G/SCM/N/25/EEC
Page742
UNITED KINGDOM
(Nb‘Total Amount Budgeted ’isinterpreted astotalspent inFYunder reference)
TABLE OFCONTENTS
Page
UPDATED NOTIFICATIONS
1. Advanced Technology Programme (ATP) ............................744
2. Civil Aviation Research andDemonstration Programme (CARAD) ............744
3. Company Development Programme (NI).............................745
4. Energy Efficiency BestPractice Programme ..........................746
5. Eureka ..................................................747
6. Home Shipbuilding Credit Guarantee Scheme ..........................748
7. Inner Urban Area Grants -Urban Programme .........................749
8. LinkInitiative .............................................750
9. Regional Selective Assistance ....................................750
10. Shipbuilding Intervention Fund ..................................751
NOTIFICATIONS
11. Compete Programme (NI)......................................752
12. Cardiff BayDevelopment Corporation ..............................753
13. Development Board forRural Wales ...............................754
14. General Industrial Collaborative Projects (GICP) .......................755
15. Highlands andIslands Enterprise .................................755
16. Local Challenge ............................................756
17. Local Enterprise Development Unit(LEDU) ..........................757
18. Offshore Supplies andService Company Assistance forResearch .............758
19. Open Learning Training Grants Scheme (NI)..........................759
20. Rural Development Commission Economic Grants .......................759
21. Redundant Building Grant .....................................760
22. Regional Enterprise Grants .....................................761
23. SCEEMAS ...............................................762
24. Science andTechnology Programme (START) (NI) .....................762
25. Scottish Enterprise ..........................................763G/SCM/N/25/EEC
Page743
Page
26. Sector Challenge ...........................................764
27. Single Regeneration Budget .....................................765
28. Small Firms Merit Award forResearch andTechnology (SMART) ............765
29. Special Support Programme forPeace andReconciliation inNI..............766
30. UKCoalR&D Programme .....................................767
31. UKNewandRenewable Energy Programme ..........................768
32. Wales Development Loan ......................................768
33. WDA Equity ..............................................769
34. WDA Property Development Grant ................................770
35. WDA RentConcessions .......................................771
36. WDA Technology Growth Fund ..................................772
37. Welsh Business Advisory Services ................................772
38. WDA Mortgage Guarantee Scheme ................................773
INCOMPLETE NOTIFICATIONS
39. Leader IIProgramem inWales ..................................775
40. Northern Ireland Business Advisory Services ..........................775
41. Property Development Scheme (NI) ...............................776
SECTION B
1. Milk Development Council .....................................778
2. Working Capital Loans .......................................778
3. Exemption ofAgricultural Premises from Council Taxes ..................779
4. Partial relief ofexcise dutyforcertain vehicles usedinagriculture ............779
5. Livestock aidsincrofting counties ................................780
6. Aidstocrofters andother agricultural producers inthecrofting countries ofScotland 780
7. Assistance tocrofting communities intheWestern IslesoftheUnited Kingdom ....781
8. Newentrants tocrofting (North West Sutherland) Scheme .................781
9. Highlands andIslands ofScotland Agricultural Programme forCrofting Businesses .782
10. Ross andCromarty Croft Entrants Scheme ...........................783
11. Lochaber andArgyll Croft Entrants Scheme ..........................783
12. Shetland Croft Entrant Scheme ..................................784
13. Skye andLochalsh Croft Entrants Scheme ...........................784
Agreement onAgriculture ..........................................786G/SCM/N/25/EEC
Page744
UPDATING NOTIFICATIONS
1. ADVANCED TECHNOLOGY PROGRAMME (ATP)
(a) Form ofsubsidy
Grant.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Toencourage pre-competitive collaborative research innewtechnologies; tobuild upUK
capabilities; andtoaccelerate theapplication ofthese technologies.
(d) Background authority forthescheme
Science andTechnology Act1965.
(e) Towhom andhowthesubsidy isprovided
Atleastthreeindependentfirmsororganisationsmustparticipate-atleasttwoshouldbecapable
ofexploiting theresults -ofabidforthe50%ofeligible costsofaproject available under thisscheme.
Thescheme wasclosed tonewapplicants from 1September 1993.
(f) Total amount budgeted
£9.0m
(g) Duration ofprogramme
Until existing projects arecomplete.
(h) Assessment oftrade effects
Minimal, since thescheme isaimed atimproving newtechnology inSMEs.
2. CIVIL AVIATION RESEARCH AND DEMONSTRATION PROGRAMME (CARAD)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page745
(c) Policy objectives
Thescheme wasdesigned tosupport theshaping oftheresults ofindustrial research intoa
plan, arrangement ordesign fornew, altered orimproved products, processes orservices, whether
theyareintended tobesoldorused, including theinitial creation ofaprototype which could notbe
usedcommercially. Thismayalsoinclude theconceptual formulation anddesign ofother products,
processes orservices andinitial demonstration projects, provided suchprojects cannot beconverted
orusedforindustrial applications orcommercial exploitation.
(d) Background authority forthescheme
Civil Aviation Act1982.
(e) Towhom andhowthesubsidy isprovided
Support forupto25%ofeligible costsforprojects isavailable tosingle firms intheairframe
andpropulsion systems technology areas; upto50%ofeligible costs forcollaborative projects is
availableinallcivilaircrafttechnologysectors.Beneficiariesincludeuniversities,researchestablishments
andsingle companies.
(f) Total amount budgeted
£22.7m
(g) Duration ofprogramme
Until 1999.
(h) Assessment oftrade effects
Theobjective istoimprove research forthebenefit oftheaviation industry, andnottoassist
withproduction. CARAD doesnotform partoftheAirbus programme.
3. COMPANY DEVELOPMENT PROGRAMME (NI)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Assistingcompaniestodevelopastructuredcompanydevelopmentplanwhichaddressestraining
anddevelopment needs, particularly atmanagement andorganisation levels. Theemphasis isonlinking
traininganddevelopmenttobusinessperformanceandultimatelytoimprovetheperformanceofNorthern
Ireland industry.G/SCM/N/25/EEC
Page746
(d) Background authority forthescheme
TheEmployment andTraining Act(NI)1950.
(e) Towhom andhowthesubsidy isprovided
Thescheme isavailable toexporting companies inNorthern Ireland, inthemanufacturing and
service sectors, regardless ofsizeandturnover. Eligible costsinclude wages oftrainers andtrainees
andexternal training consultancy fees,lessthevalue ofanycontribution toproduction.
(f) Total amount budgeted
£15.99m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Thescheme aimstoincrease thecompetitiveness andefficiency ofcompanies inan
areasuffering chronic under-employment andsome ofthelowest living standards intheEC.
4. ENERGY EFFICIENCY BEST PRACTICE PROGRAMME
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theaimofthescheme istoencourage thedevelopment andtake-up ofenergy efficient
technologies andtechniques. Thebulkofthescheme involves theappraisal anddissemination of
information onenergy efficiency measures. Under theR&D element ofthescheme, support isoffered
forbasis R&D, leading totheacquisition ofbasic knowledge required forsubsequent development
ofenergy efficiency measures which donotleaddirectly toanynewproduct orprocess asanimmediate
outcome.
(d) Background authority forthescheme
Science andTechnology Act1965.
(e) Towhom andhowthesubsidy isprovided
Support ofupto49%isoffered totwoormore companies working together, except where
theEuropean Union hasagreed lower limits. Upto100% mayalsobemade available forfundamentalG/SCM/N/25/EEC
Page747
research toincrease scientific knowledge orprovide generic background information tounderpin
subsequent basic research. Such support forfundamental research isonly offered toresearch
organisations, andnottomanufacturers.
(f) Total amount budgeted
£3.6m
(g) Duration ofprogramme
Indefinite.
(h) Assessment oftrade effects
None, since theprogramme isaninformation transfer scheme.
5. EUREKA
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
EUREKA aimstoencourage andassist collaborative research anddevelopment projects between
European companies, research organisations andhigher education institutes. EUREKA ’soverall aim
istoenhance productivity andcompetitiveness inworld markets. EUREKA hasnorigidprogramme,
andprojects canbeinanytechnology area; buteachproject aimstoachieve asignificant advance in
products, processes orservices forthemarket through mechanisms ofEuropean co-operation.
(d) Background authority forthescheme
TheEU-wide R&D initiative setinplace bytheCommission.
(e) Towhom andhowthesubsidy isprovided
EUREKA isnotinitself afunding mechanism forsupporting EUREKA projects. However,
incommon withmost other EUREKA member states, theUKprovides funding support toproject
participants insome instances. Butmany projects goahead without public funding. SMEs, research
institutions anduniversities areeligible forfunding upto50%ofeligible costs. Large companies are
more likely tobeoffered funding iftheyarepartnering anumber ofUKSMEs inacluster project.
Alltypes oforganisations areeligible for50%ofputting projects together, e.g.researching potential
partners andvisiting them todiscuss potential collaboration.G/SCM/N/25/EEC
Page748
(f) Total amount budgeted
£8.32m
(g) Duration ofprogramme
Nofixed cut-off date.
(h) Assessment oftrade effects
CollaborativeR&DschemeswereestablishedtoassistUKindustryinmaintainingandimproving
itscompetitive position byundertaking pre-competitive innovative R&D projects which would, after
DTIsupport ended, leadtothedevelopment ofimproved processes andproducts.
6. HOME SHIPBUILDING CREDIT GUARANTEE SCHEME
(a) Form ofsubsidy
Loan Guarantees.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theobjective ofthescheme istofinance theconstruction, completion oralteration ofships
andmobile offshore installations atayardfirstapproved bytheSecretary ofState, through guarantee
oftherepayment ofloans (andtherepayment ofrelated interest) made toUKbodies.
(d) Background authority forthescheme
Section 10oftheIndustry Act(asamended bysection 23and24oftheIndustry Act1979).
(e) Towhom andhowthesubsidy isprovided
Shipowners, bywayofafixedrateofinterest (7.5% onloanrepayment periods upto8.5years;
commercial interest reference rateforloanrepayment periods between 8.5and12years) andinterest
equalisation arrangements withtheBanks.
(f) Total amount budgeted
£183.77m covered byguarantee.
(g) Duration ofprogramme
Tocontinue untilanOECD agreement onShipbuilding Subsidies isratified.G/SCM/N/25/EEC
Page749
(h) Assessment oftrade effects
theaimofthescheme istoensure thatUKbuyers ofshipshavefinancing arrangements available
tothemwhich areasgoodasinother countries which aresignatory totheOECD Understanding, and
hence thatUKyards arenotrelatively disadvantaged.
7. INNER URBAN AREA GRANTS -URBAN PROGRAMME
(a) Form ofsubsidy
Long-term loans ofupto90%ofmortgage security, atacommercial rateofinterest prescribed
intheInner Urban Areas Actforacquisition oflandorcarrying outofwork onland; loans andgrants
ofupto£1,000 forestablishing bodies suchasco-operative enterprises; thedeclaration ofimprovement
areas (which maybepredominantly industrial orcommercial oramixture ofthetwo)andtheprovision
ofloans andgrants of50%costs, toamaximum of£1,000, fortheimprovement ofamenities or
buildings. PartoftheSingle Regeneration Budget.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
TheInner Urban Area scheme wasbrought intoforce togiveadditional powers tolocal
authorities withserious inner areaproblems sothattheycould participate more effectively inthe
economic development oftheirareas.
(d) Background authority forthescheme
Inner Urban Areas Act1978.
(e) Towhom andhowthesubsidy isprovided
Under Section 5ofthescheme, authorities mustdecide inthelightoflocalcircumstances the
extent towhich theywillassist various types ofwork. Inselecting projects forassistance (other than
those relating toenvironmental work orimprovement areas), authorities mustassess theviability of
theproject andofthefirmundertaking it,since themain aimistosecure permanent employment
opportunities, either bycreation orpreservation ofjobs.Manufacturers andexporters arenotprecluded.
(f) Total amount budgeted
£7.76m
(g) Duration ofprogramme
Expenditure under thisActfinished inEngland in1995/6, butwillcontinue untilfurther notice
inScotland andWales.G/SCM/N/25/EEC
Page750
(h) Assessment oftrade effects
Minimal, since assistance isgiven withtheintention ofimproving localconditions.
8. LINK INITIATIVE
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme encourages collaborative research between industry andacademia. Itcovers
nanotechnology,molecularelectronics,advancedsemiconductormaterial,industrialmeasurementsystems
andeukaryotic genetic engineering.
(d) Background authority forthescheme
Science andTechnology Act1965.
(e) Towhom andhowthesubsidy isprovided
Aidof50% ofeligible costs isgiven toavariety ofrecipients, which include industrial
organisations, research associations, government bodies andindividual companies.
(f) Total amount budgeted
£32.48m
(g) Duration ofprogramme
Renotified annually.
(h) Assessment oftrade effects
CollaborativeR&DschemeswereestablishedtoassistUKindustryinmaintainingandimproving
itscompetitive position byundertaking pre-competitive innovative R&D projects which would, after
DTIsupport ended, leadtothedevelopment ofimproved processes andproducts.
9. REGIONAL SELECTIVE ASSISTANCE
(a) Form ofsubsidy
GrantG/SCM/N/25/EEC
Page751
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Toassist economic development inareas ofspecial hardship
(d) Background authority forthescheme
TheIndustrial Development Act1982.
(e) Towhom andhowthesubsidy isprovided
RSA isawarded tocompanies inareas which theUKconsiders tobeinneedofadditional
support. TheY arecalled Assisted Areas, andhavediffering levels ofsupport: Intermediate Areas attract
20%support; Development Areas attract 30%support. TheUKauthorities mustsubmit amapshowing
those areas ofthecountry thattheywishtoaccord assisted areastatus totheCompetition Directorate
oftheECCommission, atregular intervals.
(f) Total amount budgeted
£217.4m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
Thisscheme isdesigned tohelpareas ofspecial difficulty tocompete onlevelterms withmore
advantaged regions.
10. SHIPBUILDING INTERVENTION FUND
(a) Form ofsubsidy
TheSIFprovides production grant aid,uptoaceiling setbytheEuropean Commission, to
UKmerchant shipyards. Thecurrent aidceilings are9%ofconstruction costs forlarge ships (i.e.
overECU 10m) and4.5% forsmaller ships. Theactual SIFceilings are7%and2.5% because the
UKalsoprovides production aidtoallshipbuilders, whether theyareinreceipt ofSIFornot,equivalent
to2%ofcontract costsunder theShipbuilders (Tax) Relief scheme, which isadministered byCustoms
andExcise.
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page752
(c) Policy objectives
Thepurpose ofthescheme istoenable UKshipbuilding yards tosecure contracts against
international competition inorder tosecure jobs.
(d) Background authority forthescheme
TheEC7thDirective toAidonShipbuilding andtheIndustrial Development Act1982,
Sections 7and8.
(e) Towhom andhowthesubsidy isprovided
Bygrantpaiddirectly totheshipyard, ininstalments proratawiththepayment ofthepurchaser ’s
instalment andwhen eachbuilding stage hasbeenreached. Ships takeonaverage oneyeartobuild.
10%isretained untilthefinalconstruction costs areknown.
(f) Total amount budgeted
£10m
(g) Duration ofprogramme
Runs until31December 1997, oruntilentry intoforce oftheOECD Agreement onthe
elimination ofshipbuilding subsidies, ifearlier.
(h) Assessment oftrade effects
Theaimofthescheme istosecure jobsintheUK.
11. COMPETE PROGRAMME (NI)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Tostimulate manufacturing businesses inNorthern Ireland todevelop innovative andhigh
technology products andprocesses within astrategic business framework, thatimproves thenational
andinternational competitiveness ofthebusiness.
(d) Background authority forthescheme
TheIndustrial Development (Northern Ireland) Order 1982.G/SCM/N/25/EEC
Page753
(e) Towhom andhowthesubsidy isprovided
Thescheme isavailable forindustrial andcomputer software. Industrial businesses inNorthern
Ireland receive upto50%assistance forapproved project definition andforcertain projects bringing
significant environmental benefits; andupto40%forallother project developments.
(f) Total amount budgeted
£6.99m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Theintention ofthescheme istobring Northern Ireland expenditure onresearch and
development intolinewithother member states.
12. CARDIFF BAY DEVELOPMENT CORPORATION
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Toregenerate Cardiff ’sdesignated development area,which ispolluted andsocially deprived,
andtoencourage thedevelopment ofexisting andnewindustry andcommerce.
(d) Background authority forthescheme
Local Government, Planning andLand Act1980.
(e) Towhom andhowthesubsidy isprovided
Aidisoffered forinvestment upto30%forSMEs and20%forothers. Suchgrants aretaxable.
Grant mayberequired toberepaid onsaleofcapital assets which areacquired, builtorimproved
withgrant support.
(f) Total amount budgeted
£1.21mG/SCM/N/25/EEC
Page754
(g) Duration ofprogramme
Until 1999
(h) Assessment oftrade effects
None, since theintention ofthescheme istoimprove thebusiness environment oftheCardiff
Area.
13. DEVELOPMENT BOARD FOR RURAL WALES
(a) Form ofsubsidy
Counselling andrentreductions.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
TheDevelopment Board forRural Wales wasestablished tocounterattack thecumulative effect
ofsustained joblosses anddepopulation foroveracentury. Theobjectives ofthethree schemes:
Business Advisory Services; RentConcessions; andFactory Building andSiteDevelopment; are
todevelop aflourishing enterprise culture inWales andtoimprove social conditions.
(d) Background authority forthescheme
Development ofRural Wales Act1976.
(e) Towhom andhowthesubsidy isprovided
TheBusiness Advisory Service isavailable tonewandexpanding businesses intheDBRW ’s
area; aidisintheform ofadvice. RentConcessions areavailable toSMEs establishing themselves
inthearea; aidisintheform ofwhole orpartial rentwaiver forupto5years, withtheshortfall
recouped bythepayment ofhigher subsequent rents, andclawback intheevent ofearlier termination.
Factory Building andsitedevelopment isundertaken toattract competitive manufacturing investors
tothearea, withrents andsalesatmarket rate.
(f) Total amount budgeted
£1.86m
(g) Duration ofprogramme
UnlimitedG/SCM/N/25/EEC
Page755
(h) Assessment oftrade effects
None. Theaimofthescheme istoredress inequalities arising from social andeconomic
deprivation.
14. GENERAL INDUSTRIAL COLLABORATIVE PROJECTS (GICP)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Toencourage collaborative research projects thatwillbenefit many companies andinparticular
SMEs.
(d) Background authority forthescheme
Science andTechnology Act1965.
(e) Towhom andhowthesubsidy isprovided
Tocompanies involved inallareasoftechnology, atuptoamaximum of50%ofeligible costs;
butthismaybeonatapering basis, ietheintensity willdecrease insuccessive years; e.g.1/3inyear
twoand1/4inyearthree.
(f) Total amount budgeted
£2.5m
(g) Duration ofprogramme
Nofixed termination date, butclosed tonewapplicants from September 1993.
(h) Assessment oftrade effects
None, since thescheme isdirected atresearch forSMEs.
15. HIGHLANDS AND ISLANDS ENTERPRISE
(a) Form ofsubsidy
Consultancy; grants; loans; acquisitions.G/SCM/N/25/EEC
Page756
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Highlands andIslands Enterprise isanagency ofcentral government, established tofurther
thesocial andeconomic development oftheHighlands andIslands ofScotland, andtoenhance skills,
establishself-employment,promoteindustrialefficiencyandcompetitivenessandimprovetheenvironment
ofthatarea.
(d) Towhom andhowthesubsidy isprovided
HIEexercises itspowers through anumber ofindividual schemes. Many ofthesedonotprovide
stateaidtoenterprises; andothers aredeminimis .Two: Finance forBusiness andProperty Provision,
involve theprovision ofdiscretionary financial assistance totheprivate sector toenable newbusinesses
tostartupandexpand; interms of20yearloans atcommercial rateforpremises andequipment;
3-4yearinterest relief grants; ofupto50%building grants forproperties where thetotalproject cost
isbelow £80,000; andtoensure thatsuchestablishment isnotinhibited bythelackofsuitable business
accommodation, through newbuild orbyacquisition orimprovement ofexisting premises.
(f) Total amount budgeted
£74.9m
(g) Duration ofprogramme
Indefinite.
(h) Assessment oftrade effects
None, since theHIE’sobjective istorevitalise asocially andeconomically deprived area.
16. LOCAL CHALLENGE
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Toprovide permanent andsystematic improvements inthecapabilities andcompetencies of
SMEs through assisting localpartnerships todesign highquality business support facilities.G/SCM/N/25/EEC
Page757
(d) Background authority forthescheme
Section 8oftheIndustrial Development Act1982.
(e) Towhom andhowthesubsidy isprovided
Intermediate organisations, including Local Authorities, Chambers ofCommerce andTraining
andEnterprise Councils mayreceive grant amounting tolessthan£1,000 perSME assisted under
thescheme. Assistance toSMEs isdiscretionary, within EUstateaidrules; itincludes training and
consultancy andgross aidintensities of50%orless.
(f) Total amount budgeted
Nofunds were disbursed in1996/7; butthebudget for1997-2001 is£30m.
(g) Duration ofprogramme
1997-2001
(h) Assessment oftrade effects
Theintention ofthescheme istoenable intermediary bodies toofferassistance tolocalSMEs,
enabling them tobecome more commercially viable. Trade effects areminimal.
17. LOCAL ENTERPRISE DEVELOPMENT UNIT (LEDU)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
LEDU ’sobjective istoencourage research anddevelopment activity among SMEs inNorthern
Ireland.
(d) Background authority forthescheme
TheIndustrial Development (Northern Ireland) Order 1982.
(e) Towhom andhowthesubsidy isprovided
SMEs inNorthern Ireland attract upto70%funding, or£35,000, whichever issmaller, for
applied research.G/SCM/N/25/EEC
Page758
(f) Total amount budgeted
£23.31m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
Noshortormediumtermeffects,sincetheobjectiveistoencourageSMEstoundertakeresearch.
18. OFFSHORE SUPPLIES AND SERVICE COMPANY ASSISTANCE FOR RESEARCH
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme isintended toencourage research anddevelopment ofnewproducts andtechniques
foruseinoilandgasexploration, development andproduction.
(d) Towhom andhowthesubsidy isprovided
SMEs intheoilandgasindustry maydevelop ideas indrilling andproduction technology.
Projects must involve significant innovation; maximum support is50%.
(e) Total amount budgeted
£2.65m
(f) Duration ofprogramme
Indefinite
(g) Assessment oftrade effects
None, since thescheme isintended toencourage competitiveness inoilandgasproduction.G/SCM/N/25/EEC
Page759
19. OPEN LEARNING TRAINING GRANTS SCHEME (NI)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theobjective ofthescheme istoencourage Northern Ireland employers toconsider theuse
ofopenlearning packages asanalternative, costeffective approach tomeeting company training needs.
(d) Background authority forthescheme
Employment andTraining Act(NI)1950.
(e) Towhom andhowthesubsidy isprovided
Allcompaniesinthemanufacturingandconstructionindustries,hotelandcateringestablishments
andfirms engaged intradable services (employing persons aged18andover) mayclaim 50%ofthe
module package within 3months oftheirapproval date. Thebalance mustbeclaimed within 12months
ofapproval dateandmustcertify thatatleast50%oftheaverage timeforthetraining hasbeentaken
during paidtime. Funding islimited to£500peradultemployee toamaximum of£5,000 percompany.
(f) Total amount budgeted
£0.39m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
Nil. Thescheme isintended totrainexisting employees andenhance efficiency.
20. RURAL DEVELOPMENT COMMISSION ECONOMIC GRANTS
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page760
(c) Policy objectives
TheRuralDevelopmentCommissionisapublicsectoragencyresponsibletocentralgovernment,
charged withdiversifying theruraleconomy. Theaimofthisscheme istocreate employment through
grant aidtoSMEs inrural areas.
(d) Towhom andhowthesubsidy isprovided
SMEsareeligibleforgrantstoamaximumof£50,000toencourageestablishmentandcontinuing
presence inrural locations which might otherwise deter thepresence ofindustry.
(e) Total amount budgeted
£3.46m
(f) Duration ofprogramme
Indefinite
(g) Assessment oftrade effects
None. Theobjective ofthescheme istoencourage andmaintain thepresence ofcommercial
activity which already exists.
21. REDUNDANT BUILDING GRANT
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theintention oftheRedundant Building Grant scheme istocreate newjobopportunities in
ruralareas experiencing social oreconomic difficulties byencouraging theprivate sector tobring back
intocommercial usebuildings which would otherwise remain redundant (andpossibly decline into
dereliction).
(d) Towhom andhowthesubsidy isprovided
Very small companies (typically lessthanten)attract grant ofanaverage of£10,000.
(e) Total amount budgeted
£3.37mG/SCM/N/25/EEC
Page761
(f) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None, since theaimofthescheme istoencourage existing industry tolocate, orremain, in
rural areas.
22. REGIONAL ENTERPRISE GRANTS
(a) Form ofsubsidy
Grants forinvestment andinnovation projects. PartoftheSingle Regeneration Budget.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme offers assistance forSME manufacturing andservice projects inDevelopment,
Intermediate, ECObjective 2,Task Force andCityChallenge Areas andareas affected bycolliery
closures, andrequires evidence ofadditionality.
(d) Background authority forthescheme
Inner Urban Areas Act1978.
(e) Towhom andhowthesubsidy isprovided
Regional Investment Grant (RIG) isavailable toSMEs at15%ofexpenditure oneligible fixed
assets intheproject toamaximum of£15K. Regional Innovation Grants (RIN) areavailable toSMEs
at50%ofexpenditure ontheintroduction ofnewproducts orprocesses, upto£25K.
(f) Total amount budgeted
£18.99m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
Theintention ofthescheme istohelpcompanies inasocially andeconomically deprived area
become competitive onaparwithmanufacturers andservice providers elsewhere.G/SCM/N/25/EEC
Page762
23. SCEEMAS
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme isintended toprovide incentives toSMEs toundertake energy audits, toidentify
andtotakeappropriate steps tobecome more efficient intheiruseofenergy andtoimprove their
environmental performance.
(d) Background authority forthescheme
Industrial Development Act.
(e) Towhom andhowthesubsidy isprovided
SMEsattract40%towardsareviewoftheenvironmentaleffectsoftheiractivities;40%towards
thecosts ofenvironmental systems; and20%oncompletion.
(f) Total amount budgeted
£0.21m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None, since thescheme isintended tohelpexisting companies work more efficiently inan
environmental context.
24. SCIENCE AND TECHNOLOGY PROGRAMME (START) (NI)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page763
(c) Policy objectives
Toencourage strategic andpre-competitive R&D within Higher Education Institutions and
industry inareas relevant toindustrial growth.
(d) Background authority forthescheme
TheIndustrial Development (NI)Order 1982.
(e) Towhom andhowthesubsidy isprovided
NIcompanies anduniversities, with priorities given tothose insoftware engineering;
telecommunications; electronics; biotechnology; newmaterials andtheirprocessing; andadvanced
manufacturing methods; attract upto50%forcollaborative projects andupto100% forstrategic
research which willsubsequently bemade generally available.
(f) Total amount budgeted
£3.51m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Allexpenditure ontheprogramme isforbasic research.
25. SCOTTISH ENTERPRISE
(a) Form ofsubsidy
Consultancy andpractical assistance
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Scottish Enterprise isanagency ofcentral government established tofurther thedevelopment
ofScotland ’seconomy, enhance skills, establish self-employment, promote industrial efficiency and
competitiveness andimprove theenvironment
(d) Total amount budgeted
£477mG/SCM/N/25/EEC
Page764
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Theobjective ismaintenance andenhancement ofemployment opportunities.
26. SECTOR CHALLENGE
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Toprovide thecompetitiveness ofbusiness sectors.
(d) Background authority forthescheme
Section 8oftheIndustrial Development Act1982, Section 5oftheScience andTechnology
Act1965, Development ofTourism Act1969, Agricultural Market Act1983, Employment andTraining
Act1973.
(e) Towhom andhowthesubsidy isprovided
Thesector challenge focuses onprojects inspecific areas ofindustry which aimtoenhance
thecompetitiveness ofUKbusinesses inthose sectors. Intermediate organisations, including Local
Authorities,ChambersofCommerceandTrainingandEnterpriseCouncilsmayreceivegrantamounting
to25%forprecompetitive activities. SMEs attract upto50%grant. Larger enterprises areexpected
tobethemajor beneficiaries.
(f) Total amount budgeted
There wasnoexpenditure in1996/7. Thebudget for1997-2001 is£120m.
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
Theintentionoftheschemeistoenableintermediarybodiesundertakesectoralactivities,enabling
them tobecome more commercially viable. There willbecommercial spin-off.G/SCM/N/25/EEC
Page765
27. SINGLE REGENERATION BUDGET
(a) Form ofsubsidy
Grant; butthemajority ofprogrammes andsupport under theSingle Regeneration Budget
donotinvolve stateaid.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
TheSingle Regeneration Budget isnotsector-specific; itenables regeneration policy tobuild
onpaststrengths, withtheobjective ofbuilding oninitiatives proposed bylocalpartners; beresponsive
tolocalneeds andpriorities; andattract private andpublic investment.
(d) Background authority forthescheme
Inner Urban Areas Act1978.
(e) Towhom andhowthesubsidy isprovided
Thegrant provided under theSingle Regeneration Budget supports awiderange ofactivities,
includingdevelopmentfundsofferinggrantsandloanstonewandexistingsmallbusinesses;consultancy,
advisory services andtraining; theprovision ofbusiness facilities andjointmarketing initiatives; and
theprovision ofmanaged workspace/office areas.
(f) Total amount budgeted
£1,348.9m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None, sincetheintention istorectify disadvantages inemployment opportunities duetoexternal
factors.
28. SMALL FIRMS MERIT AWARD FOR RESEARCH AND TECHNOLOGY (SMART)
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page766
(c) Policy objectives
Theobjectives ofthescheme aretostimulate SMEs todevelop andmarket newscience and
technology-based products; andtoencourage andfacilitate theformation ofviable anddurable science
andtechnology based newSMEs tocontribute toaclimate which encourages investment inhighly
innovative technology byindividuals, companies andinstitutions. NbSMART changed in1997; it
nowcombines the‘old’SMART, SPUR andRINschemes.
(d) Towhom andhowthesubsidy isprovided
SMEswithfewerthan50employeesmayreceiveupto£45,000towardsthestart-upofinnovation
technology projects withcommercial promise; andafurther £60,000 forfurther development.
(e) Total amount budgeted
£10.67m
(f) Duration ofprogramme
Indefinite
(g) Assessment oftrade effects
Minimal; theobjective ofthescheme istostimulate research among SMEs.
29. SPECIAL SUPPORT PROGRAMME FOR PEACE AND RECONCILIATION INNI
(a) Form ofsubsidy
Interest subsidy scheme.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theobjectives ofthescheme aretogiveaboost toeconomic development atwhatisacrucial
timeinthehistory oftheprovince ofNorthern Ireland.
(d) Towhom andhowthesubsidy isprovided
Interest relief subsidy of4%isprovided foramaximum of5years, onapproved loans for
projects inindustry, related services andtourism, consistent withtheUK’seconomic development
strategy fortheregion.
(e) Total amount budgeted
Subsidy committed: £22.6m; interest subsidy payments made: £0.27mG/SCM/N/25/EEC
Page767
(f) Duration ofprogramme
Indefinite
(g) Assessment oftrade effects
None; thescheme seeks toencourage thegrowth ofthelocaleconomy bystimulating private
sector investment, particularly indeprived areas, andimproving itsoverall competitiveness.
30. UKCOAL R&D PROGRAMME
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme wassetuptoencourage research anddevelopment leading tothemore economic
andenvironmentally acceptable useofcoal.
(d) Background authority forthescheme
Science andTechnology Act1965.
(e) Towhom andhowthesubsidy isprovided
Organisations developing theuseofsolidfuelsinanenvironmentally acceptable manner, and
collaborative projects between companies andresearch organisations, mayattract upto50%ofcosts
ofresearch (ormore, where theCommunity Framework forStateAidsforResearch andDevelopment
applies).
(f) Total amount budgeted
£5.97m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Thescheme isintended topromote thedevelopment ofenvironmentally-friendly energy
sources inopposition totraditional sources.G/SCM/N/25/EEC
Page768
31. UKNEW AND RENEWABLE ENERGY PROGRAMME
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme wasdeveloped topromote research anddevelopment intherenewable energies
field, withtheintention ofproducing compatible, economic andfeasible sources ofenergy forthebenefit
oftheenvironment; andencouraging theiruptake.
(d) Background authority forthescheme
Science andTechnology Act1965.
(e) Towhom andhowthesubsidy isprovided
Researchers andmanufacturers ofalternative energy equipment attract 25-50% ofcosts; and
possibly agreater percentage where fundamental research, asguided intheCommunity State Aid
Framework forResearch andDevelopment, isinvolved.
(f) Total amount budgeted
£9.25m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Theintention ofthescheme istobring newenergy sources intolinewithtraditional
sources ofenergy.
32. WALES DEVELOPMENT LOAN
(a) Form ofsubsidy
Loan
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page769
(c) Policy objectives
Theaimofthescheme istoprovide loanfinance tostimulate business growth anddevelopment,
andtosafeguard existing andcreate newemployment.
(d) Background authority forthescheme
Welsh Development Agency Act1975.
(e) Towhom andhowthesubsidy isprovided
Welsh SMEs inallindustries andservices except agriculture, horticulture, media, localretail
andother businesses which meetapurely localneedmayapply forafixed rateloanatNLF, plusan
interest margin, possibly combined withroyalty orprofit share arrangements, between £10-100K or
50%ofthefunding oftheproject, whichever islower.
(f) Total amount budgeted
£0.34m
(g) Duration ofprogramme
Unlimited.
(h) Assessment oftrade effects
None. Theobjective ofthescheme istorevitalise anunderprivileged area.
33. WDA EQUITY
(a) Form ofsubsidy
Equity investment
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme isintended toprovide venture anddevelopment investment funds fornewand
expanding companies inWales where there isanequity gap,iefunds arenotavailable intheprivate
sector.
(d) Background authority forthescheme
Welsh Development Agency Act1975.G/SCM/N/25/EEC
Page770
(e) Towhom andhowthesubsidy isprovided
Allsectors ofmanufacturing andservices (except media, agriculture andhorticulture, orfirms
meeting apurely localneed) mayapply. TheWDA operates onacommercial investor principle and
willcarry outadetailed assessment oftheneedfortheproposed investment andtheimpact ifthe
investment isnotmade. Investment willbetoamaximum of30%ofvoting equity, withthepackage
tailored tothecompany ’sprospects andobjectives. Sizeofequity isusually between £5-500K. The
WDA willalsotakeaccount ofthebenefits suchaninvestment willoffer tothedevelopment or
regeneration oftheWelsh economy.
(f) Total amount budgeted
£0.2m
(g) Duration ofprogramme
Indefinite.
(h) Assessment oftrade effects
None. Theintention ofthescheme istobring theeconomy ofadepressed areaintolinewith
therestoftheUK.
34. WDA PROPERTY DEVELOPMENT GRANT
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme wassetuptoencourage additional private sector investment inindustrial and
commercial property development inWales.
(d) Background authority forthescheme
Welsh Development Agency Act1975.
(e) Towhom andhowthesubsidy isprovided
Grant isavailable toprivate sector development companies attheminimum necessary tobring
theproject forward. Grant isbased onthegapbetween thecostofdevelopment andthecompleted
value. Themaximum grant is30%oftheproject costs.G/SCM/N/25/EEC
Page771
(f) Total amount budgeted
£0.06m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Theobjective ofthescheme istoattract private investment forelsewhere toadeprived
area.
35. WDA RENT CONCESSIONS
(a) Form ofsubsidy
Reduction orwaiving ofrentforperiods ofupto5years.
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Thescheme ’saimistoutilise industrial accommodation which hasproved difficult toletat
market rates throughout theDevelopment Board forRural Wales ’area(Powys, Ceredigion and
Meirionnydd). Allprepared toretain orestablish manufacturing orservices intheareaareeligible.
(d) Background authority forthescheme
Development ofRural Wales Act1976.
(e) Towhom andhowthesubsidy isprovided
Theshortfall isrecouped through imposition ofhigher rentslater. Clawback isinstigated if
thelease isterminated within 7years.
(f) Total amount budgeted
£0.4m
(g) Duration ofprogramme
Renewable annually
(h) Assessment oftrade effects
None. Theintention ofthescheme istoattract viable businesses which arealready established,
andthewhole suminvested isrecouped.G/SCM/N/25/EEC
Page772
36. WDA TECHNOLOGY GROWTH FUND
(a) Form ofsubsidy
Venture funding
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theschemeisessentiallyaseedcapitalfundforthedevelopmentofinnovativeideasandproducts
based ontechnological advances.
(d) Background authority forthescheme
Welsh Development Agency Act1975
(e) Towhom andhowthesubsidy isprovided
Welsh-based enterprises attract upto£150K or50%ofthecostofaproject, whichever islower,
forthedevelopment ofinnovative ideas andproducts based ontechnological advances. TGFsupport
isinitially provided intheformofaloan, withaninputted rateofinterest comparable tocommercial
finance. Interest isaccrued andrecouped withthecapital repayment.
(f) Total amount budgeted
£0.015m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Thescheme isintended todevelop technical advances inWales.
37. WELSH BUSINESS ADVISORY SERVICES
(a) Form ofsubsidy
Advice, counselling, training orinformation provided freeofcharge oratafixed price which
isgenerally below private sector charges. Recipients mustdemonstrate theycannot meetprivate sector
charges.
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page773
(c) Policy objectives
Thescheme wassetuptoprovide general advice andcounselling, particularly forexpanding
businesses throughout theDevelopment Board forRural Wales area; specifically Powys, Ceredigion
andMeirionnydd; toprovide links between industry andschools; andtoprovide general business
training.
(d) Background authority forthescheme
Development OfRural Wales Act1976
(e) Towhom andhowthesubsidy isprovided
Theassistance isprovided toexpanding SMEs intheareaonly.
(f) Total amount budgeted
£0.016m
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Theintention ofthescheme istobring localcompanies intolinewithUKcompetitors.
38. WDA MORTGAGE GUARANTEE SCHEME
(a) Form ofsubsidy
Loan/mortgage
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theaimofthescheme istoattract andretain successful businesses inadeprived area,through
offering mortgage facilities onbusiness premises where commercial backing maynotbeavailable due
toexternal conditions.
(d) Background authority forthescheme
Welsh Development Agency Act1975G/SCM/N/25/EEC
Page774
(e) Towhom andhowthesubsidy isprovided
Prospective purchasers whoareconsidered financially viable mayattract aloanormortgage
topurchase properties from theWDA. Loans willnormally foraperiod of5-10years (butmaybe
extended to15)andwillbeforupto95%ofthevalue oftheproperty.
(f) Total amount budgeted
£6m
(g) Duration ofprogramme
1992-1997
(h) Assessment oftrade effects
None. Theobjective ofthescheme istomaintain, enhance andcreate employment.G/SCM/N/25/EEC
Page775
INCOMPLETE NOTIFICATIONS
39. LEADER IIPROGRAMME INWALES
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997
(c) Policy objectives
TheobjectiveoftheschemeistoimplementthewiderECLeaderinitiativeinWales;itcombines
fundsfromERDF,ESFandEAGGF.Leaderaimstoimplementintegratedruraldevelopmentthroughout
theCommunity, withtheintention ofbenefiting localSME andagricultural communities.
(d) Towhom andhowthesubsidy isprovided
SMEs andfarms mayattract uptoEcu100,000 each, intheformoftechnical support, vocational
training, development oftourism initiatives, marketing andconsultancy.
(e) Total amount budgeted
(Tofollow)
(g) Duration ofprogramme
November 1994-December 1999
(h) Assessment oftrade effects
None. Theintention istorevitalise rural areas.
40. NORTHERN IRELAND BUSINESS ADVISORY SERVICES
(a) Form ofsubsidy
Grant
(b) Period covered bynotification
1996-1997G/SCM/N/25/EEC
Page776
(c) Policy objectives
Thescheme wassetuptoprovide general advice andcounselling, particularly forexpanding
businessesthroughoutNorthernIreland;toprovidegeneralbusinesstraininginmanufacturingefficiency;
quality assurance certification; andtotalquality management.
(d) Background authority forthescheme
TheIndustrial Development (Northern Ireland) Order 1982
(e) Towhom andhowthesubsidy isprovided
Theassistance isprovided toexpanding SMEs intheareaonly. Assistance takes theformof
twothirds ofthecostsofupto15consultancy daysformanufacturing efficiency andquality assurance
assignments; andupto45consultancy daysofTotal Quality Management projects.
(f) Total amount budgeted
(Tofollow)
(g) Duration ofprogramme
Indefinite
(h) Assessment oftrade effects
None. Theintention ofthescheme istobring companies uptointernational standards.
41. PROPERTY DEVELOPMENT SCHEME (NI)
(a) Form ofsubsidy
Grant/guarantee
(b) Period covered bynotification
1996-1997
(c) Policy objectives
Theobjective ofthescheme istoencourage theprivate sector inNorthern Ireland toprovide
industrial andoffice-type buildings forlocalindustry.
(d) Background authority forthescheme
Article 10(2)(a)oftheIndustrial Development (NI)Order 1982.G/SCM/N/25/EEC
Page777
(e) Towhom andhowthesubsidy isprovided
TheIDBisprepared toenter intoaProperty Development Agreement withaprivate sector
developer, onreceipt ofplans, specification andcostestimates. TheAgreement willtaketheform
ofafinancial contribution and/or arentguarantee based onthedifference between thetotaldevelopment
costandthemarket value ofthebuilding, uptoamaximum of50%oftotaldevelopment cost.
(f) Total amount budgeted
(Tofollow)
(g) Duration ofprogramme
Indefinite.
(h) Assessment oftrade effects
Nil.Marketvaluesofindustrialpropertyaregenerallysignificantlylowerthantotaldevelopment
costsbecause oflocational factors andhistorically lowrental rates. Thescheme isintended toredress
thebalance andcreate industrial andemployment opportunities inaneconomically andsocially deprived
area.G/SCM/N/25/EEC
Page778
SECTION B
1. MILK DEVELOPMENT COUNCIL
(a) Form ofsubsidy
Statutory levies onliable producers.
(b) Subsidy in1995/1996
Total expenditure -£2,009,000.
(c) Policy objectives and/or purpose ofsubsidy
Toimprove theefficiency andproductivity oftheindustry byfunding research anddevelopment
andservices totheindustry.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Review afterthree years initially, thenatfiveyearly intervals.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
2. WORKING CAPITAL LOANS
(a) Form ofsubsidy
Loans.
(b) Subsidy in1995/1996
Notavailable.
(c) Policy objectives and/or purpose ofsubsidy
Toassist farmworkers tocommence business ontheirownaccount astenants ofsmallholdings
bymaking loans available tothose whohavedifficulty inobtaining necessary funds fromcommercial
sources atnormal market rates.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Unlimited
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.G/SCM/N/25/EEC
Page779
3. EXEMPTION OFAGRICULTURAL PREMISES FROM COUNCIL TAXES
(a) Form ofsubsidy
Exemption from taxation.
(b) Subsidy in1995/1996
Notavailable.
(c) Policy objectives and/or purpose ofsubsidy
Theexemption recognizes thatbusiness rating would place adisproportionate burden on
agriculture, ascompared withother industries, because landandbuildings form solarge apartof
agriculture 'sassets.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Unlimited.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
4. PARTIALRELIEFOFEXCISEDUTYFORCERTAINVEHICLESUSEDINAGRICULTURE
(a) Form ofsubsidy
Taxrelief.
(b) Subsidy in1995/1996
Nofigures available forthevalue ofrelief.
(c) Policy objectives and/or purpose ofsubsidy
Thespecial ratesofdutyarelevied because agricultural machines areusedmainly onthefarm.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Unlimited.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.G/SCM/N/25/EEC
Page780
5. LIVESTOCK AIDS INCROFTING COUNTIES
(a) Form ofsubsidy
Subsidized service andgrants.
(b) Subsidy in1995/1996
Total expenditure -£659,000.
(c) Policy objectives and/or purpose ofsubsidy
Thesurvival ofcrofting isimportant fortheretention ofpopulation inthese veryextensive
andremote areas ofScotland because crofting families often comprise amajor partofexisting
populations. Although crofters 'main cashincomes arise from ancillary occupations (e.g. fishing,
weaving, tourism) andmostcrofters devote lessthantwodayseachweek toagriculture, maintenance
oftheagricultural basis ofthiswayoflifeisessential tothedevelopment ofother non-agricultural
activities within thecrofting counties. Theaidsaredesigned tomaintain thisagricultural basis by
maintaininganotherwiseuneconomicservice;maintaininglivestockproductionandgeneticimprovement
oflivestock; andmaintaining breeding andkeeping ofpure-bred Shetland sheep intheShetland Islands.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Unlimited.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
6. AIDSTOCROFTERSANDOTHERAGRICULTURALPRODUCERSINTHECROFTING
COUNTIES OFSCOTLAND
(a) Form ofsubsidy
Grants andloans.
(b) Subsidy in1995/1996
Total expenditure -£3,181,000.
(c) Policy objectives and/or purpose ofsubsidy
Thesurvival ofcrofting isimportant fortheretention ofpopulation inthese very
extensive andremote areasofScotland because crofting families oftencomprise amajor partofexisting
populations. Although crofters 'main cashincome arises from ancillary occupations (e.g. fishing,
weaving, tourism) andmostcrofters devote lessthantwodayseachweektoagriculture, themaintenance
oftheagricultural basis ofthiswayoflifeisessential tothedevelopment ofother non-agricultural
activities within thecrofting counties. Theaidsaredesigned tomaintain thisagricultural basis by
developing agricultural production; encouraging investment inbuilding; andassisting orderly transfer
ofcrofttenancies.G/SCM/N/25/EEC
Page781
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Unlimited
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
7. ASSISTANCE TOCROFTING COMMUNITIES INTHE WESTERN ISLES OFTHE
UNITED KINGDOM
(a) Form ofsubsidy
Subsidy.
(b) Subsidy in1995/1996
Total expenditure -£34,000.
(c) Policy objectives and/or purpose ofsubsidy
Tostimulate thesocial andeconomic growth ofcrofting communities byidentifying suitable
potential young entrants tocrofting; encouraging elderly orinactive crofters andabsentees torelease
theircrofts formore active usethusfacilitating theentry ofyoung people intocrofting; assisting young
entrants establish themselves incrofting through theprovision offinancial support, advice andguidance.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Thescheme waslaunched on14April 1992 andinitially operated asapilotscheme. The
response tothepilothasjustified thefullimplementation ofthescheme. Theduration ofthescheme
isdifficult todetermine astheassistance being provided islinked totherecipient 'sbusiness planwhich
maycover three ormore years.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
8. NEW ENTRANTS TOCROFTING (NORTH WEST SUTHERLAND) SCHEME
(a) Form ofsubsidy
Subsidy.
(b) Subsidy in1995/1996
Total expenditure £32,000.G/SCM/N/25/EEC
Page782
(c) Policy objectives and/or purpose ofsubsidy
Tostimulate social andeconomic growth ofcrofting communities throughout North West
Sutherland intheHighlands ofScotland byidentifying suitable potential young entrants tocrofting;
encouraging elderly orinactive crofters andabsentees torelease theircrofts formore active usethus
facilitating theentry ofyoung people intocrofting; assisting young entrants establish themselves in
crofting through theprovision offinancial support, advice andguidance.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Thescheme waslaunched inNovember 1993 andapplicants business plans willbeexpected
tocover threeyears. Theduration ofthescheme willlargely bedetermined bythenumber ofapplicants
andthebudget remaining.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
9. HIGHLANDS AND ISLANDS OFSCOTLAND AGRICULTURAL PROGRAMME FOR
CROFTING BUSINESSES
(a) Form ofsubsidy
Agricultural Business Improvement Scheme -Direct grant
Marketing Scheme -Direct grant
Crofting Township Development Scheme -Development incentive
(b) Subsidy in1995/1996
Total expenditure: 1995 -£2,178,000
1996 -£4,855,000
(c) Policy objectives and/or purpose ofsubsidy
Theprogramme isdesigned tocontribute tothedevelopment andstructural adjustment ofthe
Highlands andIslands Objective 1area.
Thefivemainobjectivesare:toimprovemarginsbyreducingtheneedforpurchasedagricultural
inputs; toimprove theefficiency oftheagricultural unit; toimprove thequality andhence thevalue
ofprimary agricultural produce; tocomplement otheroperational programmes fortheareabyproviding
theconditions formembers ofthefarming family totakeadvantage ofopportunities tobecome involved
inother economic activities; andtomaintain thehighenvironmental quality oftheareaandproviding
opportunities ofitsenhancement.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Theprogrammewilloperateforsixyearsovertheperiod1994to1999.Grantsanddevelopment
incentives willbeavailable fortheduration ofthesix-year period.G/SCM/N/25/EEC
Page783
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
10. ROSS AND CROMARTY CROFT ENTRANTS SCHEME
(a) Form ofsubsidy
Subsidy.
(b) Subsidy in1995/1996
Total expenditure -£10,000.
(c) Policy objectives and/or purpose ofsubsidy
Tostimulate thesocial andeconomic growth ofcrofting communities inthefourWester Ross
parishes; Lochcarron, Applecross, Gairloch andLochbroom, byidentifying potential young entrants
tocrofting; encouraging elderly orinactive crofters andabsentees torelease theircrofts formore active
usethusfacilitating theentry ofyoung people intocrofting; andassisting young entrants establish
themselves incrofting through theprovision offinancial support, advice andguidance.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Thescheme waslaunched inNovember 1994. Notime-limit hasbeengiven fortheduration
ofthescheme.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
11. LOCHABER AND ARGYLL CROFT ENTRANTS SCHEME
(a) Form ofsubsidy
Subsidy.
(b) Subsidy in1995/1996
Total budget -£19,000.
(c) Policy objectives and/or purpose ofsubsidy
Tostimulate thesocial andeconomic growth ofcrofting communities throughout Lochaber
andArgyll andtheIslands bysecuring thefuture well-being ofthecrofting system; byencouraging
anewgeneration topursue atraditional wayoflife; andhelping reduce thepopulation driftaway
from themore peripheral rural communities ofLochaber andArgyll.G/SCM/N/25/EEC
Page784
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Thescheme wasformerly launched inOctober 1995. Thescheme islinked totherecipient 's
business planwhich maycover aperiod ofthree ormore years.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
12. SHETLAND CROFT ENTRANT SCHEME
(a) Form ofsubsidy
Subsidy.
(b) Subsidy in1995/1996
Total expenditure -£8,724.
(c) Policy objectives and/or purpose ofsubsidy
Tostimulate thesocial andeconomic growth ofcrofting communities inthethree Shetland
parishes ofYell,North Mavine andWalls/Sandness byidentifying potential young entrants tocrofting;
encouraging elderly orinactive crofters andabsentees torelease theircrofts formore active usethus
facilitating theentry ofyoung people intocrofting; andassisting young entrants establish themselves
incrofting through theprovision offinancial support, advice andguidance.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Launched inNovember 1994. Unlimited.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.
13. SKYE AND LOCHALSH CROFT ENTRANTS SCHEME
(a) Form ofsubsidy
Subsidy.
(b) Subsidy in1995/1996
Total expenditure -£26,000.G/SCM/N/25/EEC
Page785
(c) Policy objectives and/or purpose ofsubsidy
Tostimulate thesocial andeconomic growth ofcrofting communities inSkye andLochalsh
district byidentifying potential young entrants tocrofting; encouraging elderly orinactive crofters
andabsentees torelease theircrofts formore active usethusfacilitating theentry ofyoung people
intocrofting; andassisting young entrants establish themselves incrofting through theprovision of
financial support, advice andguidance.
(d) Duration ofasubsidy and/or anyother time-limits attached toit
Thescheme waslaunched inNovember 1994covering theNorth Talisker andLochalsh Estates.
TheScheme hasrecently beenextended tocover thewhole ofSkyeandLochalsh district. Unlimited.
(e) Statistical datapermitting anassessment ofthetrade effects ofasubsidy
Notapplicable.G/SCM/N/25/EEC
Page786
AGREEMENT ONAGRICULTURE
Domestic Support
...alldomestic support measures infavour ofagricultural producers ...
Classification ofMeasures
Category Description
"green box" ...no(oratmost minimal) trade-distorting effects oreffects
onproduction ...
"amber box"
-"development measures"
-"blue box"
-"deminimis"
-otherallother measures
...measures toencourage agricultural andrural development
indeveloping countries ...
...direct payments under production-limiting programmes
...
...support which doesnotexceed 5/10% ofthevalue of
production ...
subject tocommitments
Green box
Annex 2oftheAgreement onAgriculture
...fundamental requirement: measures haveno,oratmostminimal, trade-distorting effects
oreffects onproduction
- thesupport inquestion shall beprovided through apublicly-funded government
programme ...;and,
- thesupport inquestion shallnothavetheeffect ofproviding pricesupport toproducers;
pluspolicy-specific criteria andconditions ...
Government Service Programmes
Direct payments toproducersG/SCM/N/25/EEC
Page787
Green box
Government Service Programmes
"General services"
- research
- pestanddisease control
- training services
- extension andadvisory services
- inspection services
- marketing andpromotion services
- infrastructural services
"Public stockholding forfoodsecurity purposes"
"Domestic foodaid"
"Other".
Green box
Direct Payments toProducers
"Decoupled income support"
"Income insurance andincome safety-net programmes"
"Payments forrelief from natural disasters"
"Structural adjustment assistance provided through producer retirement programmes"
"Structural adjustment assistance provided through resource retirement programmes"
"Structural adjustment assistance provided through investment aids"
"Environmental programmes"
"Regional assistance programmes"
"Other"G/SCM/N/25/EEC
Page788
Decoupled income support
(a) Eligibility: clearly-defined criteria inafixed baseperiod e.g.
- income
- status asaproducer orlandowner
- factor useorproduction level
(b) Payments notrelated to
- thetypeofproduction
- thevolume ofproduction
inanyyearafterthebaseperiod.
(c) Payments notrelated to
- prices (domestic orinternational)
inanyyearafterthebaseperiod.
(d) Payments notrelated to
- factors ofproduction employed
inanyyearafterthebaseperiod.
(e) Noproduction shallberequired inorder toreceive suchpayments ...
Development measures
Article 6.2oftheAgreement onAgriculture
...measures areanintegral partofthedevelopment programmes ofdeveloping countries ...
...thefollowing measures arethusexempt from domestic support reduction commitments in
developing country Members ...
"investment subsidies generally available toagriculture"
"input subsidies generally available tolow-income orresource-poor producers"
"support toencourage diversification from growing illicit narcotic crops"G/SCM/N/25/EEC
Page789
Blueboxmeasures
Article 6.5oftheAgreement onAgriculture
...directpaymentsunderproduction-limitingprogrammesshallnotbesubjecttothecommitment
toreduce domestic support if:
- suchpayments arebased onfixed areaandyields; or
- suchpayments aremade on85%orlessofthebaselevelofproduction; or
- suchpayments arelivestock payments made onafixed number ofhead
Other amber boxmeasures
Subject tocommitments
"Total Aggregate Measurement ofSupport"
(Total AMS)
Total AMS isthesumof:
Category Sub-category Examples
Allproduct-specific AMS market price support e.g.intervention prices,
controlled prices
non-exempt direct
paymentse.g.deficiency payments
other product-specific
supporte.g.product-specific input
subsidies
Allproduct specific
Equivalent measurements of
support(market price support forwhich
anAMS cannot becalculated)
Non-product-specific AMS e.g.input subsidies, preferential
interest ratesG/SCM/N/25/EEC
Page790
Market price support -"administered prices"
Example: intervention system forwheat -withsome producer levies
Intervention price = $255/t
External (fixed reference price) = $200/t
Production = 2,000,000 tonnes
Producer-financing levies = $30million
Applied
administered
priceExternal
reference price
(generally from
AGST/...)Eligible
productionAssociated
fees/leviesTotal market
price support
1 2 3 4 5
((1-2)*3)-4
$255/t $200/t 2,000,000 t $30million $80million
Non-exempt direct payments -"deficiency payments"
Example: deficiency payment system forbarley
Intervention price = $130/t
External (fixed reference price) = $100/t
Production = 500,000 tonnes
other direct payments = $5million
Applied
administered
priceExternal
reference
priceEligible
productionTotal price-
related direct
paymentsOther non-
exempt direct
paymentsTotal direct
payments
1 2 3 4
((1-2*3)5 6
(4+5)
$130/t $100/t 500,000 t $15million $5million $20millionG/SCM/N/25/EEC
Page791
Total product specific AMS
Wheat andbarley
Includes afertiliser subsidy onlyforbarley ($2million)
Description of
basic productMarket price
supportNon-exempt
direct paymentsTotal other
product-specific
supportTotal AMS
1 2 3 4 5
(2+3+4)
Wheat $80million - - $80million
Barley - $20million $2million $22million
Product-specific equivalent measurement ofsupport
...where there ismarket price support, butanAMS isnotpracticable ...
- ...using theapplied administered priceandthequantity ofproduction eligible toreceive
thatprice, or,
- ...where thisisnotpracticable, onbudgetary outlays usedtomaintain theproducer
price
e.g.programme todispose ofatomato surplus
Applied administered
priceProduction eligible to
receive theapplied
administered priceMarket price support
budgetary outlaysEquivalent
measurement of
support (include
calculation details)
1 2 3 4
- - $5million $5millionG/SCM/N/25/EEC
Page792
Non-product specific AMS
...support which isnon-product specific shallbetotalled intooneAMS ...
Measure type(s) Non-product-specific
budgetary outlaysOther non-product-
specific supportTotal non-product
specific support
1 2 3 4
(2+3)
Interest ratesubsidy
forlivestock
producers- $8million $8million
Fertiliser subsidy
(specifically forlarge
plantation owners)$12million - $12million
Total $20million
Summary -Total Aggregate Measurements ofSupport
Description ofbasic
productsProduct-specific
AMSProduct-specific
equivalent
measurements of
supportCurrent Total AMS
(aggregate)
1 2 3 4
Wheat 80 80
Barley 22 22
Tomatoes 2 2
Non-product-specific
AMS20
TOTAL (Current
Total AMS)124G/SCM/N/25/EEC
Page793
Export subsidies
Article 1
...subsidiescontingentuponexportperformance,includingtheexportsubsidieslistedinArticle9
ofthisAgreement ...
Article 3
...Article 9.1export subsidies prohibited unless specified inSchedules ...
Article 9.1Export subsidies
(a) ...direct export subsidies ...
(b) ...salesofstocks ...
(c) ...producer financed subsidies ...
(d) ...costreduction measures ...
(e) ...internal transport subsidies ...
(f) ...subsidies onagricultural products incorporated inexported products ...
...developing country Members notberequired toundertake commitments inrespect of9.1(d)
and(e)export subsidies ...
Anti-circumvention
...non-Article 9.1export subsidies shallnotbeapplied inamanner which results in,orwhich
threatens toleadto,circumvention ofcommitments
...norshallnon-commercial transactions beusedtocircumvent suchcommitments.
...developments ofinternationally agreed disciplines togovern theprovision ofexport credits
...
...definition ofinternational foodaid...
...itmustbeestablished foranyquantity exported inexcess ofareduction commitment that
noexport subsidy hasbeenused...G/SCM/N/25/EEC
Page794
Duerestraint -"peace clause"
Domestic support andexport subsidies
("SCM" -Agreement onSubsidies andCountervailing Measures)
Category Limitations under thepeace clause withrespect totheSCM
domestic support
-green box...non-actionable withrespect tocountervailing duties ...
domestic support
-amber box
-"development
measures"
-"blue box"
-"deminimis"
-other-..."duerestraint" intheinitiation ofcountervailing duty
actions ...
-...non-application of"adverse effects" provisions ifsubsidies
donotexceed 1992 levels ...
-...non-application of"non-violation" provisions ifsubsidies do
notexceed 1992 levels ...
export subsidies -..."due restraint" intheinitiation ofcountervailing duty
actions ...
-...non-application ofprohibition and"adverse effects"
provisions ifsubsidies donotexceed 1992 levels ...
Market Access
Article 4
Market Access
1. Market access concessions contained inSchedules ...
2. Members shallnotmaintain, resort to,orrevert toanymeasures ofthekindwhich havebeen
required tobeconverted intoordinary customs duties ...
These measures include:
quantitative import restrictions
variable import levies
minimum import prices
discretionary import licensing
non-tariff measures maintained through state-trading enterprisesG/SCM/N/25/EEC
Page795
voluntary export restraints
similar border measures other thanordinary customs duties
...except asotherwise provided for
Article 5("Special safeguard provisions")
Annex 5("Special treatment")
measures maintained under balance-of-payments provisions
measures maintained under other general, non-agriculture-specific provisions ofGATT 1994
oroftheother ...agreements inAnnex 1AtotheWTO Agreement.
...bindings oftariffs ...
...bound dutylevelor,inthecaseofunbound duties, onthelevelapplied asat1September 1986
...
...ceiling bindings ...
"tariffication"
tariff equivalents
current access opportunities
minimum access opportunities
special safeguard provisions
...allcustoms duties (tariffs) ...shallbebound ...
...possible tariff quotas ...
...possible "other duties andcharges" ...
Implementation ofout-of-quota tariffs/
bound tariffs
applied tariffs
- foranunlimited quantity
- autonomous tariff quotas
- price band-type systems
- statetrading enterprises
special safeguard provisionsG/SCM/N/25/EEC
Page796
Implementation oftariff quotas
applied tariffs
first-come, first-served
import licences
- first-come, first-served
- lottery
- quota auctions
- historical importers
- statetrading enterprises
other
Possible legal implications
state trading enterprises
- "commercial considerations"
- satisfy fulldomestic demand
price bands
- compliance withtariff bindings
- Article 4.2(Agreement onAgriculture)
- otherG/SCM/N/25/EEC
Page797
Special safeguard provisions
Article 5
Special Safeguard Provisions
Eligibility: "tariffied" products designated inSchedules withthesymbol "SSG"
volume -based: thevolume ofimports exceeds atrigger level...
price-based: theprice ofimports fallsbelow atrigger price ...
volume-based
- trigger (%ofaverage imports during thethree preceding years):
- 125%; or
- setaccording tomarket access opportunities ("import penetration")
(x)element
- (a) lessthanorequal to10%-125%;
- (b) between 10and30%-110%
- (c) greater than30%-105%.
plus
(y)element
theabsolute volume change indomestic consumption inthemost recent year.
Note: thetrigger levelshallnotbelessthan105%
Remedy: additional dutynotexceeding onethirdofthetariff ineffect
Example: Calculation oftheTrigger Level
Average imports inthe3preceding years: 562tonnes
Consumption inthe3preceding years:
year1: 990tonnes
year2: 1,000 tonnes
year3: 1,010 tonnes
Average: 1,000 tonnesG/SCM/N/25/EEC
Page798
Import penetration =562/1,000
=56%(base trigger =105%)
Trigger level =(x)+(y)
=(105% x562tonnes)
+(1,010 tonnes -1,000 tonnes)
=590+10tonnes
=600tonnes
price-based
- trigger price: equal totheaverage 1986to1988reference price(ingeneral theaverage
c.i.f. unitvalue)
difference between remedy
thec.i.f. shipment
price andthe
trigger price
(a) <10% nil
(b) between 30%oftheamount bywhich thedifference
10and40% exceeds 10%ofthetrigger price
(c) between 50%oftheamount bywhich thedifference
40and60% exceeds 40%plus(b)
(d) between 60 70%oftheamount bywhich thedifference
and75% exceeds 60%(b)and(c)
(e) >75% 90%oftheamount bywhich thedifference
exceeds 75%plus(b),(c)and(d)
Example: UseofthePrice Based SSG
Trigger price =$200
c.i.f. shipment price =$75
difference =$125 = 62.5%G/SCM/N/25/EEC
Page799
Remedy
Under sub- Remedy
paragraph
(d) 70%*(125-120) = $3.5
+(c) 50%*(120-80) = $20
+(b) 30%*(80-20) = $18
Total $41.5G/SCM/N/25/EEC
Page800
Notification requirements
Tariff andother quotas
Special safeguard provisions
Domestic support
Export Subsidies
Export Restrictions
Follow-up totheDecision onMeasures Concerning thePossible Negative Effects oftheReform
Programme onLeast-Developed andNet-Food Importing Developing Countries.
Other elements
Counter notifications (Article 18.7, Agreement onAgriculture)
Matters relevant totheimplementation ofcommitments (Article 18.6)
Working procedures oftheCommittee
- "theChairperson may...assist them indealing withthematter inquestion".
Thedispute settlement system
Consultations (Articles XXII andXXIII ofGATT 1994)
Thepanel process
Dispute settlement body (DSB)
Terms ofreference/composition
Panel examination
Interim review
(Appellate review)
DSBadopts report.G/SCM/N/25/EEC
Page801
Implementing dispute decisions
"bring themeasure intoconformity"
"reasonable period oftime"
(compensation)
(suspend concessions orobligations)
__________