WORLD TRADE
ORGANIZATIONG/SCM/N/38/EEC/Add.4
21 December 1998
(98-5127)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement on
Subsidies and Countervailing Measures
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Finland .G/SCM/N/38/EEC/Add.4
Page 2
FINLAND
TABLE OF CONTENTS
Page
I. AID TO SMALL AND MEDIUM -SIZED ENTER PRISES ...........................................3
1. Small-Business Aid ........................................................................................................... ....3
2. Development Aid.............................................................................................................. .....4
3. State Aid for the Internat ionalization of SME's................................................................5
4. Loan Programme for SMEs (KERA Ltd.).........................................................................5
5. Development Loan Programme for SMEs (KERA Ltd.).................................................6
6. Start-Up Loan Programme for Entrepreneurs (KERA Ltd.) .........................................77. Grant for Technical Consulting and Promotion ( Åland)..................................................8
8. State Aid to Developing Businesses (Åland).......................................................................9
9. Environment Loan Programme for SMEs (KERA Ltd.)...............................................10
10. Operational Conditions Aid...............................................................................................10
II. AID FOR RESEARCH AND DEVELOPM ENT ...........................................................12
1. Aid for Promoting R&D.....................................................................................................12
2. Grant for Research and Development (Åland)................................................................13
III. REGIONAL AID ............................................................................................................... .14
1. Regional Investment Aid....................................................................................................14
2. Regional Transport Subsidy..............................................................................................15
3. Accelerated Regional Depreciation...................................................................................164. Regional Stamp Duty Exemption......................................................................................17
5. Grant for Inves tments (Åland)..........................................................................................18
IV. EMPLOYMEN T AID ........................................................................................................19
1. Structural Change Scheme (Employment Aid)...............................................................19
2. Investment Aid to Promote Employment.........................................................................19
V. AID IN THE FIEL D OF EN ERGY..................................................................................20
1. Energy Grants................................................................................................................ .....20
VI. AID FOR ENVIRONM ENTAL PROTECTION ...........................................................21
1. Grants for the Promotion of  Environmental Protection ................................................21
2. Waste Oil Management Financed by Waste Oil Charges..............................................22
VII. OTHER SUBSIDIES TO INDUSTRY AND SE RVICES .............................................23
1. Ice Dues Classification Allowance.....................................................................................23
2. Investment Aid for Business Processing Agri-Based Products......................................24
3. Aid for Development Project s in the Food Industry.......................................................25
4. Aid for Shipbuilding ......................................................................................................... ..26G/SCM/N/38/EEC/Add.4
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I. AID T0 SMALL AND MEDIUM-SIZED ENTERPRISES
1. Small-Business Aid
1. Title of the subsidy programme
Small-business aid
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid to SMEs.
4. Background and authority for the subsidy
Small-business aid can be granted throughout the country but is mainly awarded as
investment aid or start-up aid to enterprises either operating or to be set up in rural districts or
structural change areas. Aid can be granted to enterprises engaged in production, tourism or business
services. Part of the aid can be granted in the form of incubator aid, which is mainly granted to unitsoperating in connection with training establishment or technology parks in cases where such units
provide premises and services for new entrepreneurs which are in the initial stages of their operation.
The firm is a small one with a personnel not exceeding 50 with either an annual turnover not
exceeding FIM 30 million or a balance sheet total not exceeding FIM 12 million, and with not morethan one-fourth of its equity in the hands of companies exceeding such a limit.
The aid is granted by the Ministry of Trade and Industry and the Business Departments of the
regional employment and economic development centers. (Aid to Business Act 1136/1993).
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
See point 4.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The actual payments in 1997 were FIM 69 million.For 1998 the expenditure forecast is FIM 70 million.
8. Duration of the subsidy and/or any other time limits attached to it
IndeterminateG/SCM/N/38/EEC/Add.4
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9. The trade effects of the subsidy
No effects on international trade
2. Development Aid
1. Title of the subsidy programme
Development aid
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid to SMEs
4. Background and authority for the subsidy
Development aid can be granted to SMEs for their development projects aimed at improving
the standard of the firm's products or its production management or marketing. Aid can also be
granted to have the potential and operating conditions for the projected new firm verified.
The firm is a SME with a personnel not exceeding 250 employees with either an annual
turnover not exceeding FIM 120 million or a balance sheet total not exceeding FIM 60 million andwith max. a quarter of its shares in the hands of a company exceeding such a limit. The aid is granted
by the Ministry of Trade and Industry and the Busi ness Departments of the regional Employment and
Economic Centers (Aid to Business Act 1136/1993).
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
See point 4.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The actual payments in 1997 were FIM 73.6 million.For 1998 the expenditure forecast is FIM 70 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade.G/SCM/N/38/EEC/Add.4
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3. State Aid for the Internationalization of SMEs
1. Title of the subsidy programme
State aid for the internationalization of SMEs
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid for SMEs (development of their marketing, promotion and internationalization skills)
4. Background and authority for the subsidy
The subsidy is granted by the Ministry of Trade and Industry (Trade Department).
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The aid is provided to SMEs and granted by the Ministry of Trade and Industry on the basis
of applications.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The total amount of grants in 1997 was FIM 266 million. The average subsidy per enterprise
was approximately FIM 80 000.
8. Duration of the subsidy and/or any other time limits attached to it
No time limits attached to this programme.
9. The trade effects of the subsidy
No direct effects on international trade. The subsidy is aimed at the development of SMEs'
marketing skills.
4. Loan Programme for SMEs (KERA Ltd)
1. Title of the subsidy programme
Loan programme for SMEs (Kera Ltd). Soft loans for investments and working capital.G/SCM/N/38/EEC/Add.4
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2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid for SMEs: access to risky loans on a reasonable interest rate level
4. Background and authority for the subsidy
The authorization to grant these loans is decided yearly in the State budget.
5. Form of the subsidy
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy
6. To whom and how the subsidy is provided
The subsidy is granted to manufacturing enterprises and tourism industry by Kera Ltd (state-
owned company). Subsidy element is in availability and in interest rate of the loans.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The net cost of the programme in 1997 is FIM 163 million, the administrative costs of Kera
Ltd included. The aid intensity of loans is about 10-16 per cent (calculated on loans).
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate, the subsidy is given during years to maturity, which is 5-10 years.
9. The trade effects of the subsidy
No effects on international trade
5. Development Loan Programme for SMEs (KERA Ltd)
1. Title of the subsidy programme
Development loan programme for SMEs. Soft loans for development of products and
managerial skills.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid for SMEsG/SCM/N/38/EEC/Add.4
Page 7
4. Background and authority for the subsidy
The authorization to grant these loans is decided yearly in the State budget.
5. Form of the subsidy
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy
6. To whom and how the subsidy is provided
The subsidy is granted to manufacturing enterprises and tourism industry by Kera Ltd (state-
owned company). Subsidy element is in availability and in interest rate of the loans.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The net cost of the programme is FIM 20 million, the administrative costs of Kera Ltd
included. The aid intensity of the loans is about 25 per cent (calculated on loans).
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
6. Start-Up Loan Programme for Entrepreneurs (KERA Ltd)
1. Title of the subsidy programme
Start-up loan programme for entrepreneurs. Soft loans for entrepreneurs when establishing an
enterprise.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid to new enterprises (entrepreneurs)
4. Background and authority for the subsidy
The authorization to grant these loans is decided yearly in the State budget.
5. Form of the subsidy
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy.G/SCM/N/38/EEC/Add.4
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6. To whom and how the subsidy is provided
The subsidy is provided to persons who start a new manufacturing or tourism enterprise. It is
granted by Kera Ltd (state-owned company). Subsidy el ement is in availability and in interest rate of
the loans.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year).
The net cost of the programme is FIM 16 million, the administrative costs of Kera Ltd
included. The aid intensity of the loans is about 33 per cent (calculated on loans).
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
7. Grant for Technical Consulting and Promotion (Åland)
1. Title of the subsidy programme
Grant for technical consulting and promotion (Åland)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid to SMEs
4. Background and authority for the subsidy
The annual budget of the Governmant of Åland
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The aid is provided to SMEs, farmers and organizations. The subsidy is granted by the
regional government of Åland.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The annual amount of grants in 1997 was FIM 0.6 million.G/SCM/N/38/EEC/Add.4
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8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
8. State Aid to Developing Businesses (Åland)
1. Title of the subsidy programme
State aid to developing businesses (Åland)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid to SMEs (experiment and development projects)
4. Background and authority for the subsidy
The annual budget of the Government of Åland
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy is provided to SMEs, farmers and organizations. The maximum aid intensity is
50 per cent gross of eligible costs. The aid is granted by the regional government of Åland.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The annual amount of grants in 1997 was FIM 0.2 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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9. Environment Loan Programme for SMEs (KERA Ltd.)
1. Title of the subsidy programme
Environment loan programme for SMEs (Kera Ltd). Soft loans for environmental investments.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid to SMEs: to promote environment protection, energy saving, circulation of raw materials etc.
4. Background and authority for the subsidy
The authorization to grant these loans is decided annually in the state budget.
5. Form of the subsidy
Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy
6. To whom and how the subsidy is provided
The subsidy is granted to manufacturing enterprises and tourism industry by Kera Ltd (state-
owned company). Subsidy element is in availa bility of the loans and in interest rates.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The net cost of the programme is FIM 10 million, the administrative costs of Kera Ltd
included. The aid intensity of loans is about 25 per cent (calculated on loans).
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
10. Operational Conditions Aid
1. Title of the subsidy programme
Operational conditions aid
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.4
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3. Policy objective and/or purpose of the subsidy
Aid to SMEs: to develope enterprise support services for starting and excisting SME:s.
4. Background and authority for the subsidy
The aid is granted by the Ministry of Trade and Industry and the Business Departments of
theregional Employment and Economic Development Centers (Aid to Business Act 1136/1993 as
changed by Act 552/1994, Act 297/95 and Act 1473/95).
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Aid can be granted to public institutions, foundations, private persons and enterprises. To
qualify for aid, a project should create new service activities in the region and should be of essential
signifiance for the regions SMEs. Mainly, aid may be granted for projects associated with counselling,
reasearch, quality management, marketing, product development and design services.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The actual payments in 1997 were FIM 11.4 million.For 1998 the expnditure forecast is FIM 40 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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II. AID FOR RESEARCH AND DEVELOPMENT
1. Aid for Promoting R&D
1. Title of the subsidy programme
Aid for promoting R&D
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid for research and development
4. Background and authority for the subsidy
Legal basis: Council of State decision on 21 December 1994 on general terms of grants and
soft loans for R&D.
5. Form of the subsidy
Grant, soft loan and capital loan
6. To whom and how the subsidy is provided
The subsidy is provided for enterprises on the basis of applications. The maximum amount of
grant per unit is 50 per cent of eligible costs (60 per cent for SMEs) depending on the nature of R&D.
The maximum amount of loan per unit is 60 per cent of eligible costs (70 per cent for SMEs). The
maximum aid intensity is 50 per cent for basic industrial research and 25 per cent for applied research
and development.
The subsidy is granted by the Technology Development Centre (TEKES).
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
In 1997, the annual amount of grants was FIM 647 million and loans granted FIM 202 million
and for capital loans FIM 39 million. The subsidy per project was on average 41 per cent of the
eligible costs.
8. Duration of the subsidy and/or any other time limits attached to it
The subsidy programme is in force for the time being.
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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2. Grant for Research and Development (Åland)
1. Title of the subsidy programme
Grant for research and development (Åland)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Aid for research and development (SMEs)
4. Background and authority for the subsidy
The annual budget of the Government of Åland
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy is provided to SMEs, farmers and organizations. The maximum intensity is 40
per cent of eligible costs. The subsidy is granted by the regional government of Åland.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The annual amount of grants in 1997 was FIM 0.5 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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III. REGIONAL AID
1. Regional Investment Aid
1. Title of the subsidy programme
Regional investment aid
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Regional aid
4. Background and authority for the subsidy
Investment aid can be granted to firms toward fixed assets needed for business operations and
for making alterations or improvements to such fixed assets.
The aid is granted by the Ministry of Trade and Industry and the Business Departments of the
regional Employment and Economic Development Centers. (Aid to Business Act 1136/1993).
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Investment aid can be granted to firms in the regional development area and the structural
adjustment areas. In other parts of Finland, investment aid can be granted only to small businesses.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The actual payments in 1997 were FIM 314.7 million.For year 1998 expenditure forecast is FIM 270 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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2. Regional Transport Subsidy
1. Title of the subsidy programme
Regional transport subsidy
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Regional aid (SMEs)
4. Background and authority for the subsidy
Transport of goods in Finland, which start from regions which have less than 12.5 inhabitants
per km2: Lapland, Ostrobotnia, Kainuu, North-Karelia and South-Savo, are eligible for transport
subsidy (Act 954/1981 as changed by Act 613/1996).
Ministry of Trade and Industry (Business Development Department) grants the subsidies.
5. Form of the subsidy
Grant paid semiannually on basis of applications and evidence.
6. To whom and how the subsidy is provided
The subsidy can be granted for transports starting from the place of processing of products
which have been processed by small or medium-sized companies within Lapland, Ostrobotnia,
Kainuu, North-Karelia and South-Savo. Transport subsidy can be granted for carriage of the following
products: Food and drinks, earths and stone, wood and wood products, products of the paper industry,
products of the metal industry, machinery and apparatus and products of the chemical industry.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The actual payments in 1997 were FIM 21.7 million.For 1998 the expenditure forecast is FIM 16.3 million.
8. Duration of the subsidy and/or any other time limits attached to it
Until 31 December 1999
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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3. Accelerated Regional Depreciation
1. Title of the subsidy programme
Accelerated regional depreciation
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Regional aid
4. Background and authority for the subsidy
Legal basis: Act 1262/1993 as amended by act 32/1998. The responsible authority is the
Ministry of Finance.
5. Form of the subsidy
Tax concession
6. To whom and how the subsidy is provided
The subsidy is granted in the national regional support areas I and II. Eligible sectors for this
aid are manufacturing, hotels and lodging services for their investments in buildings and machinery.In 1998 this aid is granted only to small and medium-sized enterprises. The normal depreciation rate
is raised by 50 per cent. For machinery it is raised from 30 per cent to 45 per cent and for industrial
buildings from 7 per cent to 10.5 per cent. The maximum possible aid intensity that can be obtained in
favour of any single project is 2 per cent.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
In 1997, the total aid amount was approximately FIM 50 million.
8. Duration of the subsidy and/or any other time limits attached to it
The subsidy programme came into force on 1 January 1994 and will remain in force until
31 December 2000 even though it is applied only to investments made during 1994-1998.
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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4. Regional Stamp Duty Exemption
1. Title of the subsidy programme
Regional stamp duty exemption
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Regional aid
4. Background and authority for the subsidy
Legal basis: Act 291/1981, section 97a as amended by Act 1263/1993. The responsible
authority is the Ministry of Finance.
5. Form of the subsidy
Tax concession
6. To whom and how the subsidy is provided
The subsidy is granted in national regional support areas I and II. The acquisition of
immovable property for the purpose of expanding or establishing an industrial or tourist enterprise inareas is exempted from stamp duty. The average aid intensity is less than 1 per cent of the total costs
of the project.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The total annual budget amount has been approximately FIM 2 million.
8. Duration of the subsidy and/or any other time limits attached to it
The present legislation applies to acquisitions made during 1994-1997.
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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5. Grant for Investments (Åland)
1. Title of the subsidy programme
Grant for investments (Åland)
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Regional aid (investments in equipment and buildings)
4. Background and authority for the subsidy
Company aid act of Åland (ÅFS 46/1989)
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy is provided to small and medium-sized enterprises, farmers and organizations.
The aid intensity in category I areas (the archipelago) is 35 per cent gross and in category II areas
(main Åland) 27 per cent gross of eligible costs. SMEs may receive up to 10 percentage points moreup to the maximum ceiling of 37 per cent gross. The subsidy is granted by regional government of
Åland.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The annual amount of grants in 1997 was FIM 4.3 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international tradeG/SCM/N/38/EEC/Add.4
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IV. EMPLOYMENT AID
1. Structural Change Scheme (Employment Aid)
1. Title of the subsidy programme
Structural change scheme
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Employment aid (projects that promote structural changes)
4. Background and authority for the subsidy
Legal basis: Employment Decree (130/1993)
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy can be provided to enterprises and other organizations. It is granted by the
Ministry of Labour.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
In 1997, FIM 10.1 million was granted to enterprises.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
2. Investment Aid to Promote Employment
1. Title of the subsidy programme
Investment aid to promote employment
2. Period covered by the notification
1997G/SCM/N/38/EEC/Add.4
Page 20
3. Policy objective and/or purpose of the subsidy
Employment aid
4. Background and authority for the subsidy
Legal basis: Employment Act (275/1987), Employment Decree (103/1993)
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The rules of the Regional investment aid programme and Energy grant programme are applied.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
In 1997, FIM 6.8 million was granted to enterprises.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
V. AID IN THE FIELD OF ENERGY
1. Energy Grants
1. Title of the subsidy programme
Energy grants
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Promotion of the energy conservation, energy efficiency and the use of renewable energy;
reduction of negative environmental impacts associated with energy production and usage and
contribution to energy security and supply diversity in Finland.
4. Background and authority for the subsidy
Legal basis: Decision of the Council of State on the general conditions for awarding energy
grants (45/1996)G/SCM/N/38/EEC/Add.4
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5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Subsidies can be granted to enterprises and communities on a case-by-case consideration.
Subsidies are granted by the Ministry of Trade and Industry (Energy Department) on application and
they are paid according to the progress of the project.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The total amount of the commitments for energy grants was FIM 60 million in 1997 budget.
Average subsidy per project was FIM 258 000.
8. Duration of the subsidy and/or any other time limits attached to it
No time limits attached to this programme
9. The trade effects of the subsidy
No effects on international trade
VI. AID FOR ENVIRONMENTAL PROTECTION
1. Grants for the Promotion of Environmental Protection
1. Title of the subsidy programme
Grants for the promotion of environmental protection
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Environmental protection
4. Background and authority for the subsidy
The regional Environmental Centre takes decisions on grants within its allocated
appropriation and taking into account its budget. The Ministry of the Environment may decide on
grants if these are of national importance or for other special reason.
5. Form of the subsidy
GrantG/SCM/N/38/EEC/Add.4
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6. To whom and how the subsidy is provided
The subsidy can be provided to enterprises, local authorities, joint municipal boards and other
corporations for development, experimentation and investment projects which promote environmental
protection.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The amount of the commitments of grants for the promotion of environmental protection was
FIM 34.5 million in 1997. The annual amount budgeted for 1998 is FIM 32.7 million.
8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
2. Waste Oil Management Financed by Waste Oil Charges
1. Title of the subsidy programme
Waste oil management financed by waste oil charges
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Environmental protection
4. Background and authority for the subsidy
The Ministry of the Environment is the responsible authority.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy can be provided to enterprises, which have made a contract on waste oil
management with The Ministry of Environment.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The annual amount budgeted for 1998 is FIM 15 million.G/SCM/N/38/EEC/Add.4
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8. Duration of the subsidy and/or any other time limits attached to it
Indeterminate
9. The trade effects of the subsidy
No effects on international trade
VII. OTHER SUBSIDIES TO INDUSTRY AND SERVICES
1. Ice Dues Classification Allowance
1. Title of the subsidy programme
Ice dues classification allowance
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
To support the necessary transport capacity taking into account the Finnish climate and other
natural circumstances.
4. Background and authority for the subsidy
Legal basis: Act 433/1981, section 6 as amended by Act 1265/1993 and by act 1258/1996.
The responsible authority is the Ministry of Finance.
5. Form of the subsidy
Tax concession
6. To whom and how the subsidy is provided
The programme is applied to shiporders made during 1994-1998. The shipowner can deduct
3 per cent of the acquisition costs of the ship from the taxable income. The allowance is granted in the
tax year when the ship has been taken into use and in the following year. The aid intensity per project
is at the most 1.5 per cent.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
In 1997 the total budgeted amount was FIM 10 million. Since the legislation concerning ice
dues classification has been prolonged without substantial changes, the total amount budgeted for
1998 is  FIM 15 million.G/SCM/N/38/EEC/Add.4
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8. Duration of the subsidy and/or any other time limits attached to it
The present legislation applies to orders made during 1994-1998. The allowance came into
force in amended form on 1 January 1994.
9. The trade effects of the subsidy
No effects on international trade
2. Investment Aid for Businesses Processing Agri-Based Products
1. Title of the subsidy programme
Investment aid for businesses processing agri-based products
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The objective of the programme is to improve the processing and marketing conditions for
agricultural products.
Investment aid can be granted for a project aimed at improving the quality of products or the
reorientation of production to correspond to market demand; other improvements in processing,handling, storage or packaging processes; improvements in purchasing or distribution; intensifying
the recycling of by-products; or reducing the harmful environmental impact on production.
4. Background and authority for the subsidy
In addition to support part-funded by the Gu idance Section of the European Agricultural
Guidance and Guarantee Fund (EAGGF) referred to  in EC Regulation 866/90, Finland is supporting
its food processing industry from national funds during the country's first few years of EU
membership. The national legal basis is the Council of State Decision of 15 June 1995 on investment
aid for businesses processing agri-based products.
The responsible authority is the Ministry of Trade and Industry.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Investment aid can be granted to businesses processing agri-based products (products listed in
Annex II of the EC Treaty). The intensity of the investment aid is based on the acquisition expenses of
fixed assets and may not exceed 20 per cent. In the case of a project in an EC Objective 6 region,however, the aid ceiling is 30 per cent.G/SCM/N/38/EEC/Add.4
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7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The budgeted amount in 1997 was FIM 53.5 million.
8. Duration of the subsidy and/or any other time limits attached to it
The last year investment aid can be granted is 1999.
9. The trade effects of the subsidy
No effects on international trade
3. Aid for Development Projects in the Food Industry
1. Title of the subsidy programme
Aid for development projects in the food industry
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The objective of the programme is to improve the competitivness of the food industry in the
long run by activating enterprises to adjust th eir business activities to the changed operating
environment due to the EU membership.
4. Background and authority for the subsidy
During the first five years of EU membership a certain amount is annually reserved in the
state budget to aid for investments and the adjustme nt ot the food industry to the EU membership (see
notification on investment aid for businesses proces sing agri-based products). This appropriation can
be used not only to finance investments, but also to finance the overhead costs due to the adjustment
of production. The Council of State has issued a decision on 3 April 1996 on aid for development
projects in the food industry. Development aid is granted from the same national funds as investment
aid for food industry.
The responsible authority is the Ministry of Trade and Industry.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
A business processing agricultural products listed in Annex II of the EC Treaty or
manufacturing such products, or a group of such  businesses, can be granted development aid.G/SCM/N/38/EEC/Add.4
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7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The budgeted amount (together with investment  aid, see point 4) in year 1997 was FIM 53,5
million. Development aid granted cannot exceed 45 per cent of the total eligible costs of thedevelopment project.
8. Duration of the subsidy and/or any other time limits attached to it
Development aid can be granted for an project initiated on 1 January 1996 or thereafter. The
aid is estimated to be granted until 1999 at the latest.
9. The trade effects of the subsidy
No effects on international trade
4. Aid for Shipbuilding
1. Title of the subsidy programme
Aid for shipbuilding
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Contract-related aid for shipbuilding
4. Backround and authority for the subsidy
Ministry of Trade and Industry
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The aid is granted and paid by the Ministry of Trade and Industry for shipbuilding and ship
conversion.
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
The total amount of the subsidy in 1997 was FIM 140.5 million. The budgeted amount for
1998 is FIM 265 million.
The subsidy is granted in accordance with the EC Council Directive 90/684/EEC on aid to
shipbuilding. The maximum aid cealings are in accordance with the European Commission's rules:
9 per cent for big vessels and 4.5 per cent for small vessels and ship conversion.G/SCM/N/38/EEC/Add.4
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8. Duration of the subsidy and/or any other time limits attached to it
The Ministry of Trade and Industry Decision will be in force until 31 December 1998.
9. The trade effects of the subsidy
No effects on international trade.
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