G/SCM/N/25/EEC
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DENMARK
TABLE OFCONTENTS
Page
Name ofScheme
PART I
Ministry ofBusiness
1. Danish Fund fortheDevelopment ofEnterprises .......................147
2. Trade andIndustrial Development Act..............................148
Boligministeriet
3. Project Renovation (N460/94) ...................................150
4. State Subsidies toPostal Conveyance ofNewspapers andMagazines ...........151
Ministry ofLabour
5. Subsidies toActions toCombat Monotonous Repetitive Work ...............153
6. JobTraining/Individual JobTraining ...............................154
Sekretariatet forSkibsfinsiering
7. Interest Subsidy Scheme .......................................155
8. Guarantees totheLastShip.....................................156
9. TheGuarantee Scheme ........................................157
10. Guarantee Scheme forSmall Cargo Ships ............................158
Mijo-og Energiministeriet
11. Grant Scheme forElectricity Generation .............................159
12. Grant Scheme forReimbursement ofCO2TaxExpenses toEnterprises
withaHigh Energy Consumption .................................160
13. Grant Scheme fprInvestment inEnergy Savings inPrivate Enterprises .........161
14. Grant Scheme forInvestment ofCoal-Fired Heating Plants toCombined
HeatandPower based onBiomass ................................162
15. Government Subsidies toFinish theExtension oftheDistinct Heating Network ....163
16. Government Subsidies totheChange-Over ofOldResidences toCombined
HeatandPower ............................................164
17. Governmental Subsidies toPromote theConnection toCombined Power
andHeatDistributions Systems Based onCoal.........................165
18. Development andDemonstration ofNewEnergy Technologies ..............166
19. Act.No.1088 Regarding Amendments intheElectricity Supply Act...........167
Skatteministeriet
20. Expatriate scheme ...........................................168
Ministry ofTaxation
21. TheArrangement ofIndustrial Zones ..............................169
22. TheEnergy Package (CO2andSO2tax).............................170G/SCM/N/25/EEC
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Page
PART II
Ministry ofFood, Agriculture andFisheries
Subsidies andState AidtoDanish Agriculture andFisheries .....................172
1. Income support programmes (agriculture) ............................173
1.1 Refinancing ofmortgage loans etc.inagricultural holdings ............173
1.2 Subsidy toagricultural indexed loans granted inconnection with
refinancing ofmortgage loans ..............................174
1.3 Subsidy topayment ofagricultural indexed loans ..................175
1.4 Debt rescheduling scheme forfarmers .........................176
1.5 Debt reorganization scheme forfarmers ........................177
2. Structural programmes (agriculture) ...............................178
2.1 Young Farmers Scheme ..................................178
2.2 Land consolidation programme .............................179
2.3 Workmens 'houses inrural areas ............................180
3. Environmental programmes (agriculture) ............................181
3.1 Agricultural investments withtheaimofprotecting and
improving theenvironment ................................181
3.2 Guarantee forloans foragricultural investments withtheaim
ofprotecting andimproving theenvironment ....................182
4. Measures tocompensate forlosses duetodamage toagricultural production ......183
4.1 Guarantee "drought loans" withrepayment subsidy .................183
4.2 Guaranteed "drought loans"with interest subsidy ..................184
5. Research (agriculture andfisheries) ................................185
5.1 Public Agricultural andFisheries Research Institutions ...............185
6. General measures (agriculture) ...................................187
6.1 Promille Levy Funds andProduction Levy Funds ..................187
6.2 Aidtoproduct development ofagricultural andfisheries products ........189
6.3 Advisory services inagriculture .............................191
6.4 Compensation ofthelosses encountered bysome localauthorities dueto
theintroduction ofaceiling onagricultural landtaxrates .............192
7. Community-related programmes (agriculture) .........................193
7.1 Aidforinvestments inagricultural holdings .....................193
7.2 Cooperation within recognized groups .........................194
7.3 Vocational training inagriculture ............................195
7.4 Environmentally friendly farming ............................196
7.5 Early retirement from farming ..............................197
7.6 Set-aside ofarable land ..................................198
7.7 Environmentally friendly farming insensitive areas .................199
7.8 Establishment ofshelter belts ..............................200
7.9 Organic farming .......................................201G/SCM/N/25/EEC
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Page
7.10 Investments forimproving theprocessing andmarketing conditions for
agricultural andforestry products ............................202
7.11 Development ofspecific rural areas ...........................203
7.12 Farm Relief Service ....................................204
8. Veterinarian programmes ......................................205
8.1 Control ofMastitis andother veterinarian measures ................205
9. Fisheries ................................................206
9.1 Fishing vessels -permanent cessation .........................206
9.2 Subsidies tosmall fishing scale coastal ontheNorthern coast ofWestern Jutland 207
9.3 Structural aidtofish-processing industry .......................208
9.4 Subsidies forconsultant activity forfishermen andaquaculture producers ...209
9.5 Modernization andnewconstruction offishing vessels ...............210
9.6 Development oftheaquaculture industry .......................211
9.7 Modernization offacilities infishing harbours ....................212
9.8 Market promotion forfishery andaquaculture products ..............213
9.9 Loans toyoung fishermen .................................214
9.10 Supplementary cessation aidforfishermen ......................215G/SCM/N/25/EEC
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PART I
1. PROGRAMMES -DANISH FUND FOR DEVELOPMENT OFENTERPRISES
AND DANISH FUND FOR DEVELOPMENT OFENTERPRISES ACT
1. Titleofthesubsidy programmes
Danish Fund forDevelopment ofEnterprises (VækstFonden).
Danish Fund forDevelopment ofEnterprises Act(lovomVækstFonden).
2. Theform ofthesubsidy
Grant, guaranties andloans onmarket terms, repayable incases ofsuccess.
3. Subsidy perunitortotal
Thescheme ishorizontal. Thetotalfinancing ofabout 150projects arethefollowing:
Grant: DKr0.1mio
Guaranties: DKr26mio
Repayable loan: DKr238mio
Loans forResearch andDevelopment canbegiven upto45%ofthetotalcosts.
Loans forMarket Development onlytoSMEs. Loans canbegiven forthedevelopment of
experience andexport knowledge onnewgeographical markets.
Theenterprises payinterest ontheloans which arebeing repaid ifcommercial success is
achieved.
4. Thepolitical aimoftheeffort
Thepurposeoftheschemeistoincreaseresearchanddevelopmentactivitiesinprivateenterprises
andtoincrease theenterprises competence innewareas.
5. Period ofvalidity
Thescheme isnotlimited intime.
6. Subsidy effect from abusiness point ofview
Thescheme ishorizontal andtheloans aregiven toR&D andcompetence (softaid)activities
inallsectors.G/SCM/N/25/EEC
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2. PROGRAMME -TRADE AND INDUSTRIAL DEVELOPMENT ACT
1. Titleofthesubsidy programmes
Trade andIndustrial Development Act.Under theTrade andIndustrial Development Acta
number ofinitiatives arebeing carried outwhich aimatpromoting thecompetitiveness oftheDanish
trade andindustry.
2. Theform ofthesubsidy
Grants, guarantees, andloans which arebeing repaid ifcommercial success isachieved.
3. Subsidy perunitortotal
Thesubsidy fortheindividual areas arementioned inTable 1below. For1996 thesubsidies
areequal tothesubsidy oftheyearincluding transfers from previous years. For1997 thefigures
ofthebudget alone havebeengiven.
Itisnotpossible tostatetheindividual recipients ofthesubsidy asitisaquestion ofagreat
number.
TABLE 1
Subsidy forindividual areas
1996 1997
Promises given
DKrmioPayments
DKrmioPossible
promises of
subsidy
DKrmioExpected
payment of
subsidy
DKrmio
Technological
infrastructure583 508 588 620
Initiatives for
SME'sand
Entrepreneurs75 77 79 79
Export
promotion133 125 152 128
Regional
Industrial
Development108 52 127 119
Total 899 762 946 946
Ontheareainitiatives forSME´sandentrepreneurs theaverage grant percompany was
approx. DKr200,000.
Ontheareas development ofCompetence andTechnology theaverage sizeofthegrant for
thecompanies isapprox DKr800,000.G/SCM/N/25/EEC
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Ontheareaexport promotion theaverage grant percompany wasDKr0.5mill.
Onthearearegional industrial development, itisnotpossible toestimate theaverage subsidy
value, astheregional funds areadministered regionally, andtheAgency forDevelopment ofTrade
andIndustry thusdoesnottakepartinthefurther payment tothecompanies etc.
Ontheareaofclosed programmes thisincludes payments thatrelate topromises given under
programmes thathavebeenterminated.
Thegeneral conditions forobtaining asubsidy under theTrade andIndustrial Development
Actare:
- Thatthecompany itself finance more than2/3oftheproject.
- Thattheresults oftheproject areaccessible forother companies.
- Thatthecompany atleastonceayearfilesareport onthedevelopment oftheproject.
Thespecific conditions varyfrom areatoarea.
Itisnotpossible tostatethemaximum limitforasubsidy foreachproject because itdepends
ontheamount thecompanies arewilling tooffer. Inpractice thesubsidy willrarely exceed 1/3of
thetotalcostoftheproject.
4. Thepolitical aimoftheeffort
Generally theaimoftheTrade andIndustrial Development Actistostrengthen thetrade and
industrial development inDenmark. Thisisprimarily carried outbydeveloping thegeneral framework
conditions forthecompanies.
5. Period ofvalidity
Theperiod ofvalidity forindividual initiatives differs. Every yearitisconsidered whether
money should begranted fortheindividual initiatives.
6. Subsidy effect from abusiness point ofview
Itisnotpossible immediately toestimate thebusiness effects ofthesubsidies because itisa
question ofhorizontal initiatives which arenotdirected tospecific linesofbusiness.G/SCM/N/25/EEC
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3. PROGRAMME -PROJECT RENOVATION
1. Titleofthesubsidy programme
Projekt Renovering/Project Renovation.
Thesubsidy-scheme isapproved byCommissioner HansVAN DEN BROEK inhisletter dated
8August 1995.
2. Theform ofthesubsidy
Thescheme provides subsidies forpreliminary investigations andfeasibility studies, planning
expenses andevaluation expenses. Nosubsidies willbeprovided forbuilding costs.
3. Subsidy perunitortotal
Thesubsidy cannot exceed 25%ofthetotalcosts ofaspecific (demonstration) project. The
subsidy given in1996 totals DKr8,225,000.
4. Thepolitical aimoftheeffort
Theprimarygoalofthesubsidyschemeisexchangeofknowledgeonbuildingsandrehabilitation
between Denmark andcountries inthenorthern partofEurope.
5. Period ofvalidity
Thesubsidy-scheme istemporary andendsthisyear(1997).
6. Subsidy effect from abusiness point ofview
Thesubsidy-scheme hasuntilnownoimpact -andsupposedly willhavenooronlymarginal
impact -ontrade relations between Denmark anditstrading partners.G/SCM/N/25/EEC
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4. PROGRAMME -STATE SUBSIDY TOPOSTAL CONVEYANCE OFNEWSPAPERS
AND MAGAZINES
1. Titleofthesubsidy programme
State subsidy topostal conveyance ofdaily newspapers, weekly-, fortnightly-, monthly- and
quarterly magazines.
2. Theform ofthesubsidy
According tothePostal Activity Act§14,theDanish Minister ofTransport mayrequire that
theconcessionee (PostDenmark) mustdeliver approved newspapers andmagazines atspecial lowtariffs
from publishers toaddressees inDenmark (Universal Service Obligation).
According to§14,subsection 2,theMinister decides therulesforwhich papers andmagazines
whoaretobeaffected bythearrangement.
According to§14,subsection 3,theStateiscovering thefinancial loss,which isputuponthe
concessionee withthistariff arrangement.
In§14subsection 4itisstated thattheMinister decides therulesaccording towhich theloss
ismade up. This isdone in"Accounting Regulations forPostDanmark", lastedition dated
12December 1996.
Thesubsidy isgiven indirect form every month with1/12ofyearly budget andregulated
according totheaccounts attheendoftheyear.
3. Subsidy perunitortotal
Thestatesubsidy forpostal conveyance ofnewspapers andmagazines isadirect subsidy
covering adeficit according toPostDanmarks 'accounts. Thesubsidy ispaidincashtoPostDanmark
from theTreasury bytheMinistry ofTransport.
Thesubsidy istreated byPostDanmark asanormal receipt. Thesubsidy merges therefore
inanormal wayintheprofit thatistaxed andusedasabasis ofdividend paidtothestate(assole
owner).
4. Thepolitical aimoftheeffort
Thesubsidy mustberegarded asanational culture policy measure inasmall language area.
While establishing thelatest committee inthefield-TheMedia Committee of1993 -itwasargued
that"thefuture media policy ought tobeorganized inawaytoprevent adramatic falling number of
newspapers andtosecure thefreedom ofinformation andspeech plusspreading variety, many-sidedness
andquality inthenews-presentation and-communication" (cit.from the3.reading ontheDanish
Budget inParliament, 3December 1993).
5. Period ofvalidity
TheState subsidy iscalculated andpaidoneyearatatimeaccording tothePostal Activity
Act. There arenotimelimits forthesubsidy system.G/SCM/N/25/EEC
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6. Subsidy effect from abusiness point ofview
According toaccounts for1996, released inaudited version thesubsidy for1996willamount
toDKr504.4 million.
Itmustbeemphasized thatthesubsidy isnotgiven perpiece butaccording toanaudited deficit
inPostDanmarks accounts caused bypostal conveyance ofdailynewspapers andmagazines. However,
itcanbeinformedthatfor1996thepostalconveyanceofabout113.5millionnewspapersweresubsidized
byabout DKr237.3 million andinthesame wayabout 178.8 million magazines weresubsidized by
about DKr267.1 million.G/SCM/N/25/EEC
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5. PROGRAMME -SUBSIDY SCHEMES INTHE FIELD OFSAFETY AND HEALTH
ATWORK FROM WHICH STATE SUBSIDIES HAVE BEEN GRANTED IN1996
1. Titleofthesubsidy programme
Subsidies toactions tocombat monotonous repetitive work (i.e.work which involves ahealth
riskduetorepeated performance ofthesamemovements during mostoftheworking day). Thisscheme
isadministered inaccordance withOrder No.659of27June1996issued bytheMinistry ofLabour.
2. Theform ofthesubsidy
Subsidy.
3. Subsidy perunitortotal
Anamount ofDKr100million during theperiod 1994-1997 ispaidtobothprivate andpublic
enterprises aswellastoeducational andresearch institutions. With theexception ofenterprises in
thesteelindustry, theship-building industry, transportation andcoalindustry -inwhich sectors subsidies
aresubject toprior approval from theEuropean Commission -subsidies maybegiven toallsectors
where thistypeofwork isfound. Asthemain rule,support maynotbegranted tobigenterprises
atahigher amount thanthepermitted amount according totheEuropean Commission 'sdeminimis
amount.
4. Thepolitical aimoftheeffort
Theobjective ofthesubsidy scheme istoreduce by50%theextent ofmonotonous, repetitive
work before theyear2000. Thepoolfunds aregranted fordevelopment oftechnical andwork
organization solutions aswellasforjobdevelopment andtraining activities. Intheevaluation ofwhether
individual projects should besupported greatemphasis isattached toquestions astowhether theresults
oftheprojects canbetransferred toother enterprises andwork processes. Itisthusacondition for
payment ofsubsidies thattheenterprises submit anevaluation report sothatthecollection and
dissemination oftheresults oftheindividual projects canbeensured atthecentral level.
5. Period ofvalidity
Thedeadline forapplications forsubsidies is31December 1997, butwillpossibly duetounused
funds.
6. Subsidy effect from abusiness point ofview
Statistical dataarepresently onlyavailable forsubsidies granted in1995. In1995 subsidies
were granted toprimarily private enterprises withmore than250employees inNACE category 4:
Other manufacturing industries.G/SCM/N/25/EEC
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6. PROGRAMME -STATE SUBSIDIES :JOBTRAINING/INDIVIDUAL JOBTRAINING
Thefollowing information canbegiven inreply tothequestions inAnnex I,page6,section B:
1. Titleofthesubsidy programme
Jobtraining andindividual jobtraining under TheActonanactive labour market policy.
2. Theform ofthesubsidy
Wage subsidy provided thattherecruitment leadstoanetincrease inthenumber ofemployees.
Payment ofwage subsidies maynotleadtodistortion ofcompetition. Itisamatter ofageneral subsidy
scheme forunemployed persons andthescheme isnottargeted onspecific enterprises.
3. Subsidy perunitortotal
Thetotalamount ofwage subsidies granted in1996 wasDKr275.4 million.
Injobtraining withprivate employers aperson receives thewagefixedbytherelevant collective
agreed andother working conditions must alsobeinaccordance withthose laiddown bycollective
agreement. Thesubsidy period mayduring thebenefit period (formerly partperiod 1)asamaximum
beagreed tobeoneyear. During theactivation period (formerly partperiod 2)thesubsidy period
mayduring theindividual employment relationship asamaximum beagreed tobesixmonths. Ifthe
subsidy period islonger thansixmonths, theemployer shalloffertraining totheunemployed person
which isofaduration ofatleasthalfofthesubsidy period orsubsequent employment without asubsidy
foraperiod corresponding tothesubsidy period. Thewage subsidy perhourwasDKr45.43.
Individualjobtrainingwithprivateemployersmayonlyincludeworkwhichwouldnototherwise
havebeenperformed. Thewage isfixed bythesocial partners which areentitled tonegotiate wages
intheoccupational fieldconcerned. Theworking hours arefixed sothatthetotalallowance perweek
corresponds asamaximum, tothemaximum amount ofdailycashbenefits (unemployment benefits).
Theamount ofthesubsidy isfixedbyagreement withtheemployer, butmay,asamaximum, correspond
totheallowance paidtotheunemployed person. Rules havebeenlaiddown ontraining orsubsequent
employment which aresimilar tothose applying tojobtraining.
4. Thepolitical aimoftheeffort
Togiveunemployed persons thepossibility ofmaintaining orreacquiring theirvocational
skills inorder torequalify forordinary employment.
5. Period ofvalidity
Thescheme wasintroduced asathree-year pilotscheme toexpire bytheendof1996. This
pilotscheme hasnowbeenprolonged forafurther period ofthree years, sothatitwillrununtilthe
endof1999.
6. Subsidy effect from abusiness point ofview
Thepreliminary estimates for1996concerning theuseofthescheme show that6,349 persons
started onjobtraining withprivate employers, andthatthefull-year stockonaverage was3,810 persons.
Theestimates further show that131persons started onindividual jobtraining withprivate employers
andthefull-year stock onaverage was108persons.
Itisnotpossible toestimate thecommercial effects ofthesubsidy asitisamatter ofgeneral
support andnotsupport tospecific enterprises.G/SCM/N/25/EEC
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7. PROGRAMME -INTEREST SUBSIDY SCHEME
1. Titleofthesubsidy programme
Rentestotteordningen (Interest-subsidy scheme). Supplementary appropriation request No.3
from 13October 1993, approved bytheParliament Finance Committee.
2. Theform ofthesubsidy
Interest-subsidy.
Under theinterest-subsidy scheme asubsidy canbepaidatthetimeashipisdelivered asan
interest grant upto9%ofthecontract value. Itcanalsobepaidininstalments corresponding tothe
dates forpayments ofinterest andinstalments ontheloanraised.
3. Subsidy perunitortotal
In1996atotalofDKr718mio.wassubsidy outunder theinterest-subsidy scheme. Thebudget
figure for1996 isDKr. 840mio.
4. Thepolitical aimoftheeffort
Thepurpose oftheinterest-subsidy scheme istosupport shipowners building ships atDanish
shipyards.
5. Period ofvalidity
Theinterest-subsidy scheme isavailable forships contracted between 13October 1993 and
31December1997(untilthe"AgreementRespectingNormalCompetitiveConditionsintheCommercial
Shipbuilding andRepair Industry" isexpected toenter intoforce) anddelivered atthelatest
31December 1999.
6. Subsidy effect from abusiness point ofview
Figures asat31December 1996.
No.ofships having received interest-subsidy: 28.
No.ofships having commitment toreceive interest-subsidy: 12
No.ofshipyards involved: 5.
Thescheme hasbeenapproved bytheCommission under the7thDirective onsubsidy to
shipbuilding. Thesubsidy element varies depending onthecontract value ofeachship. Theinterest-
subsidy amounts to4.5% ofthecontract value forships withacontract value lessthanECU 10mio.
andto9%forships withahigher contract value. Iftheshipreceives anyother subsidy, theinterest-
subsidy isreduced accordingly. Ashipwithacontract value ofECU 10mio.ormore thathasbeen
granted aguarantee under theGuarantee-scheme willonlyreceive aninterest subsidy amounting to
8%ofthecontract value.G/SCM/N/25/EEC
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8. PROGRAMME -GUARANTEES TOTHE LAST SHIP
1. Titleofthesubsidy programme
Sidste Skibs garanti (Guarantees tothelastship). Supplementary appropriation request No.60
from 4November 1987, approved bytheParliament Finance Committee.
2. Theform ofthesubsidy
Thescheme provides forguarantees toshipyards, forworking capital upto75%ofupto80%
ofthecontract value ofthelastshipunder construction attheshipyard concerned. Inorder toqualify
foraguarantee theshipyard mustpreviously haveirrevocably decided thatitwillclose andcease its
activities.
3. Subsidy perunitortotal
Noguarantees havebeengranted under thisscheme.
4. Thepolitical aimoftheeffort
Thepurpose ofthescheme istosecure financing forthelastshipbeing builtatashipyard
thathasdecided toclose.
5. Period ofvalidity
Thescheme isvalid forships contracted before 31December 1997 (until the"Agreement
Respecting Normal Competitive Conditions intheCommercial Shipbuilding andRepair Industry" is
expected toenter intoforce).
6. Subsidy effect from abusiness point ofview
N/A. Thescheme hasbeenapproved bytheCommission under the7thDirective onsubsidy
toshipbuilding andthesubsidy element ismaximum 7.5%.G/SCM/N/25/EEC
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9. PROGRAMME -THE GUARANTEE SCHEME
1. Titleofthesubsidy programme
Garantifonden forskibsbygning (theGuarantee Scheme). ByBillNo.209from28April 1993
andBillNo.254from 19April 1995.
2. Theform ofthesubsidy
Thisscheme gives thepossibility toprovide guarantees forloans tobuild ships atDanish
shipyards.
3. Subsidy perunitortotal
Guarantees forapprox. DKr996mio.havebeengranted under thisscheme.
4. Thepolitical aimoftheeffort
ThepurposeoftheguaranteeschemeistosupportshipownersbuildingshipsatDanishshipyards.
5. Period ofvalidity
Thescheme isavailable forships contracted before 31December 1997(until the"Agreement
Respecting Normal Competitive Conditions intheCommercial Shipbuilding andRepair Industry" is
expected toenter intoforce).
6. Subsidy effect from abusiness point ofview
Figures asat31December 1996:
Actual No.ofguarantees issued: 24
Total liability: DKr839,149,609
No.ofshipyards involved: 5
Thescheme hasbeenapproved bytheCommission under the7thDirective onsubsidy to
shipbuilding andthesubsidy element iscalculated bytheCommission to1%ofthecontract value.G/SCM/N/25/EEC
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10. PROGRAMME -GUARANTEE SCHEME FOR SMALL CARGO SHIPS
1. Titleofthesubsidy programme
Fragtskibsordningen (Guarantee scheme forsmall cargo ships). ByBillNo.618from
17November 1976.
2. Theform ofthesubsidy
Thisscheme gives thepossibility toprovide guarantees forloans tobuild small cargo ships
atDanish shipyards.
3. Subsidy perunitortotal
Guarantees forapprox. DKr397mio.havebeenissued under thescheme.
4. Thepolitical aimoftheeffort
Thepurpose oftheguarantee scheme istosupport shipowners building small cargo ships at
Danish shipyards.
5. Period ofvalidity
Thescheme isavailable forships contracted before 31December 1997 anddelivered before
31December 2000.
6. Subsidy effect from abusiness point ofview
Figures asat31December 1996:
Actual No.ofguarantees issued: 44
Total liability: DKr387,039,287
No.ofshipyards involved: 1
Thescheme hasbeenapproved bytheCommission under the7thDirective onsubsidy to
shipbuilding. TheCommission hascalculated nosubsidy element.G/SCM/N/25/EEC
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11. PROGRAMME -GRANT SCHEME FOR ELECTRICITY GENERATION
1. Titleofthesubsidy programme
Grant scheme forelectricity generation.
2. Theform ofthesubsidy
Grants.
3. Subsidy perunitortotal
In1996 grant payment amounted toDKr854.5 million. Thescheme comprises twotypes of
grants:
(1) Agrant ofDKr0.1/kWh togenerators ofelectricity fromnatural gasandrenewables.
Thesaidamount constitutes compensation fortheautomatic levying oftheCO2tax
onallelectricity ataratecorresponding totheCO2emitted during thecoalfired
generation. Electricity generated from renewable energy sources involves noCO2
emissions andthatfrom natural gas-fired combined heatandpower stations causes
much lower emissions thancoal-fired generation andtheprice ofnatural gasalready
includes "shadow" CO2tax.In1996thisgrantpayment amounted toDKr667.6 million
intotal.
(2) Agrant ofDKr0.17/kWh togenerators ofelectricity fromrenewable energy sources
asapositive incentive fortheexpansion ofgeneration fromrenewables. In1996this
grant payment amounted toDKr186.9 million intotal.
4. Thepolitical aimoftheeffort
Theobjective ofthegrant scheme istoreduce theCO2-emissions.
5. Period ofvalidity
Thegrant scheme isnotsubject toatimelimitation.
6. Subsidy effect from abusiness point ofview
Itisnotpossible topresent statistical information onthetradeeffect ofthescheme. Electricity
generation receiving theadditional grants ofDKr0.17/kWh amounts toonly5%ofthetotalDanish
electricity production.G/SCM/N/25/EEC
Page160
12. PROGRAMME-GRANTSCHEMEFORREIMBURSEMENTOFCO2TAXEXPENSES
TOENTERPRISES WITH AHIGH ENERGY CONSUMPTION
1. Titleofthesubsidy programme
Grant scheme forreimbursement ofCO2-taxexpenses toenterprises withahighenergy
consumption.
2. Theform ofthesubsidy
Grants.
3. Subsidy perunitortotal
In1996grant payments amounted toDKr32.8million. 83private enterprises received grant
payments.Grantsarecalculatedasresidualtaxreimbursement.Onlycertainenergyintensivecompanies
canobtain thegrant. Itisacondition thattheyundertake anenergy audit andenter intoanenergy
agreement withtheDanish Energy Agency. Theenergy agreements contain detailed listsofprojects
andactivities thecompanies havetocarry out.30ofthe83private enterprises entered intoanenergy
agreement in1996.
4. Thepolitical aimoftheeffort
Thescheme aimsatreducing theemission ofCO2fromprivate enterprises withahighenergy
consumption. These enterprises mayobtain reimbursement ofCO2taxexpenses iftheyundertake an
energy audit andcarry outenergy saving measures.
5. Period ofvalidity
There isnotimelimitation onthegrant-scheme. In1998 anevaluation ofthegrant scheme
willtakeplace.
6. Subsidy effect from abusiness point ofview
Itisnotpossible togivestatistical information onthetrade effects ofthescheme which isa
general grant scheme notdirected atspecific types ofenterprises.G/SCM/N/25/EEC
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13. PROGRAMME -GRANT SCHEME FOR INVESTMENTS INENERGY SAVINGS IN
PRIVATE ENTERPRISES
1. Titleofthesubsidy programme
Grant scheme forinvestments inenergy savings inprivate enterprises.
2. Theform ofthesubsidy
Grants.
3. Subsidy perunitortotal
In1996grant payment amounted toDKr72.1million. 2,123 private enterprises received grant
payments. Grants arecalculated asapercentage ofthecosts.
4. Thepolitical aimoftheeffort
Theobjective ofthegrant scheme istosupport measures which ensure better energy efficiency
orenergy savings inprivate enterprises. Thescheme aimsatreducing theemission ofCO2fromthe
enterprises.
5. Period ofvalidity
There isnotimelimitation onthegrant scheme. In1998 anevaluation ofthegrant scheme
willtakeplace.
6. Subsidy effect from abusiness point ofview
Itisnotpossible togivestatistical information onthetradeeffect ofthescheme. Itisageneral
grant scheme notdirected atspecific types ofenterprises.G/SCM/N/25/EEC
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14. PROGRAMME -GRANT SCHEME FORINVESTMENT OFCOAL-FIRED HEATING
PLANTS TOCOMBINED HEAT AND POWER BASED ONBIOMASS
1. Titleofthesubsidy programme
Grant scheme forinvestment ofcoal-fired heating plants tocombined heatandpower based
onbiomass.
2. Theform ofthesubsidy
Grants.
3. Subsidy perunitortotal
In1996 grant payment amounted toDKr20.9million.
4. Thepolitical aimoftheeffort
Theobjective ofthegrant scheme istoreduce CO2-emissions through converting coal-fired
district heating plants tocombined heatandpower plants based onbiomass.
5. Period ofvalidity
Thegrant scheme isvalid till2000.
6. Subsidy effect from abusiness point ofview
Itisnotpossible topresent statistical information onthetrade effect oftheconversion to
combined heatandpower-based onbiomass covered bythescheme. Thesmall scale CHP-plants do
notexport heat. DuetotheDanish rules ofelectricity pricing thesubsidy willnotaffect Danish
electricity prices, thebeneficiaries aretheheatconsumers.G/SCM/N/25/EEC
Page163
15. PROGRAMME -GOVERNMENT SUBSIDIES TOFINISH THE EXTENSION OFTHE
DISTRICT HEATING NETWORK
1. Titleofthesubsidy programme
LawNo.4of3January 1992 onGovernment subsidies tofinish theextension ofthedistrict
heating network.
2. Theform ofthesubsidy
Thesubsidy isgiven toconstruction offewdistrict heating network andtomaintenance of
existing district heating network. Toobtain thesubsidy forconstruction ofdistrict heating network,
itisconditioned thatthemunicipal council hasimposed anobligation tobeconnected tothedistrict
heating network inquestion.
3. Subsidy perunitortotal
Forconstruction ofnewnetwork, thesubsidy cangoupto100% ofthecosts. Formaintenance,
thesubsidy cancover 50%atmaximum.
4. Thepolitical aimoftheeffort
Thepurpose ofthesubsidy scheme istoensure thatenergy savings connected totheuseof
surplus heatintheelectricity production arerealized sothattheenergy andenvironmental advantages
willbeobtained. Itdemands anefficient district heating network.
5. Period ofvalidity
Thewhole subsidy scheme isvalid from 1January 1992 until31December 1997.
6. Subsidy effect from abusiness point ofview
Itisnotpossible togivestatistical information ofthetradeeffects ofanextension ofthedistrict
heating network covered bythescheme.G/SCM/N/25/EEC
Page164
16. PROGRAMME -GOVERNMENTAL SUBSIDIES TOTHE CHANGE-OVER OFOLD
RESIDENCES TOCOMBINED HEAT AND POWER
1. Titleofthesubsidy programme
LawNo.5of3January 1992ongovernmental subsidies tothechange-over ofoldresidences
tocombined heatandpower.
2. Theform ofthesubsidy
Thesubsidy isgiven toresidences builtbefore 1950thatareheated bygasradiators, kerosene
chimneys, electric ovens al.,where central heating andhotwater istobeinstalled.
3. Subsidy perunitortotal
Thesubsidy isabasic amount ofDKr8,000 andasupplement ofDKr125perm2asfaras
single anddouble family houses areconcerned. Multifamily houses canachieve abasic amount of
DKr8,000 perdwelling andasupplement ofDKr150perm2.
4. Thepolitical aimoftheeffort
Thepurpose ofthesubsidy scheme istoreduce theairpollution inthecities andcreate more
employment.
5. Period ofvalidity
Thesubsidy scheme isexpected tolastuntil2002. There isnodeadline forapplications.
6. Subsidy effect from abusiness point ofview
Itisnotpossible togivestatistical information ofthetrade effects ofanincreased connection
tothecombined heatandpower covered bythescheme.G/SCM/N/25/EEC
Page165
17. PROGRAMME-GOVERNMENTALSUBSIDIESTOPROMOTETHECONNECTION
TOCOMBINED POWER AND HEAT DISTRIBUTIONS SYSTEMS BASED ONCOAL
1. Titleofthesubsidy programme
LawNo.420of1June1994ongovernmental subsidies topromote theconnection tocombined
power andheatdistribution systems based oncoal.
2. Theform ofthesubsidy
Thesubsidy isgiven todistrict heating companies whodistribute heatproduced onCHPbased
oncoal. Iftheconsumer price forheatintheheating areaofthecompanies 'ishigher thantheprice
forheatsupplied bycomparable district heating companies inother areas which alsodistribute heat
produced onCHP asdescribed above.
Thedistrict heating companies musttransfer thesubsidy ascompensation tonewconsumers
thatareconnected tothedistrict heating system ofthecompanies. Thesubsidy isgiven asafixed
amount tosingle-family houses andblocks containing twoormore families.
3. Subsidy perunitortotal
Thetotalbudget ofthesubsidy scheme isabout DKr50million peryear. In1996 grant
commitments under thescheme amounted toDKr49.1million, however, grant payments effected in
thefirsthalfof1996 amounted toDKr39,600,000.
4. Thepolitical aimoftheeffort
Thepurpose ofthesubsidy scheme istopromote theconnection todistrict heating supplied
bycombined heatandpower plants (CHP) based oncoalinorder toreduce CO2emissions. The
subsidies aregiven ascompensation fortheincreased coaltax,carried outin1993.
5. Period ofvalidity
Thewhole scheme isvalid intheperiod 1October 1994 to2000 included. Applications can
bemade onlyonceyearly.
6. Subsidy effect from abusiness point ofview
Itisnotpossible togivestatistical information ofthetrade effects ofanincreased connection
tothedistrict heating systems covered bythescheme.
TheCHP plants donotexport heat. Thesubsidy willnotaffect theDanish electricity prices
because thebenefits ofthescheme gototheheatconsumers according totheDanish rulesonpricing.G/SCM/N/25/EEC
Page166
18. PROGRAMME -DEVELOPMENT AND DEMONSTRATION OFNEW ENERGY
TECHNOLOGIES
1. Titleofthesubsidy programme
Development andDemonstration ofnewEnergy Technologies.
2. Theform ofthesubsidy
Grants andloans.
3. Subsidy perunitortotal
Annual subsidy.
1995: tDKr 1,600
1996: tDKr 3,800
1997: tDKr 8,600
1998: tDKr 1,000
4. Thepolitical aimoftheeffort
Energy political goals: Grant andloantodevelopment anddemonstration ofnewenergy
technology andproducts especially based onresults from public research-projects.
5. Period ofvalidity
1995-1998.
6. Subsidy effect from abusiness point ofview
Thesupport from theprogramme began intheyear1995 andtheresearch-projects arefirst
completed in1997 and1998. Therefore nostatistic information isavailable.G/SCM/N/25/EEC
Page167
19. PROGRAMME-ACTNO.1088OF20DECEMBER1995REGARDINGAMENDMENTS
INTHE ELECTRICITY SUPPLY ACT
1. Titleofthesubsidy programme
ActNo.1088 of20December 1995 regarding amendments intheElectricity Supply Act.
(Settlingofelectricityfromsmall-scalecombinedheat-and-powerplantsorelectricity-productionfacilities
thatutilize biogas, waste orother renewables.)
2. Theform ofthesubsidy
According totheEU-Commission theActforesees aguarantee forpurchasing andaprice for
selling, which according toArticle 92.1, canmake outgrants, ifthese twoelements giveaneconomic
advantage forthesmall-scale combined heat-and-power plants orelectricity production facilities that
utilize biogas, waste orother renewables.
3. Thepolitical aimoftheeffort
TheActsecures payment totheelectricity-supply enterprises thatproduce electricity fromsmall-
scale combined heat-and-power plants orutilize biogas, waste orother renewables.
4. Period ofvalidity
Thesystem contains adefacto time-limit, astheelectricity supply intheyearof2003 will
beabletoabsorb theelectricity, which isproduced according tothisAct.G/SCM/N/25/EEC
Page168
20. PROGRAMME -EXPATRIATE SCHEME ACCORDING TOARTICLE 48EOFTHE
TAX ATSOURCE ACT
1. Titleofthesubsidy programme
Expatriate scheme according toArticle 48EoftheTaxatSource Act.
2. Theform ofthesubsidy
Thepossibility ofa25%flatratetaxonthegross salary ofscientists andkeypersonnel becoming
residents ofDenmark foralimited period oftime. Thescheme isopentoemployees inallsectors.
3. Subsidy perunitortotal
Thesubsidy canbeestimated toapproximately DKr540,000 in1996, DKr520,000 in1997
andDKr460,000 in1998. These aremaximum figures based onthepresumption thatthetotalbenefit
ofthescheme goestotheenterprises interms oflower salary costs. Iftheemployer andtheemployee
share thebenefits between them thesubsidy totheenterprise willbereduced proportionally. Bythe
endof1996, 786employees were taxed under theexpatriate scheme. Thetotalmaximum subsidy
in1996 thusamounts toapprox. DKr42million.
4. Thepolitical aimoftheeffort
Toimprove Denmark 'sinternational competitiveness bypromoting research andproduct
development.
5. Period ofvalidity
Anemployee maybetaxed under theexpatriate scheme foraperiod uptothree years and
maysubsequently remain aresident ofDenmark foraperiod ofuptofouryears. Iftheemployee
remains aresident ofDenmark aftertheexpiry ofthefour-year period thetaxbenefit forthethree
yearperiod willbelost.
6. Subsidy effect from abusiness point ofview
Thescheme isnotconsidered tohavedirect consequences fortrade.G/SCM/N/25/EEC
Page169
21. PROGRAMME -THE ARRANGEMENT OFINDUSTRIAL ZONES
1. Titleofthesubsidy programme
TheArrangement ofIndustrial Zones (Especially favourable fiscal conditions forindustrial
zones).
2. Theform ofthesubsidy
Until theendoftheincome year1999, enterprises established inanindustrial zoneareallowed
todepreciate forfiscal purposes bydouble therateonbusiness property situated inanindustrial zone,
oncondition thattheenterprise wasestablished intheindustrial zonebefore theendof1994. Until
theendof1999, thesame enterprises areexempt from stamp dutyondocuments which concern the
enterprise 'spurchases ofimmovable property situated inindustrial zones. Thesame enterprises are
exempt from municipal landtaxes andservice charges onthesame immovable property.
3. Subsidy perunitortotal
Industrial zones areestablished in10municipalities. According toinformation available only
afewenterprises were established inanindustrial zonebefore theendof1994.
4. Thepolitical aimoftheeffort
Thearrangement results fromapolitical agreement ofMay1992onintensified efforts toactive
unemployed persons, andaims atastrengthening ofindustrial development andemployment in
economical exposed areas. Thearrangement isapilotscheme subject toalimited period oftimeand
geographical restrictions, seealso2and3.
5. Period ofvalidity
See2.
6. Subsidy effect from abusiness point ofview
TheMinistryofTaxationdoesnotpossessanyinformationwhetherthearrangementofindustrial
zones hasbeenusedin1996.G/SCM/N/25/EEC
Page170
22. PROGRAMME -THE ENERGY PACKAGE (CO2andSO2tax)
1. Titleofthesubsidy programme
TheEnergy Package (CO2andSO2tax)
Therelevant EUlegislation istheEUTreaty, Article 92(3c).
Therelevant national legislation is:
- LawNo.417of14June1995 (CO2tax)
- LawNo.421of14June1995 (SO2tax)
2. Theform ofthesubsidy
TheCO2taxisDKr100pertonne CO2discharged when theproduct iscombusted. On
1January 1996 theCO2taxonenergy consumption intrade andindustry inDenmark wasincreased
andthescope ofthetaxwasenlarged. Thetaxrateisgradually increasing untiltheyear2000 asthe
reimbursement toindustry isreduced annually.
TheCO2taxisreimburseddifferentlytobusinessesregisteredforVATdependingontheenergy-
intensity ofthedifferent processes. When theCO2taxisfullyimplemented intheyear2000, 75%
oftheCO2taxwillbereimbursed forenergy-intensive processes. Forprocesses which arenotenergy-
intensive 10%oftheCO2taxwillbereimbursed intheyear2000. Forenergy products usedforheating
purposes noreimbursements aremade.
TheSO2taxonallenergy products wasintroduced on1January 1996. TherateisDKr10
perkgSO2discharged intotheairorDKr20perkgS(sulphur) intheenergy product.
Areduction intheSO2taxforcoalisgiven toenergy-intensive businesses, which have
undertaken anenergy saving action plan.
Thetaxrevenue from CO2andSO2tax
Therevenue from CO2andSO2taxisleadbacktotrade andindustry asinvestment grants
andassubsidies tothepayment oftheCO2taxifthebusiness hasmade anagreement withtheMinistry
ofEnergy toundertake anenergy saving action plan. Furthermore, therevenue isspent onageneral
reduction inthetaxes onlabour (social contributions).
TheEnergy Package hasbeennotified totheEUCommission andtheState Aidaspect has
beenexamined. There arenonetgains intended inthescheme. Since thereimbursements areavailable
onthebasis ofenergy-intensity toallcompanies, regardless ofsector orregion concerned andsince
theauthorities donothave anydiscretionary power inthegranting ofreimbursements, theEU
Commission hasaccepted thescheme.
3. Subsidy perunitortotal
Recycled revenue totradeandindustry wasin1996approx. DKr0.7billion. When theEnergy
Package isfullyintroduced intheyear2000 therecycled revenue willbeapprox. DKr2.1billion.
When theEnergy Package isfullyintroduced intheyear2000 therecycled revenue willbeapprox.
DKr2.1billion.G/SCM/N/25/EEC
Page171
4. Thepolitical aimoftheeffort
Theenvironmental aimoftheDanish energy taxpolicy istosupport international endeavours
toreduce emissions ofcarbon andsulphur andtoconform nationally andinternationally toagreed
environment targets.
5. Period ofvalidity
There willbeageneral review oftheEnergy Package in1998.
6. Subsidy effect from abusiness point ofview
There isnooverall impact oncompetitiveness. Thefiscal burden minus investment grants
isinmost sectors lessthan1%ofthevalue added. Thearrangement isapartial compensation for
theincreased fiscal burden, which thenational CO2andSO2taxes place ontrade andindustry in
Denmark.G/SCM/N/25/EEC
Page172
PART II
PROGRAMME -SUBSIDIES AND STATE AIDTODANISH AGRICULTURE
AND FISHERIES 1996 AND 1997
Introduction
Thisnotification covers inprincipal allnational aidtotheDanish agricultural andfisheries
sectors inthefiscal year1996 (1January-31 December) andthebudgeted amounts forthefiscal year
1997. Consequently, themeasures andprogrammes included arenotified irrespective ofwhether they
themselves warrant anotification under Article 25oftheSCM Agreement. Thefactthattheyarenotified
doesnotimply thattheyare"specific" orthattheyhaveanyeffect ontrade.
Thenotification follows theoutline suggested bytheWTO andusesthefollowing format:
(1) Titleofprogramme
(2) Form ofsubsidy
(3) Amount usedontheprogramme
(4) Policy objective ofprogramme
(5) Duration
(6) Statistical data(estimate oftrade effects)
(7) Legal basis (ActorOrder)
(8) Rules andconditions (forobtaining aidunder theprogramme)
Anumber oftheprogrammes included arethenational implementation ofCommunity
programmes (e.g.theaccompanying measures), andarepartly financed bytheCommunity, partly
byDenmark. Only theamount financed byDenmark islisted.
CONTENTS
1. Income support programmes (agriculture)
2. Structural programmes (agriculture)
3. Environmental programmes (agriculture)
4. Measures tocompensate forlosses duetodamage toagricultural production
5. Research (agriculture andfisheries)
6. General measures (agriculture)
7. Community-related programmes (agriculture)
8. Veterinarian programmes
9. FisheriesG/SCM/N/25/EEC
Page173
1. INCOME SUPPORT PROGRAMMES (AGRICULTURE)
1.1. Titleofthesubsidy programme
Refinancing ofmortgage loans etc.inagricultural holdings
2. Theform ofthesubsidy
Interest subsidy.
3. Amount usedontheprogramme
1996 expenditure: DKr56.8million
1997 budget: DKr50.9million
4. Policy objective ofprogramme
Toeasethefinancing costs forfarmers byrescheduling existing loans tonewlong-term low
interest loans.
5. Duration
Lastapplication date: 15December 1989. Term ofloans: 10or30years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.372of11July1988.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisnolonger available.
Tobeeligible forrefinancing theapplicant hadtohaveagriculture asmain occupation, have
adebtpercentage ofmore than30andhaveeconomic survival capability. TheGovernment tookover
thedebtcommitments fortheloans inquestion, andinreturn thefarmers undertook commitment for
newlow-interest mortgage loans (approx. 2/3oftheinterest ofordinary mortgage loans) orindexed
loans.G/SCM/N/25/EEC
Page174
1.2. Titleofthesubsidy programme
Subsidy toagricultural indexed loans granted inconnection withrefinancing ofmortgage
loans
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr9.9million
1997 budget: DKr13.4million
4. Policy objective ofprogramme
Toeasethefinancing costs forfarmers byreducing thepayment oncertain indexed loans.
5. Duration
Lastapplication date: 15December 1989. Financial commitments for10or15years depending
ontermofloan.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.372of11July1988.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisnolonger available.
Thesubsidy corresponds to15%, 25%or30%oftheannual indexation oftheloandepending
ontheapplicant 'sdebtpercentage atthetimeofapplication.G/SCM/N/25/EEC
Page175
1.3. Titleofthesubsidy programme
Subsidy topayment ofagricultural indexed loans
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr6.9million
1997 budget: DKr9.0million
4. Policy objective ofprogramme
Toreduce thefinancing costs inagriculture bysubsidizing thepayment oncertain indexed
loans.
5. Duration
Lastapplication year: 1990. Financial commitments for15years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNos. 841and850of20December 1989; ActNo.417of13June1990.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisnolonger available.
Thesubsidy corresponds to30%oftheindexation oftheloan.G/SCM/N/25/EEC
Page176
1.4. Titleofthesubsidy programme
Debt rescheduling scheme forfarmers
2. Theform ofthesubsidy
Guaranteed loanandinterest subsidy.
3. Amount usedontheprogramme
1996 expenditure: DKr2.1million
1997 budget: DKr2.2million
4. Policy objective ofprogramme
Toassist farmers inneedofdebtrescheduling duetofinancial crisis.
5. Duration
Lastapplication year: 1983. Term ofloans: 13-23 years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.131of9April 1980.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisnolonger available.
Foraloanwithamaximum sizeofDKr0.7million perapplicant, aguarantee of80%isgranted
withaninterest subsidy forthefirstthree orfiveyears.G/SCM/N/25/EEC
Page177
1.5. Titleofthesubsidy programme
Debt reorganization scheme forfarmers
2. Theform ofthesubsidy
Guaranteed loans.
3. Amount usedontheprogramme
1996 expenditure: Surplus ofDKr13.8million
1997 budget: DKr36.9million
4. Policy objective ofprogramme
Toeasethefuture interest burden andimprove theavailability offunds through rescheduling
ofshort-term highinterest loans.
5. Duration
Lastapplication date: 1April 1994. Term ofloans: 15years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.268of6May1993 asamended byActNo.1108 of22December 1993.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisnolonger available.
Tobeeligible foraloan, theapplicant must have agriculture asmain occupation, adebt
percentage ofatleast70andeconomic survival capability. Themortgage loans arebetween DKr75,000
and1,200,000 perfarm. Alevyof1%ofthebalance oftheloanispayable totheState.G/SCM/N/25/EEC
Page178
2. STRUCTURAL PROGRAMMES (AGRICULTURE)
2.1. Titleofthesubsidy programme
Young Farmers Scheme
2. Theform ofthesubsidy
Guaranteed loans anddirect aid.
3. Amount usedontheprogramme
1996 expenditure: Guaranteed loans DKr5.7million anddirect aidDKr54.4million.
1997 budget: Guaranteed loans DKr14.7million anddirect aidDKr55.4million.
4. Policy objective ofprogramme
Toencourage andeasethegenerational transition intheagricultural sector.
5. Duration
Permanent scheme. Term ofloans: 20years. Direct aid:7years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.397of14June1995.
8. Rules andconditions (forobtaining aidunder theprogramme)
TheState guarantees loans ofamaximum amount ofDKr750,000 depending onthevalue
oftheholding. Interests andrepayments arewholly orinpartpaidbytheStateduring thefirstseven
years ofitsterm. Tobeeligible, theapplicant must bebelow 40years ofage,startinagriculture
asmain occupation andfulfil certain conditions regarding education andcapital.G/SCM/N/25/EEC
Page179
2.2. Titleofthesubsidy programme
Land consolidation programme
2. Theform ofthesubsidy
Compensation forcertain expenses concerning theimplementation ofalandconsolidation
programme.
3. Amount usedontheprogramme
1996 expenditure: DKr13.6million
1997 budget: DKr20.5million
4. Policy objective ofprogramme
Toimprove thephysical structure offarmholdings byre-allotment through landconsolidation.
5. Duration
Nolimit.
6. Statistical data(estimate oftrade effects)
None. Theprogramme hasnotyetbeenmade useof.
7. Legal basis (ActorOrder)
Order No.902of11October 1996.
8. Rules andconditions (forobtaining aidunder theprogramme)
Payments aremade when alandconsolidation scheme hasbeenaccepted bytheauthorities.G/SCM/N/25/EEC
Page180
2.3. Titleofthesubsidy programme
Workmens 'houses inrural areas
2. Theform ofthesubsidy
Interest-free loans.
3. Amount usedontheprogramme
1996 expenditure: DKr0.05million
1997 budget: DKr0.2million
4. Policy objective ofprogramme
Helpfarmworkers tobeabletofinance theirownhome andthereby ensuring theavailability
oflabourers fortheagricultural sector. Theprogramme came toanendin1975, andexpenses in1995
and1996 relate toloans given before thattime.
5. Duration
Thelastloanwasgiven in1977, andwillbepaidoutoveraperiod of20years. Thus, the
scheme willcome toanendin1997.
6. Statistical data(estimate oftrade effects)
Noinformation isavailable. Thecharacter andthesizeoftheprogramme indicates thatthere
willbenotrade effects.
7. Legal basis (ActorOrder)
ActNo.48of5February 1993.
8. Rules andconditions (forobtaining aidunder theprogramme)
Thepurpose oftheprogramme wastohelpfarmers togetaplace oftheirownandthereby
ensuring availability oflabour intheagricultural sector.G/SCM/N/25/EEC
Page181
3. ENVIRONMENTAL PROGRAMMES (AGRICULTURE)
3.1. Titleofthesubsidy programme
Agricultural investments withtheaimofprotecting andimproving theenvironment
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr103.5 million
1997 budget: DKr48.3million
4. Policy objective ofprogramme
Aidtofarmers investing instorage facilities sufficient tomeettherequirements concerning
thespreading andutilization ofmanure inthefields.
5. Duration
Lastapplication date: 31March 1996 (forsome groups 31December 1996). Aidispaidas
alump sum,except forinvestments above DKr85,000 insingle-farm storage facilities, where theaid
isgranted overaten-year period.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.16of14January 1987.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible thecapacity ofthestorage facilities mustbeapproved bythelocalauthorities.
Theaidgranted is35%or25%ofinvestments instorage facilities. Maximum: DKr150,000. 40%
ofinvestmentsincooperativefacilitiesforprocessingofmanure(bio-gasetc.).Maximum:DKr150,000
peragricultural holding supplying thefacility.G/SCM/N/25/EEC
Page182
3.2. Titleofthesubsidy programme
Guarantee forloans foragricultural investments withtheaimofprotecting andimproving
theenvironment
2. Theform ofthesubsidy
Guaranteed loans.
3. Amount usedontheprogramme
1996 expenditure: DKr0.9million
1997 budget: DKr1.3million
4. Policy objective ofprogramme
Aidtofarmers investing instorage facilities sufficient tomeettherequirements concerning
thespreading andutilization ofmanure inthefields.
5. Duration
Lastapplication date: 31March 1996(forsome groups 31December 1996). Term ofloans:
15years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.16of14January 1987.
8. Rules andconditions (forobtaining aidunder theprogramme)
Toobtain aguarantee theinvestment mustbeapproved bythelocalauthorities andsupported
under thescheme "Agricultural investments withtheaimofprotecting andimproving theenvironment".
Guarantee of80%ofloans withamaximum ofDKr400,000.G/SCM/N/25/EEC
Page183
4. MEASURESTOCOMPENSATEFORLOSSESDUETODAMAGETOAGRICULTURAL
PRODUCTION
4.1. Titleofthesubsidy programme
Guaranteed "drought loans" withrepayment subsidy
2. Theform ofthesubsidy
Guaranteed loans andrepayment subsidy.
3. Amount usedontheprogramme
1996 expenditure: DKr6.8million
1997 budget: DKr6.4million
4. Policy objective ofprogramme
Toeasetheconsequence ofthe1992-drought bysubsidizing thefarmers whosuffered themost.
5. Duration
Lastapplication date: 1May1993. Term ofloans: 10years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.918of25November 1992.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible foraloantheapplicant musthaveagriculture asmainoccupation, haveadrought-
induced lossofatleast30%andhaveadebtpercentage ofatleast50%. Therepayment subsidy is
onlygranted toapplicants having adebtpercentage ofatleast65%. Thesubsidy isgranted overa
five-year period, decreasing overthelastthree years forloans ofamaximum ofDKr1million.G/SCM/N/25/EEC
Page184
4.2. Titleofthesubsidy programme
Guaranteed "drought loans" withinterest subsidy
2. Theform ofthesubsidy
Guaranteed loans andinterest subsidy.
3. Amount usedontheprogramme
1996 expenditure: DKr0.02million.
1997 budget: Noexpenses.
4. Policy objective ofprogramme
Toeasetheconsequences ofcroplossin1987 duetodrought bysubsidizing certain farmers.
5. Duration
Lastapplication year: 1988. Term ofloans: 7years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.867of23December 1987.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible, theapplicant must haveadrought-induced lossofatleast25%andadebt
percentage ofatleast65%. Foraloanbetween DKr25,000 andDKr0.5million aguarantee for80%
oftheloanisgranted. A5%interest subsidy isgranted forthree years, ifthecroplossisatleast
40%.G/SCM/N/25/EEC
Page185
5. RESEARCH (AGRICULTURE AND FISHERIES)
5.1. Titleofthesubsidy programme
Public Agricultural andFisheries Research Institutions
2. Theform ofthesubsidy
Basefunding forAgricultural andFisheries Research Institutions
3. Amount usedontheprogramme
1996 expenditure: DKr487.0 million
1997 budget: DKr431.9 million
4. Policy objective ofprogramme
TheAgricultural andFisheries Research Institutions are:
- TheDanish Institute ofAgricultural andFisheries Economics
- TheDanish Veterinary Institute forVirus Research
- TheDanish Veterinary Laboratory
- TheDanish PestInfestation Laboratory
- TheInstitute forPlant andSoilScience
- TheInstitute forAnimal Science
- TheDanish Institute forFishing Research
- Other Fishing Research Institutions
TheInstitute ofAgricultural andFisheries Economics -Collects account statistics foragriculture,
horticulture andfisheries andconducts research onagricultural andfisheries economic conditions.
TheDanish Veterinary Institute forVirus Research -Contributes totheprevention anderadication
ofanimal viraldiseases, including foreign ("exotic") diseases which mayposeathreat totheexport
ofanimal products.
TheaimoftheDanish Veterinary Laboratory -istopromote animal health andthusfacilitate the
production ofhealthy animal foodstuffs. TheInstitute manufactures andsellsvaccines andserafor
veterinary use. TheInstitute ispartoftheDanish veterinary contingency plan.
PestInfestation Laboratory -isaresearch- andexperimental laboratory withthepurpose ofcarrying
outresearch, experiments andcontrol, collecting knowledge concerning pestsinorder tooptimize the
combat ofpests, stillconsidering theeffects ontheenvironment, examining alternative combat/methods
andcontributing toanefficient andsafepropagation ofresults toitsusers.
TheInstitute forPlant andSoilScience -isacombined research- andexperimental institute, withthe
purpose ofdoing research andexperiments andcollecting knowledge inorder topromote commercial,
vegetable production inDenmark andcontribute toanefficient andsafepropagation ofresults toits
users.
TheInstitute forAnimal Science -conducts research ofimportance toanimal husbandry production
andagricultural engineering andcontributes toanefficient andsafepropagation ofresults toitsusers.G/SCM/N/25/EEC
Page186
TheDanish Institute forFishing Research -conducts research ofimportance totheFisheries sector.
5. Duration
Theschemes arepermanent.
6. Statistical data(estimate oftrade effects)
Theschemes havenotrade effects.
7. Legal basis (ActorOrder)
Thelegal basis fortheschemes are: TheFinance Act(§24.33.13, §24.32.21, §24.32.25,
§24.33.15, §24.33.03, §24.33.05, §24.38).
8. Rules andconditions (forobtaining aidunder theprogramme)
TheAgricultural andFisheries Research Institutions receive funds allowing them toexecute
theirpurposes asmentioned above.G/SCM/N/25/EEC
Page187
6. GENERAL MEASURES (AGRICULTURE)
6.1. Titleofthesubsidy programme
Promille Levy Funds andProduction Levy Funds
2. Theform ofthesubsidy
Grants.
3. Amount usedontheprogramme
Subsidies from thePromille Levy Funds:
1996 expenditure: DKr169.5 million
1997 budget: DKr208.3 million
Production levies intotheProduction Levy Funds:
1996 income (budget): DKr306.8 million
1997 income (budget): DKr310.0 million (est.)
4. Policy objective ofprogramme
ThePromille LevyFunds arefinanced byrecycled revenues fromtheDanish taxesonpesticides
andby(EU) agro-monetarian compensation tofarmers.
Themeans fromthePromille Levy Funds areusedtosubsidize thedifferent Production Levy
Funds (ie.professional funds).
Thepurpose ofthesystem ofthePromille Levy Funds andtheProduction Levy Funds isto
contribute tothefinancing ofcommon activities inthesectors ofagriculture andgardening asregards
salespromotion, research, product development, advising, training, prevention ofdiseases etc.
5. Duration
Thescheme ispermanent.
6. Statistical data(estimate oftrade effects)
Themeasures being general, theyhavenotrade effects possible toassess.
7. Legal basis (ActorOrder)
ThePromille Levy Funds, firstsetupin1978 aretoday based legally oncodeNo.414of
13June1990 ontheadministration oftheEuropean Community 'sregulations onmarket system for
agricultural products etc.,withsubsequent amendments.G/SCM/N/25/EEC
Page188
8. Rules andconditions (forobtaining aidunder theprogramme)
TheProduction Levy Funds usetheirrevenues which, beside thesubsidy from thePromille
Levy Funds, consist ofparafiscal production levies, andareusedtofinance activities suchassales
promotion, research, advising, education etc.inaccordance withcodeNo.414,Article 7.
Thesystem ofthePromille andProduction Levy Funds hasexisted since 1978 andisbased
onone-year-budgeting. Thebudgets areapproved bytheMinistry andmust meet allthelegal
requirements atbothnational- andEU-levels.G/SCM/N/25/EEC
Page189
6.2. Titleofthesubsidy programme
Aidtoproduct development ofagricultural andfisheries products
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr182.4 million
1997 budget: DKr191.1 million
4. Policy objective ofprogramme
Topromote thedevelopment ofactivity inprimary agriculture andthemanufacturing sectors
ofagriculture andfisheries.
5. Duration
Thescheme willberevised in1997-1998.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
ActNo.340of14May1992, asamended.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidcanbegiven tothecommercial exploitation oftheresults ofdevelopment projects. It
isgiven:
(i) tothedevelopment ofnewproducts intheprimary agricultural sector;
(ii) tothedevelopment ofprocessed products intheagricultural andfishing industry; and
(iii) tomarketing ofproducts fromtheprimary agricultural sector andtheagricultural and
fishery sector.
repoint(i)-Asubsidy of40%oftheadditional expenses oftheproject isgranted. 50%oftheadditional
expenses canbesubsidized, iftheproject concerns organic production, orthevalue oftheapplicants
ownwork constitutes asignificant partoftheexpenses, ortheproject isapilotproject. Maximum
aid:ECU 12,500. Itisacondition thattheapplicant possesses thenecessary skills tocarry outthe
project. Itisalsoacondition thatthesubsidy isnecessary fortheinitiation oftheproject. Theproject
must alsohaveagenuine novelty value fortheagricultural sector.G/SCM/N/25/EEC
Page190
repoint (ii)-Asubsidy of40%oftheadditional expenses isgranted. 50%oftheexpenses canbe
subsidized uptoamaximum ofECU 100,000, ifmore than50%ofthetotalexpenses concern basic
science, ortheproject concerns development oforganic agricultural products, ortheproject isapilot
project conducted byasmall ormedium-sized enterprise. More than50%oftheexpenses canbe
subsidized, iftheproject iscarried outbyaresearch ordevelopment institution. Itisacondition that
thesubsidy isnecessary fortheinitiation oftheproject andthattheprojet represents agenuine novelty
value fortheagricultural sector. Theproject mustalsorepresent anexpansion ofthetotaldevelopment
activities oftheapplicant.
repoint (iii)-Asubsidy ofmaximum 50%oftheadditional expenses isgranted. Theproject must
represent anexpansion ofthetotalmarketing activities oftheapplicant andtheaidmustbeofsubstantial
significance fortheproject. When certain conditions aremet,there isnogeneral maximum aidin
absolute figures.
Asageneral ruletheaidisrepayable, iftheresults oftheproject areusedcommercially.
If,however, asector asawhole (or,apartofit)benefits from thesubsidized activity theaidisnot
repayable.G/SCM/N/25/EEC
Page191
6.3. Titleofthesubsidy programme
Advisory services inagriculture
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr128.1 million
1997 budget: DKr136.0 million
4. Policy objective ofprogramme
Tofurther theextension ofnewtechniques ofproduction andmanagement andtoensure that
farmers areoffered low-cost advisory services within specific relevant productions.
5. Duration
Permanent.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnodirect effects ontrade.
7. Legal basis (ActorOrder)
ActNo.813of21December 1988 asamended byActNo.296of24April 1996.
8. Rules andconditions (forobtaining aidunder theprogramme)
Anumber ofagricultural advisory services canreceive amaximum of50% ofthewage
expenditure, within specific approved consultancy programmes.G/SCM/N/25/EEC
Page192
6.4. Titleofthesubsidy programme
Compensation ofthelosses encountered bysome localauthorities duetotheintroduction
ofaceiling onagricultural landtaxrates
2. Theform ofthesubsidy
Indirect aid.
3. Amount usedontheprogramme
1996 expenditure: DKr31.1million
1997 budget: Noexpenses
4. Policy objective ofprogramme
Inorder toeasetheburden ofhigher rateoflandtax,alimitof15%onagricultural holdings
hasbeenimplemented nationwide. Thishasmade itnecessary tocompensate thelocalmunicipalities
fortheirlossoftaxrevenue.
5. Duration
Three years (1994-1996).
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.808of4December 1990.
8. Rules andconditions (forobtaining aidunder theprogramme)
Thedifference between thelocallandtaxrateandtheceiling of15%. Maximum difference
in1994: 9%.G/SCM/N/25/EEC
Page193
7. COMMUNITY-RELATED PROGRAMMES (AGRICULTURE)
7.1. Titleofthesubsidy programme
Aidforinvestments inagricultural holdings
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr257.2 million
1997 budget: DKr265.6 million
4. Policy objective ofprogramme
Toimprove theconditions onholdings bysupporting investments.
5. Duration
Permanent scheme.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.479of12June1996. Implementing EEC Regulation 2328/91.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible theapplicant musthaveagriculture asmainoccupation, beinneedofsupport,
andpresent aninvestment plan. Forinvestments inagricultural buildings, anannual subsidy of5.5%
isgranted fortenyears. Forother investments, anannual subsidy of4%isgranted forseven years.
Fornewentrants under 40years ofageaone-off supplement ofapproximately 8.75% forinvestments
inbuildings andapproximately 5%forother investments isgranted.G/SCM/N/25/EEC
Page194
7.2 Titleofthesubsidy programme
Cooperation within recognized groups
(Etablering afsamarbejde)
2. Theform ofthesubsidy
Direct aid
3. Subsidy perunitortotal
1996 Expenditure Dkr0.3million
1997 Budget DKr0.3million
4. Thepolitical aimoftheeffort
Toencourage cooperation between farmers withaviewtoachieve e.g.amore rational joint
useofagricultural means ofproduction.
5. Period ofvalidity
Permanent scheme
6. Subsidy effect from abusiness point ofview
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.198of9April 1986, asamended. Implementing EEC Regulation 2328/91.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible forsupport, theconditions oftheco-operation must beapproved. Aidto
administrative costs inlaunching ofcooperation isavailable within aceiling ofapproximately
DKr135,000.G/SCM/N/25/EEC
Page195
7.3. Titleofthesubsidy programme
Vocational training inagriculture
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr11.7million
1997 budget: DKr9.2million
4. Policy objective ofprogramme
Tofurther thevocational training inagriculture.
5. Duration
Permanent scheme.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.17of14January 1987, asamended. Implementing EEC regulation 2328/91.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisgranted formaximum of60%ofthecosts forcourses withatleastthree continuous
daysofinstruction orthreeinstruction dayswiththesame group ofparticipants, unless theinstruction
concerns certain compulsory subjects.G/SCM/N/25/EEC
Page196
7.4. Titleofthesubsidy programme
Environmentally friendly farming
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr18.8million
1997 budget: DKr77.6million
4. Policy objective ofprogramme
Toencourage environmentally friendly extensive cultivation oftheareas andtominimize the
risksofpollution oftheground water resources.
5. Duration
Permanent programme. Thepresent budget period (EUco-financing) runsfrom1993-1997.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.198of9April 1986, asamended. Implementing EEC Regulation 2078/92.
8. Rules andconditions (forobtaining aidunder theprogramme)
Anannual subsidy ofbetween DKr375andDKr2,125 hectares (depending onthepurpose,
theyear, andpossibly theyield level) isgranted forfiveyears (20years forset-aside ofarable land).
Thegrant alsodepends onwhether theareainquestion issituated inanenvironmentally sensitive
agricultural area.G/SCM/N/25/EEC
Page197
7.5. Titleofthesubsidy programme
Early retirement from farming
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr12.4million
1997 budget: DKr15.6million
4. Policy objective ofprogramme
Tosecure theincome ofelderly farmers, whostopfarming, andtoimprove theeconomic
viability oftheremaining farmholdings through theirtaking overtheholdings participating intheearly
retirement scheme.
5. Duration
Application period from1January 1994through 31December 1998. Financial commitments
forupto12years hereafter.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
Act.No.1106 of22December 1993 asamended. Implementing EECRegulation 2079/92.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible theapplicant mustbeatleast55years ofageandhavehadagriculture asmain
occupation inthepreceding tenyears. Thesubsidy isgranted from thetimeofretirement tothe
67thbirthday oftheapplicant. Itconsists ofanannual compensation ofDKr37,392 andanannual
allowance ofDKr2,337 perhectare ofreleased land, within aceiling ofDKr93,480 ayear.G/SCM/N/25/EEC
Page198
7.6. Titleofthesubsidy programme
Set-aside ofarable land
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr1.1million
1997 budget: Noexpenses
4. Policy objective ofprogramme
Todecrease production andtoshiftproduction from surplus products.
5. Duration
Lastapplication date: 1July1991. Financial commitments fiveyears hereafter.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.198of9April 1986, asamended. Implementing EEC Regulation 2328/91.
8. Rules andconditions (forobtaining aidunder theprogramme)
Anannual subsidy ofbetween DKr600and3,850 perhectare (depending ontheuseofthe
areainquestion andtheprior yield level) wasgranted forfiveyears.G/SCM/N/25/EEC
Page199
7.7. Titleofthesubsidy programme
Environmentally friendly farming insensitive areas
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr3.4million
1997 budget: DKr0.1million
4. Policy objective ofprogramme
Introductionofmethodsoffarming,whichareenvironmentallyfriendlyorhelppreservesensitive
areas.
5. Duration
Lastapplication date: 31December 1991. Financial commitments: 5years.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.198of9April 1986, asamended. Implementing EEC Regulation 2328/91.
8. Rules andconditions (forobtaining aidunder theprogramme)
Maximum subsidy ofDKr900perhectare, granted tofacilitate theintroduction ormaintenance
ofenvironmentally friendly methods offarming.G/SCM/N/25/EEC
Page200
7.8. Titleofthesubsidy programme
Establishment ofshelter belts
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr19.3million
1997 budget: DKr18.2million
4. Policy objective ofprogramme
Toprevent sanddriftandthrough allocation ofsubsidies toobtain economic aswellasplanning,
preservation andenvironmental purposes.
5. Duration
Period ofpresent programme: 1993-1997.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
Order No.812of21December 1988, asamended. Implementing EECRegulation 2080/92.
8. Rules andconditions (forobtaining aidunder theprogramme)
Forcollectiveestablishmentofshelterbelts:Amaximumof70%ofexpenditure.Forindividual
establishment ofshelter beltsthesubsidy granted is50%ofthecosts oftheplants.G/SCM/N/25/EEC
Page201
7.9. Titleofthesubsidy programme
Organic farming
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr56.7million
1997 budget: DKr98.6million
4. Policy objective ofprogramme
Theaidisgiven tofacilitate thetransition andimprove theconditions fororganic farming.
5. Duration
Period ofpresent programme: 1994-1999.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.198of9April 1986. Implementing EEC Regulation 2078/92.
8. Rules andconditions (forobtaining aidunder theprogramme)
Itisacondition thattheentire holding isconverted toorganic farming within fouryears from
thebeginning oftheconversion. Itisalsoacondition thattheorganic production ontheholding is
maintained foratleastfiveyears. Aidisgiven to:
(i) Theindividual organic farmforafive-year period. Asupplementary aidisgiven to
farmers,whoconverttoorganicfarming,inthetwoyearsconversionperiod.Maximum
ordinary assistance: DKr1050 perhectare.
(ii) Projects tofurther thedevelopment andimprove theconditions oforganic production.
Subsidy isgranted for40%oftheexpenses. Research projects andprojects, which
make information onorganic farming more accessible, canbegranted ahigher rate
ofsubsidy than40%.G/SCM/N/25/EEC
Page202
7.10. Titleofthesubsidy programme
Investments forimproving theprocessing andmarketing conditions foragricultural and
forestry products
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: Surplus ofDKr28.4million
1997 budget: DKr15.3million
4. Policy objective ofprogramme
Toimprove theprocessing andmarketing conditions foragricultural andforestry products.
5. Duration
Period ofpresent programme: 1994-1999.
6. Statistical data(estimate oftrade effects)
Animprovement oftheconditions forprocessing andmarketing isassumed toimply more
competitive products. However, thetrade effects cannot bequantified.
7. Legal basis (ActorOrder)
ActNo.89of23February 1991. Implementing EEC Regulations 866/90 and867/90.
8. Rules andconditions (forobtaining aidunder theprogramme)
Tobeeligible, theinvestors mustmanufacture agricultural orforestry products. Maximum
aidofupto17.5% oftheeligible investment.G/SCM/N/25/EEC
Page203
7.11. Titleofthesubsidy programme
Development ofspecific rural areas
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr10.3million
1997 budget: DKr31.0million
4. Policy objective ofprogramme
Toimprove thedevelopment ofspecific ruralareas bymeans ofsubsidizing theimprovement
ofmethods ofproduction, development ofnewproducts etc.
5. Duration
Period ofpresent programme: 1994-1999.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.198of9April 1986. Implementing EEC Regulation 2081/93.
8. Rules andconditions (forobtaining aidunder theprogramme)
Itisacondition forsupport thattheholding issituated incertain rural areas andthatthe
investments contribute tolocal development. Asubsidy ofupto50%isgranted atamaximum of
DKr650,000 perholding. Forprojects concerning handicraft onfarms orruraltourism, themaximum
subsidy isDKr360,000 perholding.G/SCM/N/25/EEC
Page204
7.12. Titleofthesubsidy programme
Farm Relief Services
2. Theform ofthesubsidy
Direct aid.
3. Amount usedontheprogramme
1996 expenditure: DKr48.3million
1997 budget: DKr43.0million
4. Policy objective ofprogramme
Toimprove theworking conditions ofthefarmers byproviding aidforsubstitute labour services
incertain cases.
5. Duration
Permanent scheme.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
ActNo.209of13May1981, asamended.
8. Rules andconditions (forobtaining aidunder theprogramme)
Aidisgranted tocover expenses fortemporary relief necessitated bythefarmer 'ssickness
orabsence because ofin-service training. Aidisalsogiven tothetraining ofsubstitutes.G/SCM/N/25/EEC
Page205
8. VETERINARIAN PROGRAMMES
8.1. Titleofthesubsidy programme
Control ofMastitis andother veterinarian measures
2. Theform ofthesubsidy
Subsidy isgranted tothedairy-organization, which carries outthecontrol.
3. Amount usedontheprogramme
1996 expenditure: DKr6.5million
1997 budget: DKr8.7million
4. Policy objective ofprogramme
TheMastitis Control Programme aimsatraising thequality ofmilkandmilkproducts. The
Veterinary Assistance Programme forsmaller islands aimstoremove theextra costs inconnection
withveterinary treatment forfarms onislands without alocalveterinarian.
5. Duration
Theprogrammes arepermanent.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
TheMastitis Control Programme isbased onOrder No.853of16December 1991.
8. Rules andconditions (forobtaining aidunder theprogramme)
Theamount ofthesubsidy isfixed intheannual budget. Thesubsidy ispaid, when thedairy-
organization hasjustified thatthemastitis control hasbeencarried outinaccordance withtheconditions
inthesaidOrder.G/SCM/N/25/EEC
Page206
9. FISHERIES
9.1. Titleofthesubsidy programme
Fishing vessels -permanent cessation
2. Theform ofthesubsidy
Grants aregiven tothedecommissioning offishing vessels.
3. Amount usedontheprogramme
1996 expenditure: DKr35.1million
1997 budget: DKr79.3million
4. Policy objective ofprogramme
Subsidy forretirement ofvessels isgranted tohelpachieve abalance between fleetsizeand
fishing possibilities.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.222of22April 1987, asamended (byActNo.1051 of
23December 1992) andsupplemented byGovernment Regulation No.656of4July1996.
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withEEC Regulations 3699/93.G/SCM/N/25/EEC
Page207
9.2. Titleofthesubsidy programme
Subsidies tosmall fishing scale coastal ontheNorthern coast ofWestern Jutland
2. Theform ofthesubsidy
Grant.
3. Amount usedontheprogramme
1996 expenditure: DKr0.1million
1997 budget: DKr0.1million
4. Policy objective ofprogramme
Tosecure thefishing possibilities from beaches ontheNorth coast ofWestern Jutland by
maintaining hauling-up winches forvessels.
5. Duration
Thearrangement ispermanent.
6. Statistical data(estimate oftrade effects)
Thearrangement hasnocommercial consequences.
7. Legal basis (ActorOrder)
Thesubsidy isbased ontheBudget (§24.26)
8. Rules andconditions (forobtaining aidunder theprogramme)
Thesubsidy isallocated tolocalassociations offishermen.G/SCM/N/25/EEC
Page208
9.3. Titleofthesubsidy programme
Structural aidtofish-processing industry
2. Theform ofthesubsidy
Subsidy isgranted inconnection withrelevant capital investments.
3. Amount usedontheprogramme
1996 expenditure: DKr3.1million
1997 budget: DKr3.0million
4. Policy objective ofprogramme
Thesubsidy isbased onthesector planfortheDanish fishing industry for1994-1999, and
aimsatimproving theefficiency, quality andutilization ofresources inplants dealing withtheprocessing
orstorage offishandfishery products fordirect human consumption.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.124of29March 1978 (asamended).
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withEEC Regulations and3699/93.G/SCM/N/25/EEC
Page209
9.4. Titleofthesubsidy programme
Subsidies forconsultant activity forfishermen andaquaculture producers
2. Theform ofthesubsidy
Grants toassociations offishermen andaquaculture producers fortheemployment offinancial
andtechnical experts.
3. Amount usedontheprogramme
1996 expenditure: DKr1.7million
1997 budget: DKr2.2million
4. Policy objective ofprogramme
Thesubsidy isgiven tohelpDanish fishermen tomake economically sound decisions andto
takeadvantage oftheDanish andCommunity structural measures according tothesector planforthe
Danish fishing industry for1994-1999. 16experts were employed in1996.
5. Duration
Thearrangement ispermanent.
6. Statistical data(estimate oftrade effects)
Theprogramme hasnoeffects ontrade.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.113of29March 1978 (asamended).
8. Rules andconditions (forobtaining aidunder theprogramme)
Subsidy isgranted forthehiring offishing consultants inorder togivetechnical andeconomic
advice tothefishermen.G/SCM/N/25/EEC
Page210
9.5. Titleofthesubsidy programme
Modernization andnewconstruction offishing vessels
2. Theform ofthesubsidy
Subsidy isgranted inconnection withrelevant capital investments.
3. Amount usedontheprogramme
1996 expenditure: DKr5.0million
1997 budget: DKr12.5million
4. Policy objective ofprogramme
Theaimistomodernize thefishing fleet, andthereby improve theefficiency, quality and
utilization ofresources inthefisheries sector.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects oftrade arenotavailable.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.222of22April 1987, asamended byActNo.1051 of
23December 1992.
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withEEC Regulations 2080/93 and3699/93.G/SCM/N/25/EEC
Page211
9.6. Titleofthesubsidy programme
Development oftheaquaculture industry
2. Theform ofthesubsidy
Subsidy isgranted inconnection withrelevant capital investments.
3. Amount usedontheprogramme
1996 expenditure: DKr1.8million
1997 budget: DKr2.0million
4. Policy objective ofprogramme
Modernization anddevelopment ofaquaculture plants.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.222of22April 1987, asamended byActNo.1051 of
23December 1992.
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withEEC Regulations 2080/93 and3699/93.G/SCM/N/25/EEC
Page212
9.7. Titleofthesubsidy programme
Modernization offacilities infishing harbours
2. Theform ofthesubsidy
Subsidy isgranted inconnection withrelevant capital investments.
3. Amount usedontheprogramme
1996 expenditure: DKr1.6million
1997 budget: DKr2.5million
4. Policy objective ofprogramme
Modernization anddevelopment offacilities forthehandling offishinfishing harbours.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.222of22April 1987, asamended byActNo.1051 of
23December 1992.
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withEEC Regulations 2080/93 and3699/93.G/SCM/N/25/EEC
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9.8. Titleofthesubsidy programme
Market promotion forfishery andaquaculture products
2. Theform ofthesubsidy
Subsidy isgranted torelevant projects regarding among other things research ofthemarket
forfishery andaquaculture products.
3. Amount usedontheprogramme
1996 expenditure: DKr6.9million
1997 budget: DKr10.9million
4. Policy objective ofprogramme
Promotion ofnewmarket outlets forfishery andaquaculture products.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.222of22April 1987, asamended byActNo.1051 of
23December 1992.
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withEEC Regulations 2080/93 and3699/93.
9.9. Titleofthesubsidy programme
Loans toyoung fishermen
2. Theform ofthesubsidy
Loans.
3. Amount usedontheprogramme
1996 expenditure: Noexpenses
1997 budget: DKr2.0million
4. Policy objective ofprogramme
Theaimistohelpyoung fishermen getting started inthefishing sector.G/SCM/N/25/EEC
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5. Duration
Theprogramme expires intheyear2000.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
Theloanisbased onActNo.483of1996.
8. Rules andconditions (forobtaining aidunder theprogramme)
Loans aregiven toyoung fishermen whoarefirsttimebuyers offishing vessels. Thefishing
vessel issecurity fortheloan.G/SCM/N/25/EEC
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9.10. Titleofthesubsidy programme
Supplementary cessation aidforfishermen
2. Theform ofthesubsidy
Subsidy isgranted asdirect aid.
3. Amount usedontheprogramme
1996 expenditure: DKr0.7million
1997 budget: DKr1.5million
4. Policy objective ofprogramme
Theaimistofacilitate retirement from active fishing forowners ofandworkers onfishing
vessels which aredecommissioned withgovernmental assistance.
5. Duration
Theprogramme expires in1999.
6. Statistical data(estimate oftrade effects)
Estimates ontheeffects ontrade arenotavailable.
7. Legal basis (ActorOrder)
Thesubsidy isbased onActNo.1081, 1993.
8. Rules andconditions (forobtaining aidunder theprogramme)
Grants aregiven inaccordance withActNo.1081, 1996. Maximum grant perperson is
DKr93,480 peryearfortenyears.