G/SCM/N/25/EEC
Page216
FINLAND
TABLE OFCONTENTS
Page
I. AIDTOSMALL AND MEDIUM-SIZED ENTERPRISES
1. Small business aid.....................................218
2. Development aid......................................219
3. State aidfortheinternationalization ofSMEs ....................220
4. Loan programme forSMEs (KERA Ltd) .......................221
5. Development loanprogramme forSMEs (KERA Ltd) ...............221
6. Start-up loanprogramme toentrepreneurs (KERA Ltd) ..............222
7. Grant fortechnical consulting andpromotion (Åland) ...............223
8. State aidtodeveloping businesses (Åland) ......................224
9. Environment loanforSMEs (Kera Ltd) ........................225
II. AIDFOR RESEARCH AND DEVELOPMENT
10. Aidforpromoting R&D ..................................226
11. Grant forresearch anddevelopment (Åland) .....................226
III. REGIONAL AID
12. Regional investment aid..................................227
13. Regional transport subsidy ................................228
14. Accelerated regional depreciation ............................229
15. Regional stamp dutyexemption .............................230
16. Grant forinvestments (Åland) ..............................231
IV. EMPLOYMENT AID
17. Structural change scheme (employment aid) .....................232
18. Investment aidtopromote employment ........................232
V. AIDINTHE FIELD OFENERGY
19. Energy grants ........................................233
VI. AIDFOR ENVIRONMENTAL PROTECTION
20. Grants forthepromotion ofenvironmental protection ...............234
21. Waste oilmanagement financed bywaste oilcharges ................234
VII. OTHER SUBSIDIES TOINDUSTRY AND SERVICES
22. Iceduesclassification allowance .............................236
23. Investment aidforbusinesses processing agri-based products ...........237
24. Aidfordevelopment projects inthefoodindustry ..................238G/SCM/N/25/EEC
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Page
25. Interest ratesubsidies toFinnish Export Credit Ltd.................239
26. Promotion ofthecompetitiveness ofthecargo vessels ininternational traffic .240
27. Subsidy tothepress ....................................241
VIII. AIDINTHE FIELD OFAGRICULTURE
28. Investment aidforfarms .................................242
29. Start-up aidforyoung farmers ..............................243
30. AidforScolts ........................................243
31. Aidforstarting upproducer organizations ......................244
32. Aidscheme forcrops failure compensation onafarm ...............245
33. Structural aidofreindeer husbandry ..........................246
34. Structural aidforfarms andactivities onfarms ...................247
35. Structural aidforfarms andactivities onfarms inseven most northern
municipalities inFinland .................................248
36. Aidforgiving upfarming inhorticulture .......................249G/SCM/N/25/EEC
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I.AIDTOSMALL AND MEDIUM-SIZED ENTERPRISES
1. SMALL-BUSINESS AID
1. Titleofthesubsidy programme
Small-business aid.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
AidtoSMEs.
4. Background andauthority forthesubsidy
Small-business aidcanbegranted throughout thecountry butismainly awarded asinvestment
aidorstart-up aidtoenterprises either operating ortobesetupinruraldistricts orstructural change
areas. Aidcanbegranted toenterprises engaged inproduction, tourism orbusiness services. Partof
theaidcanbegranted intheform ofincubator aid,which ismainly granted tounits operating in
connection withtraining establishment ortechnology parks incases where suchunitsprovide premises
andservices fornewentrepreneurs which areintheinitial stages oftheiroperation.
Thefirmisasmall onewithapersonnel notexceeding 50witheither anannual turnover not
exceeding FIM30million orabalance sheet totalnotexceeding FIM12million, andwithnotmore
thanone-fourth ofitsequity inthehands ofcompanies exceeding suchalimit.
Theaidisgranted bytheMinistry ofTrade andIndustry anditsregional andlocalBusiness
Service Offices (AidtoBusiness Act1136/1993).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Seepoint 4.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Actual payments in1996 totalFIM50million.
For1997 theexpenditure forecast isFIM50million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.G/SCM/N/25/EEC
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9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
2. DEVELOPMENT AID
1. Titleofthesubsidy programme
Development aid.
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
AidtoSMEs.
4. Background andauthority forthesubsidy
Development aidcanbegranted toSMEs fortheirdevelopment projects aimed atimproving
thestandard ofthefirm'sproducts oritsproduction management ormarketing. Aidcanalsobegranted
tohavethepotential andoperating conditions fortheprojected newfirmverified.
ThefirmisaSMEwithapersonnel notexceeding 250employees witheither anannual turnover
notexceeding FIM120million orabalance sheet totalnotexceeding FIM60million andwithmax.
aquarter ofitsshares inthehands ofacompany exceeding suchalimit. Theaidisgranted bythe
Ministry ofTrade andIndustry anditsregional andlocalBusiness Service Offices (AidtoBusiness
Act1136/1993).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Seepoint 4.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Actual payments in1996 totalFIM89million.
For1997 theexpenditure forecast isFIM25million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.G/SCM/N/25/EEC
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9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
3. STATE AIDFOR THE INTERNATIONALIZATION OFSMEs
1. Titleofthesubsidy programme
State aidfortheinternationalization ofSMEs.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
AidforSMEs (development oftheirmarketing, promotion andinternationalization skills).
4. Background andauthority forthesubsidy
Thesubsidy isgranted bytheMinistry ofTrade andIndustry (Trade Department).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Theaidisprovided toSMEs andgranted bytheMinistry ofTrade andIndustry onthebasis
ofapplications.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
In1996, theamount ofgrants wasFIM210million. Subsidy perfirmwasFIM100000.
Thebudgeted amount for1997 isFIM173million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Notimelimits attached tothisprogramme.
9. Thetrade effects ofthesubsidy
Nodirect effects oninternational trade. Thesubsidy isaimed atthedevelopment ofSMEs '
marketing skills.G/SCM/N/25/EEC
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4. LOAN PROGRAMME FOR SMEs (KERA Ltd)
1. Titleofthesubsidy programme
Loan programme forSMEs (Kera Ltd). Softloans forinvestments andworking capital.
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
AidforSMEs: access torisky loans onareasonable interest ratelevel.
4. Background andauthority forthesubsidy
Theauthorization togrant these loans isdecided yearly intheState budget.
5. Form ofthesubsidy
Loans withinadequate collaterals (incomparison tomarket terms), interest ratesubsidy.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted tomanufacturing enterprises andtourism industry byKeraLtd(state-
owned company). Subsidy element isinavailability andininterest rateoftheloans.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
ThenetcostoftheprogrammeisFIM210million,theadministrativecostsofKeraLtdincluded.
Theaidintensity ofloans isabout 10-15 %(calculated onloans).
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
5. DEVELOPMENT LOAN PROGRAMME FOR SMEs (KERA Ltd)
1. Titleofthesubsidy programme
DevelopmentloanprogrammeforSMEs.Softloansfordevelopmentofproductsandmanagerial
skills.
2. Period covered bythenotification
1996.G/SCM/N/25/EEC
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3. Policy objective and/or purpose ofthesubsidy
AidforSMEs.
4. Background andauthority forthesubsidy
Theauthorization togrant these loans isdecided yearly intheState budget.
5. Form ofthesubsidy
Loans withinadequate collaterals (incomparison tomarket terms), interest ratesubsidy.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted tomanufacturing enterprises andtourism industry byKeraLtd(state-
owned company).
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thenetcostoftheprogramme isFIM60million, theadministrative costsofKeraLtdincluded.
Theaidintensity oftheloans isabout 25%(calculated onloans).
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
6. START-UP LOAN PROGRAMME FOR ENTREPRENEURS (KERA Ltd)
1. Titleofthesubsidy programme
Start-up loanprogramme forentrepreneurs. Softloans forentrepreneurs when establishing
anenterprise.
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Aidtonewenterprises (entrepreneurs).
4. Background andauthority forthesubsidy
Theauthorization togrant these loans isdecided yearly intheState budget.G/SCM/N/25/EEC
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5. Form ofthesubsidy
Loans withinadequate collaterals (incomparison tomarket terms), interest ratesubsidy.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided topersons whostartanewmanufacturing ortourism enterprise. It
isgranted byKeraLtd(state-owned company).
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thenetcostoftheprogramme isFIM22million, theadministrative costsofKeraLtdincluded.
Theaidintensity oftheloans isabout 33%(calculated onloans).
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
7. GRANT FOR TECHNICAL CONSULTING AND PROMOTION (ÅLAND)
1. Titleofthesubsidy programme
Grant fortechnical consulting andpromotion (Åland).
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
AidtoSMEs.
4. Background andauthority forthesubsidy
Theannual budget oftheGovernment ofÅland.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Theaidisprovided toSMEs, farmers andorganizations. Thesubsidy isgranted bytheregional
government ofÅland.G/SCM/N/25/EEC
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7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount ofgrants in1996 wasFIM1.4million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
8. STATE AIDTODEVELOPING BUSINESSES (ÅLAND)
1. Titleofthesubsidy programme
State aidtodeveloping businesses (Åland).
2. Period covered bythenotification
1995.
3. Policy objective and/or purpose ofthesubsidy
AidtoSMEs (experiment anddevelopment projects).
4. Background andauthority forthesubsidy
Theannual budget oftheGovernment ofÅland.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided toSMEs, farmers andorganizations. Themaximum aidintensity is
50%gross ofeligible costs. Theaidisgranted bytheregional government ofÅland.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1996 wasFIM 700000. Theaverage subsidy perunit
(enterprise) hasbeenFIM35000.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.G/SCM/N/25/EEC
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9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
9. ENVIRONMENT LOAN PROGRAM FOR SMEs (KERA Ltd.)
1. Titleofthesubsidy programme
Environment loanprogram forSMEs (Kera Ltd). Softloans forenvironmental investments.
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
AidtoSMEs: topromote environment protection, energy saving, circulation ofrawmaterials
etc.
4. Background andauthority forthesubsidy
Theauthorization togrant these loans isdecided annually inthestatebudget.
5. Form ofthesubsidy
Loans withinadequate collaterals (incomparison tomarket terms), interest ratesubsidy
6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted tomanufacturing enterprises andtourism industry byKeraLtd(state-
owned company). Subsidy element isinavailability oftheloans andininterest rates.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thenetcostoftheprogramme isFIM12million, theadministrative costsofKeraLtdincluded.
Theaidintensity ofloans isabout 25%(calculated onloans).
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.G/SCM/N/25/EEC
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10. AIDFOR PROMOTING R&D
1. Titleofthesubsidy programme
Aidforpromoting R&D.
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Aidforresearch anddevelopment.
4. Background andauthority forthesubsidy
Legal basis: Council ofState decision on21December 1994 ongeneral terms ofgrants and
softloans forR&D.
5. Form ofthesubsidy
Grant, softloanandcapital loan.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided forenterprises onthebasis ofapplications. Themaximum amount
ofgrant perunitis50%ofeligible costs (60% forSMEs) depending onthenature ofR&D. The
maximum amount ofloanperunitis60%ofeligible costs(70% forSMEs). Themaximum aidintensity
is50%forbasic industrial research and25%forapplied research anddevelopment.
Thesubsidy isgranted bytheTechnology Development Centre (TEKES).
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
In1996, theannual amount ofgrants wasFIM616million andloans granted FIM164million.
Thesubsidy perunitwasonaverage 41%oftheeligible costs.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Thesubsidy programme isinforce forthetimebeing.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
11. GRANT FOR RESEARCH AND DEVELOPMENT (ÅLAND)
1. Titleofthesubsidy programme
Grant forresearch anddevelopment (Åland).G/SCM/N/25/EEC
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2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Aidforresearch anddevelopment (SMEs).
4. Background andauthority forthesubsidy
Theannual budget oftheGovernment ofÅland.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided toSMEs, farmers andorganizations. Themaximum intensity is40%
ofeligible costs. Thesubsidy isgranted bytheregional government ofÅland.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount ofgrants in1996 wasFIM0.9million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
12. REGIONAL INVESTMENT AID
1. Titleofthesubsidy programme
Regional investment aid.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Regional aid.G/SCM/N/25/EEC
Page228
4. Background andauthority forthesubsidy
Investment aidcanbegranted tofirms toward fixed assets needed forbusiness operations and
formaking alterations orimprovements tosuchfixed assets.
Theaidisgranted bytheMinistry ofTrade andIndustry anditsregional andlocalBusiness
Service Offices (AidtoBusiness Act1136/1993).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Investment aidcanbegranted tofirms intheregional development areaandthestructural
adjustment areas. Inother parts ofFinland, investment aidcanbegranted onlytosmall businesses.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Actual payments totalFIM285million in1996.
Foryear1997 expenditure forecast isFIM75million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
13. REGIONAL TRANSPORT SUBSIDY
1. Titleofthesubsidy programme
Regional transport subsidy.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Regional aid(SMEs).
4. Background andauthority forthesubsidy
Transport ofgoods inFinland, which startfrom thedevelopment regions referred tointhe
Regional Development Act(1135/1993), areeligible fortransport subsidy (Act954/1981 aschanged
byAct613/1996).
Ministry ofTrade andIndustry (Business Development Department) grants thesubsidies.G/SCM/N/25/EEC
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5. Form ofthesubsidy
Grant paidsemi-annually onbasis ofapplications andevidence.
6. Towhom andhowthesubsidy isprovided
Thesubsidy canbegranted fortransports starting from theplace ofprocessing ofproducts
which havebeenprocessed bysmall ormedium-sized companies within thedevelopment regions.
Transport subsidy canbegranted forcarriage ofthefollowing products: Food anddrinks, earths and
stone, wood andwood products, products ofthepaper industry, products ofthemetal industry,
machinery andapparatus andproducts ofthechemical industry.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Actual payments in1996 totalFIM26.3million.
For1997 theexpenditure forecast isFIM24million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Until 31December 1999.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
14. ACCELERATED REGIONAL DEPRECIATION
1. Titleofthesubsidy programme
Accelerated regional depreciation.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Regional aid.
4. Background andauthority forthesubsidy
Legal basis: Act1262/1993. Theresponsible authority istheMinistry ofFinance.
5. Form ofthesubsidy
Taxconcession.G/SCM/N/25/EEC
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6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted inthenational regional support areas IandII.Eligible sectors forthis
aidaremanufacturing, hotels andlodging services fortheirinvestments inbuildings andmachinery.
Thenormal depreciation rateisraised by50%. Formachinery itisraised from30%to45%andfor
industrial buildings from 7%to10.5%. Themaximum possible aidintensity thatcanbeobtained in
favour ofanysingle project is2%.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
In1996, thetotalaidamount wasapproximately FIM50million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Thesubsidy programme came intoforce on1January 1994 andwillremain inforce until
31December 2000 eventhough itisapplied onlytoinvestments made during 1994-1997.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
15. REGIONAL STAMP DUTY EXEMPTION
1. Titleofthesubsidy programme
Regional stamp dutyexemption.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Regional aid.
4. Background andauthority forthesubsidy
Legal basis: Act291/1981, section 97aasamended byAct1263/1993. Theresponsible authority
istheMinistry ofFinance.
5. Form ofthesubsidy
Taxconcession.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted innational regional support areasIandII.Theacquisition ofimmovable
property forthepurpose ofexpanding orestablishing anindustrial ortourist enterprise inareas is
exempted fromstamp duty. Theaverage aidintensity islessthan1%ofthetotalcosts oftheproject.G/SCM/N/25/EEC
Page231
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thetotalannual budget amount hasbeenapproximately FIM2million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Thepresent legislation applies toacquisitions made during 1994-1997.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
16. GRANT FOR INVESTMENTS (ÅLAND)
1. Titleofthesubsidy programme
Grant forinvestments (Åland).
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Regional aid(investments inequipment andbuildings).
4. Background andauthority forthesubsidy
Company aidactofÅland (ÅFS 46/1989).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided tosmall andmedium-sized enterprises, farmers andorganizations.
Theaidintensity incategory Iareas(thearchipelago) is35%gross andincategory IIareas(main Åland)
27%gross ofeligible costs. SMEs mayreceive upto10percentage points more uptothemaximum
ceiling of37%gross. Thesubsidy isgranted byregional government ofÅland.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount ofgrants in1996 wasFIM4.9million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.G/SCM/N/25/EEC
Page232
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
17. STRUCTURAL CHANGE SCHEME (EMPLOYMENT AID)
1. Titleofthesubsidy programme
Structural change scheme.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Employment aid(projects thatpromote structural changes).
4. Background andauthority forthesubsidy
Legal basis: Employment Decree (130/1993).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy canbeprovided toenterprises andotherorganizations. Itisgranted bytheMinistry
ofLabour.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
In1996, FIM13.4million wasgranted toenterprises. In1997, approximately FIM5million
willbegranted toenterprises.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
18. INVESTMENT AIDTOPROMOTE EMPLOYMENT
1. Titleofthesubsidy programme
Investment aidtopromote employment.G/SCM/N/25/EEC
Page233
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Employment aid.
4. Background andauthority forthesubsidy
Legal basis: Employment Act(275/1987), Employment Decree (103/1993).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
TherulesoftheRegional investment aidprogramme andEnergy grant programme areapplied.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
In1996, FIM39million wasgranted toenterprises.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
19. ENERGY GRANTS
1. Titleofthesubsidy programme
Energy grants.
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Promotion oftheenergy conservation, energy efficiency andtheuseofrenewable energy;
reduction ofnegative environmental impacts associated withenergy production andusage; and/or
contribution toenergy security andsupply diversity inFinland.G/SCM/N/25/EEC
Page234
4. Background andauthority forthesubsidy
Legal basis: Decision oftheCouncil ofState onthegeneral conditions forawarding energy
grants (45/1996).
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Energy grants arepayable toenterprises andorganizations onacase-by-case consideration.
Theaidisgranted onanapplication totheMinistry ofTrade andIndustry (Energy Department).
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thetotalamount ofthecommitments forenergy grants wasFIM90million in1996. Subsidy
perunitwasFIM370000.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Notimelimits attached tothisprogramme.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
20. GRANTS FOR THE PROMOTION OFENVIRONMENTAL PROTECTION
1. Titleofthesubsidy programme
Grants forthepromotion ofenvironmental protection.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Environmental protection.
4. Background andauthority forthesubsidy
Theregional Environmental Centre takesdecisions ongrants within itsallocated appropriation
andtaking intoaccount itsbudget. TheMinistry oftheEnvironment maydecide ongrants ifthese
areofnational importance orforother special reason.
5. Form ofthesubsidy
Grant.G/SCM/N/25/EEC
Page235
6. Towhom andhowthesubsidy isprovided
Thesubsidy canbeprovided toenterprises, localauthorities, jointmunicipal boards andother
corporations fordevelopment, experimentation andinvestment projects which promote environmental
protection.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theamount ofthecommitments ofgrants forthepromotion ofenvironmental protection was
FIM18.8million in1996. Theannual amount budgeted for1997 isFIM17million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
21. WASTE OILMANAGEMENT FINANCED BYWASTE OILCHARGES
1. Titleofthesubsidy programme
Waste oilmanagement financed bywaste oilcharges.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Environmental protection.
4. Background andauthority forthesubsidy
TheMinistry oftheEnvironment istheresponsible authority.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy canbeprovided toenterprises, localauthorities, jointmunicipal boards orother
corporations forwaste oilmanagement andconstruction ofregional collection stations forhazardous
waste.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM20million.G/SCM/N/25/EEC
Page236
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
22. ICEDUES CLASSIFICATION ALLOWANCE
1. Titleofthesubsidy programme
Iceduesclassification allowance.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Tosupport thenecessary transport capacity taking intoaccount theFinnish climate andother
natural circumstances.
4. Background andauthority forthesubsidy
Legal basis: Act433/1981, section 6asamended byAct1265/1993 andbyAct1258/1996.
Theresponsible authority istheMinistry ofFinance.
5. Form ofthesubsidy
Taxconcession.
6. Towhom andhowthesubsidy isprovided
Theprogramme isapplied toshiporders made during 1994-1998. Theshipowner candeduct
3%oftheacquisition costs oftheshipfrom thetaxable income. Theallowance isgranted inthetax
yearwhen theshiphasbeentaken intouseandinthefollowing year. Theaidintensity perproject
isatthemost 1.5%.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
In1996 thetotalbudgeted amount wasFIM17million. Since thelegislation concerning ice
duesclassification hasbeenprolonged without substantial changes, thetotalamount budgeted for1997
isFIM19million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Thepresent legislation applies toorders made during 1994-1998. Theallowance came into
force inamended form on1January 1994.G/SCM/N/25/EEC
Page237
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
23. INVESTMENT AIDFOR BUSINESSES PROCESSING AGRI-BASED PRODUCTS
1. Titleofthesubsidy programme
Investment aidforbusinesses processing agri-based products.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Theobjective oftheprogramme istoimprove theprocessing andmarketing conditions for
agricultural products.
Investment aidcanbegranted foraproject aimed atimproving thequality ofproducts orthe
reorientationofproductiontocorrespondtomarketdemand;otherimprovementsinprocessing,handling,
storage orpackaging processes; improvements inpurchasing ordistribution; intensifying therecycling
ofby-products; orreducing theharmful environmental impact onproduction.
4. Background andauthority forthesubsidy
Inadditiontosupportpart-fundedbytheGuidanceSectionoftheEuropeanAgriculturalGuidance
andGuarantee Fund (EAGGF) referred toinECRegulation 866/90, Finland issupporting itsfood
processing industry fromnational funds during thecountry 'sfirstfewyears ofEUmembership. The
national legalbasis istheCouncil ofStateDecision of15June1995oninvestment aidforbusinesses
processing agri-based products.
Theresponsible authority istheMinistry ofTrade andIndustry.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Investment aidcanbegranted tobusinesses processing agri-based products (products listed
inAnnex IIoftheECTreaty). Theintensity oftheinvestment aidisbased ontheacquisition expenses
offixedassets andmaynotexceed 20%. Inthecaseofaproject inanECObjective 6region, however,
theaidceiling is30%.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thebudgeted amount in1996 wasFIM85.8million.G/SCM/N/25/EEC
Page238
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Thelastyearinvestment aidcanbegranted is1999.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
24. AIDFOR DEVELOPMENT PROJECTS INTHE FOOD INDUSTRY
1. Titleofthesubsidy programme
Aidfordevelopment projects inthefoodindustry.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Theobjective oftheprogramme istoimprove thecompetitivity ofthefoodindustry inthe
longrunbyactivating enterprises toadjust theirbusiness activities tothechanged operating environment
duetotheEUmembership.
4. Background andauthority forthesubsidy
During thefirstfiveyears ofEUmembership acertain amount isannually reserved inthestate
budget toaidforinvestments andtheadjustment ofthefoodindustry totheEUmembership (see
notification oninvestment aidforbusinesses processing agri-based products). Thisappropriation can
beusednotonlytofinance investments, butalsotofinance theoverhead costs duetotheadjustment
ofproduction. TheCouncil ofStatehasissued adecision on3April 1996onaidfordevelopment projects
inthefoodindustry. Development aidisgranted from thesame national funds asinvestment aidfor
foodindustry.
Theresponsible authority istheMinistry ofTrade andIndustry.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Abusiness processing agricultural products listed inAnnex IIoftheECTreaty ormanufacturing
suchproducts, oragroup ofsuchbusinesses, canbegranted development aid.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thebudgeted amount (together with investment aid,seepoint 4)inyear 1996 was
FIM85.8million. Development aidgranted cannot exceed 45% ofthetotaleligible costs ofthe
development project.G/SCM/N/25/EEC
Page239
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Development aidcanbegranted foranproject initiated on1January 1996 orthereafter. The
aidisestimated tobegranted until1999 atthelatest.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
25. INTEREST RATE SUBSIDIES TOFINNISH EXPORT CREDIT Ltd
1. Titleofthesubsidy programme
Interest ratesubsidies toFinnish Export Credit Ltd.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Export credits (inconformity withOECD Arrangements).
4. Background andauthority forthesubsidy
Legal basis: Actconcerning interest ratesubsidies to,compensation ofexchange ratelosses
ofandgovernment guarantee forthelending ofFinnish Export Credit Ltd(1364/1989), Actconcerning
interest ratesubsidies forshipdeliveries (1173/1990).
5. Form ofthesubsidy
Interest subsidy.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided toFinnish Export Credit Ltdforfinancing theexport credits in
conformity withtheOECD Arrangement onGuidelines forOfficially Supported Export Credits.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Thebudgeted amount for1997 isFIM40million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Nodirect effects oninternational trade.G/SCM/N/25/EEC
Page240
26. PROMOTION OFTHE COMPETITIVENESS OFTHE CARGO VESSELS IN
INTERNATIONAL TRAFFIC
1. Titleofthesubsidy programme
Promotion ofthecompetitiveness ofthecargo vessels ininternational traffic.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Toprevent theflagging outofmerchant vessels.
4. Background andauthority forthesubsidy
Legalbasis:Law(1707/1991).TheMinistryofTransportandCommunicationsistheresponsible
authority. Thesubsidy isgranted bytheNational Board ofNavigation.
5. Form ofthesubsidy
Grant. Refunding ofseafarers income taxes andsocial security feespaidbytheemployer on
theseaman 'sincome.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided totheshipowner. Thevessel mustbeeither acargo vessel engaged
mainly ininternational trade orpassenger vessel operating between thirdcountries. Thevessel isto
beregistered intheFinnish register andflying theFinnish flag.Atleasthalfofthetotalnumber of
seafarers onboard ofcargo vessels shallbeFinnish ornationals oftheParties totheEEAAgreement.
Onaverage theaidis28%ofthegross salary.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM115million (91vessels). Theannual amount
ofsubsidy wasFIM106million (87vessels) in1996, FIM95.5million in1995 (80vessels) and
FIM85.4million in1994 (74vessels).
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate. Theamount ofthesubsidy isdecided intheState budget every year.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.G/SCM/N/25/EEC
Page241
27. SUBSIDY TOTHE PRESS
1. Titleofthesubsidy programme
Subsidy tothepress, consisting of:
(a) subsidy tothepolitical parties tobeused forpromoting their press andfor
communication activities onÅland;
(b) general press subsidy forreducing transportation, distribution andother costs of
newspapers andfordevelopment project relating tonewspapers.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Subsidy tothepress withgeneral objectives related tomedia policy: freedom ofspeech,
pluralism, promoting equality incommunication.
4. Background andauthority forthesubsidy
Legal basis: theannual State budget
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided:
(a) topolitical parties (according tothenumber ofMPs) tobefurther granted topolitical
newspapers;
(b) tonewspapers (application needed) suffering from economical difficulties according
totheirestimated need.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amounts budgeted for1997:
(a) FIM35million;
(b) FIM55million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate. Theneedforthissubsidy intheState budget isreviewed annually.G/SCM/N/25/EEC
Page242
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
28. INVESTMENT AIDFOR FARMS
1. Titleofthesubsidy programme
Investment aidforfarms (part-financed bytheEuropean Community).
2. Period covered bythenotification
1996.
3. Policy objective and/or purpose ofthesubsidy
Improvement ofthestructure ofagriculture.
4. Background andauthority forthesubsidy
Legal basis intheEC:Council Regulation No2328/91 onimprovement oftheefficiency of
agriculture.
5. Form ofthesubsidy
Loan andgrant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided tofarmers whoinvest mainly oncowhouses orbuyextra reindeer.
Theamount ofaidiscalculated onpercentage unitsofinvestment costs. Theaidvaries from35%to
70%.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM80million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.G/SCM/N/25/EEC
Page243
29. START-UP AIDFOR YOUNG FARMERS
1. Titleofthesubsidy programme
Start-up aidforyoung farmers (part-financed bytheEuropean Community).
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtohelpyoung farmers tostartfarming andinstallation onfarms.
4. Background andauthority forthesubsidy
Legal basis intheEC:Council Regulation No2328/91 onimprovement oftheefficiency of
agriculture.
5. Form ofthesubsidy
Loan andgrant.
6. Towhom andhowthesubsidy isprovided
Subsidy isprovided tofarmers whobuyorlease afarmandstartfarming under 40years of
age.Capital grant ofFIM70000andstateloanforbuying afarmamount toaidofmaximum 70%
ofthepurchase price.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997isFIM80million forcapital grants andFIM150million
forstateloans.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
30. AIDFOR SCOLTS
1. Titleofthesubsidy programme
AidforScolts.G/SCM/N/25/EEC
Page244
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtomaintain theculture ofScolts inthemunicipality ofInari.
4. Background andauthority forthesubsidy
Legal basis: ActonScolts 253/1995.
5. Form ofthesubsidy
Loan, grant, alleviation ofdebts.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided toScolts wholiveattheScolt region ofInariandwhoinvest ontheir
Scolt farm(including residential houses) orbuyreindeer orsupplementary areas forthefarm, start
practising other activities onthefarms orhavedifficulties inpaying theirdebts. Aidisgranted aslow
interest (4%) loanoracapital grant withamaximum intensity of60%. Theaidforindebted farms
isgranted aspostponements ofinstalments ofloans orexemptions ofinstalments orinterest.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM5million. In1996 noaidwasgranted.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
31. AIDFOR STARTING UPPRODUCER ORGANISATIONS
1. Titleofthesubsidy programme
Aidforstarting upproducer organisations (part-financed bytheEuropean Community).
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtohelpfarmers gettheirproduce soldwhere demand andsupply donotmeet.G/SCM/N/25/EEC
Page245
4. Background andauthority forthesubsidy
Legal basisintheEC:Council Regulation onproducer groups No1360/78, Council regulation
No1305/72.
5. Form ofthesubsidy
Grant.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided toorganisations which actonmarketing ofagricultural produce of
certain fieldandwhich havebeengrounded, enlarged orrenewed since 1995andhaveacertain share
ofmarketing ofthetotalamount ofproduce. Theaidispaidforamaximum offiveyears andthe
maximum intensity is5%oftheacceptable costs.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM10million. Only twodecisions weremade in
1996 andthere were nopayments in1996.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
32. AIDSCHEME FOR CROPS FAILURE COMPENSATION ONAFARM
1. Titleofthesubsidy programme
Aidscheme forcrops failure compensation onafarm.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidforcompensating income losses forfarmers duetocrops failure.
4. Background andauthority forthesubsidy
Actoncompensations ofcrops failures 530/1975 Article 4par.4,Article 5par.1.
5. Form ofthesubsidy
Grant.G/SCM/N/25/EEC
Page246
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided toproducers. Theaidisgranted for90%ofthefailure (crops failure
minus excess). Thebaseoftheaidisstandard cropandgiven market prices perproduct.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM50million. Theamount paidin1996 was
FIM34million. Theamount ofaidvaries verymuch perfarm, perunitandperregion.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
33. STRUCTURAL AIDOFREINDEER HUSBANDRY
1. Titleofthesubsidy programme
Structural aidofreindeer husbandry.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtoimprove thestructure ofreindeer husbandry andmaintain employment inthecountryside.
4. Background andauthority forthesubsidy
Legal basis: ActonReindeer Economy.
5. Form ofthesubsidy
Loan, grant, alleviation ofdebts.
6. Towhom andhowthesubsidy isprovided
Thesubsidyisprovidedtoreindeerownerspractisingreindeerhusbandryastheirmainoccupation
orderiving atleastpartoftheirliving fromagriculture whoinvest ontheirreindeer farm(including
residential houses), buysupplementary areas forthefarmorhavedifficulties inpaying theirdebts.
Themaximum aidintensity is45%oftheinvestment costs orthepurchase price ofsupplementary
area. Theaidforindebted farms isgranted aspostponements ofinstalments ofloans orexemptions
ofinstalments orinterest. Aidisalsogranted forreindeer cooperations forinvestments inslaughter
houses, fences andmovable.G/SCM/N/25/EEC
Page247
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM10million. Noaidwasgranted in1996.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
34.STRUCTURAL AIDFOR FARMS AND ACTIVITIES ONFARMS
1. Titleofthesubsidy programme
Structural aidforfarms andactivities onfarms.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtoimprove thestructure ofagriculture andmaintain employment inthecountryside.
4. Background andauthority forthesubsidy
Legal basis: Actonrural industries 1295/1990.
5. Form ofthesubsidy
Loan, grant, alleviation ofdebts.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided tofarmers practising farming astheirmain occupation orderiving
atleastpartoftheirliving from agriculture whoinvest ontheirfarm(including residential houses)
orbuysupplementary areas forthefarmorhavedifficulties inpaying theirdebts. Themaximum aid
intensity is30%oftheinvestment costsorthepurchase priceofsupplementary area.Theaidforindebted
farms isgranted aspostponements ofinstalments ofloans orexemptions ofinstalments orinterest.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amounts budgeted for1997 areFIM430million (grants) andFIM1300 million
(loans) including alsoactivities inseven mostnorthern municipalities (seefollowing programme). In
1996 aidwasgranted for6,950 projects.G/SCM/N/25/EEC
Page248
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
35. STRUCTURAL AIDFOR FARMS AND ACTIVITIES ONFARMS INSEVEN MOST
NORTHERN MUNICIPALITIES INFINLAND
1. Titleofthesubsidy programme
Structural aidforfarms andactivities onfarms inseven mostnorthern municipalities inFinland.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtoimprove thestructure ofagriculture andmaintain employment inthecountryside.
4. Background andauthority forthesubsidy
Legal basis: Actonpertaining natural economy 161/1990.
5. Form ofthesubsidy
Loan, grant, alleviation ofdebts.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided tofarmers practising farming astheirmain occupation, deriving at
leastpartoftheirliving from agriculture orpractising reindeer husbandry, fishing, hunting orother
suchactivities whoinvest ontheirfarm(including residential houses) orbuysupplementary areas for
thefarmorhavedifficulties inpaying theirdebts. Themaximum aidintensity is45%oftheinvestment
costsorthepurchasepriceofsupplementaryarea.Theaidforindebtedfarmsisgrantedaspostponements
ofinstalments ofloans orexemptions ofinstalments orinterest.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Fortotalamounts seesubsidy programme above. Theamount budgeted for1997 concerning
thisprogramme isFIM5million. Noaidwasgranted in1996.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.G/SCM/N/25/EEC
Page249
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.
36. AIDFOR GIVING UPFARMING INHORTICULTURE
1. Titleofthesubsidy programme
Aidforgiving upfarming inhorticulture.
2. Period covered bythenotification
1997.
3. Policy objective and/or purpose ofthesubsidy
Aidtoimprove thestructure ofagriculture inhorticulture andespecially ingrowing apples.
4. Background andauthority forthesubsidy
Legal basis: Act1297/1994.
5. Form ofthesubsidy
Grant (compensation forincome losses).
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided tofarmers whohavepractised horticulture ingreen houses orgrown
apples andwhohavecleared uptheirgreen houses orapple gardens andfinished thiskindofagriculture.
Aidisgranted asapension. Theamount isbased ontheprevious income fromagriculture andforestry
onthefarm.
7. Thetotalamount ortheannual amount budgeted forthesubsidy (indicating, ifpossible, the
average subsidy perunitintheprevious year)
Theannual amount budgeted for1997 isFIM 8.5million. In1996 aidwasgranted
FIM6.0million.
8. Duration ofthesubsidy and/or anyother timelimits attached toit
Indeterminate.
9. Thetrade effects ofthesubsidy
Noeffects oninternational trade.