7 Trade effects ofthesubsidy:
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.S/WPGR/W/16/Add.1
Page4
1.3 Industrial R&D Contracts
1.3.1 Authority responsible forthesubsidy:
Administered bytheNorwegian Industrial andRegional Development Fund (SND) onbehalf
oftheMinistry ofIndustry andEnergy.
1.3.2 Legislation under which itisgranted:
Theyearly State Budget arrived bytheParliament.
Guidelines forpublic R&D-contracts andIndustry R&D-contracts approved bytheMinistry
ofIndustry andEnergy 30.03.95.
1.3.3 Policy objective ofthesubsidy:
Thepurpose istostimulate industrial R&D (Product development) andbusiness links(network).
1.3.4 Form ofthesubsidy:
Grants.
1.3.5 Towhom andhowthesubsidy ispaid:
Theprojects eligible areR&D-cooperation projects between private enterprises -amajor
customer andalesser subcontractor
Conditions applying from 01.04.95:
Thegrants arerestricted toSMEs (maximum 250employees isoneoutofthree criteria) as
partners innewbusiness relations. Subsidy isgranted toapplied research anddevelopment
projects. Maximum aidintensity is35percentofprojects cost.
Costs eligible foraidare:personnel costs, overhead, current costs, consultancy andequivalent
services andinstrument andequipment. Onlycosts directly related totheaccomplishment of
theprojects areeligible.
Thecondition isthattheaidisnecessary tostartupandrealise aproject.
1.3.6 Duration ofthesubsidy:
Starting date: 01.01.94. Duration hasnotbeenspecified.
1.3.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.S/WPGR/W/16/Add.1
Page5
2. ASSISTANCE TODISADVANTAGED REGIONS
2.1 Regional Investment Grants
2.1.1 Authority responsible forthesubsidy:
TheMinistry ofLocal Government andLabour through TheNorwegian Industrial andRegional
Development Fund and15county municipalities.
2.1.2 Legislation under which itisgranted:
- Parliamentary ActNo.97ofJuly1992
- RegulationonRegionalmeasuresadministeredbytheNorwegianIndustrialandRegional
Development Fund andthecounty municipalities ofMarch 1995.
- Regulation onAreas eligible ofRegional AidofMarch 1995.
- Theyearly State Budget.
2.1.3 Policy objective:
Regional aid;jobcreation, permanent andprofitable business activity inareas withspecial
employment problems oralowlevelofeconomic activity.
2.1.4 Form ofthesubsidy:
Grants orloans (fewcases).
2.1.5 Towhom andhowthesubsidy ispaid:
Enterprises located inassisted areasforregional policy. Allsectors except primary production
inagriculture, forestry andfishing. Oilextracting orrefining activities arealsoexcluded.
Conditions applying from 01.04.95:
Theassisted areas aredivided into3zones. InzoneAthegeneral aidceiling mustnotexceed
35percent. However, SME(maximum 250employees isoneoutofthreecriteria) mayreceive
ontopoftheprevailing rateanextra 15percentage points. InzoneBthegeneral aidceiling
mustnotexceed 25percentwhere SME mayreceive anextra5percentage points. InzoneC
thegeneral aidceiling must notexceed 15percentwhere SME mayreceive anextra 10
percentage points. Iftheinvestment grant iscombined withother measures containing state
aid/subsidy, thetotalaidmust notexceed thegeneral ceilings inthedifferent zones.
2.1.6 Duration ofthesubsidy:
Starting date: 1966. Duration hasnotbeenspecified.
2.1.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.S/WPGR/W/16/Add.1
Page6
2.2 Regional Grants fortheDevelopment ofBusiness andIndustry
2.2.1 Authority responsible forthesubsidy:
TheMinistry ofLocal Government andLabour through TheNorwegian Industrial andRegional
Development Fund and15county municipalities.
2.2.2 Legislation under which itisgranted:
Parliamentary ActNo.97ofJuly1992
- RegulationonRegionalmeasuresadministeredbytheNorwegianIndustrialandRegional
Development Fund andthecounty municipalities ofMarch 1995.
- Regulation onAreas eligible ofRegional AidofMarch 1995.
- Theyearly State Budget.
2.2.3 Policy objective ofthesubsidy:
Regional aid;jobcreation, permanent andprofitable business activity inareas withspecial
employment problems oralowlevelofeconomic activity.
2.2.4 Form ofthesubsidy:
Grants orloans (fewcases).
2.2.5 Towhom andhowthesubsidy ispaid:
Enterprises located inassisted areasforregional policy. Allsectors except primary production
inagriculture, forestry andfishing. Oilextracting orrefining activities arealsoexcluded.
Conditions applying from 01.04.95
Thesubsidy covers costs eligible under thenotion of"soft aid"(costs must meet one-off
requirements forup-to-date knowledge invarious fields orberelated toestablishing ofnetwork
co-operation etc.,nophysical investment, nooperating aid)and/or research anddevelopments
projects. Subsidy falling under thenotion of"softaid"mustnotexceed 50percentofeligible
costs, anditisconfined toSME (maximum 250employees isoneoutofthree criteria). In
cases where thecostsarecovering research anddevelopment activities, larger companies may
receive aidwithin amaximum aidceiling of25percentofeligible costs. From thesame type
ofactivities SMEs mayreceive agrant within amaximum aidceiling of40percentofeligible
costs.
2.2.6 Duration ofthesubsidy and/or anytimelimits attached toit:
Starting date: 1983. Duration hasnotbeenspecified.
2.2.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.S/WPGR/W/16/Add.1
Page7
2.3 Scheme forRestructuring inRegions Dependant ofaSingle Industry
2.3.1 Authority responsible forthesubsidy:
TheMinistry ofLocal Government andLabour. Thescheme isadministered bylocal
municipalities andTheNorwegian Industrial andRegional Development Fund.
2.3.2 Legislation under which itisgranted:
Theyearly State budget (Ministry ofLocal Government andLabour, Ch.552.post56).
Regulation ofApril 1993 (H-21/93).
2.3.3 Policy objective ofthesubsidy:
Restructuring:jobcreationinregionswhereamainenterpriseorbranchreducestheemployment
drastically orcloses down.
2.3.4 Form ofthesubsidy:
Grants.
2.3.5 Towhom andhowthesubsidy ispaid:
Availabletoenterprisesinmunicipalitiesdependentonasingleindustryoronasingleenterprise.
Other criteria forthesubsidy areasfor"Regional Investment Grants" and"Regional Grants
fortheDevelopment ofBusiness andIndustry" administered byTheNorwegian Industrial and
Regional Development Fund andthecounty municipalities.
2.3.6 Duration ofthesubsidy:
Starting date: 1987. Duration hasbeenspecified.
2.3.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
2.4 TheNorwegian Corporation forIndustrial Estates andDevelopment (SIVA)
2.4.1 Authority responsible forthesubsidy:
Ministry ofLocal Government andLabour through theNorwegian Corporation forIndustrial
Estates andDevelopment (SIVA)
2.4.2 Legislation under which itisgranted:
TheState budget (Ministry ofLocal Government andLabour, Ch.552,55)
Regulation onSIVA of27.11.92.S/WPGR/W/16/Add.1
Page8
Letter from Ministry ofLocal Government andLabour toSIVA of28.03.95 and09.01.96.
2.4.3 Policy objective ofthesubsidy:
Primary objective; regional assistance. Secondary; support tosmall andmedium-sized
enterprises.
2.4.4 Form ofthesubsidy:
Grants.
2.4.5 Towhom andhowthesubsidy ispaid:
SMEs (Maximum 250employees isoneoutofthreecriteria). Primarily manufacturing industry
located inassisted areas.
Grants cover costseligible under thenotion of"softaid"(costs mustmeetone-off requirements
forup-to-date knowledge invarious fields orberelated toestablishing ofnetwork co-operation
etc.,nophysical investment, nooperating aid).
Maximum subsidy is50percentofeligible cost.
2.4.6 Duration ofthesubsidy:
Starting date: 1992. Duration hasnotbeenspecified.
2.4.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
2.5 National programmes forregional development (Ch.552.53)
2.5.1 Authority responsible forthesubsidy:
Ministry ofLocal Government andLabour inmost ofthecases through intermediate
administrative bodies.
2.5.2 Legislation under which itisgranted:
Theyearly State budget andCircular H-11/95 from TheMinistry ofLocal Government and
Labour.
2.5.3 Policy objective ofthesubsidy:
Regional. Animportant objective istocreate newstructures andwaysofcollaboration between
R&D centres andprivate SMEs.
2.5.4 Form ofthesubsidy:
Grants.S/WPGR/W/16/Add.1
Page9
2.5.5 Towhom andhowthesubsidy ispaid:
Mainly SMEs (Maximum 250employees isoneoutofthree criteria) inprivate sector located
inassisted areas. Most ofthefunds available areusedtosupport R&D -infrastructure. Single
enterprises maynotreceive support fromthisscheme unless theyareinvolved inaco-operation
pluriannual programme ofbroader national interest.
Other criteria forthesubsidy toenterprises areasfor"Regional Grants fortheDevelopment
ofBusiness andIndustry" administered byTheNorwegian Industrial andRegional Development
Fund andthecounty municipalities.
2.5.6 Duration ofthesubsidy:
Starting date: 1986. Duration hasnotbeenspecified.
2.5.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
2.6 Funds forrestructuring oftheCommunity ofRana
2.6.1 Authority responsible forthesubsidy:
TheMinistry ofIndustry andEnergy. TheNorwegian industrial andregional fundhasthe
responsibility concerning aidtoprivate enterprises. Twolocalinstitutions alsotakepartin
theprogramme.
2.6.2 Legislation under which itisgranted:
TheProposition totheStorting No.113(1987-88) "Om Rana ogNorsk Jernverk A/S".
2.6.3 Policy objective ofthesubsidy:
Regional restructuring; development ofnewindustrial activity andjobcreation inpublic and
private sectors. TheNorwegian steelindustry wasrestructured during 1988-89. Thisaffected
theCommunity ofRana inthecounty ofNordland andledtoaconsiderable reduction inthe
employment.
2.6.4 Form ofthesubsidy:
Grants.
2.6.5 Towhom andhowthesubsidy ispaid:
Enterprises located intheCommunity ofRana.
General investments aresupported onthesameconditions asapplying tothescheme "Regional
Investment Grants" administered byTheNorwegian Industrial andRegional Fund.S/WPGR/W/16/Add.1
Page10
Itisalsopossible togrant theprocess ofdeveloping newprojects, anddeveloping enterprises
byusing equity capital.
2.6.6 Duration ofthesubsidy:
Starting date: 1.1.1988.
2.6.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
2.7 Funds forrestructuring oftheCommunity ofSør-Varanger
2.7.1 Authority responsible forthesubsidy:
Ministry ofIndustry andEnergy. TheNorwegian Industrial andRegional Fund administers
subsidies toprivate enterprises.
2.7.2 Legislation under which itisgranted:
Proposition totheStorting No.80(1990-91) ontherestructuring ofSør-Varanger andA/S
Sydvaranger.
2.7.3 Policy objective ofthesubsidy:
Regional restructuring; development ofnewindustrial activity andjobcreation inpublic and
private sectors. TheNorwegian ironore/mine industry isrestructured during theperiod 1991 -
1996. Thisaffects theCommunity ofSør-Varanger intheCounty ofFinnmark andleads to
aconsiderable reduction intheemployment.
2.7.4 Form ofthesubsidy:
Grants.
2.7.5 Towhom andhowthesubsidy ispaid:
Available toenterprises located inSør-Varanger, Finnmark County.
General investments andtheprocess ofdeveloping newprojects aresupported onthesame
conditions asapplying totheschemes "Regional Investment Grants" and"Regional Grants
fortheDevelopment ofBusiness andIndustry" administered bytheNorwegian Industrial and
Regional Fund.
2.7.6 Duration ofthesubsidy:
Starting date: 1.1.1991.
2.7.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.S/WPGR/W/16/Add.1
Page11
2.8 Viking Business Development A/S
2.8.1 Authority responsible forthesubsidy:
Ministry ofIndustry andEnergy
2.8.2 Legislation under which itisgranted:
Proposition totheStorting No.(199-92). "Omstilling iAskim".
2.8.3 Policy objective ofthesubsidy:
Restructuring inanareaofindustrial decline.
2.8.4 Form ofthesubsidy:
Grants.
2.8.5 Towhom andhowthesubsidy ispaid:
Enterprises located inAskim inØstfold County andeconomically viable.
Theventure company "Viking Business Development A/S" seeks anddevelops newbusiness
opportunities byplacing riskcapital inenterprises.
2.8.6 Duration ofthesubsidy:
Starting date: 01.12.91.
2.8.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3. ASSISTANCE TOSMALL AND MEDIUM SIZED COMPANIES
3.1 Development Grants
3.1.1 Authority responsible forthesubsidy:
Ministry ofIndustry andEnergy through theNorwegian Industrial andRegional Development
Fund (SND).
3.1.2 Legislation under which itisgranted:
Act3July1992 onSND No.97.
"Retningslinjer forStatens noerings- ogdistriktsutviklingsfonds landsdekkende virkemidler."S/WPGR/W/16/Add.1
Page12
Letter from theMinistry onIndustry andEnergy totheSND of21.02.95.
Theyearly State budget.
3.1.3 Policy objective ofthesubsidy:
Assistance toSME. Improve theefficiency ofindustry.
3.1.4 Form ofthesubsidy:
Grant.
3.1.5 Towhom andhowthesubsidy ispaid:
Scheme isprimarily intended forSME. Thescheme isavailable forallsectors except insurance,
banking andfinance, shipping, oilandgasexploration, public administration andpublic sector
commercial enterprises, butprimarily
Conditions applying from 01.04.95:
Subsidy allowed toSMEs (maximum 250employees isoneoutofthree criteria):
- maximum 50percentofcostseligible under thenotion of"softaid"(costs mustmeet
one-off requirements forup-to-date knowledge invarious fields orberelated to
establishing ofnetwork co-operation etc.,nophysical investment, nooperating aid)
- maximum 35percentofcostseligible forapplied research anddevelopment projects
and
- maximum 7,5percenttophysical investment (maximum 15percenttosmall
enterprises).
Larger companies areonlyallowed amaximum aidintensity of25percenttoR&D projects
orsubsidy upto50,000 ECU inrespect ofonedefined category overathree yearperiod.
3.1.6 Duration ofthesubsidy:
Starting date: 01.01.93. Duration hasnotbeenspecified.
3.1.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.2 ThePublic Advisory System
3.2.1 Authority responsible forthesubsidy:
TheNorwegian Ministry ofIndustry andEnergy.
TheSubsidy isadministered bythefollowing institutions:
- TheNational Institute ofTechnology (TI);S/WPGR/W/16/Add.1
Page13
- TheNorth Norwegian Institute ofTechnology andInnovation (VINN); and
- TheRegional Consulting Services (BRT) (anation-wide network).
3.2.2 Legislation under which itisgranted:
Proposition totheStorting No.86(1986-87).
Royal Decree of19.02.88.
Royal Decree of22.04.88.
Theyearly State budget.
3.2.3 Policy objective ofthesubsidy:
Transfer ofcompetence andknowledge toSMEs.
3.2.4 Form ofthesubsidy:
Services free/partly freeofcharge.
3.2.5 Towhom andhowthesubsidy ispaid:
TIandVINN provide SMEs withtechnical competence andknowledge. BRTgivegeneral
assistance.
Theinstitutions onlysubsidy services directed towards SMEs withlessthan100employees
andmainly companies withlessthan20employees. Thelegalmaximum aidleveltoaenterprise
is50,000 ECU overa3-year period. Theaverage levelhowever isonlyNOK 10,000.
3.2.6 Duration ofthesubsidy:
Thepublic advisory system wasreorganised in1988. Duration hasnotbeenspecified.
3.2.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
4. EXPORT PROMOTION
4.1 TheExport Campaign, theStrategy Programme andTheProgramme forExport
Development inSME
4.1.1 Authority responsible forthesubsidy:
Ministry ofForeign Affairs through theNorwegian Trade Council.
4.1.2 Legislation under which itisgranted:
Government Decree ontheStatutes fortheNorwegian Trade Council.
Theyearly State Budget.S/WPGR/W/16/Add.1
Page14
4.1.3 Policy objective ofthesubsidy:
Business Development andexport promotion.
4.1.4 Form ofthesubsidy:
Grants.
4.1.5 Towhom andhowthesubsidy ispaid:
Conditions applying from 01.04.95:
Available toSMEs (maximum 250employees isoneoutofthree criteria). Costs covered;
expenditures when attending tradefairs, expenditures formarket research/surveys, seminars,
training, consultancy fees. Maximum aidintensity 50percent. Average intensity is25per
cent.
4.1.6 Duration ofthesubsidy:
Starting date: 1969, 1986 and1989 fortheExport Campaign. TheProgramme forExport
Development inSME andTheStrategy Programme respectively. Duration hasnotbeen
specified.
4.1.7 Trade effects ofthesubsidy:
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
5. SUBSIDIES TOTHE FISHERY SECTOR
5.1 Aidtodevelopment andrationalisation inthefishing industry
5.1.1 Authority responsible forthesubsidy:
TheMinistry ofFisheries.
5.1.2 Legislation under which itisgranted:
Regulation onaidtodevelopment andrationalisation inthefishing industry of08.02.95.
Theyearly State budget.
5.1.3 Policy objective ofthesubsidy:
Fields: (1)Products andprocessing technology; (2)integrated sea/land production; (3)develop
thecultivation ofnewspecies.
5.1.4 Form ofthesubsidy:
Grant.S/WPGR/W/16/Add.1
Page15
5.1.5 Towhom andhowthesubsidy ispaid:
Private persons, firms andresearch institutions canapply forsubsidies.
Main projects demands 50percenteconomic participation from private persons andfirms.
5.1.6 Duration ofthesubsidy:
Starting date: 1994. Duration hasnotbeenspecified.
5.1.7 Trade effects ofthesubsidy:
Limited means, andspecial demands forprivate participation, make thetradeeffects verysmall
ifatallexisting.S/WPGR/W/16/Add.1
Page16
ENCLOSURE II
PROGRAMME ONLY RELATED TOTRADE INSERVICES
1. Please identify anysubsidy programmes related totrade inservices, withabriefdescription
ofeachprogramme.
Taxreimbursement scheme forseafarers; TheParliament hasfor1997allocated funding for
reimbursement oftaxes calculated as20percentofgross salaries.
Onlyseafarers liable fortaxation inNorway areeligible fortaxreimbursements. Theamounts
arepaidthrough theemployers.
Anadditional refund ofupto50percentmaybepaidforcadets, 100percentforjunior officers
and150percentforapprentices. Themaximum refund forthesepositions mayinother words
reach 30percent, 40percentor50percentofgross wages respectively.
Thescheme contains thecondition thatships cannotbeeligible foranyother subsidy.
Another condition forthescheme hasbeenthattheshipping community contribute withcost
reducing effects ofanequivalent magnitude asthetaxreimbursement scheme.
2. Please statethepolicy objectives underlying theuseofeachsubsidy.
ThemainobjectiveoftheschemeistomaintainandpromotethemaritimecommunityinNorway
ingeneral, andtheemployment ofnational seafarers andtraining ofnewratings andofficers
inparticular.
3. Please indicate theavailability, inthecaseofyourcountry, ofinformation necessary to
distinguish subsidies toservices fromsubsidies togoods, e.g.when acompany produces both
goods andservices.
Notrelevant.
4. Please indicate theform ofeachsubsidy (e.g.taxconcession, loan, grant etc.).
Grant.
5. Unless previously indicated, please statewhich sectors areeligible under thesubsidy and/or
theestimated number ofenterprises which areeligible under thesubsidy.
Approximately 9000 seafarers employed insome 300companies onboard 500vessels.
6. Please indicate theeligibility criteria forsubsidies (location, nationality, destination ofoutput,
oranyother condition).
Theseafarers mustpaytaxtoNorway, andacertain number ofthecrewonboard thevessel
must paytaxes toNorway.S/WPGR/W/16/Add.1
Page17
7. Please indicate howthesubsidy iscalculated (e.g.onproduction, onexports, onafixed or
fluctuating basis, etc.).
Asapercentage ofgross salaries, seeanswer toquestion 1.
8. Please specify anytimelimits attached tothesubsidies described above.
Duration hasnotbeenspecified.
9. Please indicate anysubsidy disciplines already assumed inthecontext ofregional agreements.
Thescheme hasbeennotified totheEFTA Surveillance Authority (ESA) inaccordance with
stateaidprovisions oftheEEA agreement. ESAhasnothadanyremarks tothescheme.
10. Where suchinformation isavailable, Members maywishtoindicate:
a) Subsidy perunitortotalannual subsidy outlays inrespect ofeachsubsidy granted;
20percentofgross salaries raising to30,40or50percentforsome categories,
reference question 1.Thetotalamount willdepend onthenumber ofeligible applicants,
butasanindication NOK 414million hasbeensetaside inthebudget year1997.
b) Statistical dataindicating theimpact ofsubsidies ontrade inservices inthesectors
oractivities concerned.
Statistical datashowing thetrade effects ofthesubsidy arenotavailable.