WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.25 
26 August 2005 
 (05-3610) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
New & Full Notification Pursuant to Article XVI: 1 of  
The GATT 1994 and Article 25 of the SCM Agreement  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
 The following addendum to the notification of  the European Community relates to subsidy 
programmes of the United Kingdom . 
 
______________  G/SCM/N/123/EEC/Add.25 
Page 2  
 
 UNITED KINGDOM  
 
TABLE OF CONTENTS 
 
Page  
 
1. Aeronautics Resea rch Programme.......................................................................................4  
2. Aid in respect of redundancy payments  arising from the closure of 
Selby Complex owned by UK Coal.......................................................................................5  
3. Bio-Wise ....................................................................................................................... ...........5  
4. Business Links ................................................................................................................. .......6  
5. Capital Grants for renew able technologies..........................................................................7  
6. Carbon Trust Investments and I nnovation  [Formerly named Low 
Carbon Innovation Programme (LCIP)] .............................................................................8  
7. CCL Exemption for Electricity Expo rts from Good Quality CHP ...................................9  
8. CDC Group plc.................................................................................................................. .....11  
9. CIS Photovoltaic re-cladding  project, Manchester.............................................................12  
10. Cleaner Coal R&D Programme............................................................................................14  
11. Coalfields Enterprise Fund ...................................................................................................14  
12. Competitiveness in the Oil and Gas Supplies Sector (COGSS) Aid 
scheme ......................................................................................................................... ............15  
13. Emissions Trading.............................................................................................................. ....17  
14. Energy Efficiency Best  Practise Programme.......................................................................18  
15. English Cities Fund............................................................................................................ ....20  
16. Enterprise Grant Scheme......................................................................................................21  
17. Enterprise Zones ............................................................................................................... .....21  
18. Eureka Initiative .............................................................................................................. ......22  
19. Excise duty to bio ethanol used as road Fuel.......................................................................23  
20. First phase of major photovoltaic demonstration programme..........................................24  
21. Grant for R&D within an  individual business ....................................................................25  
22. Green Fuel Challenge Pilot Project – Biogas.......................................................................26  
23. Green Fuel Challenge Pilot Project – Hydrogen.................................................................27  
24. Highland Opportunity Limited.............................................................................................28  
25. Highland Prospect Limited ...................................................................................................29  
26. Highlands & Islands Enterprise – R&D Innovation Scheme for SMEs ...........................29  
27. HIE - Scheme for Initial Inv estment and Job Creation......................................................30  
28. Historic Environment Re generation scheme .......................................................................31  
29. Home Shipbuilding Credit Guarantee Scheme ...................................................................32  
30. Invest NI – Property Development scheme..........................................................................33  
31. Launch Investment for Civ il Aerospace Projects................................................................34  
32. LINK Collaborative Research scheme .................................................................................34  
33. Local authorities – Assistance for SMEs..............................................................................35  
34. Merseyside – Special Area & Key Si de Investment Grant Scheme...................................36  
35. MG rover training aid .......................................................................................................... .37 
36. NETS (New Entrants Training Scheme)..............................................................................38  
37. NI - Aggregates levy - relief for aggregate commercially exploited in NI.........................39  
38. NI – Aggregates levy - extended re lief for aggregate commercially 
exploited in NI ................................................................................................................ ........41  
39. NI - Buying Time Assistance Scheme ...................................................................................44  
40. NI:  Company Development Programme ............................................................................45  
41. NI:  Compete Programme Round Three (2003-2008).........................................................46  
42. NI – Gas Pipeline.............................................................................................................. ......48   G/SCM/N/123/EEC/Add.25 
 Page 3 
 
 
 43. NI – Restructuring aid......................................................................................................... ..49 
44. NI - Selective Financial Assistance .......................................................................................50  
45. NI – SMART..................................................................................................................... ......50  
46. NI:  Start programme ........................................................................................................... .52 
47. NI:  Support for film and television production..................................................................53  
48. NI:  Technology Fund (NITECH).........................................................................................54  
49. NI Tourism Challenge Fund .................................................................................................55  
50. NI:  Urban Development Grant (UDG) Scheme .................................................................56  
51. NI:  Viridian Growth Fund ...................................................................................................56  
52. Non-Fossil Fuel Obligations (NFFOs) ..................................................................................58  
53. Open Courses................................................................................................................... .......59  
54. Partnership Support fo r Regeneration ................................................................................60  
55. Partnership support for regeneration – speculative and bespoke .....................................60  
56. Reduced rate of excise duty on biodiesel (N804/01) ............................................................61  
57. R&D for renewable and Sustainable Energy ......................................................................63  
58. R&D Tax Credit................................................................................................................. ....64  
59. Regional Selective Assistance / Selective Financial Investment for 
England ........................................................................................................................ ...........66  
60. Renewables Obligation Order 2005......................................................................................67  
61. Rover Hams Hall Training support......................................................................................68  
62. Scottish Enterprise - Pr operty support scheme...................................................................69  
63. Scottish Enterprise - Support toward s capital investment by existing 
and new businesses............................................................................................................. ....70  
64. Scottish Executive - Grants for Owner Occupation (GRO) Scotland ...............................71  
65. Scottish Executive – Scottish Executive and Scottish Enterprise 
Research and Develo pment scheme......................................................................................73  
66. Scottish Local Authorities - Property support scheme .......................................................74  
67. South Yorkshire productive investment scheme.................................................................75  
68. Support for Land Remediation.............................................................................................76  
69. The Britech Fund ............................................................................................................... ....77  
70. Vaccines Resea rch Relief....................................................................................................... 78 
71. Wales Tourist Board - Investment Support Scheme...........................................................81  
72. Waste Research and Innovation programme and waste demonstrator 
programme ...................................................................................................................... .......82  
73. WDA Partnership Development ...........................................................................................83  
74. WDA Property for Business..................................................................................................84  
 G/SCM/N/123/EEC/Add.25 
Page 4  
 
 1. Aeronautics Research Programme  
[Formerly known as Civil Aircraft Research  and Technology Demons tration (CARAD)]  
  The Programme superseded CARAD on 1
st April 2000 but retains the same objectives, 
criteria for support and level of funding as applied to CARAD. 
 
1. Period covered by the notification  
  2003 and 2004   
2. Policy objectives
  
  To maintain the competitiveness of the UK aeronautics industry by ensuring that essential 
aircraft technologies are available in the long term .   The Aeronautics Rese arch Programme helps UK 
industry overcome the problem of financing long-term research. 
 
3. Background and authority for the scheme
 
  Civil Aviation Act 1982  4. Form of the subsidy 
 
 
 Grant.  5. To whom and how the subsidy is provided  
 Support for up to 50 per cent of eligible costs for collaborative projects is available in core 
civil aircraft technology sectors.  Beneficiari es include companies, research establishments and 
universities.  6. Total amount budgeted
 
 
 2003 £19,934k [Cash spent] 
 2004 £26,538k [Cash spent]  7. Duration of programme
 
 
 The Scheme's duration is not limited.   The current phase covers the five years from 
1 April 2001 to 31 March 2006.  The EC approve d financing for the period from 1 April 1999 to 
31 March 2001, with re-notification becoming necessary after five years.  Note: No new project 
commitments have been entered into since 31.03.2004,  when the Scheme closed to new work.  Spend 
will continue to the completion of existing commitments in period ending UK financial year 1 April 2008 – 31 March  2009    
 8. Assessment of trade effects
 
  The objective is to support long-term pre- competitive research in essential aircraft 
technologies, not to assist production.    
  G/SCM/N/123/EEC/Add.25 
 Page 5 
 
 
 2. Aid in respect of redundancy payments arising from the closure of Selby Complex 
owned by UK Coal 
1. Period covered by the notification  
  2003 and 2004  
 
2. Policy objectives
  
  To enable UK Coal to extend pre-privati sation redundancy terms to qualifying employees 
until March 2005. 
 
3. Background and authority for the subsidy
  
  On 16 July 2002, UK Coal plc (formerly RJB Mining) announced that production at the Selby 
coalmine complex was to be phased out, with comple te closure projected by Spring 2004.  Actual 
closure of the last unit was in October 2004. UK Co al took the decision to close the mines because of 
deteriorating geological conditions  and continuing financial losses,  concluding that there was no 
prospect of the mines becoming viable.    Government support for redundancy paymen ts lies in European Council Regulation 
1407/2002, with payments made under Section 8 of the Industrial Development Act 1982.  
 
4. Form of the subsidy 
 
  Capital grant  
5. To whom and how the subsidy is provided
 
  Subsidy provided to UK Coal in instalments  6. Total amount budgeted
 
 
 2003 £8.9 million  
 2004  £1.1 million  7.  Duration of the programme
 
 
 June 2003 – March 2004 
 8.  Assessment of trade effects
 
  Nil  3. Bio-Wise  
1.  Period covered by the notification
 
  2003 and 2004   G/SCM/N/123/EEC/Add.25 
Page 6  
 
 2. Policy objectives 
 
  To promote the use of biotechnology in the UK manufacturing industry and develop the UK biotechnology suppliers sector, by demonstr ating biotechnology us es and benefits.   
 
3. Background and authority for the scheme
 
  The Statutory Authority for public expenditure  under this programme is the Science and 
Technology Act 1965.  The BIO-WISE Programme was announced by the Secretary of State for Trade and Industry in November 1999. 
 
4.  Form of the subsidy 
 
 
• Grant funding of Demonstration Projects and Case Studies.   
• In kind Support in the form of advice to companies on the possible uses and benefits of 
biotechnology to their specific processes. 
 
5.  To whom and how the subsidy is provided  
  Grants are paid to collaborations of ma nufacturing companies and biotechnology supplier 
companies, quarterly as a percentage of eligible project costs.   Up to 4 hours (EU State aid limit) of in kind support in the form of advice is given to 
companies on the possible benefits biotechnology can give their company. 
 6.  Total amount budgeted
 
  2003 £1,888,239.08 
 2004 £1,247,910.48 
 7.  Duration of programme
 
  The Programme was to run for 4 years, endi ng on 31 March 2003.  An Exit strategy has now 
been implemented, extending the Programme to  31 December 2004 when the programme finally 
ended  8.  Assessment of trade effects
 
  At least £20,000,000 to date (April 20046 figu res). There will be future trade effects 
particularly for the Bio-Wise demonstrator projects but it is too early to measure the commercial 
benefits of these.   
4. Business Links  
1.  Period covered by the notification
 
 
 2003 and 2004    G/SCM/N/123/EEC/Add.25 
 Page 7 
 
 
 2.  Policy objectives   
  The scheme is aimed at improving the consis tency and quality of business support to SMEs.  
And providing a Gateway to the many Government programmes aimed at SMEs and pre-starts with 
the aim of simplifying the process. 
 
3.  Background and authority for the scheme
 
  SBS is an executive agency of  the DTI.  Authority for this  scheme comes from the DTI, HM 
Treasury and the EU.  
 
 Legal basis are covered by the Employment Ac t 1973 sections 2(1) and 2(2) (as substituted by 
section 25 of the Employment and Training Act 1988) and the Industrial Development Act 1982, 
section 11.  
4.  Form of the subsidy 
 
  Grant  5. To whom and how the subsidy is provided
 
 
 Business Link Operators (BLOs) provide (o ften subsidised) business advice to SMEs, pre-
starts and individuals. Grant fundi ng is drawn down on the basis of identified need on a monthly basis 
using an invoice process.  6.  Total amount budgeted
 
 
 2003 £142 million  2004 £142 million  7.  Duration of programme
 
 
 1994-present, BLOs work on a three-year rolling contract with BL Core Service funding 
allocations made annually.  Fundi ng covers one year at a time. 
 8.  Assessment of trade effects
 
 
 Customer Satisfaction and pene tration levels recorded quarterly.  Gross Value Added (the 
recording of the financial impact BLO advice has made on a business) to come on-line by 2003/04.  Targets relating to the creation of business start-ups are applicable to all BLOs (but targets are owned 
by RDAs) and are recorded quarterly.  
5. Capital Grants for renewable technologies  
1.  Period covered by the notification
 
 
 2003 and 2004  
 2. Policy objectives
 
 
 To help the development of the UK's Renewable Industry.  G/SCM/N/123/EEC/Add.25 
Page 8  
 
 3. Background and authority for the subsidy 
 
  The Scheme was set up as the Government's  main mechanism for supporting renewable 
energy. It imposes an obligation on energy companies to source a percen tage of their electricity sales 
from eligible sources.  The Re newables Obligation Order 2002. 
 
4.  Form of the subsidy 
 
 
 Grants 
 
5.  To whom and how the subsidy is provided  
 
 Companies within the Renewable Energy sector 
 
6. Total amount budgeted  
 
 £400million over period 2002 – 2008 
   It is not possible to provide a year-by-year breakdown of the budget.  7. Duration of the programme
 
 
 Current contracts run to 31 March 2005 
 8. Assessment of trade effects
 
 
 Development and improvement of the Renewable Energy sector 
 
6. Carbon Trust Investments and Innovation  
[Formerly named Low Carbon Innovation Programme (LCIP)] 
1.  Period covered by the notification  
 
 2003 and 2004  
 2.  Policy objectives
  
  The purpose of LCIP is the reduction of gree nhouse gas emissions with particular emphasis 
on reduction of emissions from UK sources.  By supporting the development of low carbon 
technology, LCIP aims to bridge the funding gap in  the market caused by the presently existing lack 
of internalisation of carbon costs.  LCIP will help to secure the funding continuu m that is vital to the 
successful delivery to market of low carbon technologi es.  The purpose of the scheme is to support the 
United Kingdom and the European Community in meeting, as a minimum, their international 
commitments under the Kyoto Protocol. 
 
 The development of low carbon technologies will lead to clear horizontal benefits.  It will in particular lead to environmental be nefits and simultaneously to increased levels of energy efficiency 
for energy users.  Energy use is evenly divided between buildings, industry and transport.  Positive 
benefits flowing from the development and use of  new low carbon technology will therefore not be 
sector specific but accrue across all sectors.  The development of low carbon te chnology will benefit a 
wide range of industries as well as society as a whole.   G/SCM/N/123/EEC/Add.25 
 Page 9 
 
 
 3. Background and authority for the subsidy  
  The Low Carbon Innovation Programme is admi nistered by The Carbon Trust (“the Trust”), 
an independent not for profit company formed to i nvest public and eventually private finance in low-
carbon technology and innovation. 
 
 The operation of the scheme by the Trust will be supervised by the UK Department of Environment, Food, and Rural Affairs (“DE FRA”) and where appr opriate the Devolved 
Administrations of Scotland, Wales and Northern Ireland.  
 The Trust will operate LCIP on the basis of  its Grant Offer letters from DEFRA and the 
Devolved Administrations of Scotland, Wales a nd Northern Ireland. The legal bases for providing 
money to the Carbon Trust for its programmes, in cluding LCIP, are the Science and Technology Act 
1965 and the Environmental Protection Act 1990.  
 
4.  Form of the subsidy 
 
  The form of the subsidy takes the shape of research and development grants.  5. To whom and how the subsidy is provided
 
 
 Universities and SMEs (small scale technology de velopers) are the main beneficiaries of the 
R&D grant funding of LCIP.  6.  Total amount budgeted
 
 
 Total level of funding awarded by the Carbon Trust to R&D projects in fiscal year 2003/2004 
amounted to £5.6M   Total level of funding awarded by the Carbon Trust to R&D projects in fiscal year 2004/2005 
amount to £3.2M 
 
7.  Duration of the programme
 
  The Low Carbon Innovation Programme is anticip ated to have a duration of at least five 
years.  At present funding is secured for the first three years.  
 
8.  Assessment of trade effects
 
  No material trade effects given the small size of individual R&D grants and the types of organisations that receive the aid. These are very  small companies in the technology development 
stage and do not have material export capacity. 
 
7. CCL Exemption for Electricity Exports from Good Quality CHP  
1.  Period covered by the notification
 
  2003 and 2004 
 
2.  Policy objectives
  
  CHP is a low-carbon technology, which can be  between 25 and 30% more efficient in 
primary energy usage than more traditional forms of secondary energy generation.  The aim of the G/SCM/N/123/EEC/Add.25 
Page 10  
 
 scheme is to encourage more usage of this type  of power generation, which is currently at a 
competitive disadvantage due to the fact that it is  significantly more expensive to produce power from 
CHP than from conventional power plants.   The EU Cogeneration Directive (2004/8/EC) ca me into force on 21 February 2004, allowing 
Member States until 21 February 2006 to transpo se it into national law.  The Directive places an 
obligation on Member States to ensure that s upport for CHP is based on useful heat demand and 
primary energy savings.  It sets out a methodol ogy for assessing the energy efficiency of CHP 
schemes based on harmonised efficiency reference values for the separate production of heat and 
power.  These reference values are being de veloped over the intervening two years. 
 
3.  Background and authority for the subsidy
 
  In 2001, the Commission approved the exemption of non-Commercial Combined Heat and Power (CHP) from the UK's Climate Change Levy (CCL ).  This exemption was specific to electricity 
produced for industrial purposes, i.e. used on-site.  Under this scheme, the UK authorities wanted to 
extend this exemption to CHP plants that “export” th e electricity, i.e. that distribute electricity via 
local networks for supply to the public.   The previous exemption for CHP applied only to 'Good Quality CHP', as defined by the British authorities, and accepted by the Commission. CH P schemes can vary to a great extent in size, 
type and performance, and therefore a system has b een put into place in order to ensure that any 
incentives are targeted fairly and benefit schemes in relation to their environmental performance.  The 
CHP Quality Assurance programme (CHPQA) provid es the methods and procedures needed to assess 
and certify the quality of the full range of CHP schemes in the UK.  Through the programme, Good 
Quality CHP electricity output is identified wh ilst any additional power output is regarded as 
conventional power generation and will not qualify fo r the Climate Change Levy exemption, ensuring 
benefit is only given to the Good Quality output  from any CHP scheme.  The CHPQA Standard is 
being amended so it is fully cons istent with the definition in /Article 12(2) of the Cogeneration 
Directive.   Basic legislation for the Climate Change Levy is contained in Schedule 6 of the Finance Act 
2000, which provides for the exemption from the Levy  of electricity outputs from Good Quality CHP 
that are sold direct from the generators to end users. Section 123 of the Finance Act provides the 
mechanism to exempt from the Levy supplies of electricity generated from Good Quality CHP sold by 
licensed electricity utilities to end users.  
4.  Form of the subsidy 
 
  Tax relief: exemption from the Climate Change Levy.  5.  To whom and how the subsidy is provided
 
 
 This scheme exempts Good Quality CHP supplie d by licensed suppliers from Climate Change 
Levy charged to consumers for electricity exports.  This benefits CHP operators wishing to sell Good 
Quality CHP electricity to licensed suppliers by help ing to make up the shortfall between the market 
price obtainable for CHP electricity and its cost of production.  
 The Office for Gas and Electricity Markets, as the UK energy regulator, have the lead role in 
ensuring that any units of electricity sold as having  been generated by Good Quality CHP do in fact 
originate from this source.  They use a mechan ism similar to the system of Levy Exemption 
Certificates already used for tracking renewable electricity, using information derived from the 
CHPQA programme, which already monitors and certifies Good Quality CHP electricity outputs on  G/SCM/N/123/EEC/Add.25 
 Page 11 
 
 
 an annual basis. In this way, HM Customs and Ex cise are able to audit sales of levy-free electricity 
through their normal assurance procedures.  6. Total amount budgeted
 
 
  2003  See below 
 2004   We cannot provide year-on-year figures, but we can say that the overall cost of the CHP exemption (indirect supplies) will not exceed £15 million per annum until 2005.  Thereafter the 
amount of the revenue foregone w ill depend on the rates of levy and the success of the policy to 
encourage CHP electricity generation. At current le vy rates we estimate that the cost could rise to 
£25 million per annum by 2010.  7. Duration of the programme
 
 
 The Commission considered a ten-year exemption of the Levy to be appropriate in order to 
guarantee the effectiveness of this measure.  8.  Assessment of trade effects
 
 
 This measure helps enhance the economics of  CHP and therefore helps to stimulate the 
growth of CHP capacity or, when market conditions are poor, helps maintain installed capacity in the 
UK. It does not affect any one particular sector of the UK economy. 2004 would be the first year in which there will be sufficient data on the measure, available in the summer wh en the Digest of UK 
Energy Statistics (DUKES) for 2004 is published. While  the data cannot provide direct information on 
the impact of the measure, it should indicate that the measure has helped o ffset the decline in the 
industry.  
8. CDC Group plc 
1. Period covered by the notification
 
 
 2003 and 2004  
 2.  Policy objectives 
 
  The objective is to increase the amount of cap ital available to CDC Group plc (an investment 
company wholly owned by the UK government) by exem pting it from UK corporation tax, in order to 
maximise the impact of its mission.      CDC's mission is “To invest its capital so as to maximize the creation and long term growth 
of viable businesses in poorer developing countries through responsible inv estment and mobilizing 
private finance.” 
 
 The tax exemption enables CDC to  re-invest all the returns on its capital for the benefit of the 
poorer developing countries.  3. Background and authority for the subsidy
 
 
 Legislative authority for the Secretary of St ate for International Development to issue an 
order making CDC Group plc exempt from UK co rporation tax was provided under section 20 
(Schedule 3) of the Commonwealth De velopment Corporation Act of 1999. G/SCM/N/123/EEC/Add.25 
Page 12  
 
  
 It has been approved, for a duration of 20 years (commencing on 1 May 2003), under Article 87(3)(c) of the Treaty establishing the European Union, by the European Commission in their 
decision 'State Aid number C  46/2002 (ex N 56/ZOOl)- United Kingdom' dated 5 March 2003 
 
4.  Form of the subsidy 
 
  An exemption from UK Corporation tax operating with effect from 1 May 2003 
 5. To whom and how the subsidy is provided
 
 
• To CDC Group plc 
• By means of a statutory order making the company exempt from UK corporation tax 
 6. Total amount budgeted
 
  As this is a tax exemption only, there is no budget figure.  It is only possible to provide an 
estimate of the value of the exemption to CDC Group plc as follows: -. 
  2003 For the period 1 May –31 December 2003 only, the estimated value is £7.6 million  2004 The estimated value is £24 million. (NB Final figures are not yet available)    7. Duration of the programme
 
 
 The tax exemption has no set term under the Commonwealth Development Corporation Act 
of 1999, but is only valid as long as the UK government holds a special share in CDC Group plc as defined in the Articles of Association of the company.     
 The European Commission have set a maximum duration of 20 years as a condition of their 
approval.   8. Assessment of trade effects
 
 
 The nature of CDC's mission to invest in the private sector in the poorer developing countries 
is the provision of capital to enterprises unable othe rwise to gain access existing capital markets, and 
to stimulate further private investment flows. We do not therefore consider CDC to be in competition 
with other investors or that there are any discernible trade effects.  
9. CIS Photovoltaic re-cladding project, Manchester 
1. Period covered by the notification
 
  2003 and 2004   2.  Policy objectives
  
 
 The project will act as a beacon for renewable energy in Manchester, the North West and the UK. It will be the largest visible solar array in the UK and an icon for sustainable development. The photovoltaic cell panels will meet about 10% of the building's electricity requirements. 
  G/SCM/N/123/EEC/Add.25 
 Page 13 
 
 
 3. Background and authority for the subsidy  
  The project will involve cladding the service tower of the 25-storey CIS Building with photovoltaic cell panels.  The existi ng cladding is now in an advanced state of decay. In addition to 
detracting from building appearance, building fabric degradation and the health and safety issue of 
falling materials are causing increasing concern. En glish Heritage and Arup facades have confirmed 
that repair or replacement with a similar façade is not practicable or sustainable.  CIS aimed through consultation to identify and develop the most sustainable solution.   The identified solution following a sustainability  assessment is to re-clad the CIS Service 
tower with electricity generati ng photovoltaic panels.    
  The legal basis for the aid is s 5 Regional Development Agency Act 1998.  4. Form of the subsidy 
 
 
 Grant  5.  To whom and how the subsidy is provided
 
  CIS (Co-operative Insurance Services PLC) ar e seeking a grant contribution towards the 
additional costs of re-cladding the service tower wi th photovoltaic cell pane ls.  The grant will not 
exceed 45% of the extra investment costs necessar y to meet the environmental objectives of the 
project: that is, the additional costs of cladding th e tower in the silicon thic k film photovoltaic cell 
panels and the additional professional design fees.   
 Grant aid will normally be payable in stages,  usually in arrears, on production of evidence 
that the required amount of money has been properly spent on the project.  6.  Total amount budgeted
 
  2004  £140,000 
 
7.  Duration of the programme
 
  2 years from March 2004  
8.  Assessment of trade effects
 
  Aid intensity levels will be within the levels  permitted for environmental protection in an 
Article 87(3)(c') area under the Community Guidel ines on State Aid for Environmental Protection 
(Section E.1.3, paras 30-32). OJ C 37/03/2001  
 In addition the scheme meets the criteria stated in decisi on in N 158/02 where market 
distortion was also considered to be compatible. Ind eed, some of the funding for this project is made 
within the framework of this decision.   Thus although there is a market distortio n, it is compatible with the EC Treaty. 
 G/SCM/N/123/EEC/Add.25 
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 10. Cleaner Coal R&D Programme 
1. Period covered by the notification
 
  2003 and 2004   
2. Policy objectives
  
 
a) To provide seed corn funding to CCT stakeholders 
b) To act as a focus to enable a collaborative programme of R&D 
c) To promote the development and export of environmentally friendly technologies 
 
3. Background and authority for the scheme  
  Science & Technology Act 1965  
4.  Form of the subsidy 
 
  Grant  5. To whom and how the subsidy is provided
 
 
 The subsidy is paid to contractors (2) w ho manage DTI's Programme.  They manage a 
portfolio of projects on behalf of the DTI.  Subsidy is paid to them both for their management costs and as re-imbursement (for having paid their sub-contractors).  6. Total amount budgeted
 
 
 2003 £970,000  2004 £1,120,000  7. Duration of programme
 
 
 6 years from 1999 
 8. Assessment of trade effects
  
  No information 
 
11. Coalfields Enterprise Fund 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  Coalfields Enterprise Fund is a venture fund to provide finance to start up and developing 
companies in a define list of areas which are former coal mining areas.  
3.  Background and authority for the scheme
 
  Powers under the Industrial Development Act 1982  G/SCM/N/123/EEC/Add.25 
 Page 15 
 
 
  
4.  Form of the subsidy  
  Equity, quasi-equity and loans  
5.  To whom and how the subsidy is provided
 
  Subsidy to the Fund in the form of a loan  6.  Total amount budgeted
 
 
  2003 £2,227,272  2004 £3,158,263  7.  Duration of programme
 
 
 Fund has a limited life of 10 years running from 2003 to 2014.  8.  Assessment of trade effects
 
  Limited - Increase in the number of small and medium size companies 
 
12. Competitiveness in the Oil and Gas Supplies Sector (COGSS) Aid scheme 
1.  Period covered by the notification
 
  2003 and 2004  
 
2.  Policy objectives
  
  Project proposals must be relevant to oil and gas exploration or production.  This means that 
their ultimate objective must be goods or services that will be marketed directly or indirectly to oil 
and gas companies, in the UK or in export market s.  OGID concentrates its resources on projects in 
the following areas: - 
 
• Subsea Production Systems 
• Advanced Technology for Underwater Engineering 
• Exploration Technologies 
• Drilling and Production Technologies 
• Reservoir Technologies 
• Onshore Oil, Gas & Petrochemicals 
• Chemical/Process Equipment 
  Projects must involve significant technological risk and innovation.  Routine product 
development is not supported under the programme. 
  Projects must need Government support in order to go ahead, or for the project to proceed rapidly enough to stand a reasonable chance of comme rcial success.  If the project is receiving support 
under any other Government scheme, it is not eligible for support from OGID.  
 Projects must be commercially well conceived.  Applicants must demonstrate a good 
understanding of the market sector at which their proj ect is aimed, to show that they have thought G/SCM/N/123/EEC/Add.25 
Page 16  
 
 through the obstacles, and that they have a credib le route to commercialisation.  OGID will need to 
consider whether the applicant has, or is likely to be able to raise, any additional funding necessary to 
commercialise the project.   Applicants must be companies, organisations such as universities or research institutions (or, 
exceptionally, individuals) operating in the UK and have the technical resources to undertake the 
project successfully, and the financial resources to provi de their share of the funding, plus an adequate 
margin for contingency.   In all but exceptional cases, the project must be  collaborative i.e. there must be financial and 
technical input from companies other than the appli cant e.g. from oil companies, companies in the oil 
and gas supplies sector or other parties with a dir ect interest in the development or commercialisation 
of the product or service.  OGID's contribution to the costs of the project cannot exceed that of the applicants' and, on average, OGID has funded about 25% of the costs of projects it has supported recently.  OGID can sometimes help applicants to  identify companies who may be interested in 
supporting their project. 
 3.  Background and authority for the scheme
 
  Oil and Gas Industry Development (OGID Di rectorate) which was formerly known as 
Infrastructure and Energy Projects (IEP) in July  1998 introduced a programme (COGGS) of support 
to the improvement of the competitiveness of the UK suppliers to the oil and gas industry.  The 
programme includes support to the development of new technology by SMEs and a contribution to a 
LINK programme in collaboration with EPSRC.      IEP (now OGID) considered that the careful use of this relatively low amount will lead to 
significant improvement in the competitiveness of an  industry which has grown from a very low level 
of activity in the 1970s to be the major player on the UKCS (£9Bpa) and has a leading position in the 
world-wide market (£200Bpa).   The funds are u sed to promote co-operation and collaboration across 
the full spectrum of scientific researchers, engi neering companies and end-users oil companies. 
  IEP, (now OGID and formerly OSO), previously operated a programme of support to UK 
companies predominantly SMEs, involving direct s upport to companies and participation in a LINK 
programme (Hydrocarbon Reservoir).  The ROAME st atement for that programme of work covered 
the period 1995-1998.  The revised programme covers within the oil and gas sector only: 
 
• development of new technology in SMEs 
• a LINK programme with E PSRC (research council) 
• projects covering improvements in business practice and management in the sector 
• studies of the sector's performance 
• subscriptions to industry bodies pursuing some of OGID's objectives. 
 
 Legislation under Section 8 of the Industri al Development Act 1982 and Section 5 of the 
Science and Technology Act 1965  4.  Form of the subsidy
 
 
 The COGSS grant is a notified state aid. 
  G/SCM/N/123/EEC/Add.25 
 Page 17 
 
 
 5. To whom and how the subsidy is provided  
  The funds are used to promote co-operati on and collaboration across the full spectrum of 
scientific researchers, engineering co mpanies and end-users oil companies. 
 
6.  Total amount budgeted
 
  2003  £1,641,615  2004  £2,046,758  
7.  Duration of programme
 
  1998 – Present  8.  Assessment of trade effects
 
 
 The COGSS programme covers a broader range of subjects, which contribute to the overall 
improvement of the performance of the sector.  The development of new technology continues to be 
the main thrust but at a lower level than in previo us years.  It should be noted that a high level of 
leverage of funds used for this purpose has been ac hieved in the past.  OGID  continues to encourage 
applicants to seek out assistance from the end-user  oil companies for as many projects as possible. 
 
13. Emissions Trading  
1.  Period covered by the notification  
  2003 and 2004  
 
2.  Policy objectives
  
  The objectives of the scheme are threefold – to achieve a significant amount of absolute 
emission reductions at a reasonable cost, to enable business to gain practical experience of emissions 
trading ahead of a European and international syst em, and to help the City of London establish itself 
as a global centre for emissions trading. 
 3.  Background and authority for the scheme
  
  The UK ETS has been established through a series of voluntary agreements between 
participants and the UK Government, which incorporate the rules of the scheme.  In respect of 'direct 
participants', the agreements are contracts unde r which the UK Government will make incentive 
payments to participants complying with the sch eme rules, including annual commitments to limit 
emissions.  The Government's authority to make in centive payments derives from section 153 of the 
Environmental Protection Act 1990.  
4.  Form of the subsidy 
 
  Incentive payments for emission reductions  5.  To whom and how the subsidy is provided
 
 
 The incentive payments are paid to Direct Pa rticipants (see 4 above) provided they have 
complied with the scheme rules. Principally this in cludes ensuring that the participant has sufficient 
allowances in their 'compliance account' (an acc ount on the internet-based Emissions Trading G/SCM/N/123/EEC/Add.25 
Page 18  
 
 Registry) to cover their verified annual emissions  by the reconciliation deadline (31 March of each 
year).   The incentive money is paid within 28 workin g days of receipt of an annual emissions 
statement that has been verified  by an accredited verifier.  The money is then paid into the 
participant's nominated bank account either by an automated or manual process. 
 6.  Total amount budgeted
  
  2003 £40.4million 
 2004 £40 million 
 7.  Duration of programme
 
  April 2002 to March 2007. 
 
8.  Assessment of trade effects
 
  Minimal.  The UK emissions trading schem e is a voluntary scheme whereby individual 
participants receive the incentive payments for emis sion reductions  in line with targets and beyond 
baselines.  The payment is to induce the participan ts to undertake abatement and to mitigate the risk 
of volunteering to enter a new market and take on a binding absolute cap on emissions.  
  In the first two years, over 9.5 million t onnes of carbon dioxide equivalent emissions 
reductions beyond baseline, have  been achieved in total. 
 
14. Energy Efficiency Best Practise Programme  
1. Period covered by the notification
 
  2003 and 2004   2. Policy objectives
  
 
 To help meet the UK Climate Change ta rgets to reduce greenhouse gas emissions by 
encouraging businesses to move towards a low car bon economy and contribute to the shaping of the 
emerging low carbon technology market.  
 To encourage the development and take-up of  energy efficient and low carbon technologies 
by providing discretionary grants towards resear ch and development projects in these areas, and via 
the provision of independent authoritative in formation and guidance on energy efficiency 
performance measures and technologies and events and seminars for all non-domestic energy users. 
 3. Background and authority for the scheme 
 
 
 The Energy Efficiency Best practice programme was established in 1989 as the UK's main energy efficiency information, advice and research  programme for organisations in the public and 
private sectors.  
 The Carbon Trust has been established by Gove rnment to help businesses prepare for a low 
carbon future and to exploit the commercial opportuniti es that are on offer.  The Carbon Trust is now 
responsible for administering support to business thr ough the non-domestic part of the former Energy 
Efficiency Best Practice programme.  G/SCM/N/123/EEC/Add.25 
 Page 19 
 
 
  
 Legal Authority for the Scheme is under power s contained in Section 5 of the Science and 
Technology Act 1965 and also (since the Carbon Tr ust are now responsible for running the scheme) 
under powers contained in Statutory Instrument 2002 No 1686, made under Section 153(1) of the 
Environmental Protection Act 1990.   
 
4.  Form of the subsidy  
  Grants towards projects of research and development of energy efficiency and low carbon technologies. 
 
 Support via the provision of independent aut horitative information and guidance on energy 
efficiency performance measures and technologies a nd by hosting events and seminars for all non-
domestic energy users.  
5. To whom and how the subsidy is provided
 
  To be granted support the beneficiary must be a company registered in the UK (this can 
include UK subsidiaries of overseas companies) or an organisation based in the UK.   For R&D grants for projects to be eligible th ey must meet a number of criteria, including 
potential to stimulate significant energy savings, clea r route to successful exploitation of the results, 
and that without support the project would not go ahead.   Support will be available for the following stages of R&D:  
 Fundamental research 
 Industrial research  Pre-competitive development  Definition stage or feasibility studies   Eligible costs include: personnel costs, cost of  instruments, equipment and land and premises, 
consultancy and equiva lent services, additional overheads, other operating expenses.  
  Aid is granted as a percentage of the eligib le costs.  The maximum aid intensities for the 
different stages of R&D are as follows:  
 Fundamental research      100% 
 Industrial research          50%  Pre-competitive development          25%  Feasibility study for industrial research         75%  Feasibility study for pre-competitive development    50%  
 There is the potential to increase the maximum aid intensity for Small and Medium Sized 
Enterprises, beneficiaries in  87(3)(a) and 87(3)(c ) areas and for programmes undertaken as part of the 
Community's current framework programme for R&D.  6. Total amount budgeted
 
 
 2003 £3.8 million  2004 £4.2 million   * Estimated figure.  Figures for both 20 03 and 2004 are based on financial years. G/SCM/N/123/EEC/Add.25 
Page 20  
 
  
7. Duration of programme
 
  Ongoing  
8. Assessment of trade effects
 
  There is no effect on trade as the only direct financial support relates purely to research, demonstration and development projects.  15. English Cities Fund 
1.  Period covered by the notification
 
  2003 and 2004   
2. Policy objectives
  
  The scheme was set up to assist private investment in neglected areas of the country to bring brownfield sites and empty property back into use.  3. Background and authority for the scheme
 
 
 English Cities Fund is one of a number of measures designed to meet the Government's 
Urban White Paper commitments to bring brownfie ld sites and empty property into use and was 
approved as legitimate State aid by the European Union.   
 The powers for this scheme are found in the Leasehold Reform, Housing and Urban 
Development Act 1993.  4. Form of the subsidy 
 
  The English Cities Fund is a limited partnershi p property development and investment vehicle 
set up as a joint venture between the public and private sectors. 
 5. To whom and how the subsidy is provided
 
  This is not a grant-making fund but will opera te through long term investment solutions – 
investing in mixed use projects on the fringes of towns and city centres. 
 6.  Total amount budgeted
 
  2003 £3,823,609  2004 £9,439,585 
 
7.  Duration of programme
 
  This approval remains in force until 2006   G/SCM/N/123/EEC/Add.25 
 Page 21 
 
 
 8. Assessment of trade effects  
  None  
16. Enterprise Grant Scheme 
1. Period covered by the notification
 
  2002/03 and 2003/04   2. Policy objectives
  
 
 Capital grant to aid expansion or modernisation of businesses including the assistance of start-ups.  The creation of jobs is part of regional criteria but is not mandatory.  3.  Background and authority for the scheme
 
 
 Section 8 of the Industrial Development Act 1982  4. Form of the subsidy 
 
  Grant 
 
5. To whom and how the subsidy is provided
 
  Small businesses in Tier 1, Tier 2 and Tier 3 assisted areas of England, with fewer than 250 employees.  Payments are made when businesses reach project expenditure trigger points as set out in 
their offer letter (mainly quarterly. 
 6. Total amount budgeted
 
  2002/03 £17m   2003/04 £11m 
 
7.  Duration of programme
 
  3 years from 1 April 2000  
8.  Assessment of trade effects
 
  Scheme not yet evaluated, as it is relatively new.  
17. Enterprise Zones 
1. Period covered by the notification
 
 
 2003 and 2004   2. Policy objectives 
 
 
 To encourage industrial and commercial activ ity by the removal of certain fiscal and 
administrative burdens in certain defined areas.  G/SCM/N/123/EEC/Add.25 
Page 22  
 
 3. Background and authority for the scheme
 
  The powers for this scheme are found under s 179 and schedule 32 of the Local Government, 
Planning and Land Act 1980.  
4. Form of the subsidy 
 
  Enterprise Zones are intended to encourage vi gorous private-sector activity by removing 
certain tax burdens and by relaxing or speeding up th e application of some statutory or administrative 
controls. 
 
5. To whom and how the subsidy is provided
 
  Private sector activity within the Zone receiv es benefits through the removal of certain tax 
benefits. 
 
6. Total amount budgeted
 
  2003  £ 34,532,000  (estimated)  2004  Not available until May 2005  
7. Duration of programme
 
  Enterprise Zones are designated by th e Government for a period of 10 years  
   This approval remains in force until 2006 
 
8. Assessment of trade effects
 
  None  
18. Eureka Initiative 
1. Period covered by the notification
 
  2003 and 2004   2. Policy objectives
  
 
 To encourage and assist collaborative research  and development projects between European 
companies, research organisations a nd higher education institutes (HEIs). 
 3. Background and authority for the scheme
 
 
 Science and Technology Act 1965 
 4. Form of the subsidy 
 
  Grant of up to 50% of eligible project costs 
 
5. To whom and how the subsidy is provided
 
  Mainly given to SMEs, research organisations and HEIs - Grant paid quarterly in arrears.  G/SCM/N/123/EEC/Add.25 
 Page 23 
 
 
  
6.  Total amount budgeted  
  2003 £0.95M  2004 £1.22M 
  
7.  Duration of programme
 
  Launched in 1985 – No end date set.  
8.  Assessment of trade effects
 
  Not available.  
19. Excise duty to bio ethanol used as road Fuel 
1.  Period covered by the notification
 
  2003 and 2004   2. Policy objectives
  
 
 Environmental 
 3.   Background and authority for the subsidy
  
  Duty incentive announced by Chancellor in Budget 2003. Legislation on the duty incentive 
was included in Finance Act 2004 and the incentive w as introduced with effect from 1 January 2005. 
 4.  Form of the subsidy
  
  Tax concession  
5.  To whom and how the subsidy is provided
 
  Producers  6.  Total amount budgeted
 
 
 2003 NA  2004 NA  7.  Duration of the programme
 
 
 6 years 
 8. Assessment of trade effects
 
  No figures are available as scheme only started in January 2005. 
 G/SCM/N/123/EEC/Add.25 
Page 24  
 
 20. First phase of major photovoltaic demonstration programme 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  The objectives is to provide support for gr id-connected and a small number of off-grid 
electricity generation from photovoltaic installations , primarily on buildings, in the form of capital 
grants to cover a proportion of the capital costs. 
 
3.  Background and authority for the subsidy
  
  The overall aim of the scheme is to help meet the UK's longer-term needs for clean electricity 
supplies and to contribute to the reduction of CO2 em issions by encouraging individuals/organisations 
to invest in photovoltaic installations, primarily  on buildings, where they would not otherwise 
normally invest in equipment for conventional electric ity generation.  This will result in a reduction in 
the use of, and dependence on, electricity from th e grid, providing environm ental benefits, as most 
electricity currently provided through the grid is grey  electricity. It is hoped the scheme will result in a 
steady acceleration of the number of UK PV installations.  The scheme will achieve this aim through the provision of capital support, in the form of grants , to cover a proportion of the installations' costs. 
The grid-connected installations will be able to sell on any surplus energy generated.  However this is 
unlikely to happen because it is not expected that ther e will be any surplus generated, and the costs of 
becoming a licensed electricity supplier to the national grid will far outweigh any profits an 
installation would make by selling the surplus energy to the national grid.   
 Science and Technology Act 1965 
 4.  Form of the subsidy
  
  Capital grants.   
5.  To whom and how the subsidy is provided
 
  Grants are available to a variety of indivi duals and groups ranging from private householders, 
schools, community groups, and SMEs to housing asso ciations, local authorities, private developers 
and large companies.  Inasmuch as grants are made  available to undertakings in the meaning of 
Article 87(1) EC Treaty, the UK acknowledges that payments require prior notification and approval 
by the Commission.  6.  Total amount budgeted
  
  (Including management costs) 
 
 2003: £6,736,742   2004:  £10,193,675     G/SCM/N/123/EEC/Add.25 
 Page 25 
 
 
  Average costs per installation: 
  Stream 1 (Households a nd individual installations) 
 2003 - £15,720  2004 - £15,227 
  
 Stream 2 (medium and large scale installations)  2003 - £177,652  2004 - £198,142  
7.  Duration of the programme
 
  The programme was originally set up for 3 Years, 2002 –2005, but has been extended by a further year until 2006.  This extension is curre ntly subject to further State Aids approval. 
 
8.  Assessment of trade effects
 
  The impact of the programme on the PV sector is difficult to assess at this early stage but the following observations have  been made to date: 
 
• There has been an increase in  awareness of the technology in the general population; 
this is reflected in the increase in app lications to Stream 1 of the Programme. 
 
• The current programme has generated some re duction in costs but has not lead to the 
significant reduction you might expect for bulk buying/deployment.   
 
• Number of companies registered to inst all PV technology has increased from 10 to 
approximately 60.  
 
• New manufacturing/assembly plants have been established in UK since start of 
programme: 
    Romag/BP solar – glass/glass facility    Sharp – Module Assembly (Wrexham)    Marley roofing/Solar Century – UK PV roof tiles 
 
• There are now over 50 different products available in the UK. 
 
• There are now a range of electricity providers that offer export tariffs (for surplus 
energy generation). 
 
• There has been a streamlining in the gr id-connection process making it easier during 
the installation process. 
 
21. Grant for R&D within an individual business 
1.  Period covered by the notification
 
  2003 and 2004  G/SCM/N/123/EEC/Add.25 
Page 26  
 
 2.  Policy objectives
  
  To improve the overall innovation performan ce of the UK economy by helping business to 
successfully exploit new ideas  
3.  Background and authority for the subsidy
 
  Section 5 of Science and Technology Act 1965    4.  Form of the subsidy 
 
 
 Assistance is provided in the form of discreti onary grants paid direct to the recipient. 
 5.  To whom and how the subsidy is provided
 
 
 Aid is restricted to individuals or enterpri ses falling within the definition in the “Community 
guidelines on state aid for small and medium-sized enterprises” (OJ L 107, 30.4 1996, p.4).   Offers of aid are made via a formal undertaki ng between the awarding body and the recipients 
concerning the conditions of the scheme and the decision to offer aid.   
6.  Total amount budgeted
 
  2003  £27m  2004 £27m  
7.  Duration of the programme
 
  Grant for R&D came into operation on 1 Ju ne 2003. The scheme will be amended if 
necessary to comply with the terms of any new Co mmunity Framework for State aid for Research and 
Development.    
8.  Assessment of trade effects
 
  Grant for R&D is a new scheme replacing the former Smart scheme. The latest evaluation of 
Smart showed that in 2000 turnover was £500m hi gher and exports £270m higher as result of Smart.   
 
 The new Grant for R&D scheme will be evaluate d by DTI every five years to verify the 
impact of the scheme.  
22. Green Fuel Challenge Pilot Project – Biogas 
1.  Period covered by the notification
 
 
 2003 and 2004  
 2.  Policy objectives
  
  Environmental  
  G/SCM/N/123/EEC/Add.25 
 Page 27 
 
 
 3.  Background and authority for the subsidy  
  Pre Budget Report (PBR) 2000 announced a Green Fuel Challenge. PBR 2001 announced 
that this project was one of the successful applican ts. A Statutory instrument allowing methanol used 
in the project to be used duty free was intr oduced in 2003 and lasts for a period of 5 years 
 
4. Form of the subsidy
  
  Tax incentive  
5.  To whom and how the subsidy is provided
 
  Producers  6.  Total amount budgeted
 
 
 2003: Nil  2004: Nil  7.  Duration of the programme
 
 
 5 years  
 8.  Assessment of trade effects
 
  Project has not yet started on expected scale. Expected production date now mid-2005. 
 
23. Green Fuel Challenge Pilot Project – Hydrogen  
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  Environmental   3.  Background and authority for the subsidy
  
 
 Pre Budget Report (PBR) 2000 announced a Green Fuel Challenge. PBR 2001 announced 
that this project was one of the successful applicants. As the project developed it became apparent that 
as no tax would be liable there would be no subsidy pr ovided via the duty incentive originally offered. 
 4.  Form of the subsidy
  
 
 Tax concession  5.  To whom and how the subsidy is provided
 
 
 Producers  
 G/SCM/N/123/EEC/Add.25 
Page 28  
 
 6.  Total amount budgeted
 
  2003: Nil  2004: Nil  
7.  Duration of the programme
 
  5 years from 2003   8.  Assessment of trade effects
 
 
 Nil  
24. Highland Opportunity Limited 
1. Period covered by the notification
 
 
 2003 and 2004   2. Policy objectives 
 
  A regional scheme for investing in new or growing SMEs in the Highland Council area of 
Scotland, for development, dive rsification and job creation. 
 3.  Background and authority for the scheme
 
  Section 48(4) of the Finance Act 1982 
 
4.  Form of the subsidy 
 
  Loans in the range £1,000 – £50,000  5.  To whom and how the subsidy is provided
 
 
 Loans are provided to SMEs, unsecured below £20,000 and secured above that threshold, up 
to a maximum of 7 years duration at a maximum interest rate of 5%.  6.  Total amount budgeted
 
 
 2003 £488,000  2004 £400,000  7.  Duration of programme
 
 
 Open-ended 
 8.  Assessment of trade effects
 
  In year 2003/04, the most recent for which figures are available, the number of SMEs assisted 
during the year was 47 with an average loan of £8,51 0.  203 full-time equivalent jobs were created or 
retained.   G/SCM/N/123/EEC/Add.25 
 Page 29 
 
 
 25. Highland Prospect Limited 
1. Period covered by the notification  
  2003 and 2004   
2. Policy objectives 
 
  To secure major investment projects in the Highlands of Scotland.  3. Background and authority for the scheme
 
 
 Section 83 of the Local Government (Scotland) Act  4. Form of the subsidy 
 
 
 Loans 
 5.  To whom and how the subsidy is provided
 
  Any business enterprise in the Highland Area ca n apply for consideration for a low interest 
secured loan. 
 
6. Total amount budgeted
 
  2003 £732,000   2004 £520,000 
 
7.  Duration of programme
 
  Indefinite  8.  Assessment of trade effects
 
 
 Minimal  
26. Highlands & Islands Enterprise – R&D Innovation Scheme for SMEs  
1. Period covered by the notification
 
 
 2003 and 2004   2. Policy objectives
 
 
 To stimulate and support applied R&D by SMEs , as a precursor to investment leading to 
diversification and expansion of the local ec onomy. There is a strong link between innovation by 
businesses and regional economic growth.  The leve l of expenditure by firms on R&D in the 
Highlands & Islands is less than the Scottish aver age, which is in-turn below the level in the UK.  The 
particular difficulties affecting R&D within this region are:     (a) The predominance of SMEs (17,380, or  99.7% of businesses in the region employ 
less than 200 persons). G/SCM/N/123/EEC/Add.25 
Page 30  
 
  (b)  The below average productivity of the economy (recent Eurostat figures for the 
annual GDP per capita in the Highlands & Islands Region ranged from 75% to 77% 
of the EU average in the period 1994 to 1997). 
 (c)  The high costs associated with peripherality and sparseness of population. This not 
only affects the costs of materials, but also the costs of services and expertise from 
the main R&D institutions, of which there are few in or near to the region.  There are 
no universities based in the region.  
 (d)  There is a small base to the pyramid of  skills and expertise, which is available to 
develop ideas and carry out research and development. 
  
3. Background and authority for the scheme
 
  The scheme forms part of the economic and co mmunity development activity of the Scottish 
Government's regional development agency in the Highlands & Islands region of Scotland.  
Highlands & Islands Enterprise was created by an act of parliament as a non-departmental regional 
body (Enterprise & New Towns Act (Scotland) 1990. 
 
4. Form of the subsidy
  
  Grants  
5. To whom and how the subsidy is provided
 
  Recipients must be SMEs according to th e EU definition of an SME, or research 
establishments on behalf of SMEs.  
6. Total amount budgeted
 
  2003 £370,000 
 2004 £333,000 
 7. Duration of programme
 
 
 06.09.2001 to 31 12 2011 
 
8. Assessment of trade effects  
  No direct affects, as tradable goods ar e not normally produced in R&D projects.  
Consequential investment leads to production in goo ds and services in a wide variety of sectors (the 
scheme is non-sector specific and non-specific in term s of favouring neither local nor export market 
for the ultimate products).  The majority of  firms in the region supply UK markets. 
 
27. HIE - Scheme for Initial Investment and Job Creation  
1. Period covered by the notification
 
 
 2003 and 2004  
  G/SCM/N/123/EEC/Add.25 
 Page 31 
 
 
 2. Policy objectives  
  Business creation and expansion via capital investment: the objectives are to increase and diversify employment, improve average incomes an d regional GDP in a region featuring geographic 
disadvantages and parity of population. 
  
3. Background and authority for the scheme
 
  The scheme forms part of the economic and co mmunity development activity of the Scottish 
Government's regional development agency in the Highlands & Islands region of Scotland.  
Highlands & Islands Enterprise was created by an act of parliament as a non-departmental regional 
body (Enterprise & New Towns Act (Scotland) 1990).    4. Form of the subsidy 
 
 
 Grants, Loans and Interest Relief Grant 
 5. To whom and how the subsidy is provided
 
  All firms in assisted areas and SMEs only in non-assisted areas and all subject to sectoral restriction 
 
6. Total amount budgeted 
 
  2003 £  9,813,000  (£9,130,000 Grant, £680,000 Loan, £3,751 IRG)  2004 £12,917,000  (£11,510,000 Grant, £1,400,000 Loan, £7,000 IRG) 
 
7. Duration of programme
 
  14.06.2001 to 31.12.2006 
 
8. Assessment of trade effects  
 
 The assistance is provided to locally resident firms in a variety of sectors eligible under EU 
rules for Regional Aid.  The markets served may be local or non-local, but must result in viable and 
self-sustainable trading following the investment.  Th e vast majority of firms assisted are small firms 
serving UK markets.  No estimates of production/sales are available as the assistance is directed at job 
and wealth creation, not production. 
 
28. Historic Environment Regeneration scheme 
1.  Period covered by the notification  
  2003 and 2004  
 
2.  Policy objectives
  
  The Scheme is intended to secure the repair , restoration and rehabilitation of designated 
historic buildings, conservation areas, ancient monum ents and historic parks and gardens where this 
would otherwise not happen through market forces alone 
 G/SCM/N/123/EEC/Add.25 
Page 32  
 
 3.  Background and authority for the subsidy
  
  Regional Development Agencies Act 1998; Great er London Authority Act 1999, Chapter 29; 
Leasehold Reform, Housing and Urban Developmen t Act 1993; and Local Government Act 2000.   
 
4.  Form of the subsidy
  
  Direct grant aid  5.  To whom and how the subsidy is provided
 
 
 Support is paid to the owner or purchaser of the site.  There are a number of eligible costs for project costing.  Payments are made pr o rata to the qualifying expenditure. 
 6.  Total amount budgeted
 
 
 2003: N/A  2004: £5,920,000  7.  Duration of the programme
 
 
 The approval remains in force until 31 December 2006 
 8.  Assessment of trade effects
 
  None 
 
29. Home Shipbuilding Credit Guarantee Scheme 
1.  Period covered by notification
 
  2003 and 2004   
2.  Policy objectives
 
  The objective of the Scheme is to finance the construction, completion or alteration of ships 
and mobile offshore installations at a yard firs t approved by the Secretary of State, through the 
guarantee of the repayment of loans (and the repa yment of related interest) made to UK bodies.  
 
3.  Background and authority for the Scheme
 
  Section 10 of the Industry Act 1972 (as ame nded by section 23 and 24 of the Industry Act 
1975 and Section 2 of the Shipbuilding Act 1979)   
4.  Form of the subsidy
  
  Loan Guarantees  5.  To whom and how the subsidy is provided
 
 
 Ship owners, by way of fixed or floating interest  rates, with repayment periods up to12 years, 
and interest equalisation arrangements with the Banks   G/SCM/N/123/EEC/Add.25 
 Page 33 
 
 
 6.  Total amount budgeted  
  2003  approximately £300,000 net  2004 no specific budget   
7.  Duration of programme
 
  The Scheme closed for new applications in November 2004 and contracts relating to Scheme 
support must be signed by April 2005.  
8.  Assessment of trade effects
 
   The aim of the scheme is to ensure that UK buyers of ships have financing arrangements 
available to them which are as good as those in ot her countries which are signatory to the OECD 
Understanding on Shipbuilding Subsidies and hence that UK yards are not relatively disadvantaged. 
 
30. Invest NI – Property Development scheme 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  Encourage the private sector to construct bu ildings for occupation by Invest NI assisted 
projects.   
3.  Background and authority for the scheme
 
  Industrial Development Act (NI) 2002  4.  Form of the subsidy 
 
 
 Grant 
 5.  To whom and how the subsidy is provided
 
  The subsidy is paid to property developers  usually as a lump sum on satisfactory completion 
of the building. 
 6.  Total amount budgeted
 
  2003 £1,798,000  2004 £1,546,984 
 
7.  Duration of programme
 
  Indefinite  
8.  Assessment of trade effects
 
  Minimal  G/SCM/N/123/EEC/Add.25 
Page 34  
 
 31. Launch Investment for Civil Aerospace Projects 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  Design, development, education ai d, labour, materials and overheads 
 3.  Background and authority for the scheme
 
 
 Civil Aviation Act 1982  4.  Form of the subsidy
 
 
 A repayable, but risk-sharing Government investment 
 5.  To whom and how the subsidy is provided
 
  Assistance towards research and development is reimbursable and is levied against sales of airframes, engines and their suppliers applied thr oughout their lifetime.  The recipients of the 
investment are manufacturers of civil aircraft and aircraft engines. 
 6.  Total amount budgeted
 
  2003 £344 million 
 2004 £Nil 
 7.  Duration of programme
 
  Indefinite  
8.  Assessment of trade effects
 
  Collaborative research and development schem es were established to assist UK industry in 
maintaining and improving its competitive position by undertaking pre-competitive innovative R&D 
Programmes which would, after Government support  ended, lead to the development of improved 
processes and products. 
 
32. LINK Collaborative Research scheme 
1.  Period covered by the notification
 
  2003 and 2004  
 
2. Policy objectives
  
  The LINK Collaborative Research Scheme aims at strengthening collaboration between 
businesses and universities/other research base organisa tions in key areas of science, technology and 
engineering. 
  G/SCM/N/123/EEC/Add.25 
 Page 35 
 
 
  It is a UK Government-wide initiative involving most Government Departments with 
significant interest in R&D as well as the Research Councils.  It is managed by the Innovation Group, 
Key Business Technologies, Department of Trade and Industry  3.  Background and authority for the scheme
  
 
 The legal basis for the scheme is the Science and Technology Act 1965. 
 4. Form of the subsidy 
 
 
 Government support is im plemented through grants. 
 5. To whom and how the subsidy is provided
 
  Beneficiaries of the grants are UK businesses, universities and research centres.  Each 
supported project must include at least one business and one university or research centre. 
  The LINK Collaborative Research Scheme supports  industrial (strategic) research projects.  
Intensity of the aid is up to 50% of the project's e ligible costs.  Where public research organisations 
participate in the programme, their contribution is  included in the calculation of the aid intensity. 
 
 With effect from May 2002, the scheme was wi dened to operate at the following levels: 
 
• technical feasibility studies preparatory to i ndustrial research with an aid intensity of 
up to 75%; 
• industrial research carried out in collaboration between businesses, with an aid 
intensity of up to 50%; 
• pre-competitive development activities carried out in collaboration between 
businesses and research institutes, with a maximum aid intensity of 25%. 
 
6.  Total amount budgeted
  
  2003 £45m (total public funding to all participants)  2004 £46.5m (total public funding to all participants) 
 
7.  Duration of programme
 
  The scheme is not limited.  Current notification to December 2006  8. Assessment of trade effects
 
 
 The LINK Collaborative Research Scheme may ultimately help participating businesses' 
competitive positions, but much of the project out put is widely disseminated. By notifying the 
Scheme to the EC, the UK has complied with their ob ligation under Article 88(3) of the EC Treaty.  
The Commission has concluded that the aid fulfils th e criteria to be considered compatible with the 
EC Treaty. 
 
33. Local authorities – Assistance for SMEs  
1.  Period covered by the notification  
  2003 and 2004  G/SCM/N/123/EEC/Add.25 
Page 36  
 
  
2.  Policy objectives
  
  To allow local authorities in England, Sc otland and Wales to support Small and Medium 
Enterprises 
 
3.  Background and authority for the scheme
 
  S2 of the Local Government Act 2000 (formerly  S33 of the Local Government and Housing 
Act 1989) 
 
4.  Form of the subsidy 
 
  Grants, loans, guarantees, advice  
5.  To whom and how the subsidy is provided
 
  This scheme allows local authorities, as part of their responsibility for promoting economic, 
social and environmental well being in their areas, to support SMEs operating in their area from their 
authority's budget (rather than through central government schemes) through a variety of subsidies.  
6.  Total amount budgeted
 
  2003 £9,264,788  2004 £9,212,159  
7. Duration of programme
 
  This approval remains in force until 2006  8. Assessment of trade effects
 
 
 Nil 
 
34. Merseyside – Special Area & Key Side Investment Grant Scheme 
1. Period covered by the notification  
 
 2003 and 2004  
 2. Policy objectives    To promote the development, modernisation an d efficiency of an industry and to create, 
expand or sustain productive capacity.  Assisted projects must create or safeguard jobs and be 
commercially viable and sustainable 
 3. Background and authority for the scheme
 
  The scheme was introduced to en able Local Authorities in Merseyside to assist non-SME's in 
situations where a project capable of bringing si gnificant economic benefits to Merseyside requires 
local financial support in order to proceed.   G/SCM/N/123/EEC/Add.25 
 Page 37 
 
 
 4.  Form of the subsidy  
  Discretionary grants to secure investment by  non-SME's in situations where local grant 
support is essential to enable the project to proceed.  Each project must clearly demonstrate additionality and there must be a clear ju stification as to why grant is required. 
 
5. To whom and how the subsidy is provided
 
  Non-SMEs can be assisted in any sector not specifi cally restricted by EC sectoral restrictions.  
The subsidy is by way of grant to support investme nt and the project must take place within the 
assisted area of Merseyside.  
 6. Total amount budgeted
 
  2003 Nil 
 2004 Nil 
 7. Duration of programme
 
  The programme will run until 31 December 2006 unless a replacement programme is notified  
 
8. Assessment of trade effects
 
  Project should not directly displace investment or jobs elsewhere.  Projects must provide a net 
benefit in terms of trade to the Merseyside sub-region.  35. MG rover training aid  
1.  Period covered by the notification
 
  2003 and 2004   2.  Policy objectives 
 
 
• Giving mainly general training to staff of the direct recipient company to increase the 
long-term employability of individual worker s and bring wider benefits to the wider 
community by developing facilities and expertise within the local training structure 
• Creating courses available all other companies 
• Increasing the skills base in the West Midl ands which is currently the most likely 
region in UK to report difficulties in skilled recruitment 
• Expansion of learning partnerships to be a foundation for a culture of life long 
learning 
 
3.  Background and authority for the scheme   
  Learning and Skills Act 2000, Chapter 21, Part One, Subsections 2 (3)©: 3.(1)(b): 3.(3)(a) and (c): 4.(a, b, and c); 5(1)(a);5(2)(a, b and c) 
 
4.  Form of the subsidy 
 
  Grant  G/SCM/N/123/EEC/Add.25 
Page 38  
 
 5.  To whom and how the subsidy is provided
 
  MG Rover as a grant against claims for eligible expenditure  6.  Total amount budgeted
   
 
 2003 £1,169,011 (grant received)  
 2004 £2,588,134 (grant received)  7.  Duration of programme
 
 
 To December 2005  8.  Assessment of trade effects
  
 
 Not Known 
  Statistics for 2004 only (no reliable stats for previous years as tracking processes were still being developed).   Number of staff trained – 6,642 heads (confirms  that many individuals received more than 
one training course). 
  Number of training hours delivered – 269,191 (average of 40.5 hrs/head)  
36. NETS (New Entrants Training Scheme) 
1.  Period covered by the notification
 
  2003 and 2004   2.  Policy objectives
  
 
 Improve the productivity of craft and rural tr ade micro businesses located  in the more rural 
areas of England with a modular work based training programme for their new starters.   3.  Background and authority for the scheme
 
 
 UK Scheme operated by the Countryside Agency under Section 9 of the Local government 
Act 1947 and with the approval of DEFRA in 2000.  4.  Form of the subsidy 
 
  Grant 
 
5.  To whom and how the subsidy is provided
 
  Grant aid is paid to two training providers to deliver the NETS tuition and administer the 
reimbursement of travel and accommodation claims. 
  G/SCM/N/123/EEC/Add.25 
 Page 39 
 
 
 6.  Total amount budgeted  
  2003: £0.43M  2004:  £0.41M  
7.  Duration of programme
 
  Ends March 2004  8.  Assessment of trade effects
 
 
 Little effect - micro business sector working in local and some national markets    
37. NI - Aggregates levy - relief for aggregate commercially exploited in NI 
1.  Period covered by the notification
 
 
 1 January 2003 to 31 March 2004.  The scheme  was extended in scope and duration from 1 
April 2004.  This extension required a new state ai d notification and approval (N2/2004).  This return 
covers the original scheme only.  A separate return ha s been prepared to cover the first months of the 
extended scheme (i.e. 1 April to 31 December 2004).    
2.  Policy objectives
 
  The primary policy objectives of the aggreg ates levy are to internalise the negative 
environmental costs associated with aggregates qua rrying into the price of aggregate, encourage 
efficient extraction and use of virgin aggregates an d use of levy-free alternatives, such as recycled 
demolition waste. 
  The main policy objectives of the Northern Irela nd original relief scheme were to preserve the 
international competitiveness of processed aggregat e product manufacturers, who were exposed to 
increased competition, after the levy's introduction, because of their proximity to the border with the 
Republic of Ireland. 
 
3.  Background and authority for the subsidy
 
  The UK Government anticipated that the introduction of the levy could significantly distort trade in processed products in Northern Ireland, and seriously undermines the competitiveness of 
manufacturers there.  It therefore saw that it was necessary to make provision for temporary relief in 
Northern Ireland to address the risk of  a loss of international competitiveness. 
 
 Northern Ireland is unique in the UK in having  a land boundary with another Member State, 
the Republic of Ireland.  The importation of aggregate and processed products into, and the 
exportation of aggregate and processed products out  of, Northern Ireland is therefore much more 
economically viable than in other parts of the UK (i .e. Great Britain), where the logistics and cost of 
sea transport are more prohibitive. In the absence of  any special relief scheme after the introduction of 
the aggregates levy in April 2002, processed produ cts made in Northern Ireland would have been 
manufactured from virgin aggregate taxed at the full rate of levy.  In these circumstances, processed 
products made in Northern Ireland that were expor ted to the Republic of Ire land would have suffered 
a price disadvantage, and equivalent  products made with untaxed virgin aggregate in the Republic of 
Ireland would have a relative price advantage if so ld in Northern Ireland.  The UK Government 
sought to address this distortion by means of the re lief scheme introduced at the same time as the levy 
in April 2002. G/SCM/N/123/EEC/Add.25 
Page 40  
 
  
 Finance Bill 2002 introduced the new section 30A  into Part II of the Finance Act 2001, which 
contains the legislation for the aggregates levy.  This section permits the Commissioners of Customs 
and Excise to make regulations gove rning entitlement to tax credits for aggregate used in Northern 
Ireland for a prescribed purpose.  The regulations  covering the relief scheme up to 31 March 2004 
were the Aggregates Levy (Northern Ireland Tax Credit) Regulations 2002 (SI 2002/1927). 
 4.  Form of the subsidy
 
  The scheme, introduced along with the levy on 1 April 2002, was based on paragraph 45 of 
the Community guidelines on state aid for environm ental protection, which allows provision for 
exemptions from autonomous taxes for 5 years where the aid is degressive.     The scheme provided for the gradual introduction of the levy on virgin aggregate used in processed products manufactured in Northern Ireland.  Specifically, the relief from the levy applied to 
aggregate used to manufacture the following: 
 
• concrete (whether pre-cast, ready-mix or prepared on site); 
• mortar; 
• asphalt (whether delivered pre-mixed or mixed on site e.g. slurry seal); 
• coated roadstone and coated chippings; and 
• surface dressing (where dry aggregate chippings are rolled into bitumen on site). 
  Virgin aggregate in Northern Ireland put to uses other than those listed above was not entitled 
to the relief.  Nor was any virgin aggregate in its raw state transported from Northern Ireland to 
Great Britain.  The entitlement to relief was not a ffected by the origin of the aggregate (whether 
extracted in Northern Ireland or Great Britain or imported), nor was it affected by the ultimate destination of products manufactured for onward sale,  so long as they were manufactured in Northern 
Ireland.   Under this scheme, in the first year of the levy's operation (1 April 2002 to 31 March 2003) 
there was 100 per cent relief from the levy for virgin aggregates used in Northern Ireland to make the 
products specified above.  The amount of relief decreased to 80% on 1 April 2003 and was due to 
decrease by a further 20 percentage point on 1 Apr il 2004, to 60%. The relief was scheduled to reduce 
by 20 percentage points each year until 1 April 2007, by which the relief would have fallen to zero.  
However, as indicated above, the degressive scheme was revised before that happened and a new flat 
rate scheme introduced from 1 April 2004. 
 The degressive nature of the relief scheme was in tended to allow Northern Ireland manufacturers of 
processed products 5 years in which to adapt to increased competition from imports of 'untaxed' 
equivalent products, by making more efficient use of  virgin aggregate and/or increasing their use of 
untaxed recycled aggregate or alternative materials.  It was envisaged that, at the end of that the 5-
year period, Northern Ireland processed product manufact urers would be able to compete equally with 
those in the Republic of Ireland, whilst many of th e important environmental aims of the aggregates 
levy would still be achieved.   5.  To whom and how the subsidy is provided
 
 
 Anyone who supplied or importe d virgin aggregate for use in Northern Ireland in the 
manufacture of the “value added” aggregat e products mentioned in section 5 above. 
  G/SCM/N/123/EEC/Add.25 
 Page 41 
 
 
  Aggregate put to uses other th an those listed above in Northe rn Ireland was not entitled to the 
aid. Nor was any dry aggregate transporte d from Northern Ireland to Great Britain. 
 6.  Total amount budgeted
 
 
 The estimated revenue cost to the UK Exchequer for the period 1 January 2003 to 
31 March 2004 was £15 million (rounded).  
 7.  Duration of the programme
 
 
 The degressive 5-year relief scheme came into eff ect on 1 April 2002.  It was due to run until 
31 March 2007 but, as explained above, the scheme wa s replaced by a flat rate scheme and extended 
in scope and duration from 1 Ap ril 2004 (see scheme N2/2004). 
 8.  Assessment of trade effects
 
 
 Those affected were businesses manufacturing concrete, mortar and asphalt in Northern Ireland (approximately 170-200 SMEs). There were minor co sts incurred from new 
accounting procedures etc.   
38. NI – Aggregates levy - extended relief for aggregate commercially exploited in NI 
1.  Period covered by the notification
 
  1 April to 31 December 2004.  This return cove rs the first 9 months of the scheme, which was 
introduced to replace scheme N863/01.  A separate retu rn has been prepared to cover the period from 
1 January 2003 to 31 March 2004 under that scheme.   
 
2.  Policy objectives
  
  The main objectives of the scheme are to support sustainable development and increase the environmental benefits of the levy in Northern Ire land.  Specifically, by linking the receipt of tax 
relief with the need for operators to undertake im provements to the way their operations are run, the 
scheme supports UK Government efforts at sustainabl e development, and encourages the efficient use 
of natural resources; the scheme has been designed so that it does not have disproportionate effects on 
competition and economic growth.  3.  Background and authority for the subsidy
  
 
 Following the introduction of the aggregates levy and the original Northern Ireland relief scheme in April 2002, the UK Government was concer ned to ensure that the levy was achieving its 
desired environmental objectives, both in Northern Ireland and the rest of the UK, without unforeseen 
and undesirable economic impacts. Initial indications after the first year of the levy suggested that, 
while Great Britain had benefited from reduced use of  virgin aggregates and a growth in the recycled 
aggregates sector, Northern Ireland had not been  benefiting from the levy in the same way. 
  Representations from the quarrying industry in  Northern Ireland, and other anecdotal 
evidence from the region, suggested that particular lo cal factors were preventing the levy from having 
the environmental impact there it was designed to  achieve. These factors included the unavailability 
of recycled aggregate and alternative materials in Northern Ireland (with a consequent inability for the 
industry to adjust in the timescale allowed under th e original relief scheme); adverse competition from 
an increase in illegal quarrying operations in Nort hern Ireland and undeclared (and therefore untaxed) 
imports of virgin aggregate from the Republic of  Ireland across the land border. These factors were G/SCM/N/123/EEC/Add.25 
Page 42  
 
 preventing the levy from having the environmental impact it was designed to achieve. Moreover, it 
was suggested that the problem was likely to get si gnificantly worse and increasingly affect processed 
product businesses as their relief was reduced, further undermining the environmental impact of the 
levy in Northern Ireland.  
 The UK Government therefore commissioned research, which considered the validity of the 
industry information and helped inform possible re medial options.  The Symonds' Group (specialist 
consultants in the quarrying and construction sect ors) undertook this work and their report was 
published on 10 December 2003.  
 The Symonds' report demonstrated that the levy was not working as a normal economic 
instrument in Northern Ireland, by having an impact on demand through the price mechanism.  
Instead, prices of aggregates had risen very little , but demand for legitimate aggregates had fallen 
because of the competition that the levy encourag ed from untaxed imports of aggregates from the 
Republic of Ireland, and from illegal quarries. In No rthern Ireland, therefore, the levy was not 
achieving its main environmental objective of reduc ing the environmental impact of aggregates 
quarrying – indeed, the opposite was the case since ille gal quarries can be expected to operate without 
any regard for normal environment practices.  Competition from these sources was having a 
detrimental economic effect on legitimate supplie rs of unprocessed virgin aggregate, and greatly 
reduced existing incentives to utilise r ecycled and alternative materials. 
 
 Symonds' research also suggested that it w as unrealistic to expect the aggregates and 
construction sectors to increase their use of levy-free r ecycled and alternative materials in a period of 
5 years, because availability of such materials in  Northern Ireland is quite modest and the necessary 
infrastructure for their collection and processing is virtually non-existent. Symonds also suggested 
that such sources of alternatives and materials for recycling that do exist tend to vary by region, 
mainly arising in or very close to Belfast and the surrounding urban area.  Moreover, the availability 
of cheap virgin aggregate and of cheap landfill sites for disposing of construction and demolition 
wastes (instead of reusing them) meant that there wa s little incentive to use such  recycled material as 
was available.  This was of particular concern to  the UK Government because it critically undermined 
the objective of the original relief schem e for manufacturers of processed products. 
 
 The overall conclusion the UK Government drew from the Symonds' findings was that the 
environmental aims of the levy were unlikely to be  met in Northern Ireland, as the levy and relief 
scheme existed at the time.   Finance Act 2003 replaced section 30A of Part II of the Finance Act 2001, which contains the 
legislation for the aggregates levy, with a new section 30A. This section permits the Commissioners 
of Customs and Excise to make regulations governin g entitlement to tax credits for aggregate used in 
Northern Ireland for a prescribed purpose.  The regulations covering the relief scheme from 1 April 
2004 are the Aggregates Levy (Northern Ireland Tax Credit) Regulations 2004 (SI 2004/1959). 
 4.  Form of the subsidy
  
 
 The form of aid is tax relief, linked to ne gotiated agreements committing beneficiaries to 
making environmental performance improvements.  The details of the relief scheme are as follows: 
 
• the relief covers aggregate used in pr ocessed products and virgin aggregate; 
• the relief is fixed at 80 per cent of the full rate for the full duration of the scheme (1 
April 2004 to 31 March 2011).  The full rate of levy during the period of this return 
was £1.60 per tonne - the amount of aid beneficiaries received was therefore £1.28 
per tonne of aggregate;  G/SCM/N/123/EEC/Add.25 
 Page 43 
 
 
 • eligibility to relief is conditional upon claima nts entering into and complying with the 
terms of a negotiated agreement.  The relief is not be discretionary – if the conditions 
of the agreements are met the business is  automatically be entitled to relief;  
• the environmental improvements that quarry operators sign up to are regularly 
monitored and reviewed; 
• exports of virgin aggregate from the UK are eligible for 100% relief from the levy;  
• aggregate used to manufacture processed products in Northern Ireland which is 
subsequently exported from the UK is eligible for the 80% relief; 
• as quarry owners extracting aggregate in Great  Britain or the Republic of Ireland are 
not in a position to enter into agreements a nd do not have to incur the cost of making 
the necessary environmental improvements, th eir aggregate is not  eligible for the 
relief, even if it is commercially exploited in Northern Ireland.  
  The negotiated agreements set targets for im provement in environmental performance of 
quarrying operations; among the areas of performance covered are air quality, blasting, dust, energy 
efficiency, groundwater and waste management. Each  agreement is individually tailored to the 
circumstances of the quarry, taking into account, for example, current standards and scope for 
improvement. The UK Government devised a framework for drawing up and monitoring such environmental performance agreemen ts with quarry operators based upon a framework set out in its 
Code of Practice and Compliance Scheme and is derived from a report produced for the UK 
Government by consultants from the HELM Group. 
  The Department of the Environment in No rthern Ireland (DoENI) is responsible for 
conducting the initial assessment of a quarry's enviro nmental standards and monitoring performance 
against the targets set out in the agreement. Comp liance will be reflected by the issue/renewal of a 
certificate by DoENI, which, in turn, will be used  by the business to support claims to relief during the 
period of the certificate's validity.   The new scheme is in line with the scope pr ovided in paragraph 51(2)(b) of the Community 
guidelines on state aid for environmental protec tion. The scheme addresses the levy's unintended 
economic impacts in Northern Ireland, while still de livering environmental benefits, in accordance 
with the levy's objectives. 
 5.  To whom and how the subsidy is provided
 
  The beneficiaries are businesses that are regi stered with HM Customs and Excise for the 
aggregates levy and that commercially exploit virgin  aggregate in Northern Ireland.  Aggregate or 
products made from aggregate sent from Northern Ir eland to Great Britain are not eligible for the 
relief and are subject to the full rate of levy upon first commercial exploitation.  
 6.  Total amount budgeted
 
 
 The estimated revenue cost to the UK Exche quer of the scheme for the period 1 April to 31 
December 2004 is £15million.   7.  Duration of the programme
 
 
 The relief came into effect on 1 April 2004 and will continue until 31 March 2011. 
 G/SCM/N/123/EEC/Add.25 
Page 44  
 
 8.  Assessment of trade effects
 
  An industry survey in 2002 of a sample of quarry operators found that 52 employees had been made redundant in the firms surveyed in the peri od April to September 2002, and that a further 58 
employees were expected to be made redundant if there was no improvement in the economic 
downturn of the aggregates industry following the introduction of the levy. 
  In addition, the survey showed that 280 jobs could be lost in Northern Ireland as a result of 
aggregates processing companies relocating over the border to the Republic of Ireland, if processed 
products were not given any further prot ection against distortion of competition. 
 
 The extended relief scheme will have a signifi cant impact in helping to prevent these, and 
future, job losses.  
39. NI - Buying Time Assistance Scheme 
1.  Period covered by the notification
 
  2003 and 2004   2.  Policy objectives
 
 
 The scheme is intended to provide short-term support to enable companies in difficulty to 
present a restructuring plan on a timescale enabli ng a decision to be made on the appropriateness of 
such a plan.  3.   Background and authority for the scheme
 
 
 Buying Time forms part of the Rescue and Rest ructuring Guidelines.  The authority for the 
scheme is Industrial Developmen t Act (Northern Ireland) 2002  
 4.  Form of the subsidy
 
 
 Loan 
 5.  To whom and how the subsidy is provided
 
  The loan is provided to manufacturing and internationally traded service companies in 
Northern Ireland who are experiencing trading difficulties. 
 6.  Total amount budgeted
 
  2003 £1,290,000  2004 £250,000 
 
7.  Duration of Programme
 
  2001/02 to 2006  
8.   Assessment of Trade effects
 
  To be evaluated   G/SCM/N/123/EEC/Add.25 
 Page 45 
 
 
 40. NI:  Company Development Programme 
1.  Period covered by the notification  
  2003 and 2004   
2.  Policy objectives
  
  To encourage companies to plan and structure their training and develop activities in line with 
their key business objectives.  
 To promote management development by enc ouraging companies to invest in process and 
competence based management training activities as well as functional and knowledge based activities.  To encourage companies to focus their tr aining and development activities on nationally 
recognised qualifications and accreditations. 
  
 To encourage training and development within  projects designed to improve international 
competitiveness, profitability and growth.   To help attract inward investment projects to Northern Ireland.  
 To ensure that the issues of targeting social  needs, equality and fair treatment are addressed. 
   To encourage companies to establish their own training infrastructures. 
 3.  Background and authority for the scheme
 
 
 The Company Development Programme was first introduced in 1990 and managed by the Training & Employment Agency.  The programme is  now managed by Invest NI the new economic 
development agency which was established in Ap ril 2002.  Industrial Development Act (Northern 
Ireland) 2002  
4.  Form of the subsidy 
 
  Grant  5.  To whom and how the subsidy is provided
 
 
 The programme is open to companies in manuf acturing and tradeable services which satisfy 
eligibility criteria and to hotels and licensed guest  inns certified by the Northern Ireland Tourist 
Board.  6.  Total amount budgeted
 
 
 2003: 8,900,000  2004: 6,500,000  7.  Duration of programme
 
 
 Ongoing  G/SCM/N/123/EEC/Add.25 
Page 46  
 
 8.  Assessment of trade effects
 
  During the two years 2000/01-2001/02 236 o ffers of assistance were made under the 
Company Development Programme.  All assistance was linked to the achievements of business objectives. 
 
41. NI:  Compete Programme  Round Three (2003-2008) 
1. Period covered by the notification
 
 
 2003 - 2004 2. Policy objectives
  
  Aim of the Compete Round Three Programme: 
 To stimulate manufacturing and other businesses in Northern Ireland to develop innovative 
and high technology products and processes within a strategic business framework that improves the 
national and international competitiveness of the business 
 The strategic objectives of Compete are:– 
z to increase the level and quality of pre-competitive development research and 
development in Northern Ireland; 
z to increase the number of businesses involved in research and development; 
z to increase the number of well-designed and commercially successful Northern 
Ireland products introduced in both home and export markets; 
 Type/nature of the R&D assisted  The market-led precompetitive development activity leading to innovative new products or 
manufacturing processes 
3. Background and authority for the subsidy
 
 
 Overall investment in R&D in Northern Irela nd is far less than average. Northern Ireland 
spends only 0.52% of its GDP on R&D compared to 1.25% for the UK and 2.08% in the USA.  To address this gap, Invest Northern Ireland is trying to  establish a culture of innovation in the region. 
 As industry in Northern Ireland is characteris ed by very small businesses, Invest Northern 
Ireland is trying to stimulate small firms that are not currently carrying out any R&D to engage in 
such activities for the first time. 
 Invest Northern Ireland is committed to enc ouraging commercially relevant and well-planned 
research and development. Its mission is “ to accelerate economic developm ent in Northern Ireland, 
applying expertise and resources to encourage inno vation and achieve busine ss success, increasing 
opportunity for all within a renewed culture of enterprise.”  
 The Compete Round Three Programme will be a vital part of Invest Northern Ireland's 
strategy to promote innovation, stimulate higher levels of R&D and Design, and improve knowledge 
transfer to Northern Ireland industry.  G/SCM/N/123/EEC/Add.25 
 Page 47 
 
 
  The strategic objectives of Compete Round Three are:– 
z to increase the level and quality of pre-co mpetitive research and development in 
Northern Ireland; 
z to increase the number of businesses involved in research and development; 
z to increase the number of well-designed and commercially successful Northern 
Ireland products introduced in both home and export markets; 
 Invest Northern Ireland, a non-department al public body operates under the Industrial 
Development Act 2002.  
 4. Form of the subsidy
  
 
 Invest Northern Ireland delive rs financial assistance through: 
(i) direct grants, 
(ii) equity investments – preference shares, (iii)  repayable loans secured against appropriate asset, 
(iv)  any combination of the above. 
 The application process and assessment criteria are the same for all projects.  The amount and form of assistance offered to a company depends on a range of factors 
including: 
z Project quality, meaning the level of innovati on and the benefits a successful outcome 
will bring to the NI economy; 
z The stage of development of the company; 
z The balance of the project between  capability and capacity components. 
z The funding available from the company or  the private sector to implement the 
project. 
 Grants are the usual aid instrument, the cash grant equivalent of any repayable form of 
assistance is calculated on the basis of the differe nce between the return on the actual instrument 
offered compared with the commerc ial return from that instrument. 
 
5.  To whom and how the subsidy is provided  
  To stimulate manufacturing and other businesses in Northern Ireland to develop innovative 
and high technology products and processes within a strategic business framework that improves the 
national and international competitiveness of the business.  All awards are discretionary. 
 6. Total amount budgeted
 
 
 2003 Grant  £5,702,496 
 Equity  £890,000 
   G/SCM/N/123/EEC/Add.25 
Page 48  
 
  2004 Grant = £4,540,215 
 Equity = £300,000  
7. Duration of the programme
 
 
 2003 – 2007 
 8. Assessment of trade effects
 
  Subject to periodic evaluation. 
 
42. NI – Gas Pipeline 
1.  Period covered by the notification
 
  2003 and 2004  
 
2.  Policy objectives
  
  The development and maintenance of an effici ent, economic and co-ordinated gas industry in 
Northern Ireland  
3.  Background and authority for the subsidy
 
  On 21 September 2001 the Northern Irela nd Executive announced its support for the 
development of a multi million pound gas project. The support is in the form of a grant package up to 
£38m, including an Irish Government contribution of £8m. 
 
 The project involves the construction by Bo rd Gais Eireann united Kingdom BGE (UK), a 
subsidiary of the state owned Republic of Ireland gas company, of a gas pipeline from Dublin to 
Antrim (known as the South - North pipeline) which will link with a pipeline from near Carrickfergus 
to Londonderry (the North West pipeline).  
 The pipeline to the North West was completed in October 2004 and the company intends to 
construct the South-North pipeline during 2006.   These gas transmission pipelines will facilitate the supply of gas to towns along the route. 
 
 The subsidy is being paid under th e Energy (Northern Ireland) Order 2003. 
 4.  Form of the subsidy
   
  Grant payments  
5.  To whom and how the subsidy is provided
 
   BGE (UK) – Grant payments  6.  Total amount budgeted
 
 
  2003 £2.735m   2004 £12.530m   G/SCM/N/123/EEC/Add.25 
 Page 49 
 
 
 7.  Duration of the programme  
  The North West pipeline was constructed in 2004 and the South/North pipeline will be built 
in 2006.  
8.  Assessment of trade effects
 
  Will facilitate the development of the gas indus try in Northern Ireland and also cross border 
trading  43. NI – Restructuring aid  
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  The scheme is intended to provide short-term support to enable companies in difficulty to 
present a restructuring plan on a timescale enabli ng a decision to be made on the appropriateness of 
such a plan.  
3.  Background and authority for the subsidy
  
  Restructuring Support forms part of the Rescue and Restructuring Guidelines.  The authority 
for the scheme is Industrial Devel opment Act (Northern Ireland) 2002  
 
4.  Form of the subsidy
  
  Equity/Loan  5.  To whom and how the subsidy is provided
 
 
 The supported is provided to manufacturing and internationally traded service companies in 
Northern Ireland who are experiencing trading difficulties.  6.  Total amount budgeted
 
 
 2003 £850,000 
 2004 £750,000  7.  Duration of the programme
 
  To be evaluated. 
 
8.  Assessment of trade effects
 
  To be evaluated.  G/SCM/N/123/EEC/Add.25 
Page 50  
 
 44. NI - Selective Financial Assistance 
1.   Period covered by the notification
 
  2003 and 2004   
2.   Policy objectives
 
  This is the principle scheme of assistance used  in Northern Ireland to attract new inward 
investment and encourage existing companies to de velop their international competitiveness leading 
to growth and greater employment opportunities.  It is the equivalent of the Regional Selective 
Assistance Scheme in Great Britain. 
  The SFA Scheme relates solely to the setting up of a new establishment, the extension of an 
existing establishment or the starting up of an activ ity involving a fundamental change in the product 
or production process of an existing establishment.  The latter may be rationalisation, diversification 
or modernisation programmes being undertaken by companies. 
 3.   Background and authority for the scheme
 
  Industrial Development Act (Northern Ireland) 2002 
 
4.   Form of the subsidy 
 
  Capital grant, revenue grant, loan or loan guarantees or share capital.  5.   To whom and how the subsidy is provided
 
 
 Companies in the manufacturing and internati onal traded service sectors (in line with EU 
restrictions on shipbuilding, coal and steel, synthetic fibres, vehicles, textiles and clothing, and agriculture and food processing)  6.  Total amount pledged
 
 
 2003 £43,626,507  2004 £65,709,729  7.   Duration of Programme
 
 
 Indefinite   8.   Assessment of Trade effects
 
  Subject to periodic evaluation.  Most recent evaluation (completed 2002) indicates that during 
the 1980s and 1990s, Selective Financial Assist ance offered to industry in NI increased both 
employment and productivity in NI's ma nufacturing sector by between 7% and 10%. 
 
45. NI – SMART 
1.  Period covered by the notification
 
 
 2003 and 2004    G/SCM/N/123/EEC/Add.25 
 Page 51 
 
 
 2.  Policy objectives   
  Smart is a scheme, which provides awards to help individual and SMEs  research and develop 
technologically innovative products and processes or bu y external consultancy to improve their use 
and exploitation of technology. Smart aims to: 
 
 Improve the future competitiveness of th e Northern Ireland economy by supporting 
innovative individuals and SMEs, which are a dyna mic source of new wealth, and by encouraging 
more SMEs to become innovative; and Help contribute towards a climate which enco urages investment in innovative technology by 
individuals, firms and financial in stitutions and which stimulates a market in technological advice. 
 3.  Background and authority for the subsidy
  
  The SMART scheme is delivered in Northern Ireland by Invest NI. Invest NI is a body 
corporate established under the Industrial Developm ent Act 2002. For administrative purposes Invest 
NI is classified as a Non-Departmental Public Body.  4.  Form of the subsidy
  
  Smart is a discretionary grant award scheme . Feasibility studies and micro projects are “de-
minimis” elements. Development projects are notified state aid. 
Feasibility studies are projects of at least £30,000 elig ible costs with a duration of between 6 and 18 
months. The award covers up to 75% of eligible project costs up to a maximum assistance of £45,000.  
  Micro projects are small development projects of at least £5,000 eligible costs and lasting up 
to 12 months duration. The awards cover up to 50%  of eligible costs up to a maximum assistance of 
£10,000.   Development projects are projects of at least £60,000 eligible costs with a duration of between 6 and 36 months. The awards cover up to 40 % of eligible project costs up to a maximum of 
£150,000. 
 
5.  To whom and how the subsidy is provided
 
  The awards are provided to the award applican t. They are discretionary, payable in stages, 
normally in arrears, on production of evidence that the required amount of money has been properly 
spent on the project. 
 6.  Total amount budgeted
 
  2003 £389,173  2004 £398,312 
 
7.  Duration of the programme
 
  The scheme has current approval up to 31 Marc h 2007 under the current notification.  This 
represents a 5-year extension to the State Aid a pproval number N280/99, wh ich expired on 31 March 
2002. 
 G/SCM/N/123/EEC/Add.25 
Page 52  
 
 8.  Assessment of trade effects
 
  This scheme offers support for pre-competitiv e R&D and as such the impact on trade is 
negligible.   46. NI:  Start programme 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  To stimulate and increase the level of indus trial research undertaken by Northern Ireland 
companies and to increase the number of companies undertaking industrial research, either on their own or in partnership with one or othe r of the two Northern Ireland universities. 
 
3.  Background and authority for the scheme
 
  Economic competitiveness is directly rela ted to business expenditure on research and 
development (BERD).  The START programme w as established to encourage Northern Ireland 
companies to invest in technologically based, i ndustrially focussed research and development (R&D), 
because their expenditure on R&D (and in particular  their expenditure on industrial/strategic research) 
was seen to lag well behind many of their major co mpetitors in the rest of the United Kingdom and 
the rest of the World.  The current legislative authority for the programme comes from the Industrial 
Development Act (Northern Ireland) 2002.  
4.  Form of the subsidy 
 
  Assistance is normally in the form of a gr ant.  However, in some cases, the START 
programme may provide assistance in a repayable fo rm e.g. full equity or redeemable preference 
shares.  
5.  To whom and how the subsidy is provided
 
  The programme is open to Northern Ireland based companies and Northern Ireland universities.  Assistance is offered up to 50% of  eligible costs. In exceptional circumstances, 
university only projects may be supported at a le vel up to and including 100%.  There is no minimum 
level of assistance.  In the case of grant assistance, grant is payable on vouched and approved 
expenditure incurred by the project participants.  6.  Total amount budgeted
 
  2003  £3,358,747 
 2004 £2,795,583 
 7.  Duration of programme
 
  Indefinite 
  G/SCM/N/123/EEC/Add.25 
 Page 53 
 
 
 8.  Assessment of trade effects  
  The START Programme is evaluated every 5 years and the last evaluation took place in 2001.  Based on 1996 and 1999 statistical data, the 2001 eval uation concluded, the START programme was 
responsible for an additional 9% increase in Nort hern Ireland BERD and an  additional 50% increase 
in business expenditure on industrial/strategic re search, when expressed as percentages of Gross 
Domestic Product.  
47. NI:  Support for film and television production  
1.  Period covered by the notification
 
 
 2003 and 2004  2.  Policy objectives
  
 
 The Scheme seeks to provide funding for live ac tion or animated feature films or live action 
or animated television drama series or serials which have a distinct Northern Ireland cultural 
dimension.  The Fund intends to provide support in order to facilitate the development of a specific 
Northern Irish cultural voice through the producti on of cultural film and television drama by 
providing financial support in accordance with the criteria set out in the Communication on certain 
legal aspects relating to cinematographic and other audio-visual guidelines (2002/C 43/04), for 
example the production of the following: 
 
• The production of a cultural film or television drama 
• Projects involved in co-productions to produce a cultural film or television drama 
• These measures have the primary aim of ensuring that the culture and creative 
potential of Northern Ireland are expressed through creative film and television drama 
sector. 
 
3.  Background and authority for the subsidy    
  The Industrial Development (N orthern Ireland) Order 1982 
 4.  Form of the subsidy 
 
 
 Loan  5.  To whom and how the subsidy is provided
 
  The Scheme is limited to the film and TV drama sectors.  
 
6.  Total amount budgeted
 
  2003 £560,000  2004 £3,110,000 
 
7.  Duration of the programme
 
  Indefinite  G/SCM/N/123/EEC/Add.25 
Page 54  
 
 8.  Assessment of trade effects
 
  Not relevant.  
48. NI:  Technology Fund (NITECH) 
1.  Period covered by the notification
 
  2003 and 2004   2.  Policy objectives
  
 
 The Fund's main objective is to encourage Re search & Development activities of spin-outs 
and start-ups from research. There is also a furthe r objective of encouraging research within already 
existing Small to Medium sized Enterprises. Suppor t will only be given to companies and researchers 
in Northern Ireland. 
 
3.  Background and authority for the scheme  
  The proposal to establish the NITECH Growth Fund was announced by the Chancellor of the 
Exchequer as part of his 1998 package of economic initiative for Northern Ireland.  The authority for 
this scheme comes from the Northern Ireland Order 1982 and its subsequent revisions as well as State 
Aid N 481/01. 
 4.  Form of the subsidy 
 
  This will normally take the form of equity  funding but occasionally will be small grants 
 
5.  To whom and how the subsidy is provided
 
  This subsidy is aimed at Small to Medium sized Enterprises, individual researchers, research teams and university departments within Northern Ireland.  The investment by the Fund will amount 
to a maximum of 60% of the eligible costs of fo r industrial research and 35% of the costs for pre- 
competitive research. 
 6.  Total amount budgeted
 
  2003 Nil 
 2004 Nil 
 7.  Duration of programme
 
  The NITECH Fund will run from 1
st January 2002 – 31st December 2006 
 
8.  Assessment of trade effects  
  Due to the fund's limited span of operation an assessment of trade effects is not yet feasible. This will be made available throug h annual reports to be submitted to  the European Commission.  The 
first of these will be due after the 31
st March 2004. 
  G/SCM/N/123/EEC/Add.25 
 Page 55 
 
 
 49. NI Tourism Challenge Fund 
1.  Period covered by the notification  
  2003 and 2004   
2.  Policy objectives
 
  To improve the competitiveness of activities and products identified by the Northern Ireland 
Tourist Board as being of particular significance and benefit to the developmen t of the tourist industry 
in the region. 
 
3.  Background and authority for the scheme
 
  The aid is administered as a competition finan ced by the Department of Enterprise, Trade and 
Investment (formerly the Department of Economic Development) and managed by the Department in 
conjunction with the Northern Ireland Tourist Board.  
  The Industrial Development (Northern Ireland) Order 1982 provides a statutory basis for the 
Department of Economic Development to provid e financial assistance to the tourism industry. 
  The Tourism (Northern Ireland) Order 1992 provides a statutory basis for the Northern 
Ireland Tourist Board to provide financial assistance to the tourism industry. 
 4.  Form of the subsidy
 
  Assistance available under the Fund is availabl e in the form of capital grant assistance to 
viable capital projects in the tourism sector. Eligib le capital costs attract assistance of up to 50% up to 
a maximum of £500,000.  5.  To whom and how the subsidy is provided
 
  The competition was open to all individuals and organisations involved in the tourist industry 
in Northern Ireland. 
 6.  Total amount budgeted
 
  The original budget was for £4M to be expende d in the financial years 1998-99 to 2002-03.  
The budget was revised to £2.7M for the lifetime of the scheme.  
  2003 £15,738  2004 £28,775  7.  Duration of programme
 
 
 April 1999 to March 2003  8.  Assessment of trade effects
 
 
 The Fund will provide a boost to the developmen t of the tourism infrastructure in Northern 
Ireland and will put the region in a better position to  deliver a high quality tourism product.  Raising 
the competitiveness and profile of the tourism indus try will help the sector assume a more important 
position in the economic future of Northern Ireland. G/SCM/N/123/EEC/Add.25 
Page 56  
 
  
50. NI:  Urban Development Grant (UDG) Scheme  
1.  Period covered by the notification
 
  2003 and 2004  
 
2.  Policy objectives
  
  The Scheme is an instrument of Urban Rege neration. Its principle objective is economic and 
physical regeneration of deprived inner city ar eas by the stimulation of private enterprise and 
investment through the development of vacant,  derelict or underused land or buildings 
 3.  Background and authority for the scheme
 
  Statutory & Legal basis – The Social Need (Northern Ireland) Order 1986  
 
 Approved 16/12/2003  4.  Form of the subsidy 
 
  Grant 
 
5.  To whom and how the subsidy is provided
 
  To developer/occupiers and speculators - Gran t is paid on construction works on lodgement 
of architects certificates certifying th at work has been completed. 
 
6.  Total amount budgeted
 
  2003 £2,499,133.23  2004 £1,384,655.77  
7.  Duration of programme
 
  Indefinite  8.  Assessment of trade effects
 
 
 No trade effect. The UDG sch eme is largely about shortfa ll gap funding of speculative 
office/retail developments for letting. Where there ar e developer/occupier schemes they relate to small 
retail and or office developments where there are no trade effects  
51. NI:  Viridian Growth Fund  
1.  Period covered by the notification
 
  2001 - 2006  2.  Policy objectives
  
 
 The main objective of the scheme is to addr ess perceived gaps in the provision of venture 
capital and loan funding for small enterprises in the manufacturing and tradable services sectors,  G/SCM/N/123/EEC/Add.25 
 Page 57 
 
 
 based in Northern Ireland.  The objective is to  address market failure in the deal size range £50k-
£250k.   By addressing gaps in the provision of funding, it is expected that the development of the 
SME sector will be accelerated and additional jobs will be created. In addition, the promotion of 
enterprise will be strengthened leadi ng to a reduction in grant dependency. 
  A regional objective is to bring the level of venture capital activity in NI up to the UK average and thereby ensure that growth companies are not disadvantaged through lack of funding for 
start up and expansion. 
 
3.  Background and authority for the scheme
 
  The legal basis for the scheme is Article 7 of  the Industrial Development (NI) Order 1982, as 
well as the Fund contract and operating guidelines. 
 
 The Fund was set up as a limited partnership,  registered under the Limited Partnership Act 
1907. This is a standard vehicle for this type of fund in the UK.  4.  Form of the subsidy
 
 
 Private sector investment in the Fund will require underpinning of around 33% grant support, 
in order to show a sufficiently attractive rate of return for the private sector to induce it to invest. 
 5.  To whom and how the subsidy is provided
 
 
 The subsidy is provided to the Fund to enable  it to offer commercial investment terms in 
order to attract private sector investors.  6.  Total amount budgeted
 
  2003 £334,000 
 2004 £334,000 
 7.  Duration of programme
 
  The Fund was set up as a 10 year limited partners hip that can be extended with the consent of 
all investors to 12 years to facilitate successful exits from the Fund. 
  The active investment period will last for 5-6 years and there will then be a period of 4-5 years during which funds will be managed with the aim of su ccessfully exiting. 
 8.  Assessment of trade effects
 
 
 The supply side effect is that small businesses will be able to access funds at the right price and at the right time to help them develop thei r business.  The Fund will provide start-up and 
development capital in a mix of equity and loans.  
 On the demand side, the Fund will encourag e investor ready proposals, will stimulate 
entrepreneurship and should accelerate the shift away from grant dependency Title of the subsidy programme  G/SCM/N/123/EEC/Add.25 
Page 58  
 
 52. Non-Fossil Fuel Obligations (NFFOs)  
 (for England & Wales, Scotland and Northern Ireland) 
 1.  Period covered by the notification
 
 
 1 January to 31 December 2003 and 1 January to 31 December 2004 
 2.  Policy objectives
  
 
 The UK Government is committed to supporting the development of renewable energy and 
the specific objectives of the NFFO scheme are to encourage: 
 
• diverse, secure and sustainable energy supplies; 
• reduction in emission of pollutants; 
• development of internationally co mpetitive renewables industries. 
 
3.  Background and authority for the scheme  
  In Great Britain Sections 32 and 33 of the Elect ricity Act 1989 and subsequent Orders - also 
Section 67 of the Utilities Act 2000 and subsequent Orders - State Aid reference for NFFO is 
N153/98. In Northern Ireland the legislative authority is under Articles 35 to 41 of the Electricity (NI) 
Order 1992.  State aid reference for NFFO in NI is N276/93.  4.  Form of the subsidy
 
 
 Under the NFFO scheme, Orders were made  which required the then public electricity 
suppliers (now the supply successor companies in Great Britain) to contract with renewable 
generators for the supply of electricity generate d from renewable sources.  The price paid for the 
electricity under those contracts is above the market  price for electricity and the electricity suppliers 
are compensated for this by payments out of the Fossil Fuel Levy which was provided for in section 
33 of the Electricity Act and in Northern Ireland, by Article 36 of the Electricity Order 1992.  The 
levy is charged on the electricity supplie s of all licensed electricity suppliers. 
 5.  To whom and how the subsidy is provided
 
 
 See para. 4 above 
 6.  Total amount budgeted
 
  For England & Wales   
 2003 £-50.07m 
 2004 £-75.57m    Since the introduction of the Renewables Obligation in April 2002, negative amounts have arisen as receipts from suppliers have exceeded th e total payments due to generators.  This has 
resulted from the added value of ROCs from NFFO c ontracts being sold with the power to suppliers. 
  For Scotland    2003/04 £-5.1m   
 2004/05 Figures for this financial year  not available until May 2005.     G/SCM/N/123/EEC/Add.25 
 Page 59 
 
 
  
 Please note that for Scotland the totals are only available on a  financial years basis.  The 
figures for Scotland are negative for the same reason as for England and Wales. 
 
 For Northern Ireland  
 2003 £3.3m 
 2004 £4.3m  7.  Duration of programme
 
 
 The last remaining contracts in Great Britain  expire in 2018. In Northern Ireland the last 
remaining contract expires in 2015.  8.  Assessment of trade effects
 
 
 The NFFO scheme was designed to stimul ate the UK renewables industry with the 
expectation that electricity so produced would be mainly supplied to the UK domestic market.      
 
53. Open Courses 
1.  Period covered by the notification  
 
 2003 and 2004  
 2.  Policy objectives
  
  Improve the skills of the work force /diver sify the product range of rural micro businesses 
working the crafts and rural trades 
 3.  Background and authority for the scheme
 
  UK Scheme operated by the Countryside Agency under Section 9 of the Local government Act 1947 and with the approval of Defra in 2000 
 
4.  Form of the subsidy 
 
  Grant  
5.  To whom and how the subsidy is provided
 
  Grant paid to two training providers to s ubsidise the tuition costs of employees attending 
short development courses in the crafts and rural trades.   
6.  Total amount budgeted
 
  2003 £0.02M  2004 £0.02M  7.  Duration of programme
 
 
 Ends in March 2004 G/SCM/N/123/EEC/Add.25 
Page 60  
 
  
8.  Assessment of trade effects
 
  Little effect – micro business sector working in local and some national markets  54. Partnership Support for Regeneration 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  To increase the stock of housing available for owner-occupation in areas where this is useful from a social and regeneration perspective  
3.  Background and authority for the subsidy
  
  Regional Development Agencies Act 1998  Greater London Authority Act 1999  Leasehold Reform, Housing and Urban Development Act 1993  
4.  Form of the subsidy
  
  Grant  5.  To whom and how the subsidy is provided
 
 
 Housing developers who woul d provide housing for owner occupation in areas where costs of 
development exceed the value of completed hosing.  There are a number of eligible costs for project 
costing.  Payments are made pro rata to the developer's qualifying expenditure. 
 6.  Total amount budgeted
 
 
 2003 Nil  2004 Nil  7.  Duration of the programme
 
 
 The approval remains in force until 31 December 2006  8.  Assessment of trade effects
 
  None    
 
55. Partnership support for regenerati on – speculative and bespoke 
1.  Period covered by the notification
 
  2003 and 2004  
  G/SCM/N/123/EEC/Add.25 
 Page 61 
 
 
 2.  Policy objectives   
  Support private sector initial investment in a wide range of land a nd property regeneration 
projects, which would not proceed without public sector support.  
3.  Background and authority for the scheme
 
  Regional Development Agencies Act 1998, Greater London Authority Act 1999 and Leasehold Reform, Housing and Urban Development Act 1993   
• State aid N 747/A/99 - Partnership support for regeneration (1): 
  Support for speculative developments 
• State aid N 747/B/99 - Partnership support for regeneration (2): 
  Support for bespoke developments 
 5.  Form of the subsidy 
 
 
 Under both speculative and bespoke approvals 
 
• Regeneration Grant 
• Loans  
  Under speculative only  
• Joint Venture arrangements preferable to private sector 
 6.  To whom and how the subsidy is provided
 
  Aid is provided to the developer.  There are a number of eligible costs for project costing.  
Payments are made pro rata to th e developer's qualifying expenditure 
 
7.  Total amount budgeted
 
  2003 £26,696,152  2004 £83,615,062  
8.  Duration of programme
 
  The approval remains in force until 31 December 2006.  9.  Assessment of trade effects
 
 
 None  
56. Reduced rate of excise duty on biodiesel (N804/01) 
1.  Period covered by the notification
 
 
 2003 and 2004 
 G/SCM/N/123/EEC/Add.25 
Page 62  
 
 2.  Policy objectives
  
  Environmental  3.  Background and authority for the subsidy
  
 
 Ministerial approval - Finance Act 2003  4.  Form of the subsidy
  
 
 Tax concession 
 5.  To whom and how the subsidy is provided
 
  Producers 
 
6.  Total amount budgeted
 
  2003 £3.9 million  2004 £4.2 million  
7.  Duration of the programme
 
  No end date set  8.  Assessment of trade effects
 
 
 The figures below give monthly release figures for biodiesel since the introduction of the duty incentive.     
Month Quantity (litres) 
August – 2002 157,000 
September 468,000 
October  684,000 
November 499,000 
December 910,000 
January - 2003 560,000 
February 755,000 
March  814,000 
April  825,000 
May 1,214,000 
June 1,651,000 
July 2,067,000 
August 2,712,000 
September 1,823,000 
October 2,666,000 
 November  2,224,000  
 December  2,135,000  
January -2004 1,037,000 
February 1,893,000 
March 1,308,000  G/SCM/N/123/EEC/Add.25 
 Page 63 
 
 
 Month Quantity (litres) 
April 1,443,000 
May 1,929,000 
June 2,372,000 
July 2,353,00 
August 1,902,00 
September 2,155,00 
October 1,794,00 
November  1,449,000 
December  1,357,000 
January 2005 1,257,000 
 
57. R&D for renewable and Sustainable Energy 
1. Period covered by the notification  
 
 2003 and 2004 
 
2. Policy objectives  
   To help increase research and development in the renewable and sustainable energy sector  3. Background and authority for the scheme
 
 
 Government's objectives to find alternative sources of energy production through more 
environmental friendly and sustainable ways Science and Technology Act 1965   
4.  Form of the subsidy 
 
  Grants  5. To whom and how the subsidy is provided
 
 
• To companies with within the renewable and sustainable energy R and D field. 
• Grant is up to 75% 
 6. Total amount budgeted
 
  2003: £17million  2004: £19million 
 
7. Duration of programme
 
  Current contracts run until end of Apr il 2005 with possibility of extensions. 
 
8. Assessment of trade effects
 
  The development of the market should increase.   The grant allows fo r research into the 
Renewable sector to be continued.  G/SCM/N/123/EEC/Add.25 
Page 64  
 
 58. R&D Tax Credit 
1.  Period covered by the notification
 
  1 January 2003 to 31 December 2004  
2.  Policy objectives
  
  The aim of the R&D tax credit is to encourag e innovation by companies which are small or 
medium-sized enterprises (SMEs).  To do this, it gi ves companies, including high-tech start-ups, an 
incentive to take up R&D activities, and encourages companies already carrying out R&D to increase 
their levels of R&D. 
 3.  Background and authority for the scheme
 
  The R&D tax credit was introduced in 2000 after extensive consultation both on the details of 
the scheme (Inland Revenue technical note “Resear ch and Development: New tax incentives for small 
and medium-sized companies” - March 1999) and on the definition of research and development 
(Inland Revenue technical note “Research and De velopment: Definition and Appeals” - January 
1999).    It was notified to the European Commission as a State aid and approved by them under 
reference N802/99. Amendments have been notified and approve d under references N245/2003 (on 4 
September 2003) and N293/2004 (on 6 December 2004).   Legislation governing the scheme was introdu ced in the Finance Act 2000 (Schedules 20 and 
21) and subsequently amended in the Finance Act 2002 (Schedule 15), the Finance Act 2003 
(Schedule 31) and the Finance Act 2004 (section 141). 
 4.  Form of the subsidy 
 
  Tax relief (see below)  
5.  To whom and how the subsidy is provided
 
  The incentive is given as an increased tax relie f for certain spending on R&D.  Small or 
medium-sized companies are able to claim relief equal to 150% of  their qualifying R&D expenditure, 
comprising a general deduction available to all companies undertaking R&D of 100% and the 
enhanced R&D tax relief of a further 50%.  A comp any paying tax at the 2004 small companies' rate 
(19%), therefore saves in tax a total of 28.5% of  the cost of the qualifying R&D, comprising a 
deduction available to all companies of 19% and the subsidy of 9.5%.    A company not yet in profit may surrender the relief to the Government in return for a 
payment representing 24% of the cost of the R&D.  This represents a discount of around 16% on the 
cash value of the tax credit if used against profits , where the company is taxed at the small company 
rate of 19%. The amount surrenderable is limited to the lower of   
• the proportion of the unrelieved loss attri butable to the qualifying R&D expenditure, 
and 
• the gross employment and social security taxes (Pay-As-You-Earn tax and National 
Insurance Contributions) paid by the company for the period of the claim. 
  G/SCM/N/123/EEC/Add.25 
 Page 65 
 
 
  The availability of R&D tax credit to a corpor ate SME is subject to the following criteria: 
   (a) the qualifying expenditure for the R& D tax credit for any accounting period of the 
company is limited to the aggregate of: 
 
• the direct costs of staff directly invo lved in carrying out the R&D activity.  
These costs comprise the gross remunera tion (excluding be nefits-in-kind) 
plus national insurance contributions payable by the company, plus contributions to a pension scheme paid by the company;  plus 
 
• the cost of consumable or transformable materials used directly in the R&D 
activity;  plus 
• the cost of computer software, power, water and fuel used directly in the 
R&D activity;  plus 
• if the company subcontracts all or part  of the R&D while retaining ownership 
rights of any intellectual property produced, 65% of the payments due to the subcontractor (representing a generali sed measure of the costs above). 
Alternatively, the company may claim th e actual costs it incurs within the 
above categories. This latter rule is the only option where the principle and 
subcontractor are connected. 
   (b) the qualifying expenditure must exceed a threshold minimum. This is set at an 
annualised rate of £10,000 a year. Spending at or above £10,000 qualifies for the tax credit in full. No tax credit is available if the spending does not meet this threshold. 
 
  (c) the R&D tax credit is not available on R& D spending that has been met by a grant or 
subsidy. No R&D expenditure will qualify for the tax credit if incurred in relation to a 
project in receipt of any other notifiable State aid. 
  R&D spending by joint ventures and consortia will be eligible for the R&D tax credit, but 
only insofar as the tax credit can be limited to corporate SMEs. 
 6. Total amount budgeted
 
  The following figures are the latest estimated  total cost for the SME R&D tax credit scheme 
as published in December 2004: 
 
 Accruals Receipts 
2003 £151m £224m 
2004 £7m £238m 
 
7.  Duration of programme  
  Indefinite  8.  Assessment of trade effects
 
 
 The aim of the R&D tax credit scheme is to  increase innovation by companies, flowing from 
increases in their R&D expenditure. There is no terri torial limit to R&D qualifying for tax credits, but 
the incentive does operate by reducing UK corporation tax, so there may be some impact on decisions 
to locate R&D. However the measure applies only to  SMEs, and it is larger companies that tend to G/SCM/N/123/EEC/Add.25 
Page 66  
 
 operate internationally, particularly when it comes to the location of R&D, so the impact of the R&D 
tax credit on such location decisions is likely to be small.   No assessment of the impact of the R&D tax credit is currently available. However, the 
following data provides some indication of firms' decisions to locate R&D spending in the UK. This 
shows the proportion of business R&D performed in the UK that is accounted for by UK-owned 
companies:   Intramural Expenditure (£ million)  
 2001 2002 2003 
UK-owned businesses 7331 8127 7532 
Non UK-owned businesses 5005 4983 6155 
Source: 'Research and Devel opment in UK Business 2003' 
Office for National Statistics 
 
 Expenditure as % of total business R&D in UK 
 
 2001 2002 2003 
UK-owned businesses 61% 61% 54% 
Non UK-owned businesses 39% 39% 46% 
Source: 'Research and Devel opment in UK Business 2003' 
Office for National Statistics 
  It is not possible to provide a robust estimat e of the impact of R&D tax credits on trade 
effects using present data. There are two major caveats in trying to determine the effect of the SME tax credit scheme from these figures:  
• The data covers all companies, not just SMEs 
 
• Many different factors other than tax cred its affect the amount of R&D expenditure 
conducted in the UK by both UK and foreign firms. 
 
59. Regional Selective Assistance / Selective Financial Investment for England 
1. Period covered by the notification
 
 
 2003/04 and 2004/05  2. Policy objectives
  
 
 To assist economic development in areas of special hardship 
 3. Background and authority for the scheme
 
   The Industrial Development Act 1982  
4.  Form of the subsidy
  
  Mainly grant (also loan, guarantee and shares)   G/SCM/N/123/EEC/Add.25 
 Page 67 
 
 
 5. To whom and how the subsidy is provided  
  The scheme is available to eligible projects of manufacturing and service sector firms of any size based in or moving into the Assisted Areas of Great Britain.   
 Financial assistance is on a discretionary basis, usually in the form of a grant phased against 
achievement of progress on the project (jobs & capital costs).    6. Total amount budgeted
 
 
 2003/04 £110M 
 2004/05 £102m  7. Duration of programme
 
 
 Scheme closed in England to new applica tions on 31 March 2004.  Now called Selective 
Financial Investment for England.   8. Assessment of trade effects
 
  This scheme is designed to help areas of special difficulty to compete on level terms with 
more advantaged regions. 
 
60. Renewables Obligation Order 2005 
 [Amendment to Renewables Obligation]
 
 
1.  Period covered by Notification  
  2003 and 2004   2.  Policy Objectives 
 
 
 To help the development of the Renewable Industry 
 3.  Background and authority for the scheme
   
  The Scheme was set up as the Government's  main mechanism for supporting renewable 
energy. It imposes an obligation on energy companies to source a percen tage of their electricity sales 
from eligible sources.  The Re newables Obligation Order 2002. 
 4.  Form of the subsidy 
 
  Recycling of buy-out payments 
 
5.  To whom and how is the subsidy provided
 
  Companies within the Renewable energy sector  which have met their Renewables Obligation 
through Renewables Obligation Certificates (ROCs). 
 
 Buy-out fund recycled in autumn of each year.   2003 £90.52million  2004 £174.96million G/SCM/N/123/EEC/Add.25 
Page 68  
 
  
6.   Duration of programme
 
 
 To 2027/28 but UK authorities will renotify the Obligation in 2012  
7.   Assessment of trade effect
 
  Development and improvement of the Renewable Energy sector  
61. Rover Hams Hall Training support  
1.  Period covered by the notification
 
  2003 and 2004   2.  Policy objectives
  
 
• Giving mainly general training to staff of the direct recipient company to increase the 
long term employability of individual worker s and bring wider benefits to the wider 
community by developing facilities and expertise within the local training structure; 
 
• Creating courses available all other companies; 
 
• Increasing the skills base in the West Midl ands which is currently the most likely 
region in UK to report difficulties in skilled recruitment; 
 
• Expansion of learning partnerships to be a foundation for a culture of life long 
learning. 
 
3.  Background and authority for the scheme   
 
 Learning and Skills Act 2000, Chapter 21, Part One, Subsections 2 (3)©: 3.(1)(b): 3.(3)(a) 
and (c): 4.(a, b, and c); 5(1)(a);5(2)(a, b and c)  4.  Form of the subsidy 
 
 
 Grant 
 5.  To whom and how the subsidy is provided
 
  BMW Hams Hall as a grant against eligible expenditure  
6.  Total amount budgeted
  
  2003 £1,486,065 (grant received)  2004 £ 959,164 (grant received)  
7.  Duration of programme
 
  To December 2004   G/SCM/N/123/EEC/Add.25 
 Page 69 
 
 
 8.  Assessment of trade effects  
  Not Known   Statistics for 2004 only NB – BMW record all training delivered by month including 
individual modules of long running courses/programmes.  This means that, as an example, one trainee 
will be counted as new each month even if they ar e still on the same learning event.  Therefore to 
simplify the data the total figure recorded for the number of trainees has been divided by twelve to give an average figure over the year.  
 Number of staff trained – 619  (total recorded – 7,429) 
  Number of training hours delivered – 24,894  (average 40.2 hrs/head)  
62. Scottish Enterprise - Property support scheme  
1. Period covered by the notification
 
  2003 and 2004  2. Policy objectives
  
 
 To support the development of premises and buildings for commercial purposes by the private 
sector. Construction of new buildings or renovation of  existing ones.  Granted where there is in the 
view of the granting authorities a market failure .  Can support speculative and bespoke developments. 
 3. Background and authority for the subsidy
 
 
 Operated by Scottish Enterprise on the basis of  the Enterprise and New Towns (Scotland) Act 
1990, as amended by Scottish Statutory Instrument 2001 No 126  4.  Form of the subsidy
  
 
 Development grants, subsidised loans, interest  rebates, development financing aid (grants, 
rental guarantees), loan guarantees, joint venture finance, development services. 
 5. To whom and how the subsidy is provided
 
 
 Projects can be launched at the initiative of the granting authorities themselves if they own a 
site and wish to see it developed.  Developers would normally be sought  by public tender, with the bid 
requiring the lowest subsidy and meeting the qualitativ e criteria being selected.  Projects may also be 
brought to the funding authorities by the property de velopers, in which case an assessment would be 
made of new economic benefits compared with  cost, the need for public sector intervention 
established, and the minimum level and intensity of aid calculated.  The recipients may be property 
developers or end-users.  Grants are only provided  for initial investment as described in the guidelines 
on regional aid, and maximum aid intensities are applie d in Assisted and non-Assisted areas as per the 
regional aid map.  Outwith Assisted Areas, support is restricted to SMEs.  6. Total amount budgeted
 
 
 2003: £4,082,472  (Grants   £4,042,472)  (Soft Loans  £40,000 (approximate cash grant equivalent) G/SCM/N/123/EEC/Add.25 
Page 70  
 
   
 2004: £2,729,249  (Grants   £2,402,036)  (Soft Loans   £264,000 (approximate CGE £26,000)  (Development Financing Aid   £63,213) 
 
7. Duration of the programme
 
  To 31 December 2006   
8.  Assessment of trade effects
 
  Potential recipients – property developers and occupiers – all potentially participate in trade 
between Member States. The scheme is therefore rega rded by the Commission as affecting trade.  The 
aid is regarded as compatible with the Treaty as it has the objective of regional development and is in 
accordance with the guidel ines on regional aid. 
 
63. Scottish Enterprise - Support towards capital in vestment by existing and new businesses   
1.  Period covered by the notification
 
  2003 and 2004  
 
2.  Policy objectives 
 
  Support to new and existing businesses undertaking initial capital investment.  Subject to sectoral and regional restrictions.  Where provided in areas eligible for domestic regional aid, it is 
meant to favour regional development. Where provi ded in other areas, it is restricted to SMEs. 
 3.  Background and authority for the subsidy
  
  Section 8 (1) (a) (i) of the Enterprise and New Towns (Scotland) Act 1990   
4.  Form of the subsidy 
 
  Direct grants  5.  To whom and how the subsidy is provided
 
 
 To new and existing businesses.  Within A ssisted Areas, SMEs and larger enterprises, 
otherwise SMEs only.  The subsidy is paid as a grant from Scottish Enterprise.  6.  Total amount budgeted
 
 
 2003: £21,046,000 
 2004: £33,069,000  7.  Duration of the programme
 
 
 Indefinite 
  G/SCM/N/123/EEC/Add.25 
 Page 71 
 
 
 8.  Assessment of trade effects  
  The scheme is designed to provide support for initial investment to companies setting up new 
establishments, extending existing establishments or introducing a new product or process.  As such it 
will encourage investment which w ill result in new products being tr aded and increased trading from 
the area concerned. 
  The Commission view is that the scheme has potential to produce an effect on trade between 
Member States.  However, the Commission have  approved the scheme on the basis that it favours 
regional development, when applied in Assisted  Areas, and more generally SME development.  
 64. Scottish Executive - Grants for Owner Occupation (GRO) Scotland 
1.  Period covered by the notification
 
  2003 and 2004  
 
2.  Policy objectives 
 
  The purpose of the GRO grant scheme is, by providing grants towards the provision of housing for owner occupation, to support the social  inclusion and community regeneration objectives 
of Scottish Ministers by promoting mixed tenure and sustainable communities through the provision 
of low cost owner occupied housing as part of wide r efforts to ensure effective physical, social and 
environmental regeneration.     GRO grants for the provision of housing for owner occupation are therefore intended to 
increase the supply of owner occupation in areas where there is a shortage of low cost home 
ownership opportunities and/or to meet the needs of  those who are unable to afford owner occupied 
housing because their incomes are too low.  Proposals which involve the provision of high value housing, that is housing which is not affordable to  those whose aspirations are met by low cost home 
ownership housing are therefore ineligible for grant funding.   Specifically, GRO grants are targeted at three types of project. 
 
 Type 1  
 Projects which contribute to tenure diversif ication in single tenure priority housing 
estates or neighbourhoods forming part of  an area-based regeneration strategy, 
thereby providing a mix of rented and owner occupied housing.   
 
 Houses are provided to designated client groups.  After a fixed time, any houses not 
sold to priority groups are offered on the open market. 
  Type 2 
 
 Projects which contribute to strategies fo r regenerating older urban neighbourhoods, 
particularly where these are categorised by a limited supply of good quality houses for owner occupation and/or by limitations in the range of available house sizes and 
types relative to demand. 
 
 Where the existing market for owner occupi ed housing is limited in size or access for 
low-income purchasers is restricted by pri ce, targeting of low-income purchasers and G/SCM/N/123/EEC/Add.25 
Page 72  
 
 first time buyers is likely to be an explicit objective.  Where these factors are not 
present, client group targeting may be relatively less important as a primary objective. 
  Type 3  
  Projects which contribute to the prov ision of housing for owner occupation at 
affordable prices in pressured market ar ea (usually in rural locations) where the 
supply of such housing is limited in quan tity, or where access  for lower income 
households wishing to become owner occupi ers is constrained by market forces. 
 
 Grants will only be made available wher e the houses provided are to be offered for 
sale to prioritised categories of people, such as those unable to obtain social rented housing, local residents living in rented  accommodation through lack of opportunities 
locally to purchase a home, first time bu yers and those with a family or work 
connection with the area wanting to return.  For projects involving initial sales at less 
than full market value, Communities Scotla nd/local authorities will seek to clawback 
any surplus profits made following the firs t re-sale of the grant funded house where 
this takes place within a minimum period of five years and a maximum period of 
10 years of the initial sale. 
 3.  Background and authority for the scheme
 
 
 Authority given by EU in agreement State Aid No 497/01 – United Kingdom – Grants for Owner Occupation – Scotland  4. Form of the subsidy 
 
 
 Grant   5.  To whom and how the subsidy is provided
 
  Applicants for GRO grant are expected to be: 
 
• Private housing suppliers, that are individua ls, partnerships or registered companies 
set up for the purposes of providing housing.   These organisations may or may not 
undertake the construction works concerned themselves.  They are all undertakings 
within the context of Article 87/1 of the EC Treaty. 
 
• Housing trusts, that is private organisati ons formed by groups of individuals or 
organisations who share a common purpose relating to the provision and/or management of housing for sale or rent.  Housing trusts will normally be corporate 
bodies and may have charitable status. 
  
 Housing associations that are not registered by Communities Scotland may also qualify for 
assistance.  They must, however, be demonstrably independent of any registered body.   Any proposal involving a company formed by or involving a local authority will require referral within the Scottish Executive. 
 
6.  Total amount budgeted
 
  2003 £4,027,172  2004 £5,857,829  G/SCM/N/123/EEC/Add.25 
 Page 73 
 
 
  
7.  Duration of programme  
  December 2001 to 31 December 2006  
8.  Assessment of trade effects
 
  Not applicable  
65. Scottish Executive – Scottish Executive  and Scottish Enterprise Research and 
Development scheme 
1. Period covered by the notification
 
  2003 and 2004   
2. Policy objectives
  
 
• To assist enterprises to research and de velop new innovative products, processes or 
 
• services with commercial potential (including feasibility studies, industrial research 
 
• and pre-competitive development 
 
• To stimulate innovation and encourag e best practice throughout business 
 
• To foster the creation and development of new high-tech start ups 
 
• To strengthen the scientific and technological bases of industry 
 
• To encourage co-operation between enterp rises and the research base and help to 
effect wealth creation from the science base 
 
3. Background and authority for the subsidy  
  Enabling legislation for the Scottish Execu tive is the Science and Technology Act 1965, 
while for Scottish Enterprise and Highlands & Isla nds Enterprise it is the Enterprise and New Towns 
(Scotland) Act 1990, as amended by Scottish Statutor y Instrument 2001 No 126, which reduced the 
operational area of Scottish Enterprise by removi ng parts of The Moray Council area previously 
covered. 
 4.  Form of the subsidy
  
  Grant support 
 
5. To whom and how the subsidy is provided
 
  Businesses undertaking eligible R & D projects 
 G/SCM/N/123/EEC/Add.25 
Page 74  
 
 6. Total amount budgeted
 
  2003:  £8,482,497 (£6,505,113 SMART/SPUR)    (£ Nil Highlands and Islands Enterprise)    (£954,850 R&D Plus – Scottish Enterprise) 
   (£1,022,534 SCIS – Scottish Enterprise) 
  2004:  £10,215,640 (£7,358,445 SMART/SPUR)    (£413,302 Highlands and Islands Enterprise)    (£1,422,327 R&D Plus – Scottish Enterprise) 
   (£1,021,566 SCIS – Scottish Enterprise) 
 7.  Duration of the programme
 
  3 years – From 1 April 2003 to 31 March 2006 
 
8. Assessment of trade effects
 
  External benefits or spillover effects fro m supported projects accrue most frequently to 
Award recipients' customers, but their suppliers and competitors also benefit. 
 
 Not all supported firms have direct competitors for the outcomes of their projects and this in 
part explains why evaluations have shown displ acement rates (i.e. negative effects on other, 
unsupported firms) to be low.  
 
66. Scottish Local Authorities - Property support scheme  
1. Period covered by the notification
 
  2003 and 2004   2. Policy objectives
  
 
 To support the development of premises a nd buildings for commercial purposes by  the 
private sector. Construction of new buildings or re novation of existing ones.  Granted where there is 
in the view of the granting authorities a mark et failure.  Can support speculative and bespoke 
developments.  3. Background and authority for the subsidy
 
 
 Operated by Scottish Local Authorities on the basis of the Enterprise and New Towns (Scotland) Act 1990, as amended by Scottis h Statutory Instrument 2001 No 126. 
 4.  Form of the subsidy
  
 
 Development grants, subsidised loans, interest  rebates, development financing aid (grants, 
rental guarantees), loan guarantees, joint venture finance, development services. 
 5. To whom and how the subsidy is provided
 
 
 Projects can be launched at the initiative of the granting authorities themselves if they own a 
site and wish to see it developed.  Developers would normally be sought  by public tender, with the bid  G/SCM/N/123/EEC/Add.25 
 Page 75 
 
 
 requiring the lowest subsidy and meeting the qualitativ e criteria being selected.  Projects may also be 
brought to the funding authorities by the property de velopers, in which case an assessment would be 
made of new economic benefits compared with  cost, the need for public sector intervention 
established, and the minimum level and intensity of aid calculated.  The recipients may be property 
developers or end-users.  Grants are only provided  for initial investment as described in the guidelines 
on regional aid, and maximum aid intensities are applie d in Assisted and non-Assisted areas as per the 
regional aid map.  Outwith Assisted Areas, support is restricted to SMEs.  6. Total amount budgeted
 
 
 2003: £63,938 (£1,620 Orkney Islands Council) 
  (£62,318 Renfrewshire Council)   2004: £78,511 (£40,938 Glasgow City Council)   (£37,573 Renfrewshire Council) 
 
7. Duration of the programme
 
  To 31 December 2006  8.  Assessment of trade effects
 
 
 Potential recipients – property developers and occupiers – all potentially participate in trade 
between Member States. The scheme is therefore rega rded by the Commission as affecting trade.  The 
aid is regarded as compatible with the Treaty as it has the objective of regional development and is in 
accordance with the guidel ines on regional aid. 
 
67. South Yorkshire productive investment scheme  
1. Period covered by the notification  
  2003 and 2004   
2. Policy objectives
  
  To further competitiveness through the devel opment of new products and processes by large 
companies in the traditional sectors of engineering, materials and manufacturing  
3. Background and authority for the scheme
 
  The legal basis of the scheme is the S outh Yorkshire Single Programming Document for 
2000-2006  4. Form of the subsidy 
 
 
 The form of subsidy is grant to a maximum of 35% of eligible project costs – within the regional aid guidelines.   5. To whom and how the subsidy is provided
 
 
 The subsidy is provided to large companies in the sectors specified above.  It is administered through grant regimes operated by intermediary bodies such as the Business Link South Yorkshire. 
 G/SCM/N/123/EEC/Add.25 
Page 76  
 
 6. Total amount budgeted
 
  2003 £0m  2004: £0m  
 The maximum budget available is £5m on the basis of £1m per annum. 
 7. Duration of programme
 
  2000-2006 
 
8. Assessment of trade effects
 
  Not applicable at this stage. 
 
68. Support for Land Remediation 
1.  Period covered by the notification
 
  2003 and 2004   2.  Policy objectives
  
 
 The aim of the scheme is to bring land back into productive use by addressing the detrimental 
effects of previous usage which contribute to, and are unlikely to be rectified as a result of, market 
failure.    
3.  Background and authority for the subsidy
  
  Regional Development Agencies Act 1998  Greater London Authority Act 1999 (Chapter 29)  Enterprise and New Towns (Scotland) Act 1999  Leasehold Reform, Housing and Urban Development Act 1993 
 Local Government Act 2000 
 Local Government in Scotland Act 2003  4.  Form of the subsidy
  
 
 Dereliction Aid grant and Relocation aid grants 
 5.  To whom and how the subsidy is provided
 
  Aid is paid to the owner of the land.  There are a number of eligible costs for project costing.  
Payments are made pro rata to the developer's qua lifying expenditure up to 100% of eligible costs 
plus a maximum of 15% of the cost of the work, as per the Environmental Aid guidelines. 
 6.  Total amount budgeted
 
  2003 £15,369,000 
 2004 £9,245,000 
  G/SCM/N/123/EEC/Add.25 
 Page 77 
 
 
 7.  Duration of the programme  
  The approval remains in force until 31 December 2006  8.  Assessment of trade effects
 
 
 None  
69. The Britech Fund 
1.  Period covered by the notification
 
 
 2003 and 2004   2.  Policy objectives
  
 
 The overall objective of the scheme is to strengthen UK-Israel science and technology 
collaboration.  3.  Background and authority for the scheme
  
  By a letter dated 15 June 1999, registered on 17 June 1999, the UK authorities notified the 
Commission, in accordance with Article 88(3) of the EC Treaty, of the aid scheme “The Britech 
Fund”.  By a letter dated 12 July 1999, the Commissi on asked for further information in order to make 
a complete assessment of the case.  By a letter da ted 3 August 1999, registered on 6 August 1999, the 
UK provided further information relating to the State aid notification Number N 355 / 99.    
 By a letter dated 25 October 1999, the UK w as notified that the Commission had accordingly 
decided to consider the aid to be compatible with  the EC Treaty and that the scheme complied with 
the Community Framework for State Aid for Rese arch and Development rules published in the 
Official Journal ( OJ C 45 / 5, Dated 17 February 1996 ).   The scheme is primarily an industrial resea rch and development activity, as defined in the 
Community Framework for State Aid for Research and Development rules.  The legislation under 
which the aid is granted is the UK Science and Technology Act 1965.  4.  Form of the subsidy
 
 
 The aid is given in the form of advances of grant, repayable in the event of a successful 
outcome of research and development activities.  Ai d will be repayable up to a maximum of 150% of 
the aid given, based on repayment of 5% of the a nnual sales or other income such as royalties or 
licensing agreements.  5.  To whom and how the subsidy is provided
 
 
 Aid under the scheme will predominantly be gi ven to private sector SMEs.  Nevertheless, 
larger businesses, which have particular expertise in  bringing a project to fruition may participate.  
For the purpose of the scheme, UK businesses will prim arily be considered to be those, which are 
incorporated, operate and have headquarters in  the UK.  Israeli businesses will primarily be 
considered to be those, which are incorporated, operate and have headquarters in Israel.  The aid 
recipients are those organisations successful in passi ng a peer review of their project proposals.  The 
criteria applied in the selection procedure are that the projects each involve at least one UK and at 
least one Israeli private sector business, the proj ects are research and development projects and G/SCM/N/123/EEC/Add.25 
Page 78  
 
 designed to result in new commercial products and processes.  The aid is given in the form of 
advances of grant, repayable in the event of a successful outcome of research and development 
activities.    6.  Total amount budgeted
  
 
  2003/04 The total amount budgeted to Britech by the UK for the financial year of 
2003/04 was £1,750,000.  
 7.  Duration of programme
 
 
 Five years commencing 1 January 2000.  The continuation of the scheme after 31 December 
2004 is dependent on the joint agreement of the Governments of the UK and the State of Israel, 
respectively, following a review, which is due to ta ke place during 2004.  Either the UK or the State 
of Israel can terminate the scheme by giving six months notice in writing to the other Government. 
 
8.  Assessment of trade effects  
  The Commission has examined the aid scheme in  the light of Article 87(3)(c) of the EC 
Treaty and the Research and Development framework and has found that the scheme is in conformity 
with that framework.  Therefore th e scheme does not adversely affect trading conditions to an extent 
contrary to the common interest.  The Commission d ecided to raise no objections to the scheme.  In 
the period to 31 March 2003 no projects under the scheme had reached a commercial stage. 
 
70. Vaccines Research Relief 
1.  Period covered by the notification
 
 
 2003 and 2004   2.  Policy objectives
  
  The objective of Vaccines Research Relief (VRR ) is to encourage companies to increase 
research spending into specified diseases. Because  demand for drugs and vaccines to treat diseases 
which mostly affect people in poorer countries is low in comparison for the demand for medicines for 
people in more affluent countries, there is less economic incentive for pharmaceutical companies to 
devote resources to these diseases. Vaccines research  relief is not primarily aimed at boosting UK 
productivity, though there may be some incidental benefits. 
 
3.  Background and authority for the subsidy
 
  VRR was introduced in 2002, but took effect fo r expenditure from April 2003.   It was not 
formally consulted on, however it used the already successful model of research and development tax 
credits for small or medium-sized enterprises, and so the basic architecture of the scheme was already 
well known to companies. 
  It was notified to the European Commission as a State aid and approved by them under reference N228/02. Amendments have been no tified and approved under references N245/2003 (on 
4 September 2003) and N293/2004 (on 6 December 2004). 
 
 Legislation governing the scheme was introdu ced in the Finance Act 2002 (Schedules 13 and 
14) with effect from 15 April 2003.  The VRR sche me was subsequently amended in the Finance Act 
2002 (Schedule 15), the Finance Act 2003 (Schedul e 31) and the Finance Act 2004 (section 141).  G/SCM/N/123/EEC/Add.25 
 Page 79 
 
 
  
4. Form of the subsidy  
  Tax relief (see below)  
5.  To whom and how the subsidy is provided
 
  The incentive is given as an increased tax relief for certain spending on R&D into vaccines or 
drugs for the prevention or treatment of specifi ed diseases.  The diseases specified are HIV/AIDS, 
tuberculosis and malaria.  The scheme differs for small or medium-sized companies (SMEs) and other 
companies. Both SMEs and non-SMEs are able to claim relief equal to 50% of their qualifying R&D 
expenditure as an enhancement to  the general deduction that th ey would otherwise get for R&D 
spending.  However, loss making SMEs are furt her entitled to claim a payable credit from the 
Government equal to 16% of the enhanced relief for spending on the specified diseases (although they 
must then give up the enhanced relief claim). 
 
 Taking an example of a SME company in profit paying tax at the 2004 small companies' rate (19%), it would be entitled to claim the mainstream R&D tax credit of 150% and then on top of this a 
further 50% for qualifying spending on R&D into the specified diseases. Thus for £100 of qualifying 
spending it would receive £19 of general tax relief ava ilable to all companies, £9.50 of enhanced tax 
relief under the R&D tax credit scheme for SMEs and a further £9.50 of enhanced tax relief under the 
VRR scheme. If this same company was loss making it would claim up to £24 of repayable tax credit 
under the general R&D tax credit for SMEs scheme a nd up to £8 of tax credit under the VRR scheme. 
  As with the SME R&D tax credit scheme, the amount surrenderable for a cash repayment is 
limited to the lower of  
 
• the proportion of the unrelieved loss attri butable to the qualifying VRR expenditure, 
and 
 
• the gross employment and social security taxes (Pay-As-You-Earn tax and National 
Insurance Contributions) paid by the company for the period of the claim. 
 
 The availability of VRR to a company is subject to the following criteria: 
  (a) the qualifying expenditure for the VRR for any accounting period of the company is 
limited to the aggregate of: 
 
• the direct costs of staff directly in volved in carrying out the R&D activity. 
These costs comprise the gross remunera tion (excluding be nefits-in-kind) 
plus national insurance contributions payable by the company, plus 
contributions to a pension scheme paid by the company;  plus 
 
• the cost of consumable or transformable materials used directly in the R&D 
activity;  plus 
 
• the cost of computer software, power, water and fuel used directly in the 
R&D activity;  plus 
 
• contributions to independen t research carried out by a charity, university or 
scientific research organisation;  plus 
 G/SCM/N/123/EEC/Add.25 
Page 80  
 
 • if the company subcontracts all or part  of the R&D to someone other than a 
charity, university or scientific rese arch organisation then 65% of the 
payments due to the subcontractor (representing a generalised measure of the costs above).  Alternatively, the comp any may claim the act ual costs it incurs 
within the above categories (except any contributions to independent 
research).  This latter rule is the only option where the principle and 
subcontractor are connected;  plus 
 
• if the company subcontracts all or part of the R&D to a charity, university or 
scientific research organisation then the whole sub-contract expenditure qualifies for relief. 
 
 (b) the qualifying expenditure must exceed a threshold minimum. This is set at an 
annualised rate of £10,000 a year. Spending at or above £10,000 qualifies for VRR in full. No VRR is available if the spending does not meet this threshold. 
  (c) VRR is not available on R&D spending that  has been met by a grant or subsidy. No 
R&D expenditure will qualify for the tax credit if incurred in relation to a project in 
receipt of any other notifiable State aid. 
  R&D spending by joint ventures and consortia w ill be eligible for VRR, but only insofar as 
the tax credit can be limited to companies.  
6.  Total amount budgeted
 
  As this is a highly specialised area of r esearch, we estimate that only between 10 and 50 
companies in the pharmaceutical and related sectors w ill be in a position to benefit from this measure. 
 
 The annual cost of vaccines research relief was forecast to be £10m in 2002-03, £10m in 
2003-04 and £20m in 2004-05.  7.  Duration of the programme
 
 
 The notification to the European Commission limited the scheme covered by the notification 
to 10 years.  This limit applies to new projects and not  to taxpayers in respect of tax relief for relevant 
R&D commenced within this period.  Once a taxpayer had embarked on the project that is eligible for 
tax relief, it would be entitled to the relief for the remainder of the project.  8.  Assessment of trade effects
 
 
 No assessment of the impact of VRR is curre ntly available. However, the following data 
provides some indication of firms' decisions to  locate R&D spending in the UK. This shows the 
proportion of business R&D performed in the pharmac eutical sector by UK owned companies. Of 
course, R&D on the specified diseases will represent only part of the total R&D performed in the 
pharmaceutical sector: 
  Intramural Expenditure (£ million) (for the pharmaceutical sector)  
 2001 2002 2003 
UK-owned businesses 1804 2044 1897 
Non UK-owned businesses 1236 1260 1344 
Source: 'Research and Development in UK Bu siness 2003' Office for National Statistics  G/SCM/N/123/EEC/Add.25 
 Page 81 
 
 
  
 Expenditure as % of total business R& D in UK (for the pharmaceutical sector) 
 
 2001 2002 2003 
UK-owned businesses 59% 62% 59% 
Non UK-owned businesses 41% 38% 41% 
Source: 'Research and Development in UK Bu siness 2003' Office for National Statistics 
 
 The existing data do not allow a robust estimate to be made of the impact of VRR on trade effects although any effect will be small given the scale of this measure.  
71. Wales Tourist Board - Investment Support Scheme 
1. Period covered by the notification
 
 
 2003 and 2004   2. Policy objectives
  
 
 Enhance the quality of the tourism product in Wales. 
 3. Background and authority for the scheme
 
  Section 4 of the Development of Tourism Act 1969  
4.  Form of the subsidy 
 
  Grant  5. To whom and how the subsidy is provided
 
 
 Subsidy is provided as a grant to both privat e and public sector organisations Undertaking 
tourism development  6. Total amount budgeted
 
 
 2003: £3,150k 
 2004: £3,150k  7. Duration of programme
 
 
 Indefinitely, pending advi ce from sponsor department 
 8. Assessment of trade effects
 
  Independent evaluation carried out by Sega l Quince Wicksteed (2000) demonstrate positive 
impacts, good value and additionality 
 G/SCM/N/123/EEC/Add.25 
Page 82  
 
 72. Waste Research and Innovation programme  and waste demonstrator programme 
1.  Period covered by the notification
 
  2003 and 2004   
2.  Policy objectives
  
  The focus of the scheme is:   - to facilitate the development and implem entation of new technologies for treating the 
biodegradable fraction of municipal solid wast e, where these have yet to be proved to 
be technically and commercially viable in the UK. As a consequence, it would reduce 
the amount of biodegradable waste dis posed of to landfill in England; 
  - to encourage the development of technology, which reduces the costs and 
environmental impact of waste management; 
  - to promote the implementation of new technology that can recover and recycle 
material rather than merely stabilises it. 
  The scheme addresses the lack of R&D funding for new technology in England and aims to 
develop better, faster and cheaper ways of trea ting biodegradable municipal waste and other waste 
streams. It should put the United Kingdom closer to the course required to achieve the Landfill 
Directive targets.  3.  Background and authority for the subsidy
 
 
 The UK faces challenging targets to meet th e EC Landfill Directive requirements for limiting 
the disposal of biodegradable wastes to landfill an d increasing the rates of recovery and re-use of 
wastes. The legal basis of this programme is h ead (1) of  section 153(1) of the Environmental 
Protection Act 1990, according to which:  “The Secretary of State may, with the consent of the 
Treasury, give financial assistance to, or for the purposes of […] (l) the environmental protection 
technology scheme for research and development in  the United Kingdom in relation to such 
technology.”  
 
4.  Form of the subsidy  
 
 The subsidy will take two forms: 
 
 The grant aid instrument : the same Advisory Committee as the one assessing the bids under 
WRIP will assess a short outline summary of the projects, including details of the technology, time-scales, funding requirements and outcomes, and will submit its recommendations to DEFRA.  
Following a decision by DEFRA based on the advi ce of the Committee, successful bids will be 
worked up into full-scale proposals.Full scale proposals will be reviewed externally by at least three 
members of the Committee and a final decision will be taken by DEFRA.   All projects will be subject to audit on completi on to ensure public funds had been spent in 
strict accordance with the contract. 
 
 A programme management contractor will ma nage the WDP.  This contractor will be 
appointed by competitive tender following normal pr ocurement rules and will be advertised in the  G/SCM/N/123/EEC/Add.25 
 Page 83 
 
 
 OJEC.  The contractor will report to DEFRA incl uding compliance with state aid rules and reporting 
requirements. 
 
 The co-investment instrument : the co-investment aid would only be available to private 
companies or suitable consortia, which would be able  to quickly take forward a demonstration project 
to a profitable commercial activity and where, becau se of the perceived risk of the technologies, the 
projects would be unable to proceed without such fi nance to help lever manufacturers and suppliers.  
This aid approach would be targeted at high risk projects which if successful would have a large market potential, which can be quickly exploited.  The aim of this instrument is to help attract private 
sector investment in the projects.  The criteria for co-investment projects would include: a clear 
business plan which identifies the market potential a nd anticipated financial returns from successfully 
commercialising the technology to be demonstrated ; confirmation of how the intellectual property 
rights of the project will be protected; financial vi ability including confirmation of other sources of 
investment income; an agreed timetable and thres hold for repayment of the investment made by the 
programme. 
 
5.  To whom and how the subsidy is provided
 
  Bids will be accepted from companies, universities and research establishments without restriction on the size of beneficiaries.  The scheme is being run on a general basis but, because of the nature of the scheme, waste management companie s, their equipment suppliers and local authorities 
are expected to be a significant percentage of t hose making use of the scheme. Projects involving co-
operation between firms, universities and research ins titutes will also be eligible, but there are no 
special terms for such bids.  The final award de cision will be taken by the Department of the 
Environment, Food and Rural Affairs (“DEFRA” ) on the basis of the advice received from the 
Committee. Funds would be paid in accordance w ith a contract on the basis of achieving key 
milestones. 
 6.  Total amount budgeted
 
  2003 £0  2004 £115,267 
 
7.  Duration of the programme
 
  Both schemes are for a duration of 3 years.  
8.  Assessment of trade effects
 
  The Waste Demonstrator Programme's research  findings will be disseminated through case 
studies written about the projects in all cases. Site vi sits by end user decision-makers will also be 
organized.  The associated Data Centre will also assure access for the general public to information 
and data on the projects. The Waste Research and Innovation  Programme will ensure that findings 
will be widely disseminated through the research  and waste communities, including articles in 
technical journals and other publications and confer ences. The associated Data  Centre will also assure 
access for the general public to information and data on the projects.  
73. WDA Partnership Development 
1. Period covered by the notification
 
  2003 and 2004   G/SCM/N/123/EEC/Add.25 
Page 84  
 
 2. Policy objectives
  
  To ensure the availability of suitable business pr emises within which initial investment can be 
established  
3. Background and authority for the scheme 
  Authority N656/99  4.  Form of the subsidy 
 
 
 Grant  5. To whom and how the subsidy is provided
 
 
 Property developers, investment companies and financial institutions in Wales via four grant 
instruments.  6. Total amount expended
 
  2003 £2.960 million 
 2004 £4.87 million 
 7. Duration of programme
 
  31 December 2006 
 
8. Assessment of trade effects
 
  Not applicable  
74. WDA Property for Business 
1. Period covered by the notification
 
  2003 and 2004   2. Policy objectives
  
 
 To ensure the availability of suitable business pr emises within which initial investment can be 
established  3. Background and authority for the scheme
 
 
 Authority N655/99 
 4.  Form of the subsidy 
 
  Grant 
 
5. To whom and how the subsidy is provided
 
  Companies in Wales via three primary grant instruments.  G/SCM/N/123/EEC/Add.25 
 Page 85 
 
 
  
6. Total amount expended  
  2003:  £10.631 million  2004:  £5.75 million 
 
7. Duration of programme
 
  31 December 2006  
8. Assessment of trade effects
 
  Not applicable  
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