WORLD TRADE
ORGANIZATIONG/SCM/N/25/EEC/Suppl.1
5 November 1998
(98-4315)
Committee on Subsidies
and Countervailing Measures
SUBSIDIES
Updating Notifications Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
EUROPEAN COMMUNITIES
Supplement
The following communication, dated 22 October 1998, has been received from the Permanent
Delegation of the European Commission.
_______________G/SCM/N/25/EEC/Suppl.1
Page 2
UNITED KINGDOM
(SUPPLEMENT)
TABLE OF CONTENTS
Page
1. Milk Devel opment Council..................................................................................................... .3
2. Working Capi tal Loans........................................................................................................ .... 3
3. Exemption of Agricultural Pr emises from Council Taxes....................................................... 4
4. Partial Relief of Excise Duty for Ce rtain Vehicles used  in Agriculture .................................. 4
5. Livestock Aids in Crofting Counties ....................................................................................... 5
6. Aids to Crofters and other Agricultural Producers in the Crofting Counties of Scotland ....... 67. Assistance to Crofting Communities in th e Western Isles of the United Kingdom................. 6
8. New Entrants to Crofting (Nor th West Sutherland) Scheme................................................... 7
9. Highlands and Islands of Scotland Agricult ural Programme for Crofting Businesses............ 8
10. Ross and Cromarty Cr oft Entrant Scheme............................................................................... 8
11. Lochaber and Argyll Cr oft Entrants  Scheme........................................................................... 9
12. Shetland Croft En trant Scheme.............................................................................................. 1 0
13. Skye and Lochalsh Cr oft Entrant Scheme ............................................................................. 10
14. Supplementary Compensation Paym ent on Steers and Heifers ............................................. 11
15. The Rendering Industries Support Scheme 1996 and 1997................................................... 1216. BSE Mammalian Meat and Bonemeal Feed Product Recall Scheme.................................... 1217. Bull Slaughter Scheme (Northern Ir eland) ............................................................................ 13
18. Slaughtering Industry (Eme rgency Aid) Scheme 1996 ......................................................... 13
19. Beef and Beef Products (Storage  and Disposal Se rvices) Sc heme........................................ 14G/SCM/N/25/EEC/Suppl.1
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1. Milk Development Council
1. Name of the subsidy scheme
Milk Development Council
2. Form of the subsidy
Statutory levies on liable producers.
3. Subsidy in 1996/1997
Total expenditure - £4,131,000
4. Policy objective and/or purpose of subsidy
To improve the efficiency and productivity of the industry by funding research and
development and services to the industry
5. Duration of a subsidy and/or any other time-limits attached to it
Review after three years initially, then at five yearly intervals.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
2. Working capital loans
1. Name of subsidy
Working capital loans
2. Form of the subsidy
Loans
3. Subsidy in 1996/1997
Not available.
4. Policy objective and/or purpose of subsidy
To assist farm workers to commence business on their own account as tenants of
smallholdings by making loans available to those who have difficulty in obtaining necessary funds
from commercial sources at normal market rates.
5. Duration of a subsidy and/or any other time-limits attached to it
UnlimitedG/SCM/N/25/EEC/Suppl.1
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6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
3. Exemption of Agricultural Premises from Council Taxes
1. Name of subsidy
Exemption of Agricultural Premises from Council Taxes.
2. Form of the subsidy
Exemption from taxation.
3. Subsidy in 1996/1997
Not available.
4. Policy objectives and/or purpose of subsidy
The exemption recognises that business rating would place a disproportionate burden on
agriculture, as compared with other industries, because land and buildings form so large a part of
agriculture’s assets.
5. Duration of a subsidy and/or other time-limits attached to it
Unlimited
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
4. Partial relief of excise duty for certain vehicles used in agriculture
1. Name of subsidy
Partial relief of excise duty for certain vehicles used in agriculture.
2. Form of the subsidy
Tax relief
3. Subsidy in 1996/1997
No figures available for the value of relief.G/SCM/N/25/EEC/Suppl.1
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4. Policy objective and/or purpose of subsidy
The special rates of duty are levied because agricultural machines are used mainly on the
farm.
5. Duration of a subsidy and/or any other time-limits attached to it
Unlimited
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
5. Livestock aids in crofting counties
1. Name of the subsidy scheme
Livestock aids in crofting counties
2. Form of the subsidy
Subsidised service and grants
3. Subsidy in 1996/1997
Total expenditure - £805,000
4. Policy objective and/or purpose of subsidy
The survival of crofting is important for the retention of population in these very extensive
and remote areas of Scotland because crofting families often comprise a major part of existing
populations.  Although crofters’ main cash incomes arise from ancillary occupations (eg fishing,weaving, tourism) and most crofters devote less than 2 days each week to agriculture, maintenance of
the agricultural basis of this way of life is essential to the development of other non-agricultural
activities within the crofting counties.  The aids are designed to maintain this agricultural basis by
maintaining an otherwise uneconomic service; maintaining livestock production and genetic
improvement of livestock; and maintaining breeding and keeping of pure-bred Shetland sheep in theShetland Islands, and encouraging crofters and others of similar status to remain in livestock
production and to increase their returns from sheep through genetic improvements.
5. Duration of a subsidy and/or any other time-limits attached to it
Unlimited.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effectsG/SCM/N/25/EEC/Suppl.1
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6. Aids to crofters and other agricultural producers in the crofting counties of Scotland
1. Name of the subsidy scheme
Aids to crofters and other agricultural producers in the crofting counties of Scotland.
2. Form of the subsidy
Grants and loans
3. Subsidy in 1996/1997
Total expenditure - £3,300,000
4. Policy objective and/or purpose of subsidy
The survival of crofting is important for the retention of population in these very extensive
and remote areas of Scotland because crofting families often comprise a major part of existingpopulations.  Although crofters’ main cash income arises from ancillary occupations (eg fishing,
weaving, tourism) and most crofters devote less th an 2 days each week to agriculture, the maintenance
of the agricultural basis of this way of life is essential to the development of other non-agricultural
activities within the crofting counties.  The aids are designed to maintain this agricultural basis by
developing agricultural production;  encouraging investment in building;  and assisting orderlytransfer of croft tenancies.
5. Duration of a subsidy and/or any other time-limits attached to it
Unlimited
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
7. Assistance to crofting communities in the Western Isles of the United Kingdom
1. Name of the subsidy scheme
Assistance to crofting communities in the Western Isles of the United Kingdom.
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £36,000G/SCM/N/25/EEC/Suppl.1
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4. Policy objective and/or purpose of subsidy
To stimulate the social and economic growth of crofting communities by identifying suitable
potential young entrants to crofting; encouraging elderly or inactive crofters and absentees to release
their crofts for more active use thus facilitating the entry of young people into crofting; assistingyoung entrants establish themselves in crofting through the provision of  financial support, advice and
guidance.
5. Duration of a subsidy and/or any other time-limits attached to it
The scheme was launched on 14 April 1992 and initially operated as a pilot scheme.  The
response to the pilot has justified the full implementation of the scheme.  The duration of the scheme
is difficult to determine as the assistance being provided is linked to the recipient’s business planwhich may cover three or more years.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
8. New entrants to crofting (North West Sutherland) Scheme.
1. Name of the subsidy scheme or the ad hoc subsidy
New entrants to crofting (North West Sutherland) Scheme.
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £41,000
4. Policy objective and/or purpose of subsidy
To stimulate social and economic growth of crofting communities throughout North West
Sutherland in the Highlands of Scotland by identifying suitable potential young entrants to crofting;
encouraging elderly or inactive crofters and absentees to release their crofts for more active use thus
facilitating the entry of young people into crofting; assisting young entrants establish themselves in
crofting through the provision of financial support, advice and guidance.
5. Duration of a subsidy and/or any other time-limits attached to it
The scheme was launched in November 1993 and applicants business plans will be expected
to cover three years.  The duration of the scheme will largely be determined by the number ofapplicants and the budget remaining.G/SCM/N/25/EEC/Suppl.1
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6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
9. Highlands and Islands of Scotland Agricultural Programme for Crofting Businesses
1. Name of the subsidy scheme
Highlands and Islands of Scotland Agricult ural Programme for Crofting Businesses.
2. Form of the subsidy
Agricultural Business Improvem ent Scheme - Direct grant
Marketing Scheme - Direct grantCrofting Township Development Scheme - Development incentive
3. Subsidy in 1996/1997
Total expenditure - £2,528,000
4. Policy objective and/or purpose of subsidy
The Programme is designed to contribute to the development and structural adjustment of the
Highlands and Islands Objective 1 area.
The five main objectives are: to improve margins by reducing the need for purchased
agricultural inputs; to improve the efficiency of the agricultural unit; to improve the quality and hence
the value of primary agricultural produce; to complement other operational programmes for the area
by providing the conditions for members of the farming family to take advantage of opportunities to
become involved in other economic activities; and to  maintain the high environmental quality of the
area and providing opportunities of its enhancement.
5. Duration of a subsidy and/or any other time-limits attached to it
The Programme will operate for 6 years over the period 1994 to 1999.  Grants and
development incentives will be available for the duration of the 6 year period.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
10. Ross and Cromarty Croft Entrant Scheme.
1. Name of the subsidy scheme
Ross and Cromarty Croft Entrant Scheme.G/SCM/N/25/EEC/Suppl.1
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2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £23,000
4. Policy objective and/or purpose of subsidy
To stimulate the social and economic growth of crofting communities in the four Wester Ross
parishes; Lochcarron, Applecross, Gairloch and Lochbroom, by identifying potential young entrants
to crofting; to encouraging elderly to inactive crof ters and absentees to release their crofts for more
active use thus facilitating the entry of young people into crofting;  and assisting young entrants
establish themselves in crofting through the provision of financial support, advice and guidance.
5. Duration of a subsidy and/or any other time-limits attached to it
The Scheme was launched in November 1994.  No time limit has been given for the duration
of the Scheme.  The duration of the scheme is difficult to determine as the assistance being provided
is linked to the recipients business plan which may cover 3 or more years.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
11. Lochaber and Argyll Croft Entrants Scheme.
1. Name of the subsidy scheme
Lochaber and Argyll Croft Entrants Scheme.
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total budget - £20,000
4. Policy objective and/or purpose of subsidy
To stimulate the social and economic growth of crofting communities throughout Lochaber
and Argyll and the Islands by securing the future well being of the crofting system.  To encourage a
new generation to pursue a traditional way of life, and help reduce the population drift away from the
more peripheral rural communities of Lochaber and Argyll.G/SCM/N/25/EEC/Suppl.1
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5. Duration of a subsidy and/or any other time-limits attached to it
The scheme was formally launched in October 1995.  The scheme is linked to the recipient's
business plan which may cover a period of 3 or more years.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
12. Shetland Croft Entrant Scheme
1. Name of the subsidy scheme
Shetland Croft Entrant Scheme.
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £7,000
4. Policy objective and/or purpose of subsidy
To stimulate the social and economic growth of crofting communities in the three Shetland
parishes of Yell, North Mavine and Walls/Sandness by identifying potential young entrants to
crofting; encouraging elderly or inactive crofters and absentees to release their crofts for more active
use thus facilitating the entry of young people into crofting; and  assisting young entrants establish
themselves in crofting through the provision of financial support, advice and guidance.
5. Duration of a subsidy and/or any other time-limits attached to it
Launched in November 1994.  Unlimited.  The duration of the scheme will largely be
determined by the number of applicants and the budget remaining.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
13. Skye and Lochalsh Croft Entrant Scheme
1. Name of the subsidy scheme
Skye and Lochalsh Croft Entrant Scheme
2. Form of the subsidy
As appropriateG/SCM/N/25/EEC/Suppl.1
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3. Subsidy in 1996/1997
Total expenditure - £49,000
4. Policy objective and/or purpose of subsidy
To stimulate the social and economic growth of crofting communities in Skye and Lochalsh
district by identifying potential young entrants to crofting; encouraging elderly or inactive crofters and
absentees to release their crofts for more active use thus facilitating the entry of young people into
crofting; and assisting young entrants establish themselves in crofting through the provision of
financial support, advice and guidance.
5. Duration of a subsidy and/or any other time-limits attached to it
The Scheme was launched in November 1994 covering the North Talisker and Lochalsh
Estates.  The Scheme has recently been extended to cover the whole of  Skye and Lochalsh district.Unlimited.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
14. Supplementary Compensation Payment on Steers and Heifers.
1. Name of the subsidy scheme
Supplementary Compensation Payment on Steers and Heifers.
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £43,830,000
4. Policy objective and/or purpose of subsidy
Supplementary payment to reflect the historic difference between the market price for steers
and heifers and that for cull cows.  Supplement payable from 3 May to November 1996 to allow
producers time to adapt their marketing programme to finish steers and heifers for the market at underthirty months.
5. Duration of a subsidy and/or any other time-limits attached to it
Payment due to steers and heifers slaughtered through the scheme between 3 May and
2 November 1996.  Steers and heifers over thirty months of age on 17 June 1996 also qualify for the
payment if they were slaughtered after 2 November 1996.G/SCM/N/25/EEC/Suppl.1
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6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
15. The Rendering Industries Support Scheme 1996 and 1997
1. Name of the subsidy scheme
The Rendering Industries Support Scheme 1996 and 1997
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £97,000,000
4. Policy objective and/or purpose of subsidy
The subsidy was introduced to prevent the disorderly collapse of the animal waste chain
following loss of income to the rendering industry as a result of the prohibition on mammalian meat
and bonemeal in animal feed and in fertiliser for agricultural land introduced in March 1996, as well
as the loss of the follow market that happened at the same time.  The aid has ensured that animal
waste and by products continued to be collected from the meat supply chain.
5. Duration of a subsidy and/or any other time-limits attached to it
Support was phased out in February 1998.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
16. BSE Mammalian Meat and Bonemeal Feed Product Recall Scheme
1. Name of the subsidy scheme
BSE Mammalian Meat and Bonemeal Feed Product Recall Scheme
2. Form of the subsidy
No direct payment of aid
3. Subsidy in 1996/1997
Total expenditure - £280,605G/SCM/N/25/EEC/Suppl.1
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4. Policy objective and/or purpose of subsidy
Free collection and disposal of mammalian meat and bonemeal (MBM) or food containing
mammalian MBM.  Scheme introduced due to the BSE crisis with aim of removing the risk of cross
contamination of ruminant feed either by left-ove r stocks of feed incorporating meat and bonemeal, or
meat and bonemeal alone.
5. Duration of a subsidy and/or any other time-limits attached to it
Unlimited
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
17. Bull Slaughter Scheme (Northern Ireland)
1. Name of the subsidy scheme
Bull Slaughter Scheme (Northern Ireland)
2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
Total expenditure - £3,407,000
4. Policy objective and/or purpose of subsidy
The scheme was introduced to remove from farms, younger bulls for which, because of BSE
and the ban on the export of British beef, market outlets ceased to exit.
5. Duration of a subsidy and/or any other time-limits attached to it
A one-off scheme which commenced on 21 June 1996.  Animals had to be registered by
30 June 1996 and slaughtered by 26 July 1996.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
18. Slaughtering Industry (Emergency Aid) Scheme 1996
1. Name of subsidy
Slaughtering Industry (Emergency Aid) Scheme 1996G/SCM/N/25/EEC/Suppl.1
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2. Form of the subsidy
As appropriate
3. Subsidy in 1996/1997
£29,200,000
4. Policy objective and/or purpose of subsidy
Aid was paid to the slaughtering industry to protect its viability during a period of exceptional
market turbulence caused by the onset of the BSE crisis and the resultant sharp fall in demand for its
output.
5. Duration of a subsidy and/or any other time-limits attached to it
April - July 1996
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
19. Beef and Beef Products (Storage and Disposal Services) Scheme
1. Name of subsidy
Beef and Beef Products (Storage and Disposal Services) Scheme
2. Form of the subsidy
No direct aid paid - subsidy in form of services offered
3. Subsidy in 1996/1997
Estimated to be worth £943,000
4. Policy objective and/or purpose of subsidy
The objective of the scheme was to provide support to downstream sectors of the beef
industry by disposing of unsaleable stocks of beef  and beef products, to rebuild market confidence
and to avert any potential environmental or public health problems following the BSE crisis.
5. Duration of a subsidy and/or any other time-limits attached to it
17 June 1996 to 27 September 1996.
6. Statistical data permitting an assessment of the trade effects of a subsidy
Minimal trade effects
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