WORLD TRADE
ORGANIZATIONG/SCM/Q2/NOR/16
11 October 2002
(02-5522)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Replies to Questions from AUSTRALIA1
Regarding the New and Full Notification of NORWAY2
The following communication, dated 10 October 2002, has been received from the Permanent
Mission of Norway.
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7. ASSISTANCE TO SPECIFIC INDUSTRY SECTORS
7.2 Contract Related Operating Aid
Q1. We note that the scheme expired on 1 Jan uary 2001.  Have there been ongoing payments
since this time?
Reply
The scheme expired on 1 January 2001 for ship contracts entered into prior to this date.  It
was a condition that deliveries of such ships must take place before 31 December 2003.  As the last
part of the yard subsidy is paid out after the ships have been delivered, there have been ongoing
disbursements under the scheme after 1 January 2001.  This will continue until the final delivery of
ships under the scheme have taken place and will probably end in early 2004.
Q2. We note also that this scheme replaces the scheme “Interest Rate Subsidies for the
Shipbuilding Industry – Long Term Financing and Construction Loans”.  Is it possible to
receive benefits under both schemes, particular ly given that there are ongoing payments under
this latter scheme?
Reply
It is not possible to receive funding or benefits from both schemes.
                                                     
1 G/SCM/Q2/NOR/15
2 G/SCM/N/71/NOR and G/SCM/N/71/NOR/Suppl.1G/SCM/Q2/NOR/16
Page 2
The information below contains relevant answers to the questions posed by Australia to
Document G/SCM/ N/71/NOR/Suppl.1.
3.1 Enterprise and Economic Development in the Regions
Q. What are the criteria for receiving grants or loans under this scheme?
Reply
It is important to emphasise that financial support from the scheme is not automatically
provided to enterprises when fulfilling certain criter ia.  Loans and/or grants are provided only after an
assessment of the projects concerned and the enterprise in question.
An absolute criterion is that the projects have to be realised in the assisted area (zone A, B or
C).  Another criterion is that eligible projects are economically profitable and leads to a positive
development and is in accordance with the strategy of the enterprise.  It is also a criterion that firms
must finance at least 50 per cent of project costs from their own resources and/or loans provided by aprivate bank.  The SND’s (The Norwegian Industrial and Regional Development Fund) share of
contribution to project costs varies considerably from case to case.  On the average the SND’s share is
approximately 30 per cent of the investments.
The use of loans or grants varies from project to project.  Grants are more often used to
support projects in an early development stage - often characterised with high risk, than more mature
projects.
According to guidelines from the Government and the strategy of SND, priority is given to
projects in SMEs, innovation projects and creation of know-how in recipient firms.  In additionspecial attention is paid to employment opportunities, and higher degree of entrepreneurship among
women and youth.  Environmental friendly projects are also given priority.
4.1 National Innovation Scheme
Q. Please give examples of the types of industries that have received funding under this
programme during the reporting period.  What are the criteria for funding under this scheme?
Reply
Examples of the types of industries that have received funding under this programme during
the reporting period.
The annex shows the distribution of loans and grants on industrial sectors in 2001.Except for the demand of realising the project in the assisted area, the same assessment of the
projects is made for this scheme as for the scheme 3.1 Enterprise and Economic Development in theRegions.G/SCM/Q2/NOR/16
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ANNEX
National Innovation Scheme
Breakdown by sectors of grants and loans submitted in 2001 (mill NOK)
Sector Grant Loan
01-02 Agriculture and forestry - -
05 Fishing etc. 5.0 53.2
10-14 Mining and quarrying 0.9 7.9
15-16 Manufacturing of food, beverages, tobacco 5.1 22.6
17-19 Manufac.of textiles, wearing, tanni ng and dressing of leather etc 1.4 3,7
20 Manufacturing of wood etc. - 1.0
21 Manufacturing of pulp, paper etc. 0.3 -
22 Publishing, printing etc 2.3 2.6
23-24 Manufacturing of coke, refined petroleum prod., chemicals and chemical
products1.0 4.6
25 Manufacturing of rubber and plastic 0.9 2.0
26 Manufacturing of other non metallic 0.8 2.0
27-28 Manufacturing of basic metals and metals products 1.8 14.9
29-30 Man. of machinery, equipment. and office machinery 2.8 6.7
31-33 Man. of electrical machinery, radio, telev., medical, optical etc. 4.9 20.4
34-35 Man.of motor vehicles and other transport equipment. 0.6 14.6
36 Manufacturing of furniture; miscellaneous 2.0 3.6
37 Recycling 0.7 1.1
40 Electricity, gas, etc. 0.5 0.5
45 Construction 0.5 0.5
50-52 Wholesale and retail trade and repair of motorvehicles and
personal goods2.7 4.9
55 Hotels and restaurants 0.7 -
60-64 Transport, storage and commun. 0.8 1.8
65-67 Financial intermediation. 0.3 -
70-74 Real estate, renting and business activities. 51.9 52.4
75-85 Public administration, defence education, health and social work 10.9 2.5
90-99 Other community and personal service activities etc. 22.8 3.9
Unspecified 40.1 -
Total 161.7 227.4
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