WORLD TRADE
ORGANIZATIONG/SCM/N/71/EEC/Add.4
18 December 2001
(01-6185)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification 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 Finland .G/SCM/N/71/EEC/Add.4
Page 2
FINLAND
TABLE OF CONTENTS
Page
I. SMALL-BUSI NESS AID ........................................................................................................... ...3
1. Small-busi ness aid........................................................................................................... ..........3
2. Development aid.............................................................................................................. ..........4
3. State aid for the internat ionalisation of SMEs .......................................................................5
4. Loan programme for SMEs (Finnvera plc)............................................................................6
5. Development loan programme for SMEs (Finnvera plc) ......................................................6
6. Start-up loan programme for entrepreneurs (Finnvera plc) ................................................7
7. Grant for technical consulti ng and promot ion (ÅL AND).....................................................8
8. State aid to developi ng businesses (ÅLAND) .........................................................................9
9. Environment loan programme for SMEs (Finnvera plc)....................................................10
10. Operational conditions aid.................................................................................................. ...10
II. AID FOR RESEARCH AND DEVELOPM ENT......................................................................11
1. Aid for promoting R&D ........................................................................................................ .11
2. Grant for research and development (ÅLAND) ..................................................................12
III. REGIONAL AID ............................................................................................................... ......13
1. Regional investment aid ...................................................................................................... ...13
2. Regional transport subsidy ................................................................................................... .14
3. Accelerated regional  depreciation.........................................................................................15
4. Grant for invest ments (Å LAND)...........................................................................................16
IV. AID IN THE FI ELD OF EN ERGY........................................................................................17
1. Energy grants ................................................................................................................ ..........17
2. Aid measures connected to energy taxation .........................................................................18
V. AID FOR ENVI RONMENTAL PR OTECTION......................................................................19
1. Grants for the promotion of  environmental protection ......................................................19
2. Waste oil management financed by waste oil charges.........................................................19
VI. OTHER SU BSIDIES ............................................................................................................. ..20
1. Ice dues classification allowance............................................................................................ 20
2. Investment aid for businesses processing agri-based products ..........................................213. Aid for development projects in the food industry ..............................................................22
4. Aid for shipbuilding......................................................................................................... .......23G/SCM/N/71/EEC/Add.4
Page 3
I. SMALL-BUSINESS AID
1. Small-business aid
(a) Title of the subsidy programme
Small-business aid
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs
(d) Background and authority for the subsidy.
Small-business aid can be granted throughout the country but is mainly awarded as investment
aid or start-up aid to enterprises either operating or to be set up in rural districts or structural change areas.
Aid can be granted to enterprises engaged in production, tourism or business services.  Part of the aid can
be granted in the form of incubator aid, which is mainly granted to units operating in connection with
training establishment or technology parks in cases where such units provide premises and services fornew entrepreneurs, which are in the initial stages of their operation.
The firm is a small one with a personnel not exceeding 50 with either an annual turnover not
exceeding 7 million euros or a balance sheet total not exceeding 5 million euros, and with not more than
one-fourth of its equity in the hands of companies exceeding such a limit.
Aid is granted by the Ministry of Trade and Industry and the Business Departments of the
regional Employment and Economic Development Centres (Aid to Business Act 1136/1993).
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
See point 4.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The amount granted in 2000 was FIM 73 million. The actual payments were FIM 93 million.
In 2001, the estimated amount of grants is FIM 470 million. (see point 8.)
(h) Duration of the subsidy and/or any other time limits attached to it.
Until 31 December 2000.
Note:  The new Aid to Business Act (1068/2000) entered into force 1 January 2001.  The new act
includes so-called “Investment Aid Scheme”, which has replaced both the Small Business Aid SchemeG/SCM/N/71/EEC/Add.4
Page 4
and the Regional Investment Aid Scheme (referring to the table of contents: schemes number I.1 and
III.1).  Thus the estimated amount of grants (FIM 470 million) in 2001 covers the both “old” schemes I.1
and III.1.
(i) The trade effects of the subsidy.
No effects on international trade
2. Development aid
(a) Title of the subsidy programme
Development aid
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs
(d) Background and authority for the subsidy.
Development aid can be granted to SMEs for their development projects aimed at improving the
standard of firm's products or its production management or marketing.  Aid can also be granted to have
the potential and operating conditions for projected new firm verified.
The firm is a SME with personnel not exceeding 250 employees with either an annual turnover
not exceeding 40 million euros or a balance sheet total not exceeding 27 million euros and with not more
than a quarter of its shares in the hands of a company exceeding such a limit.  The aid is granted by the
Ministry of Trade and Industry and the Business Departments of the regional Employment and EconomicCentres (Aid to Business Act 1136/1993).
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
See point 4.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The amount granted in 2000 was FIM 47 million. The average subsidy per unit in year 2000 was
FIM 123,000. The actual payments were FIM 41 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Until 31 December 2000.  The new Aid to Business Act (1068/2000) entered into force
1 January 2001.  The Development Aid Scheme is included in the new Act.G/SCM/N/71/EEC/Add.4
Page 5
(i) The trade effects of the subsidy.
No effects on international trade.
3. State aid for the internationalisation of SMEs
(a) Title of the subsidy programme
State aid for the internationalisation of SMEs
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs for development of their marketing, promotion and internationalisation skills.
(d) Background and authority for the subsidy.
Subsidy is granted by the Ministry of Trade and Industry and the Employment and Economic
Development Centres.
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The aid is provided to SMEs and granted by the Ministry of Trade and Industry and the
Employment and Economic Development Centres on the basis of applications.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The total amount of grants in 2000 was FIM 196 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
There are no time limits attached to this programme.
(i) The trade effects of the subsidy.
No direct effects on international trade. The subsidy is granted for the development of SMEs'
internationalisation skills.G/SCM/N/71/EEC/Add.4
Page 6
4. Loan programme for SMEs (Finnvera plc)
(a) Title of the subsidy programme
Loan programme for SMEs (Finnvera plc).  Soft loans for investments and working capital.
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid for SMEs: access to risky loans on a reasonable interest rate level
(d) Background and authority for the subsidy.
The authorisation to grant these loans is decided annually in the State budget.
(e) Form of the subsidy.
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy
(f) To whom and how the subsidy is provided.
The subsidy is granted to manufacturing enterprises and tourism industry by Finnvera plc (state-
owned company that was formed by merging the activities of Kera Ltd and the Finnish Guarantee Board
on 1 January 1999). Subsidy element is in availability and in interest rate of the loans.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The net present cost of the programme in 2000 was FIM 40 million, the administrative costs of
Finnvera plc included.  The aid intensity of loans is about 4-5 per cent (calculated on loans).
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate. The subsidy is given during years to maturity, which is 5-10 years.
(i) The trade effects of the subsidy.
No effects on international trade
5. Development loan programme for SMEs (Finnvera plc)
(a) Title of the subsidy programme
Development loan programme for SMEs (Finnvera plc). Soft loans for product development and
managerial skills.
(b) Period covered by the notification.
2000G/SCM/N/71/EEC/Add.4
Page 7
(c) Policy objective and/or purpose of the subsidy.
Aid for SMEs
(d) Background and authority for the subsidy.
The authorisation to grant these loans is decided annually in the State budget.
(e) Form of the subsidy.
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy
(f) To whom and how the subsidy is provided.
The subsidy is granted to manufacturing enterprises and tourism industry by Finnvera plc (state-
owned company that was formed by merging the activities of Kera Ltd and the Finnish Guarantee Board
on 1 January 1999). Subsidy element is in availability and in interest rate of the loans.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The net present cost of the programme in 2000 was FIM 20 million, the administrative costs of
Finnvera plc included.  The aid intensity of the loans is about 22 per cent (calculated on loans).
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate. The subsidy is given all the years to maturity, usually 5 years.
(i) The trade effects of the subsidy.
No effects on international trade
6. Start-up loan programme for entrepreneurs (Finnvera plc)
(a) Title of the subsidy programme.
Start-up loan programme for entrepreneurs (Finnvera plc). Soft loans for entrepreneurs when
establishing an enterprise.
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to new enterprises (entrepreneurs)
(d) Background and authority for the subsidy.
The authorisation to grant these loans is decided annually in the State budget.G/SCM/N/71/EEC/Add.4
Page 8
(e) Form of the subsidy.
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy.
(f) To whom and how the subsidy is provided.
The subsidy is provided to persons who start a new manufacturing or tourism enterprise.  It is
granted by Finnvera plc (state-owned company that was formed by merging the activities of Kera Ltd and
the Finnish Guarantee Board on 1 January 1999).  Subsidy element is in availability and in interest rate of
the loans.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The net present cost of the programme in 2000 was FIM 11 million, the administrative costs of
Finnvera plc included. The aid intensity of the loans is about 28 per cent (calculated on loans).
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate. The subsidy is given all the years to maturity, i.e. 10 years.
(i) The trade effects of the subsidy.
No effects on international trade
7. Grant for technical consulting and promotion (ÅLAND)
(a) Title of the subsidy programme.
Grant for technical consulting and promotion (Åland)
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs
(d) Background and authority for the subsidy.
The annual budget of the Government of Åland
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The aid is provided to SMEs and organisations.  The subsidy is granted by the regional
government of Åland.G/SCM/N/71/EEC/Add.4
Page 9
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The total amount of grants in 2000 was FIM 0.44 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international trade
8. State aid to developing businesses (ÅLAND)
(a) Title of the subsidy programme.
State aid to developing businesses (Åland)
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs (experiment and development projects)
(d) Background and authority for the subsidy.
The annual budget of the Government of Åland
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The subsidy is provided to companies, organisations and different kinds of projects.  The aid is
granted by the regional government of Åland.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The total amount of grants in 2000 was FIM 16,356.
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international tradeG/SCM/N/71/EEC/Add.4
Page 10
9. Environment loan programme for SMEs (Finnvera plc)
(a) Title of the subsidy programme.
Environment loan program for SMEs (Finnvera plc).  Soft loans for environmental investments.
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs: to promote environment protection, energy saving, circulation of raw materials etc.
(d) Background and authority for the subsidy.
The authorisation to grant these loans is decided annually in the State budget.
(e) Form of the subsidy
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy
(f) To whom and how the subsidy is provided
The subsidy is granted to manufacturing enterprises and tourism industry by Finnvera plc (state-
owned company that was formed by merging the activities of Kera Ltd and the Finnish Guarantee Board
on 1 January 1999).  Subsidy element is in availability of the loans and in interest rates.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The net present cost of the programme in 2000 was FIM 25 million, the administrative costs of
Finnvera plc included.  The aid intensity of loans is about 20 per cent (calculated on loans).
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate. The subsidy is given all the years to maturity, usually 5-10 years.
(i) The trade effects of the subsidy.
No effects on international trade
10. Operational conditions aid
(a) Title of the subsidy programme.
Operational conditions aidG/SCM/N/71/EEC/Add.4
Page 11
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs: to develop enterprise support services for starting and existing SME:s.
(d) Background and authority for the subsidy.
The aid is granted by the Ministry of Trade and Industry and the Business Departments of the
regional Employment and Economic Development Centres (Aid to Business Act 1136/1993 as changed
by Act 552/1994, Act 297/95 and Act 1473/95).
(e) Form of the subsidy
Grant
(f) To whom and how the subsidy is provided
Aid can be granted to public institutions, foundations, private persons and enterprises.  To qualify
for aid, a project should create new service activities in the region and should be of essential significancefor the regions SMEs.  Mainly, aid may be granted for projects associated with counselling, research,
quality management, marketing, product development and design services.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The amount granted in 2000 was FIM 79 million. The actual payments were FIM 46 million.
In 2001, the estimated amount of grants is FIM 70 million
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international trade
II. AID FOR RESEARCH AND DEVELOPMENT
1. Aid for promoting R&D
(a) Title of the subsidy programme.
Aid for promoting R&D
(b) Period covered by the notification.
2000G/SCM/N/71/EEC/Add.4
Page 12
(c) Policy objective and/or purpose of the subsidy.
Aid for research and development
(d) Background and authority for the subsidy.
Legal basis:  Council of State decision on 17 June 1998 on general terms of grants and soft loans
for R&D
(e) Form of the subsidy.
Grant, soft loan and capital loan
(f) To whom and how the subsidy is provided.
The subsidy is provided for enterprises on the basis of applications.  The normal maximum aid
intensity is 50 per cent for industrial research and 25 per cent for pre-competitive development activity.
These maximum levels can be raised up to 75 per cent in industrial research and up to 50 per cent in pre-
competitive development activity.
The subsidy is granted by the Technology Development Centre (TEKES).
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
In 2000, the paid amount of grants was FIM 707 million, for loans FIM 219 million and for
capital loans FIM 160 million. The subsidy per project was on average 44 per cent of eligible costs.
(h) Duration of the subsidy and/or any other time limits attached to it.
The subsidy programme will be in force till 31 August 2003.
(i) The trade effects of the subsidy.
No effects on international trade
2. Grant for research and development (ÅLAND)
(a) Title of the subsidy programme.
Grant for research and development (Åland)
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Aid to SMEs for research and developmentG/SCM/N/71/EEC/Add.4
Page 13
(d) Background and authority for the subsidy.
The annual budget of the Government of Åland
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The subsidy is provided to companies and organisations.  The subsidy is granted by the regional
government of Åland.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The annual amount of grants in 2000 was FIM 0.68 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international trade
III. REGIONAL AID
1. Regional investment aid
(a) Title of the subsidy programme.
Regional investment aid
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Regional aid
(d) Background and authority for the subsidy.
Investment aid can be granted to firms toward fixed assets needed for business operations and for
making alterations or improvements to such fixed assets.
The aid is granted by the Ministry of Trade and Industry and the Business Departments of the
regional Employment and Economic Development Centres (Aid to Business Act 1136/1993).G/SCM/N/71/EEC/Add.4
Page 14
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
Investment aid can be granted to firms in the regional development area and the structural
adjustment areas.  In other parts of Finland, investment aid can be granted only to small businesses.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The amount granted in 2000 was FIM 420 million. The actual payments were FIM 291 million.
In 2001, the estimated amount of grants is FIM 470 million (see point 8.).
(h) Duration of the subsidy and/or any other time limits attached to it.
Until 31 December 2000.
Note:  The new Aid to Business Act (1068/2000) entered into force 1 January 2001.  The new act
includes so-called “Investment Aid Scheme”, which has replaced both the Small Business Aid Scheme
and the Regional Investment Aid Scheme (referring to the table of contents: schemes number I.1 and
III.1).  Thus the estimated amount of grants (FIM 470 million) in 2001 covers the both “old” schemes I.1
and III.1.
(i) The trade effects of the subsidy.
No effects on international trade
2. Regional transport subsidy
(a) Title of the subsidy programme.
Regional transport subsidy
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Regional aid (SMEs)
(d) Background and authority for the subsidy.
Transport of goods in Finland, which start from regions, which have less than 12.5 inhabitants
per km²: Lapland, Ostrobothnia, Kainuu, North Karelia and South Savo, are eligible for subsidy (Act954/1981 as changed by Act 613/1996).
Ministry of Trade and Industry (Industries Department) grants the aid.G/SCM/N/71/EEC/Add.4
Page 15
(e) Form of the subsidy.
Grant paid semi-annually on basis of applications and evidence.
(f) To whom and how the subsidy is provided.
The subsidy can be granted for transports starting from the place of processing of products,
which have been processed by small or medium-sized companies within Lapland, Ostrobothnia, Kainuu,
North Karelia and South Savo.  Transport subsidy can be granted for carriage of the following products:
Food and drinks, earths and stone, wood and wood products, products of the paper industry, products of
the metal industry, machinery and apparatus and products of the chemical industry.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The actual payments in 2000 were FIM 18.6 million.
For 2001 the expenditure forecast is FIM 20 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Until 31 December 2000.
(i) The trade effects of the subsidy.
No effects on international trade
3. Accelerated regional depreciation
(a) Title of the subsidy programme.
Accelerated regional depreciation
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Regional aid
(d) Background and authority for the subsidy.
Legal basis: Act 1262/1993 as amended by Act 32/1998 and by Act 1215/1998. The responsible
authority is the Ministry of Finance.
(e) Form of the subsidy.
Tax benefit (accelerated depreciation)G/SCM/N/71/EEC/Add.4
Page 16
(f) To whom and how the subsidy is provided.
The subsidy is granted in the national regional support areas I and II.  Eligible sectors for this aid
are manufacturing, hotels and lodging services for their investments in buildings and machinery.  From
1998 onwards this aid is granted only to small and medium-sized enterprises.  Sensitive sectors of
agriculture, synthetic fibres, motor vehicle industry, steel and shipbuilding are excluded.  The normalmaximum depreciation rate is raised by 50 per cent (for machinery from 25 per cent to 37.5 per cent and
for industrial buildings from 7 per cent to 10.5 per cent).
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
In 2000, the total aid amount was approximately FIM 30 million.  The maximum possible aid
intensity that can be obtained in favour of any single project is 2 per cent.
(h) Duration of the subsidy and/or any other time limits attached to it.
The subsidy programme came into force on 1 January 1994 and is applied to investments made
in 1994-2000.  The benefit is granted in the year when the asset is taken into use and during the two
following years.  The scheme will remain in force until 31 December 2004.
(i) The trade effects of the subsidy.
No effects on international trade
4. Grant for investments (ÅLAND)
(a) Title of the subsidy programme.
Grant for investments (Åland)
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Regional aid (investments in equipment and buildings)
(d) Background and authority for the subsidy.
Company aid act of Åland (ÅFS 46/1989)
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The subsidy is provided to small and medium-sized enterprises.  The subsidy is granted by the
regional government of Åland.G/SCM/N/71/EEC/Add.4
Page 17
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The annual amount of grants in 2000 was FIM 5.4 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Until 31 December 2006.
(i) The trade effects of the subsidy.
No effects on international trade
IV. AID IN THE FIELD OF ENERGY
1. Energy grants
(a) Title of the subsidy programme.
Energy grants
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Promotion of energy conservation, energy efficiency and the use of renewable energy; reduction
of negative environmental impacts associated with energy production and usage and contribution toenergy security and diversity of energy supply.
(d) Background and authority for the subsidy.
Legal basis: Decision of the Council of State on the general conditions for awarding energy
grants (29/1999)
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
Subsidies can be granted to enterprises and communities on a case-by-case consideration.
Subsidies are granted by the Ministry of Trade and Industry (Energy Department) on application and theyare paid according to the progress of the project.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The total amount of the commitments for energy grants was FIM 131 million in the 2000 budget.
Average subsidy per project was FIM 564,000.G/SCM/N/71/EEC/Add.4
Page 18
(h) Duration of the subsidy and/or any other time limits attached to it.
The duration of the subsidy programme is five years (valid to the end of year 2003). The
programme commenced in its present form in 1996.
(i) The trade effects of the subsidy.
No effects on international trade
2. Aid measures connected to energy taxation
(a) Title of the subsidy programme.
Aid measures connected to energy taxation
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
The general aim of the programme is environmental. The purpose is i.e. to promote the use of
renewable energy.
(d) Background and authority for the subsidy.
Legal basis: Act 1260/1996.
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The aid is granted for plants producing electricity from wood and wood-based fuels, for small
power plants, for wind power as well as for electricity produced from the waste gas of metallurgic
processes.  The aid is equal to the electricity tax (FIM 0.041 per kWh for wind power and FIM 0.025 per
kWh for others).
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The estimated amount of aid in 2000 is FIM 172.5 million and in 2001 FIM 180-185 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international tradeG/SCM/N/71/EEC/Add.4
Page 19
V. AID FOR ENVIRONMENTAL PROTECTION
1. Grants for the promotion of environmental protection
(a) Title of the subsidy programme.
Grants for the promotion of environmental protection
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Environmental protection
(d) Background and authority for the subsidy.
The regional Environmental Centre takes decisions on grants within its allocated appropriation
and taking into account its budget.  The Ministry of the Environment may decide on grants if these are of
national importance or for other special reason.
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The subsidy can be provided to enterprises, local authorities, joint municipal boards and other
corporations for development, experimentation and investment projects, which promote environmental
protection.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The amount of the commitments of grants for the promotion of environmental protection was
FIM 23.4 million in 2000. The amount budgeted for 2001 is FIM 23 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international trade
2. Waste oil management financed by waste oil charges
(a) Title of the subsidy programme.
Waste oil management financed by waste oil chargesG/SCM/N/71/EEC/Add.4
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(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
Environmental protection
(d) Background and authority for the subsidy.
The Ministry of the Environment is the responsible authority.
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
The subsidy can be provided to enterprises, which have made a contract on waste oil
management with The Ministry of Environment.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The amount of aid in 2000 is FIM 5.4 million.  The amount budgeted for 2001 is FIM 14 million.
(h) Duration of the subsidy and/or any other time limits attached to it.
Indeterminate
(i) The trade effects of the subsidy.
No effects on international trade
VI. OTHER SUBSIDIES
1. Ice dues classification allowance
(a) Title of the subsidy programme.
Ice dues classification allowance
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
To support the necessary transport capacity, taking into account the Finnish climate and other
natural circumstances.G/SCM/N/71/EEC/Add.4
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(d) Background and authority for the subsidy.
Legal basis: Act 433/1981, section 6 as amended by acts 1543/1992, 1258/1996 and 1060/1999.
The responsible authority is the Ministry of Finance.
(e) Form of the subsidy.
Tax allowance
(f) To whom and how the subsidy is provided.
The programme is applied to shiporders made during 1994-2000. The shipowner can deduct
3 per cent of the acquisition costs of the ship from the taxable income. The allowance is granted in the tax
year when the ship has been taken into use and in the following year.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
In 2000 the total budget was FIM 12 million. The total amount budgeted for 2001 is
FIM 10 million. The aid intensity per project is at the most 1.7 per cent.
(h) Duration of the subsidy and/or any other time limits attached to it.
The present legislation applies to orders made during 1994-2000. The allowance came into force
in amended form on 1 January 1994.
(i) The trade effects of the subsidy.
No effects on international trade
2. Investment aid for businesses processing agri-based products
(a) Title of the subsidy programme.
Investment aid for businesses processing agri-based products
(b) Period covered by the notification.
2000
(c) Policy objective and/or purpose of the subsidy.
The objective of the programme is to improve the processing and marketing conditions for
agricultural products.
Investment aid can be granted for a project aimed at improving the quality of products or the
reorientation of production to correspond to market demand; other improvements in processing, handling,
storage or packaging processes; improvements in purchasing or distribution; intensifying the recycling ofby-products; or reducing the harmful environmental impact on production.G/SCM/N/71/EEC/Add.4
Page 22
(d) Background and authority for the subsidy.
In addition to support part-funded by the Guidance Section of the European Agricultural
Guidance and Guarantee Fu nd (EAGGF) referred to in EC Regulation 866/90, Finland is supporting its
food processing industry from national funds during the country's first years of EU membership.  The
national legal basis is the Council of State Decision of 15 June 1995 on investment aid for businessesprocessing agri-based products.
The responsible authority is the Ministry of Trade and Industry.
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
Investment aid can be granted to businesses processing agri-based products (products listed in
Annex I of the EC Treaty).  The intensity of the investment aid is based on the acquisition expenses of
fixed assets and may not exceed 20 per cent.  In the case of a project in an EC Objective 6 region,
however, the aid ceiling is 30 per cent.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
A total of FIM 10.2 million of aid was paid based on earlier commitments (see point 8.).
(h) Duration of the subsidy and/or any other time limits attached to it.
The last year investment aid can be granted was 1999. Based on the granting decision made, this
aid can be paid until the end of 2001.
A new investment and development aid programme entered into force 1 January 2001. The aid
programme is based on the Aid to Business Act (1068/2000).
(i) The trade effects of the subsidy.
No effects on international trade
3. Aid for development projects in the food industry
(a) Title of the subsidy programme.
Aid for development projects in the food industry
(b) Period covered by the notification.
2000G/SCM/N/71/EEC/Add.4
Page 23
(c) Policy objective and/or purpose of the subsidy.
The objective of the programme is to improve the competitiveness of the food industry in the
long run by activating enterprises to adjust their business activities to the changed operating environment
due to the EU membership.
(d) Background and authority for the subsidy.
During the first five years of EU membership a certain amount is annually reserved in the state
budget to aid for investments and the adjustment of the food industry to the EU membership (see
notification on investment aid for businesses processing agri-based products).  This appropriation can be
used not only to finance investments, but also to finance development projects.  The Council of State has
issued a decision on 3 April 1996 on aid for development projects in the food industry.  Development aid
is granted from the same national funds as investment aid for food industry.
The responsible authority is the Ministry of Trade and Industry.
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided.
A business processing agricultural products listed in Annex I of the EC Treaty or manufacturing
such products, or a group of such businesses, can be granted development aid.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
A total of FIM 1.7 million was paid based on earlier commitments (see point 8.).
(h) Duration of the subsidy and/or any other time limits attached to it.
The last year investment aid can be granted was 1999. Based on the granting decision made, this
aid can be paid until the end of 2001.
A new investment and development aid programme entered into force 1 January 2001.  The aid
programme is based on the Aid to Business Act (1068/2000).
(i) The trade effects of the subsidy.
No effects on international trade
4. Aid for shipbuilding
(a) Title of the subsidy programme.
Aid for shipbuilding
(b) Period covered by the notification.
2000G/SCM/N/71/EEC/Add.4
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(c) Policy objective and/or purpose of the subsidy.
Contract-related aid for shipbuilding
(d) Background and authority for the subsidy.
Ministry of Trade and Industry
(e) Form of the subsidy.
Grant
(f) To whom and how the subsidy is provided
The aid is granted and paid by the Ministry of Trade and Industry for shipbuilding and ship
conversion.
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The granted amount in 2000 was FIM 348.8 million. There is no money budgeted for grants in
2001.
The subsidy is granted in accordance with the EC Council Regulation 1540/98 on aid to
shipbuilding. The maximum aid ceilings are in accordance with the European Commission's rules: 9 per
cent for big vessels and 4.5 per cent for small vessels and ship conversion.
(h) Duration of the subsidy and/or any other time limits attached to it.
The Ministry of Trade and Industry Decision will be in force until 31 December 2000.
(i) The trade effects of the subsidy.
No effects on international trade.
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