WORLD TRADE
ORGANIZATIONG/SCM/N/38/EEC/Add.8
21 December 1998
(98-5133)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Ireland .G/SCM/N/38/EEC/Add.8
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IRELAND
TABLE OF CONTENTS
Page
1. Enterprise Areas Scheme ...............................................................................................32. Aughinish Alumina Relief ..............................................................................................4
3. Sea Fishing – Repayment of hydrocarbon oil and LPG excise duty in the
case of se a fishing ............................................................................................................ 5
4. Relief for Glasshouse/m ushroom operators .................................................................6
5. Group Marketing Scheme..............................................................................................76. Scheme of Premiums for Maintaining Pure Bred Kerry Herds of Cattle .................7
7. Grant-in-aid to Federati on of Irish Beekeepers...........................................................8
8. Tomato Marketing Improvement Assistance Programme..........................................9G/SCM/N/38/EEC/Add.8
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1. Enterprise Areas Scheme
1.1 Title of the subsidy programme Error! Bookmark not defined.
Enterprise Areas Scheme
1.2 Brief description/identification of the subsidy
This is a scheme of tax incentives aimed at encouraging the provision of jobs in certain deprived
areas of the country.  The Enterprise Areas incentives involve capital allowances which are available to
owners and lessors of property and double rent relief and rates relief available to tenants.
2. Period covered by the notification
August 1994 to date.
3. Policy objective and/or purpose of the subsidy
To promote investment and encourage the provision of jobs in certain deprived areas of the
country.
4. Background and authority for the subsidy
Scheme was first introduced in the 1995 Finance Act, Section 35(1). Legislation consolidated in
Sections 339 to 350 of the Taxes Consolidation Act 1997, as amended.
5. Form of the subsidy
(a) A tax concession in the form of capital allowances for owner occupiers and lessors of
commercial and industrial buildings.
(b) A tax concession in the form of double rent allowance for the lessees of such buildings(c) A relief from local authority taxes/rates for the tenants of such buildings
6. To whom and how is the subsidy provided
Companies eligible under the Scheme are manufacturing or service firms which must have been
certified as qualifying trading operations by the Minister for Enterprise, Trade and Employment and musthave been approved for financial assistance by one of the State agencies (either IDA Ireland, Enterprise
Ireland or Udaras na Gaeltachta).
7. Subsidy per unit/amount of subsidy
Companies benefitting under the Scheme qualify for tax reliefs over a ten year period. The
Exchequer cost is estimated at £6.6 million (undiscounted). This cost was calculated over 10 years based
on 16 companies assisted at the time of estimation. The discounted figure is approximately £3.7 million.G/SCM/N/38/EEC/Add.8
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8. Time limits for the Enterprise Areas
Area Name Qualifying period Comments
East Point Business Park 1/08/1994 - 31/12/1998 The developer has an additional
Dublin year (to 31/12/1999) to secure 
qualifying tenants
Fitzs Boreen 1/08/1994 - 31/12/1997 The developer has an additional
Cork year (to 31/12/1998) to secure 
qualifying tenants
Westside 1/08/1994 - 31/12/1998 The developer has an additional
Galway year (to 31/12/1999) to secure 
qualifying tenants
Spring Lane 1/08/1994 - 31/07/1997 Expired
Blackpool, Cork
Macken Street/ 1/08/1994 - 31/07/1997 Expired
Grand Canal Street
Dublin
Rosslare 1/07/1997 - 31/12/1999
Co Wexford
Cherry Orchard 1/07/1997 - 31/12/1999
Dublin
Finglas 1/07/1997 - 31/12/1999
Dublin
Regional Airport From date of designation Subject to EU Commission
Enterprise Areas to 31/12/1999 approval
9.  Assessment of trade effects
Since Ireland currently has a cohort of just 25 companies entitled to benefit under the Scheme
and since qualification is dependent on location within certain restricted areas, the effect of the
Scheme is primarily on the internal locations of a small number of enterprises in Ireland. Accordingly,
any effects on trade arising from the Scheme are likely to be minimal.
2. Aughinish Alumina Relief
1. Title of subsidy
Aughinish Alumina relief
2. Policy objective of the subsidy
To maintain competitiveness.G/SCM/N/38/EEC/Add.8
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3. Background and authority for the subsidy
The relief was introduced under S.I. No. 126 of 1983.  Council decision 92/510/EEC
authorized Ireland to continue to grant excise duty relief in respect of oil used in the production of
alumina in the Shannon region (Aughinish).  This relief was granted in accordance with provisions of
Article 8.4 of Directive 92/81/EEC which sets out the structure of excise duty for oil products in the
Single Market.
4. Form of the subsidy
Excise duty relief.
5. How the subsidy is provided (destination)
The subsidy is provided to Aughinish Alumina Ltd. in the form of relief from payment of
duty on Heavy Fuel Oil used to produce aluminium.
6. Total amount of subsidy
The total amount was Approx.  IEP £800,000
7. Duration of the subsidy
The relief in operation since 1983 is not time limited but will be subject to review as indicated
above.
8. Assessment of the trade effects of subsidy
None available.
3. Sea Fishing - Repayment of hydrocarbon oil and LPG excise duty in the case of sea
fishing
1. Title of subsidy
Sea Fishing - Repayment of hydrocarbon oil and LPG excise duty in the case of sea fishing
2. Policy objective of the subsidy
To assist the sea-fishing industry.
3. Background and authority for the subsidy
Imposition of Duties (No. 255) (Hydrocarbon Oils) Order, 1981.
4. Form of the subsidy
Repayment of Excise DutyG/SCM/N/38/EEC/Add.8
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5. How the subsidy is provided (destination)
The subsidy is provided to sea-fishermen.
6. Total value of subsidy
Total value of the Subsidy was IEP £1.8 million
7. Duration of the subsidy
The relief is in operation since 1981 and is not time limited.
8. Assessment of the trade effects of subsidy
None available
4. Relief for Glasshouse/mushroom operators
1. Title of subsidy
Relief for Glasshouse/mushroom operators
2. Policy objective of the subsidy
To assist the commercial glasshouse operators and mushroom growers.
3. Background and authority for the subsidy
The relief was originally introduced in the Im position of Duties (No. 232) (Hydrocarbon Oils)
Order, 1977 which came into effect on 1 September 1997 provided for the repayment of excise duty at
the then rate of 2p per gallon.  In the 1980 Finance Act, when the duty was increased to 7p per gallon,
it was decided that a rate of 2p should apply to glasshouse operators.
4. Form of the subsidy
Reduced rate for purchase of hydrocarbon oil
5. How the subsidy is provided (destination)
Commercial glasshouse operators and mushroom growers.
6. Total amount of subsidy
Total value was IEP £2.2m
7. Duration of the subsidy
The relief is in operation in various forms since 1977 is not time limited.
8. Assessment of the trade effects of subsidy
None availableG/SCM/N/38/EEC/Add.8
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5. Group Marketing Scheme
1. Title of the subsidy programme
Group Marketing Scheme
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To enable small and medium-sized business which do not have sufficient resources available
to them to promote their produce on the wider market.
4. Background and authority for the subsidy
Scheme run by An Bord Bia (Irish Food Board).  No specific legislation.
5. Form of the subsidy
Grant.
6. To whom and how the subsidy is provided
Provided to exporting companies.  Subsidy to  cover costs of the company - not related to
number of units.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
50 per cent of eligible costs up to a maximum payment of IEP £60,000.
8. Duration of the subsidy and/or any other time limits attached to it
On-going scheme - no duration limit.  Each company can receive aid for a maximum of 2
years.  Commenced 1995.
9. The trade effects of the subsidy
N/A.
6. Scheme of Premiums for Maintaining Pure Bred Kerry Herds of Cattle.
1. Title of the subsidy programme
Scheme of Premiums for Maintaining Pure Bred Kerry Herds of Cattle.
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.8
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3. Policy objective and/or purpose of the subsidy
To maintain Pure Bred Kerry Herds of Cattle in Ireland for the purposes of environment and
heritage conservation.
4. Background and authority for the subsidy
National scheme run by Department of Agri culture and Food.  No specific legislation.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Provided to breeders of Pure Bred Kerry Cattle.  Fixed amount per unit.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
IEP £60.00 per calf born.
8. Duration of the subsidy and/or any other time limits attached to it
On-going scheme - no duration limit.  Commenced 1983.
9. The trade effects of the subsidy
N/A
7. Grant-in-aid to Federation of Irish Beekeepers
1. Title of the subsidy programme
Grant-in-aid to Federation of Irish Beekeepers.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To assist the Federation of Irish Beekeepers who in turn provide advice for their members
through the publication of a journal, organisation of summer courses etc.
4. Background and authority for the subsidy
Grant made by the Department of Agriculture and Food.  No specific legislation.
5. Form of the subsidy
GrantG/SCM/N/38/EEC/Add.8
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6. To whom and how the subsidy is provided
Provided to Federation of Irish Beekeepers.  Fixed amount - not related to numbers of units.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
Total amount of subsidy; IEP £3,000
8. Duration of the subsidy and/or any other time limits attached to it
On-going scheme - no duration limit.  Commenced 1986.
9. The trade effects of the subsidy
N/A
8. Tomato Marketing Improvement Assistance Programme
1. Title of the subsidy programme
Tomato Marketing Improvement Assistance Programme
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To improve the quality of Irish tomatoes
4. Background and authority for the subsidy
Scheme operated by An Bord Glas (the Government agency with responsibility for
developing the horticulture industry).  No specific legislation.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Provided to tomato producers at a rate of 50 per cent of the cost of qualifying expenditure on
quality and hygiene control systems.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
50 per cent of eligible costs.  Total budget allocation for 1998 is IEP £50,000G/SCM/N/38/EEC/Add.8
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8. Duration of the subsidy and/or any other time limits attached to it
No duration limit set
9. The trade effects of the subsidy
N/A
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