# Official Journal C 258/2006

| | ISSN 1725-2423 |
| --- | --- |
| Official Journal
  of the European Union | C 258 |
| | |
| English edition | Information and Notices | Volume 4926 October 2006 |

ISSN 1725-2423

Official Journal

of the European Union

C 258

English edition

Information and Notices

Volume 4926 October 2006

---

| Notice No | Contents | page |
| --- | --- | --- |
| | I   Information |
| | Commission |
| 2006/C 258/1 | Euro exchange rates | 1 |
| 2006/C 258/2 | Summary information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products | 2 |
| 2006/C 258/3 | Summary information communicated by the Member States regarding State aid granted under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products | 8 |
| 2006/C 258/4 | Publication of an application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs | 13 |
| 2006/C 258/5 | Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (
  1
  ) | 17 |
| 2006/C 258/6 | Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 2204/2002 of 12 December 2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment (
  1
  ) | 21 |
| 2006/C 258/7 | Commission communication in the framework of the implementation of the Council Directive 88/378/EEC of 3 May 1988 on the approximation of the laws of the Member States concerning the safety of toys (
  1
  ) | 23 |
| 2006/C 258/8 | Prior notification of a concentration (Case COMP/M.4314 — Johnson & Johnson/Pfizer Consumer Healthcare) (
  1
  ) | 25 |
| 2006/C 258/9 | Non-opposition to a notified concentration (Case COMP/M.4405 — Walter Frey Holding/Mitsubishi Motors Europe) (
  1
  ) | 26 |
| 2006/C 258/0 | Non-opposition to a notified concentration (Case COMP/M.4294 — Arcelor/SNCFL/CFL Cargo) (
  1
  ) | 26 |
| | EUROPEAN ECONOMIC AREA |
| | EFTA Court |
| 2006/C 258/1 | Action brought on 31 July 2006 by the EFTA Surveillance Authority against the Kingdom of Norway (Case E-2/06) | 27 |
| | EFTA Surveillance Authority |
| 2006/C 258/2 | Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on a newly proposed scheme in Norway on the grant of financial support to unpaid labour in research and development activities, the Unpaid R&D Labour Scheme | 28 |
| 2006/C 258/3 | Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on state aid granted by the Research Council of Norway in connection with the software programme Turborouter | 42 |

Notice No

Contents

page

I   Information

Commission

2006/C 258/1

Euro exchange rates

1

2006/C 258/2

Summary information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products

2

2006/C 258/3

Summary information communicated by the Member States regarding State aid granted under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products

8

2006/C 258/4

Publication of an application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

13

2006/C 258/5

Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (
  1
  )

1

17

2006/C 258/6

Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 2204/2002 of 12 December 2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment (
  1
  )

1

21

2006/C 258/7

Commission communication in the framework of the implementation of the Council Directive 88/378/EEC of 3 May 1988 on the approximation of the laws of the Member States concerning the safety of toys (
  1
  )

1

23

2006/C 258/8

Prior notification of a concentration (Case COMP/M.4314 — Johnson & Johnson/Pfizer Consumer Healthcare) (
  1
  )

1

25

2006/C 258/9

Non-opposition to a notified concentration (Case COMP/M.4405 — Walter Frey Holding/Mitsubishi Motors Europe) (
  1
  )

1

26

2006/C 258/0

Non-opposition to a notified concentration (Case COMP/M.4294 — Arcelor/SNCFL/CFL Cargo) (
  1
  )

1

26

EUROPEAN ECONOMIC AREA

EFTA Court

2006/C 258/1

Action brought on 31 July 2006 by the EFTA Surveillance Authority against the Kingdom of Norway (Case E-2/06)

(Case E-2/06)

27

EFTA Surveillance Authority

2006/C 258/2

Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on a newly proposed scheme in Norway on the grant of financial support to unpaid labour in research and development activities, the Unpaid R&D Labour Scheme

28

2006/C 258/3

Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on state aid granted by the Research Council of Norway in connection with the software programme Turborouter

42

| | |
| --- | --- |
| | (1)   Text with EEA relevance |

---

(1)   Text with EEA relevance

1

| EN | |
| --- | --- |

EN

---

I Information

Commission

| 26.10.2006 | EN | Official Journal of the European Union | C 258/1 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/1

---

Euro exchange rates (1)

25 October 2006

(2006/C 258/01)

1 euro=

| | Currency | Exchange rate |
| --- | --- | --- |
| USD | US dollar | 1,2580 |
| JPY | Japanese yen | 149,93 |
| DKK | Danish krone | 7,4551 |
| GBP | Pound sterling | 0,6702 |
| SEK | Swedish krona | 9,2125 |
| CHF | Swiss franc | 1,5916 |
| ISK | Iceland króna | 85,71 |
| NOK | Norwegian krone | 8,338 |
| BGN | Bulgarian lev | 1,9558 |
| CYP | Cyprus pound | 0,5766 |
| CZK | Czech koruna | 28,383 |
| EEK | Estonian kroon | 15,6466 |
| HUF | Hungarian forint | 262,87 |
| LTL | Lithuanian litas | 3,4528 |
| LVL | Latvian lats | 0,6961 |
| MTL | Maltese lira | 0,4293 |
| PLN | Polish zloty | 3,8855 |
| RON | Romanian leu | 3,5179 |
| SIT | Slovenian tolar | 239,6 |
| SKK | Slovak koruna | 36,576 |
| TRY | Turkish lira | 1,8475 |
| AUD | Australian dollar | 1,6561 |
| CAD | Canadian dollar | 1,4191 |
| HKD | Hong Kong dollar | 9,7905 |
| NZD | New Zealand dollar | 1,9038 |
| SGD | Singapore dollar | 1,9784 |
| KRW | South Korean won | 1 202,46 |
| ZAR | South African rand | 9,6349 |
| CNY | Chinese yuan renminbi | 9,9407 |
| HRK | Croatian kuna | 7,385 |
| IDR | Indonesian rupiah | 11 485,54 |
| MYR | Malaysian ringgit | 4,625 |
| PHP | Philippine peso | 62,837 |
| RUB | Russian rouble | 33,83 |
| THB | Thai baht | 46,691 |

Currency

Exchange rate

USD

US dollar

1,2580

JPY

Japanese yen

149,93

DKK

Danish krone

7,4551

GBP

Pound sterling

0,6702

SEK

Swedish krona

9,2125

CHF

Swiss franc

1,5916

ISK

Iceland króna

85,71

NOK

Norwegian krone

8,338

BGN

Bulgarian lev

1,9558

CYP

Cyprus pound

0,5766

CZK

Czech koruna

28,383

EEK

Estonian kroon

15,6466

HUF

Hungarian forint

262,87

LTL

Lithuanian litas

3,4528

LVL

Latvian lats

0,6961

MTL

Maltese lira

0,4293

PLN

Polish zloty

3,8855

RON

Romanian leu

3,5179

SIT

Slovenian tolar

239,6

SKK

Slovak koruna

36,576

TRY

Turkish lira

1,8475

AUD

Australian dollar

1,6561

CAD

Canadian dollar

1,4191

HKD

Hong Kong dollar

9,7905

NZD

New Zealand dollar

1,9038

SGD

Singapore dollar

1,9784

KRW

South Korean won

1 202,46

ZAR

South African rand

9,6349

CNY

Chinese yuan renminbi

9,9407

HRK

Croatian kuna

7,385

IDR

Indonesian rupiah

11 485,54

MYR

Malaysian ringgit

4,625

PHP

Philippine peso

62,837

RUB

Russian rouble

33,83

THB

Thai baht

46,691

---

(1)

Source: reference exchange rate published by the ECB.

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/2 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/2

---

Summary information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products

(2006/C 258/02)

Aid No: XA 42/06

Member State: Spain

Region: Navarre

Title of aid scheme or name of company receiving an individual aid: Aid for 2006 towards traceability in Navarre's agri-food industry

Legal basis: Orden foral del Consejero de agricultura, ganadería y alimentación, por la que se establecen las bases reguladoras que regirán la concesión de ayudas a la trazabilidad en la industria agroalimentaria de Navarra y se aprueba la convocatoria de ayudas para el año 2006

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: EUR 1 800 000 for the 2006 financial year, charged to the relevant entry in the 2007 budget for expenditure

Maximum aid intensity: 50 % of the cost of technical support for developing and implementing traceability systems, with a maximum of EUR 6 000 per beneficiary.

35 % of the investment cost of computerising and automating systems to record and transmit data, with a maximum EUR 15 000 per beneficiary

Date of implementation: August 2006

Duration of aid scheme or individual aid award: Aid may be granted until November 2006 inclusive

Objective of aid: To encourage the introduction of traceability systems in agri-food SMEs in Navarre

Sector(s) concerned: Processing and marketing sector. The subsectors concerned may be any within the sectors mentioned, as long as the agricultural products involved are listed in Annex I to the Treaty, with the exception of the manufacture and marketing of products which imitate or substitute for milk and milk products, and with the exception of processing and marketing activities in the sugar sector

Name and address of the granting authority:

| Gobierno de Navarra. Departamento de Agricultura, Ganadería y Alimentación. |
| --- |
| c/ Tudela 20 |
| E-31003 Pamplona |

Gobierno de Navarra. Departamento de Agricultura, Ganadería y Alimentación.

c/ Tudela 20

E-31003 Pamplona

Web address: www.navarra.es

Other information: Pamplona, 24 May 2006

XA Number: XA 44/06

Member State: Netherlands

Region: Fryslân province

Title of aid scheme or name of company receiving individual aid: Diever (family)

Legal Basis: Algemene wet bestuursrecht, titel 4.2

Algemene Subsidieverordening Provincie Friesland 1998

Provinciewet artikel 145

Verordening met betrekking tot het verlenen van subsidies ten behoeve van het plattelandsbeleid voor de jaren 2005-2008

Annual expenditure planned or overall amount of aid granted to the company: Maximum contribution will be EUR 45 000. The expectation is that 80 % of this amount, i.e. EUR 36 000 will be paid out in 2006. Settlement is expected in 2007 or in 2008 at the latest

Maximum aid intensity: The maximum aid intensity is 40 % of eligible costs. The maximum amount of aid is a EUR 45 000

Date of implementation: The decision concerning the granting of the subsidy will be despatched four weeks after the EU has confirmed reception of this notice

Duration of scheme or individual aid award: The final settlement date is 30 months after the decision has been notified. This would mean the end of 2008 at the latest. However, the project is expected to be completed in 2007

Objective of aid: The objective of the project is conservation of a historical farmhouse after adapting it to the requirements of modern agricultural management.

Article 5(3) of Regulation 1/2004 is being applied

Sector(s) concerned: Dairy farming

Name and address of the granting authority:

| Provincie Friesland |
| --- |
| Postbus 20120 |
| 8900 HM Leeuwarden |
| Nederland |

Provincie Friesland

Postbus 20120

8900 HM Leeuwarden

Nederland

Web address: www.fryslan.nl

XA Number: XA 47/06

Member State: France

Title of aid scheme: Aid for technical support for the production of fruit, vegetables and horticulture in greenhouses

Legal basis: Le décret no 83-246 du 18 mars 1983 portant création d'un Office National Interprofessionnel des fruits, des légumes et de l'horticulture et les textes subséquents repris notamment dans la partie réglementaire du code rural (livre 6 ‘productions et marchés’ — articles R 621-120, R 621-134, R 621-140 et R 621-161 à R 621-174)

Annual expenditure planned under the scheme: The overall budget for aid measures is EUR 1 million

Maximum aid intensity: Up to 50 % of eligible costs.

The total amount of state aid may not exceed EUR 100 000 per beneficiary over three years or 50 % of eligible costs, whichever is higher

Date of implementation: The aid scheme will be implemented from the date on the receipt showing the identification number of the measure, subject to mobilisation of the appropriations and publication on the VINIFLHOR internet site

Duration of scheme: One year renewable, within the limits of the budget provided for

Objective of aid: This aid scheme comes under Article 14 of Commission Regulation (EC) No 1/2004 of 23 December 2003.

It is part of a plan to restructure production in greenhouses, the aim of which is to meet the needs of undertakings with production in greenhouses faced with escalating energy costs and needing support to restructure.

The technical support measures planned aim to promote the restructuring of undertakings in line with higher energy costs by steering them towards technical and administrative improvements, after having analysed their specific circumstances.

The project will enable the costs of technical support and of advisors performing technical, economic and energy analyses to be financed at a rate of 50 % of the following costs:

technical and economic analyses on the undertakings' cost headings, in particular the headings for energy, and drafting proposals for improvement (corresponding aid will be limited to 50 % of the cost of the analysis to a maximum of EUR 300 per undertaking),

energy audits, including, where necessary, an evaluation of the investments needed (this aid will be limited to 50 % of the costs of the audit up to a maximum of EUR 0,3 per m2 of heated surface, up to a maximum of 3,5 ha)

Sectors concerned: The production in greenhouses of fruit, vegetables and ornamental horticulture

Name and address of the granting authority:

| Office National Interprofessionnel des Fruits, des Légumes, des Vins et de l'Horticulture |
| --- |
| 164, rue de Javel |
| F-75739 Paris Cedex 15 |

Office National Interprofessionnel des Fruits, des Légumes, des Vins et de l'Horticulture

164, rue de Javel

F-75739 Paris Cedex 15

Address of website: www.oniflhor.fr

XA Number: XA 48/06

Member State: France

Region: Limousin

Title of aid scheme: Aid for the maintenance of organic farming certification (continuation of aid registered under XA/54/05)

Legal basis:

| — | Article 13 du règlement (CE) no 1/2004 du 23 décembre 2003 de la Commission; |
| --- | --- |

—

Article 13 du règlement (CE) no 1/2004 du 23 décembre 2003 de la Commission;

| — | Articles L. 1511-1 et L. 1511-2 du code général des collectivités territoriales; |
| --- | --- |

—

Articles L. 1511-1 et L. 1511-2 du code général des collectivités territoriales;

| — | Décision du Conseil régional du Limousin du 10 mai 2006 |
| --- | --- |

—

Décision du Conseil régional du Limousin du 10 mai 2006

Annual expenditure planned under the scheme: EUR 85 000

Maximum aid intensity: The Regional Council will bear part of the cost of certification. It grants a subsidy equal to 80 % of the unit cost of certification excluding taxes, amounting to between EUR 200 and EUR 800 for 2006

Date of implementation: As soon as acknowledgement of receipt has been received from the European Commission

Duration of scheme: Until 31 December 2006

Objective of aid: Council Regulation (EEC) No 2092/91 requires all operators in the organic farming sector to have themselves inspected and certified by certification bodies authorised by the Ministry of Agriculture under standard EN 45011. The purpose of the aid is to support the development of organic farming by bearing the costs of farm certification

Sector(s) concerned: All organic farmers whose farm is situated in Limousin, who notified their organic farming activity or conversion in 2006 and who were not receiving conversion aid (CTE-CAB1 or CAD2-CAB) on 1 July 2005 or whose combined CTE or CAD/CAB (over the five years) and certification aid applied for is less than EUR 15 000. Organic notification must be made to the ‘Agence Bio’ and is compulsory. The amount of aid will be checked against the copy of the CTE/CAD/CAB

Name and address of the granting authority:

| Monsieur le Président du Conseil Régional du Limousin |
| --- |
| 27 boulevard de la Corderie |
| F-87031 Limoges Cedex |

Monsieur le Président du Conseil Régional du Limousin

27 boulevard de la Corderie

F-87031 Limoges Cedex

Website: http://www.cr-limousin.fr rubrique ‘guide des aides’

XA Number: XA 52/2006

Member State: United Kingdom

Region: England

Title of Aid scheme or name of company receiving an individual aid: EBLEX Beef Better Returns Programme

Legal basis: Section 1 of the Agriculture Act 1967

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: GBP 0,402 million per year

Maximum aid intensity: 100 %

Date of implementation:

Duration of scheme or individual aid award: The scheme will close on 30 June 2009. However alterations may need to be made to the scheme rules before this time to reflect any changes to European State Aid rules

Objective of aid: The general aim of the scheme is focusing on the education and training of beef producers to give them the skills to adapt to the developing market place. Agreed measures will include training courses, seminars and information provided by the Internet. This complies with Article 14:- Provision of technical support in the agricultural sector

Sector(s) concerned: Cattle production

Name and address of the granting authority:

| Meat and Livestock Commission |
| --- |
| PO Box 44 |
| Winterhill House |
| Snowdon Drive |
| Milton Keynes MK6 1AX |
| United Kingdom |

Meat and Livestock Commission

PO Box 44

Winterhill House

Snowdon Drive

Milton Keynes MK6 1AX

United Kingdom

Web-Address: http://www.eblex.org.uk/betterReturns/beef

Other information: The providers of the technical support will be chosen and remunerated by the Meat and Livestock Commission, operating through its beef sector Executive Committee (EBLEX), according to market principles and in a non-discriminatory way. No aid will be paid directly to beneficiaries. Tendering procedures will be applied in accordance with Community law.

Signed and dated on behalf of the Department of Environment, Food and Rural Affairs (UK competent authority)

Neil Marr

Agricultural State Aid Advisor

Defra

8B 9 Millbank

c/o 17 Smith Square

London SW1P 3JR

United Kingdom

Aid No: XA 54/06

Member State: The Netherlands

Title of aid scheme or name of company receiving an individual aid: Regeling stimulering biologische productiemethode (promotion of organic production)

Legal basis: Artikelen 2 en 4 van de Kaderwet LNV-subsidies

Annual expenditure planned or overall amount of aid granted to the company: The expenditure is related to the costs related to undertakings having to submit themselves to the inspection system referred to in Article 8(1) of Regulation 2092/91 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs. Pursuant to Article 9 of this Regulation, the inspection system monitors compliance with the Regulation's provisions. Costs may vary from year to year. In 2006, the aid will amount to EUR 650 per undertaking (basic aid) plus EUR 150 (application for membership). This amount may increase in line with any increases in membership application fees. On the basis of average costs over five years of approximately EUR 800 a year per undertaking, the aid will amount to approximately EUR 24 800 a year over five years

Maximum aid intensity: Aid towards application fees for membership will not exceeded EUR 3 000 a year per undertaking

Date of implementation:

Duration of scheme or individual aid award: Aid will be awarded over five years for the costs associated with companies applying for membership to the inspection system

Objective of aid: Assistance to small and medium enterprises and aid to encourage the production and marketing of quality agricultural products as referred to in Section 13 of the Community Guidelines for State Aid in the Agricultural Sector. Goods produced in line with Regulation 2092/91 are presumed to be quality products. Compensation for the costs associated with companies having to join the inspection system. Participation in the inspection system referred to in Article 9 of Regulation 2092/91 can be an incentive for companies whose production is in line with this Regulation to continue working with the production method it requires

Sector(s) concerned: producers of agricultural goods not destined for human consumption, such as organic producers of organic trees, plants, flowers and bulbs

Name and address of the granting authority:

| Ministerie van Landbouw, Natuur en Voedselkwaliteit, Dienst Regelingen |
| --- |
| Postbus 20401 |
| 2500 ER Den Haag |
| Nederland |

Ministerie van Landbouw, Natuur en Voedselkwaliteit, Dienst Regelingen

Postbus 20401

2500 ER Den Haag

Nederland

Web address: www.wetten.nl of www.overheid.nl > officiële publicaties > selecteren departementale regelgeving Staatscourant > invoeren titel regeling: Subsidieregeling voortzetting biologische productiemethode

Other disclosures: All organic farmers qualify for aid under the Scheme Regeling stimulering biologische produktiemethode. Aid to organic farmers producing goods destined for human consumption is granted under Title II, Chapter VI of Council regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guaranteed Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160). In this regard the Dutch Government submitted a modification request for the Dutch Rural Development Plan 2005 at the end of 2005. This notification deals with support to organic farmers producing goods not intended for human consumption, bearing in mind that the modification request does not allow for support to said farmers

Aid number: XA 58/06

Member State: France

Region: Department of Indre-et-Loire

Title of aid scheme: Aid for the payment of insurance premiums to protect sensitive crops from hail

Legal basis:

| — | Article 11 du règlement (CE) no 1/2004 de la Commission |
| --- | --- |

—

Article 11 du règlement (CE) no 1/2004 de la Commission

| — | Loi 64.706 du 10 juillet 1964 |
| --- | --- |

—

Loi 64.706 du 10 juillet 1964

| — | Article L 361-8 du livre III (nouveau) du code rural |
| --- | --- |

—

Article L 361-8 du livre III (nouveau) du code rural

| — | Article L 122.7 du code des assurances |
| --- | --- |

—

Article L 122.7 du code des assurances

| — | Décret no 2006-370 fixant les modalités d'application de l'article L.361-8 du livre II (nouveau) du code rural en vue de favoriser le développement de l'assurance contre certains risques agricoles et notamment son article 7 |
| --- | --- |

—

Décret no 2006-370 fixant les modalités d'application de l'article L.361-8 du livre II (nouveau) du code rural en vue de favoriser le développement de l'assurance contre certains risques agricoles et notamment son article 7

Annual expenditure planned under the scheme: EUR 80 000

Maximum aid intensity: 10 % of the total insurance premiums or contributions paid in 2006 for fruit crops from trees or bushes, fruiting vegetables and leaf-bearing vegetables and 4 % of the total insurance premiums or contributions paid in 2006 for other sensitive crops (vines and flowers)

Date of implementation: 2006

Duration of scheme or individual aid award: One year

Objective of aid: To encourage farmers who do not have the financial means to insure themselves against a number of climate risks, thereby entitling them to have their insurance premiums partly covered by the State, to at least cover themselves against the risk of hail

Sector(s) concerned: Fruit production from fruit-bearing trees and bushes, fruiting vegetables, leaf-bearing vegetables, vines and flowers

Name and address of the granting authority:

| Conseil Général d'Indre-et-Loire |
| --- |
| Place de la Préfecture |
| F-37927 Tours Cedex 9 |

Conseil Général d'Indre-et-Loire

Place de la Préfecture

F-37927 Tours Cedex 9

Address of website: www.cg37.fr

Aid No: XA 59/06

Member State: Netherlands

Region: Province of North Brabant

Title of aid scheme or name of company receiving an individual aid: Policy rules for granting aid under the Stuurgroep Landbouw Innovatie Noord-Brabant — North Brabant Agricultural Innovation Steering Committee — (‘Stuurgroep LIB’) agreement

Legal basis: Algemene subsidieverordening Provincie Noord-Brabant.

Applications meeting the requirements of Regulation (EC) No 1/2004 are eligible for aid

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: Under the Stuurgroep LIB agreement, the province of North Brabant is to make a total of EUR 481 460,81 available each year to promote agriculture. Of that amount, it is to make EUR 113 445,05 available specifically for organic farming

Maximum aid intensity: The maximum intensity of aid from state funding (percentage of investment eligible for support) is 40 %. In the case of investments promoting the protection and improvement of the environment, this percentage can be increased by 10 % or 20 %.

A maximum of EUR 35 000 per year is to be granted per aid application

Date of implementation:

Duration of scheme or individual aid award: Up to 1 January 2008. Where necessary the scheme will be adapted accordingly after Regulation (EC) No 1/2004 is reviewed. Details are to be sent to the Commission

Objective of aid: The aid scheme is designed to support implementation of integrated project-based innovation in agriculture and horticulture, aimed at improving the quality of the environment and water and the regional and economic structure of the province of North Brabant. The main recipients of the support are small businesses producing, processing and marketing agricultural products. In practice this will involve supporting small-scale project-based innovation measures under which the economic, environmental and socio-cultural aspects of agriculture and horticulture enhance each other as far as possible.

The following activities may receive financial support from the Stuurgroep LIB:

Market research and the development of quality products to promote their production and marketing (Article 13 of Regulation (EC) No 1/2004).

Support for know-how development and transfer for farmers and farm workers in the form of producer meetings, hiring consultants and producing and distributing information material (articles, flyers and the internet) on a temporary basis (Article 14 of Regulation (EC) No 1/2004).

Investment in immovable property and equipment and hiring consultants for (feasibility) studies and cooperative associations to reduce production costs, improve and redeploy production, improve product quality, and improve animal welfare and the natural environment (Article 4 of Regulation (EC) No 1/2004).

Investment in immovable property and equipment and hiring consultants for (feasibility) studies and cooperative associations to improve processing and marketing and improve performance as regards the environment, food quality and animal welfare (Article 7 of Regulation (EC) No 1/2004)

Sector(s) concerned: In principle all production sectors in agriculture and horticulture (livestock and arable production). Associated links in the agri-food chain (suppliers, purchasers and the retail trade) will only be involved in projects where this leads to a strengthening of the primary sector

Name and address of the granting authority:

| Gedeputeerde Staten van Noord-Brabant |
| --- |
| Brabantlaan 1 |
| Postbus 90151 |
| 5200 MC 's-Hertogenbosch |
| Nederland |

Gedeputeerde Staten van Noord-Brabant

Brabantlaan 1

Postbus 90151

5200 MC 's-Hertogenbosch

Nederland

Web address: http://www.brabant.nl/Werken/Landbouw.aspx

XA Number: XA 60/06

Member State: United Kingdom

Region: The traditional crafting counties of Scotland as set out in Section 61 of the Crofters (Scotland) Act 1993

Title of Aid scheme: Crofting Counties Agricultural Grants Scheme

Legal Basis: Title: Crofters (Scotland) Act 1993 (sections 42(1), (2) and (3). Also 46 (4)

‘An Act for the purpose of aiding and developing agricultural production on crofts, the Secretary of State may, after consultation with the Commission and with the approval of the Treasury, make schemes for providing grants and loans to crofters’.

In addition, a new Statutory Instrument will be processed to provide the powers to apply the provisions of the scheme

Annual expenditure planned under the scheme: 2006-2007: GBP 3,16 million

2007-2008: GBP 2,40 million

Total: GBP 5,56 million

Maximum aid intensity: 50 % in Less Favoured Areas (LFA)

40 % in all other areas (non-LFA)

Date of implementation:

Duration of scheme: The scheme will be opened on the 21 July 2006 and will run until the 31 March 2009. However alterations may need to be made to the scheme rules before this time to reflect any changes to European state aid rules

Objective of aid: The survival of crofting is important to the retention of population in these very extensive and remote areas of Scotland because crofting families often comprise a major part of existing local communities. Croft land is the common link amongst crofters, and encouragement of beneficial use of that land for agricultural purposes contributes to population retention. Crofters face disadvantages not shared by other producers in the EU, such as climate, remoteness and poor quality land. This scheme seeks to help crofters develop their businesses and improve long term sustainability. This complies with Article 4 in relation to Investment in Agricultural Holdings as it is an investment in a croft which is an Agricultural Holding

Sectors concerned: Agriculture

Name and Address of the granting authority:

| Scottish Executive Environment and Rural Affairs Department |
| --- |
| Rural Communities Division |
| Area 1D |
| Pentland House |
| 47 Robbs Loan |
| Edinburgh EH14 1TY |
| United Kingdom |

Scottish Executive Environment and Rural Affairs Department

Rural Communities Division

Area 1D

Pentland House

47 Robbs Loan

Edinburgh EH14 1TY

United Kingdom

Web address: http://www.crofterscommission.org.uk/documents/060508CCAGS_GUIDANCE_NOTES.pdf

Other information: Further and more detailed information relating to eligibility and rules for the scheme can be found through the above weblink.

Signed and dated on behalf of the Department of Environment, Food and Rural Affairs (UK competent authority)

Neil Marr

Agricultural State Aid Advisor

Defra

8E 9 Millbank

c/o 17 Smith Square

London SW1P 3JR

United Kingdom

Aid No: XA 61/06

Member State: Spain

Region: Basque Country

Title of aid scheme or name of company receiving an individual aid: Aid scheme for groups of producers of potatoes for human consumption and seed different from those intended for the starch industry

Legal basis: Orden del Consejero de Agricultura, Pesca y Alimentación, pendiente de publicación, por la que se procede a la convocatoria de ayudas a las Agrupaciones de Productores Agrarios de Patata de consumo y de siembra, prevista en el Decreto 13/2004, de 20 de enero

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: The maximum planned public expenditure to be granted to the beneficiaries as a whole is EUR 150 000 in 2006

Maximum aid intensity: The maximum quantity of aid will be 100 % of the eligible costs incurred in the first year, and will be temporary and degressive; in no case may the total amount of aid granted to a group exceed EUR 100 000, pursuant to Article 10 of Regulation 1/2004

Date of implementation: From the day following the date of publication of the call for grant proposals in the Boletín Oficial del País Vasco

Duration of aid scheme or individual aid award: Until 31 December 2006

Objective of aid:

| — | The aid is basically covered by Article 10 of Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products (published in the Official Journal of the European Communities of 3 January 2004). Under the said Article, aid should cover eligible expenditure mentioned in paragraph 3. |
| --- | --- |

—

The aid is basically covered by Article 10 of Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products (published in the Official Journal of the European Communities of 3 January 2004). Under the said Article, aid should cover eligible expenditure mentioned in paragraph 3.

| — | Primary objective: Promotion of groups of producers of these products, whose members market the production under the domestic rules drawn up for the group. |
| --- | --- |

—

Primary objective: Promotion of groups of producers of these products, whose members market the production under the domestic rules drawn up for the group.

| — | Eligible expenditure: renting suitable premises at the market price; purchase of office equipment; costs of administrative staff; general, legal and administrative costs |
| --- | --- |

—

Eligible expenditure: renting suitable premises at the market price; purchase of office equipment; costs of administrative staff; general, legal and administrative costs

Sector(s) concerned: Agriculture (producer groups)

Name and address of the granting authority:

| Dirección de Agricultura y Ganadería |
| --- |
| Departamento de Agricultura, Pesca y Alimentación del Gobierno Vasco |
| c/ Donostia — San Sebastian, 1 |
| E-01010 Vitoria-Gasteiz |

Dirección de Agricultura y Ganadería

Departamento de Agricultura, Pesca y Alimentación del Gobierno Vasco

c/ Donostia — San Sebastian, 1

E-01010 Vitoria-Gasteiz

Web site: http://www.euskadi.net/bopv

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/8 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/8

---

Summary information communicated by the Member States regarding State aid granted under Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products

(2006/C 258/03)

XA Number: XA 53/06 (b)

Member State: Netherlands

Region: Province of Limburg

Title of aid scheme or name of company receiving individual aid: Litjens Nursery (compensation for excessive expenses related to archaeological research and excavations Horst/Meterik)

Legal basis: Algemene wet bestuursrecht, Article 4(23)(3)(d). Decision of the Provincial Executive of 16 May 2006

Annual expenditure planned or overall amount of aid granted to the company: EUR 80 000

Maximum aid intensity: EUR 80 000

Date of implementation: 16 May 2006. Payment will be made subject to appeal under the General Administrative Law Act (Algemene wet bestuursrecht) and the date of publication of the notification in the Official Journal by the European Commission

Duration of scheme or individual aid award: An advance will be granted equal to 50 % of the subsidy. The remaining 50 % will be paid out after the project has been completed

Objective of aid: Under Article 19 of the Spatial Planning Act (Wet op de Ruimtelijke Ordening) and other national and provincial regulations, an application for planning permission was filed with a view to extending a complex of greenhouses in Horst-Meterik. During the preliminary examinations an archaeological find of such exceptional importance was made that excavations were unavoidable. The costs associated with these excavations are out of all proportion to the investment costs and the estimated profit margin of this private initiative.

Levelling and foundation works will make such big holes in the soil strata that the remaining information will become incoherent and will lose its archaeological value. The find itself is rather unique for the province of Limburg. The excavation must be commissioned by the Litjens family. Bearing this in mind, and bearing in mind the reality that conserving the find in situ is not an option (see below), the decision was made to excavate.

The preliminary estimate of the costs associated with excavation his EUR 160 000 (not including VAT). Under normal circumstances such an outlay is not insurmountable for a project developer or a municipal council, as the costs can be offset by the sales price of the land and housing. In this case however, the applicant owns a small business (a producer of bell peppers) whose profit margin is not such that the expense of the excavations can be borne by him (loss of income due to archaeological excavation). Given that the find itself is rather unique for the province of Limburg, the Limburg provincial authorities and the Horst aan de Maas Municipal Council have decided to subsidise the excavations. The cost breakdown is as follows:

Name and address of the granting authority:

| Provincie Limburg |
| --- |
| Postbus 5700 |
| 6202 MA Maastricht |
| Nederland |

Provincie Limburg

Postbus 5700

6202 MA Maastricht

Nederland

Web address: http://www.limburg.nl/nl/html/socrates/PSINFO/Openbare %20besluitenlijsten %20GS2006/060323-0235.doc

Aid No: XA 73/06

Member State: Czech Republic

Region: Vysočina

Title of aid scheme or name of company receiving individual aid: ‘Podpora poskytování technické podpory v odvětví zemědělství’ (‘Aid for the provision of technical support in the agricultural sector’)

An agricultural entrepreneur, i.e. a natural or legal person whose income is derived from agricultural production carried out as a continuous and independent activity in his own name and under his own responsibility, and for the purpose of producing a profit.

Legal entities established for non-business purposes, i.e. civic associations, public benefit societies or interest groupings of legal persons

Legal basis:

| 1. | Zákon č. 129/ 2000 Sb., o krajích (krajské zřízení), ve znění pozdějších předpisů |
| --- | --- |

1.

Zákon č. 129/ 2000 Sb., o krajích (krajské zřízení), ve znění pozdějších předpisů

| 2. | Zákon č. 250/2000 Sb., o rozpočtových pravidlech územních rozpočtů, ve znění pozdějších předpisů |
| --- | --- |

2.

Zákon č. 250/2000 Sb., o rozpočtových pravidlech územních rozpočtů, ve znění pozdějších předpisů

| 3. | Zákon č. 252/ 1997 Sb., o zemědělství, ve znění pozdějších předpisů |
| --- | --- |

3.

Zákon č. 252/ 1997 Sb., o zemědělství, ve znění pozdějších předpisů

| 4. | Program rozvoje kraje Vysočina |
| --- | --- |

4.

Program rozvoje kraje Vysočina

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: Maximum annual expenditure: CZK 200 000

Maximum aid intensity: Amount of aid: up to 100 % of eligible costs.

Eligible costs which may qualify for a financial contribution range from CZK 5 000 to CZK 200 000 per individual project.

The maximum amount of a financial contribution per beneficiary/project holder is CZK 200 000.

The total amount of a financial contribution granted under this measure must not exceed EUR 100 000 per beneficiary over any three-year period

Date of implementation: From 1 September 2006

Duration of scheme or individual aid award: Until 31 December 2006

Objective of aid: The aid is aimed at enhancing the professional competence of operators active in the agricultural sector with a view to increasing labour efficiency and productivity.

This aid is in compliance with generally applicable legislation in the Czech Republic as well as with the objectives and priorities of the Development Programme for the Vysočina Region. The aid is governed by Commission Regulation (EC) No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products (Article 14 — Provision of technical support in the agricultural sector).

The following are regarded as eligible costs: expenditure on organising competitions and exhibitions aimed at the agricultural sector, including assistance with costs relating to the participation of exhibitors at such events; expenditure on organising training events aimed at the agricultural sector in the form of courses, seminars or workshops; expenditure on technological and economic consultancy for agricultural entrepreneurs

Sector(s) concerned: Agriculture

Name and address of the granting authority:

| Krajský úřad kraje Vysočina |
| --- |
| Žižkova 57 |
| CZ-587 33 Jihlava |

Krajský úřad kraje Vysočina

Žižkova 57

CZ-587 33 Jihlava

Web address: http://www.kr-vysocina.cz/

Other information: The Regional Authority of the Vysočina Region declares that the conditions laid down in Commission Regulation (EC) No 1/2004 will be met, i.e. the aid will be targeted at small and medium-sized enterprises, and that the financial limit set in that Regulation will be adhered to

Aid Number: XA 74/06

Member State: France

Region: Département de Saône-et-Loire

Title of aid scheme: Development of an environmentally-friendly and sustainable policy

Legal basis::

| — | Art. L 3231-2 et subséquents du Code général des collectivités territoriales permettant aux collectivités territoriales d'accorder des aides pour favoriser le développement économique |
| --- | --- |

—

Art. L 3231-2 et subséquents du Code général des collectivités territoriales permettant aux collectivités territoriales d'accorder des aides pour favoriser le développement économique

| — | Art. L. 1511-2 du Code général des collectivités territoriales |
| --- | --- |

—

Art. L. 1511-2 du Code général des collectivités territoriales

| — | Délibération du Conseil général du 15.12.2006 |
| --- | --- |

—

Délibération du Conseil général du 15.12.2006

Annual expenditure planned under the scheme: Annual expenditure of EUR 100 000 (maximum)

Maximum aid intensity:

| Title of the activity | Nature of eligible expenditure | Maximum eligible expenditure
  in euro (excl. tax) | General rate of assistance for scheme |
| --- | --- | --- | --- |
| On-farm composting | Site for composting and compost storage with effluent recovery | 20 000 | 20 % |
| Development of the use of biofuels | Presses — equipment and installation for exploitation of cakes — adaptation of agricultural machinery for the use of fuels | 10 000 | 30 % |
| Recovery and exploitation of rainwater | Works and new storage equipment with a pump (only the pump itself is excluded) | 5 000 | 20 % |

Title of the activity

Nature of eligible expenditure

Maximum eligible expenditure

in euro (excl. tax)

General rate of assistance for scheme

On-farm composting

Site for composting and compost storage with effluent recovery

20 000

20 %

Development of the use of biofuels

Presses — equipment and installation for exploitation of cakes — adaptation of agricultural machinery for the use of fuels

10 000

30 %

Recovery and exploitation of rainwater

Works and new storage equipment with a pump (only the pump itself is excluded)

5 000

20 %

Date of implementation: On receipt of an acknowledgement of receipt from the European Commission in 2006

Duration of scheme or individual aid award: Seven years, subject to changes in European rules and the availability of budget appropriations

Objective of aid: To contribute to improving practices on farms to achieve better protection of the environment, by:

promoting on-farm composting, which makes it possible to exploit fermentable waste produced by farms and green waste generated in rural areas;

developing the use of biofuels produced and then consumed on farms;

encouraging farmers to make savings in the collection and management of rainwater, by setting up aid for the works and equipment necessary for the recovery and storage of rainwater and aid for distribution pumps (in order to control water consumption on farms, particularly in the cleaning of equipment).

Sector(s) concerned: All agricultural production sectors in the department

Name and address of the granting authority:

| MONSIEUR LE PRÉSIDENT DU CONSEIL GÉNÉRAL DE SAÔNE-ET-LOIRE |
| --- |
| Direction de l'Équipement rural et de l'agriculture |
| Service des Affaires Agricoles |
| Espace Duhesme — 18, rue de Flacé |
| F-71026 Macon Cedex 9 |

MONSIEUR LE PRÉSIDENT DU CONSEIL GÉNÉRAL DE SAÔNE-ET-LOIRE

Direction de l'Équipement rural et de l'agriculture

Service des Affaires Agricoles

Espace Duhesme — 18, rue de Flacé

F-71026 Macon Cedex 9

Web site address: http://www.cg71.com

Aid number: XA 75/06

Member State: France

Region: Département de Saône-et-Loire

Title of aid scheme: Acquisition of shared equipment

Legal basis:

| — | Art. L 3231-2 et subséquents du Code général des collectivités territoriales permettant aux collectivités territoriales d'accorder des aides pour favoriser le développement économique |
| --- | --- |

—

Art. L 3231-2 et subséquents du Code général des collectivités territoriales permettant aux collectivités territoriales d'accorder des aides pour favoriser le développement économique

| — | Art. L. 1511-2 du Code général des collectivités territoriales |
| --- | --- |

—

Art. L. 1511-2 du Code général des collectivités territoriales

| — | Délibération du Conseil général du 15.12.2006 |
| --- | --- |

—

Délibération du Conseil général du 15.12.2006

Annual expenditure planned under the scheme: Annual aid of EUR 60 000 (maximum)

Maximum aid intensity: Eligible expenditure: new equipment

Manure spreaders — Maximum eligible expenditure: EUR 22 500

Windrow turners — Maximum eligible expenditure: EUR 36 800

Vine mowers — Maximum eligible expenditure: EUR 22 500

Hedge trimmers — Maximum eligible expenditure: EUR 22 500

Mobile wood shredders or mills — Maximum eligible expenditure: EUR 22 500

High clearance tractors — Maximum eligible expenditure: EUR 80 000

Non-eligible expenditure: equipment intended simply to replace existing equipment.

Grant Rate: 20 %, except for high clearance tractors (grant rate 15 % — overall funding cap of 40 % including other sources of financing.

5 % increase if the investment includes an Investment Plan over at least three years

Date of implementation: On receipt of an acknowledgement of receipt from the European Commission in 2006

Duration of scheme or individual aid award: Seven years, subject to changes to European rules and the availability of budgetary appropriations

Objective of aid: Since group farming has demonstrated its efficiency during the recent crises, the department wishes to enhance the capabilities of cooperatives for the use of agricultural equipment (CUMA) by setting up equipment aid that complements aid at regional level, within the limits of the maximum rates of funding. Eligible equipment will be used to improve environmental cultivation conditions on farms.

Under Article 4 of Commission Regulation (EC) No 1/2004 of 23 December 2003, expenditure on the following is eligible for aid at department level: manure spreaders, windrow turners, vine mowers, hedge trimmers, mobile wood shredders or mills, high clearance tractors

Sector(s) concerned: All agricultural production sectors in the département

Name and address of the granting authority:

| MONSIEUR LE PRÉSIDENT DU CONSEIL GÉNÉRAL DE SAÔNE-ET-LOIRE |
| --- |
| Direction de l'Équipement rural et de l'agriculture |
| Service des Affaires Agricoles |
| Espace Duhesme — 18, rue de Flacé |
| F-71026 Macon Cedex 9 |

MONSIEUR LE PRÉSIDENT DU CONSEIL GÉNÉRAL DE SAÔNE-ET-LOIRE

Direction de l'Équipement rural et de l'agriculture

Service des Affaires Agricoles

Espace Duhesme — 18, rue de Flacé

F-71026 Macon Cedex 9

Web site address: http://www.cg71.com

XA Number: XA 76/06

Member state: Slovak Republic

Region: Stredné Slovensko

Title of aid scheme or name of the company receiving an individual aid: Poľnohospodárske družstvo Belá — Dulice

038 11 Belá — Dulice 1; IČO: 00196452

Legal basis:

| — | Ustanovenie § 240 ods. 3 v spojení s ustanovením § 277a zákona č. 461/2003 Z. z. o sociálnom poistení v znení zákona č. 721/2004 Z. z. |
| --- | --- |

—

Ustanovenie § 240 ods. 3 v spojení s ustanovením § 277a zákona č. 461/2003 Z. z. o sociálnom poistení v znení zákona č. 721/2004 Z. z.

| — | Ustanovenie § 5 ods. 2 písm. b) zákona 231/1999 Z. z. o štátnej pomoci |
| --- | --- |

—

Ustanovenie § 5 ods. 2 písm. b) zákona 231/1999 Z. z. o štátnej pomoci

| — | Metodické usmernenie Sociálnej poisťovne č. 30/2005 |
| --- | --- |

—

Metodické usmernenie Sociálnej poisťovne č. 30/2005

| — | Commission Regulation (EC) No 1/2004, Article 4(3)(c) |
| --- | --- |

—

Commission Regulation (EC) No 1/2004, Article 4(3)(c)

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: SKK 393 226 i.e. EUR 10 324,144 (exchange rate on 3.8.2006)

Maximum aid intensity: 13,85 %

Date of implementation: 2006

Duration of scheme or individual aid award: August — 2006

Objective of aid: SME — agriculture

Economic sector concerned: Agriculture

Name and address of the granting authority:

| Sociálna poisťovňa, pobočka Martin |
| --- |
| Nám. SNP 4, SK-036 25 Martin |

Sociálna poisťovňa, pobočka Martin

Nám. SNP 4, SK-036 25 Martin

Web address: www.socpoist.sk

XA Number: XA 77/06

Member state: Slovak Republic

Region: Stredné Slovensko

Title of aid scheme or name of the company receiving an individual aid: AFG, s.r.o., Dĺžiny 122/40

039 18 Turčianske Teplice; IČO: 36383422

Legal basis:

| — | Ustanovenie § 240 ods. 3 v spojení s ustanovením § 277a zákona č. 461/2003 Z. z. o sociálnom poistení v znení zákona č. 721/2004 Z. z. |
| --- | --- |

—

Ustanovenie § 240 ods. 3 v spojení s ustanovením § 277a zákona č. 461/2003 Z. z. o sociálnom poistení v znení zákona č. 721/2004 Z. z.

| — | Ustanovenie § 5 ods. 2 písm. b) zákona 231/1999 Z. z. o štátnej pomoci |
| --- | --- |

—

Ustanovenie § 5 ods. 2 písm. b) zákona 231/1999 Z. z. o štátnej pomoci

| — | Metodické usmernenie Sociálnej poisťovne č. 30/2005 |
| --- | --- |

—

Metodické usmernenie Sociálnej poisťovne č. 30/2005

| — | Commission Regulation (EC) No 1/2004, Article 4(3)(c) |
| --- | --- |

—

Commission Regulation (EC) No 1/2004, Article 4(3)(c)

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company: SKK 955 843 i.e. EUR 25 095,646 (exchange rate on 3.8.2006)

Maximum aid intensity: 35,5 %

Date of implementation: 2006

Duration of scheme or individual aid award: August — 2006

Objective of aid: SME — agriculture

Economic sector(s) concerned: Agriculture

Name and address of the granting authority:

| Sociálna poisťovňa, pobočka Martin |
| --- |
| Nám. SNP 4, SK-036 25 Martin |

Sociálna poisťovňa, pobočka Martin

Nám. SNP 4, SK-036 25 Martin

Web address: www.socpoist.sk

XA number: XA 78/06

Member State: Poland

Title of aid scheme or name of company receiving an individual aid: Aid for owners of Thoroughbreds and Arabians for participation of their horses in horse races, which are selection events organised in order to classify the horses in terms of their speed and competitiveness resulting from a direct comparison during a competition on a racing track

Legal basis:

| 1) | Ustawa z dnia 30 maja 2005 r. o finansach publicznych (Dz.U. z 2005 r., nr 249, poz. 2104, z późn. zm.) |
| --- | --- |

1)

Ustawa z dnia 30 maja 2005 r. o finansach publicznych (Dz.U. z 2005 r., nr 249, poz. 2104, z późn. zm.)

| 2) | Rozporządzenie Ministra Rolnictwa i Rozwoju Wsi z dnia 30 maja 2006 r. w sprawie stawek dotacji przedmiotowych dla różnych podmiotów wykonujących zadania na rzecz rolnictwa (Dz.U. z 2006 r., nr 98, poz. 683, z późn. zm.) |
| --- | --- |

2)

Rozporządzenie Ministra Rolnictwa i Rozwoju Wsi z dnia 30 maja 2006 r. w sprawie stawek dotacji przedmiotowych dla różnych podmiotów wykonujących zadania na rzecz rolnictwa (Dz.U. z 2006 r., nr 98, poz. 683, z późn. zm.)

Annual expenditure planned within the system or overall amount of individual aid granted to the company: Expenditure planned within the system amounts to PLN 2 000 000

Maximum amount of aid (in relation to entitled position): 820 PLN

Date of application: After the reception of a notification in a form of confirmation together with an identification number stating that the European Commission received this summary information on the aid granted within the system

Duration of scheme or individual aid granted: from the 3rd decade of August 2006 to December 2006

Objective of aid: In conformity with Article 14(2)(d)(i) of Commission Regulation No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State Aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products, aid is granted to cover the participation fee in 2006 in order to ensure the appropriate number of horses to perform a selection race. In the present year, due to the lack of possibility to choose the organiser of horse races in the Służewiec Racetrack in Warsaw, who would be authorised to organize lottery bets, the organisation of selection races for 970 horses was jeopardized. These races, as one of the components in the assessment of horses' value, are organised for horses belonging to a particular age group and are a basis for their qualification in the breeding process. Horses without this value assessment component would be practically lost for breeding purposes. In order to avoid this, attempts were made to organise horse races in the Służewiec Racetrack only as a selection races, i.e. without selling tickets for the public and without bets. In this case the basic revenue of the future organiser would consist of registration fees of horses registered for races. This will have a significant impact on registration fees and it may turn out that they will be too high for horse owners who registered their horses for selection races in 2006.

Therefore, in order to make sure that a sufficient number of horses will take part in the selection races and to encourage horse owners to register their horses for races, the Minister of Agriculture and Rural Development decided to grant aid for the participation of horses in the races in the form of subsidising the costs of registration

Sector(s) concerned: The aid is granted to beneficiaries carrying out agricultural activities in the animal production sector

Name and address of the granting authority:

| Minister Rolnictwa i Rozwoju Wsi |
| --- |
| ul. Wspólna 30, PL-00-930 Warszawa |

Minister Rolnictwa i Rozwoju Wsi

ul. Wspólna 30, PL-00-930 Warszawa

Web address: The Decree of the Minister of Agriculture and Rural Development defining the principles of this aid

http://isip.sejm.gov.pl/prawo/indez.html

Other information:

| — | The registration fee for registering a horse for a selection race is PLN 870. |
| --- | --- |

—

The registration fee for registering a horse for a selection race is PLN 870.

| — | The gross amount of aid (gross aid intensity) was calculated in accordance with the definition in Article 2(5) of Commission Regulation No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products. It is the ratio of the gross aid to the amount of the registration fee, i.e. PLN 820/PLN 870 = 94,25 %. |
| --- | --- |

—

The gross amount of aid (gross aid intensity) was calculated in accordance with the definition in Article 2(5) of Commission Regulation No 1/2004 of 23 December 2003 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of agricultural products. It is the ratio of the gross aid to the amount of the registration fee, i.e. PLN 820/PLN 870 = 94,25 %.

| — | The budget of the aid scheme was calculated with the assumption that not more than 2 420 registration fees will benefit from it |
| --- | --- |

—

The budget of the aid scheme was calculated with the assumption that not more than 2 420 registration fees will benefit from it

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/13 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/13

---

Publication of an application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

(2006/C 258/04)

This publication confers the right to object to the application pursuant to Article 7 of Council Regulation (EC) No 510/2006. Statements of objection must reach the Commission within six months from the date of this publication.

SUMMARY

COUNCIL REGULATION (EC) No 510/2006

Application for registration according to Article 5 and Article 17(2)

‘ARANCIA DEL GARGANO’

EC No: IT/PGI/005/0296/10.06.2003

PDO ( ) PGI ( X )

This summary has been drawn up for information only. For full details, interested parties are invited to consult the full version of the product specification obtainable from the national authorities indicated in section 1 or from the European Commission (1).

1.   Responsible department in the Member State:

| Name: | Ministero delle Politiche Agricole e Forestali |
| --- | --- |
| Address: | Via XX Settembre, 20 |
| I-00187 Roma |

Name:

Ministero delle Politiche Agricole e Forestali

Address:

Via XX Settembre, 20

I-00187 Roma

Tel.:

06 481 99 68

Fax:

06 42 01 31 26

e-mail:

qtc3@politicheagricole.it

2.   Applicant group:

| Name: | Consorzio di tutela e valorizzazione «Gargano Agrumi» |
| --- | --- |
| Address: | Via Salita della Bella |
| I-71018 Vico del Gargano (FG) |

Name:

Consorzio di tutela e valorizzazione «Gargano Agrumi»

Address:

Via Salita della Bella

I-71018 Vico del Gargano (FG)

Tel.:

0884–96 62 29

Fax:

0884–96 63 99

e-mail:

—

Composition:

Producers/processors ( ) other ( X )

3.   Type of product:

Class 1.6: Fruit, vegetables, cereals, whether or not processed

4.   Specification (summary of requirements under Article 4(2))

4.1   Name:

Arancia del Gargano

4.2   Description: Fresh fruit of the ecotypes biondo comune del Gargano or duretta del Gargano, known locally as ‘arancia tosta’.

The main characteristics of Arancia del Gargano are as follows:

Biondo Comune del Gargano:

spherical or pear-shaped;

the rind is fairly thin, tough with a relatively smooth texture and a vibrant golden-yellow colour;

minimum diameter at the centre 60mm;

minimum yield of juice, hand-pressed, 35 %

The pith is soft with average adherence. The carpel length is uneven, average and half-full. The pulp and juice are yellow-orange in colour, with no less than 9 % sugar content, less than 1,2 % acidity, at least 10 % Brix sugar level and a ripeness index (ratio between degrees Brix and citric acid) of at least 6.

Arancia duretta:

round or oval, locally known as duretta tonda or a viso lungo respectively;

the rind is pale orange, varying in intensity, very smooth with fine papillae.

the pulp is finely textured with small vesicae, amber-coloured, typically crunchy, with very few or no seeds and less than 1,2 % acidity;

average diameter at the centre 55-60mm;

minimum yield of juice, hand-pressed, 35 %

no less than 10 % sugar content;

at least 11 % Brix and ripening index (Brix/citric acid) no less than 6.2.

Fruit of the above two types must be heavy, weighing at least 100g, with even-coloured rind and bright green in colour at the base of the peduncle.

Arancia del Gargano must be released for consumption in closed, rigid packaging of vegetable origin, such as wood or cardboard, with a capacity of between 1kg and 25kg. The packaging must ensure that at least 80 % of the fruit, wrapped or unwrapped, carry the mark ‘PGI Arancia del Gargano’. If the fruit is sold loose, it must bear this mark.

4.3   Geographical area: The production and packing area is located in the province of Foggia (Region of Apulia) and includes the municipalities of Vico del Gargano, Ischitella and Rodi Garganico, specifically a section of the northern part of the Gargano promontory — part coastal and part sub-coastal — from Vico del Gargano and Rodi Garganico up to Ischitella.

4.4   Proof of origin: Each stage of the production process is constantly monitored by the inspection body keeping registers of producers and packing stations. This ensures product traceability.

Product traceability and proof of origin are also guaranteed by recording all orange groves in an appropriate register, which is kept and updated by the inspection body, and which also provides details on the location of groves and the quantities of produce reported to the inspection body. All legal and natural persons recorded in the registers are subject to checks carried out by the inspection body, under the provisions contained in the production specifications and the relevant monitoring plan.

4.5   Method of production: The product specification stipulates that the orange grove must be planted in compliance with the orographic and soil conditions that characterise the area of production. Sloping land will be terraced, using dry-stone walls or embankments. In accordance with tradition, the stock used is ‘melangolo’ (citrus mearda), certified as such under the applicable legislation.

Orange trees are kept in a semi-spherical shape, typical to the area and referred to locally as ‘cupola’. The tree structure is formed of two main branches and two secondary branches, allowing the foliage to develop in a circular shape within a square frame. This shape, hollowed on the inside, facilitates aeration and harvesting.

The groves are planted in the traditional pattern, a quincunx, at a density of between 250 and 400 trees per hectare.

The land is irrigated from May to October.

Orange production must not exceed 30 tonnes per hectare for the Biondo comune del Gargano variety and 25 tonnes per hectare for the Duretta del Gargano variety.

Due to the natural staggered ripening of Arancia del Gargano, the harvest period is as follows: from 15 April to the end of August for the Biondo comune del Gargano variety and from 1 December to 30 April for the Duretta del Gargano variety.

Harvesting is manual, with the use of scissors. Artificial ripening of the fruit is prohibited.

Packing of Arancia del Gargano (PGI) takes place solely in the area of production, as stipulated in point 4.3, in order to ensure product traceability.

4.6   Link: The application to register this PGI is based on the unquestionable reputation of this citrus fruit. The local climate where the fruit is grown lends it appreciable qualitative properties. Firstly, the climate is not excessively hot, which discourages the growth of serious diseases of the fruit or trees. Secondly, again linked to the climate, it is the ripening period that gives the fruit from the Gargano area its authentic features; it does not ripen in January, February or March, but as late as the end of April to May and even up to August, several months after the ripening period of citrus fruit from all other areas in Italy. A third but no less important aspect is its high preservation capacity, which in the past enabled Arancia del Gargano to be transported for 30 or even 40 days to arrive intact in Chicago or New York. An essential factor for the spread and reputation of this citrus fruit is, in addition to the unmistakeable organoleptic qualities of Arancia del Gargano and particular size, the blend of climate and soil conditions in the production area (red-calcareous land, rich in iron and manganese, mostly sloping from valley sides or, in sections, valley floors, exposure to cold winds causing sudden drops in temperature), and by man's constant work on the land, which over time has built up a wealth of agronomic expertise.

The reputation of Arancia del Gargano has transcended regional borders ever since antiquity and was mentioned in the works of several authors, including Gabriele d'Annunzio himself. Since 1700, citrus fruit from the Gargano peninsula were the focus of a procession that is still held now, each year in February, to honour Saint Valentine, patron saint of citrus groves, during which orange and lemon trees and fruit are blessed. Numerous records, photographs, posters and advertisements have been kept to show the exceptional reputation — even internationally — of this unique fruit from the Gargano.

The first historic references on citrus growing in the area date from 1003, courtesy of Melo, prince of Bari, who sent local ‘pomi citrini’ to Normandy, equivalent to the melangolo (bitter orange) to show the Normans the rich production of the Gargano region. During the 1600s, the municipalities of Vico del Gargano and Rodi Garganico traded large quantities of citrus fruits with the Venetians. This high level of trading continued into the 1800s and the reputation of the Arancia del Gargano even reached other European countries and America.

4.7   Inspection body:

| Name: | C.C.I.A.A. di Foggia |
| --- | --- |
| Address: | via Dante, 27 |
| I-71100 Foggia |

Name:

C.C.I.A.A. di Foggia

Address:

via Dante, 27

I-71100 Foggia

Tel.:

0881797111

Fax:

0881726046

e-mail:

—

The inspection body is an appointed public authority.

4.8   Labelling: The packaging must contain the following indications:

‘Arancia del Gargano’ (which may be followed by either of the ecotypes sold ‘biondo comune’ or ‘duretta’), the logo, the PGI name in full and indications concerning the producer, packing station, retailer and the net weight as sold.

Products prepared using PGI Arancia del Gargano, even after processing, may be released for consumption bearing the name of the certified PGI without affixing the EU logo provided that:

the protected designation product certified as such is the sole component of the product group concerned;

users of the protected designation product are authorised by the holders of the intellectual property right concerned, grouped together in a syndicate and assigned a supervisory role by the Ministry for Agricultural Policy. The syndicate will be responsible for registering them and keeping watch on correct use of the protected designation. In the absence of a supervisory syndicate, these functions shall be carried out by the Ministry for Agricultural and Forestry Policy, as the national authority responsible for implementing Regulation (EEC) No 2081/92.

The logo consists of a stylised image of two oranges with a leafy branch inside an elliptical crown. The crown bears the wording ‘Arancia del Gargano’, underneath which, in the centre, is the wording ‘Indicazione Geografica Protetta’ (Protected Geographical Indication).

The oranges in the logo are orange in colour, with the wording ‘Arancia del Gargano’ in white on an orange background, the branch and leaves in green and the wording ‘Indicazione Geografica Protetta’ in an inverted arch with shaded edges.

4.9   National requirements: —

---

(1)  European Commission, Directorate-General for Agriculture and Rural Development, Agricultural product quality policy, B-1049 Brussels.

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/17 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/17

---

Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises

(2006/C 258/05)

(Text with EEA relevance)

| Aid No | XS 14/06 |
| --- | --- |
| Member State | Germany |
| Region | Freistaat Sachsen |
| Title of aid scheme | ESF Microloans |
| Legal basis | Richtlinie des Sächsischen Staatsministeriums für Wirtschaft und Arbeit zur Förderung von Existenzgründern durch Gewährung von Mikrodarlehen (Richtlinie ESF-Mikrodarlehen) vom 14. Dezember 2005 (SächsABl Heft 52/2005 vom 29.12.2005, S. 1280);
  §§ 23, 44 der Sächsischen Haushaltsordnung;
  Operationelles Programm zur Strukturfondsförderung des Freistaates Sachsen 2000–2006;
  Verordnung (EG) Nr. 1784/1999
  Verordnung (EG) Nr. 1260/1999 |
| Annual expenditure planned under the scheme | Aid scheme | Annual overall amount | |
| Loans guaranteed | The Fund is being given a one-time injection of EUR 25 million. |
| Maximum aid intensity | In conformity with Articles 4(2)-(6) and 5 of the Regulation | Yes |
| Entry into force | 1.1.2006 |
| Duration of scheme or individual aid award | The microloans are granted out of the ESF Microloans Fund set up by the SAB. The Fund's duration is from 19.12.2005 to 31.12.2013. Loans will, however, be disbursed only until 31.12.2008 (Structural Fund programming period). Thereafter, any existing loan agreements will be handled by the Fund. |
| Objective of aid | Aid to SMEs | Yes |
| Economic sectors concerned | All sectors eligible for aid to SMEs | No. |
| Limited to specific sectors | Yes |
| — | Coalmining |

Aid No

XS 14/06

Member State

Germany

Region

Freistaat Sachsen

Title of aid scheme

ESF Microloans

Legal basis

Richtlinie des Sächsischen Staatsministeriums für Wirtschaft und Arbeit zur Förderung von Existenzgründern durch Gewährung von Mikrodarlehen (Richtlinie ESF-Mikrodarlehen) vom 14. Dezember 2005 (SächsABl Heft 52/2005 vom 29.12.2005, S. 1280);

§§ 23, 44 der Sächsischen Haushaltsordnung;

Operationelles Programm zur Strukturfondsförderung des Freistaates Sachsen 2000–2006;

Verordnung (EG) Nr. 1784/1999

Verordnung (EG) Nr. 1260/1999

Annual expenditure planned under the scheme

Aid scheme

Annual overall amount

Loans guaranteed

The Fund is being given a one-time injection of EUR 25 million.

Maximum aid intensity

In conformity with Articles 4(2)-(6) and 5 of the Regulation

Yes

Entry into force

1.1.2006

Duration of scheme or individual aid award

The microloans are granted out of the ESF Microloans Fund set up by the SAB. The Fund's duration is from 19.12.2005 to 31.12.2013. Loans will, however, be disbursed only until 31.12.2008 (Structural Fund programming period). Thereafter, any existing loan agreements will be handled by the Fund.

Objective of aid

Aid to SMEs

Yes

Economic sectors concerned

All sectors eligible for aid to SMEs

No.

Limited to specific sectors

Yes

—

Coalmining

| — | All manufacturing |
| --- | --- |

—

All manufacturing

No.

or, alternatively

Steel

No.

Shipbuilding

No.

Synthetic fibres

No.

Motor vehicles

No.

Other manufacturing — All services or

Yes

| — | All services |
| --- | --- |

—

All services

No.

or, alternatively

Transport services

No.

Financial services

No.

Other services

Yes

Name and address of the granting authority

Sächsische Aufbaubank — Förderbank

| Pirnaische Straße 9 |
| --- |
| D-01069 Dresden |

Pirnaische Straße 9

D-01069 Dresden

Large individual aid grants

In conformity with Article 6 of the Regulation

Yes

With respect to the granting of loans after 31.12.2006, the German authorities have given an assurance that the conditions of the current SME exemption regulation will be met. The (ESF Microloans) guideline will thus be adapted to take account of the SME exemption regulation in force after 1.1.2007.

| Aid No: | XS 20/06 |
| --- | --- |
| Member State: | Italy |
| Region | Campania |
| Title of aid scheme or name of company receiving individual aid | ‘New aid scheme for craft firms: second notice’ |
| Legal basis: | POR Campania 2000-2006 approvato dalla Commissione Europea con decisione C(2000) 2347 dell'8 agosto 2000 e s.m.i.
  Complemento di Programmazione, misura 4.2 b)
  Deliberazione di Giunta Regionale N. 786 del 10.4.2004. |
| Annual expenditure planned or overall amount of individual aid granted to the company | Aid scheme | Annual overall amount | EUR 15 million |
| Loans guaranteed | |
| Individual aid | Overall aid amount | |
| Loans guaranteed | |
| Maximum aid intensity | In conformity with Articles 4(2)-(6) and 5 of the Regulation | Yes |
| Date of implementation: | 30.1.2006 |
| Duration of scheme or individual aid award | Until 31.12.2006 |
| Objective of aid | Aid to craft firms meeting the size criteria for microenterprises and SMEs set out in Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises | Yes |
| Economic sectors concerned | All sectors eligible for aid to SMEs | Yes |
| Name and address of the granting authority | Regione Campania Assessorato Attività Produttive
  Area Generale di Coordinamento n. 12 «Sviluppo Attività Settore Secondario»
  Dirigente del Settore Artigianato Dr.ssa Vittoria Capriglione «Sviluppo e Promozione Attività Artigiane e della Cooperazione». |
| Centro Direzionale |
| I-Isola A6 |
| Telefono 081.7966724, 081.7966725; fax 081.7966718 |
| e-mail: v.capriglione@regione.campania.it |

Aid No:

XS 20/06

Member State:

Italy

Region

Campania

Title of aid scheme or name of company receiving individual aid

‘New aid scheme for craft firms: second notice’

Legal basis:

POR Campania 2000-2006 approvato dalla Commissione Europea con decisione C(2000) 2347 dell'8 agosto 2000 e s.m.i.

Complemento di Programmazione, misura 4.2 b)

Deliberazione di Giunta Regionale N. 786 del 10.4.2004.

Annual expenditure planned or overall amount of individual aid granted to the company

Aid scheme

Annual overall amount

EUR 15 million

Loans guaranteed

Individual aid

Overall aid amount

Loans guaranteed

Maximum aid intensity

In conformity with Articles 4(2)-(6) and 5 of the Regulation

Yes

Date of implementation:

30.1.2006

Duration of scheme or individual aid award

Until 31.12.2006

Objective of aid

Aid to craft firms meeting the size criteria for microenterprises and SMEs set out in Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises

Yes

Economic sectors concerned

All sectors eligible for aid to SMEs

Yes

Name and address of the granting authority

Regione Campania Assessorato Attività Produttive

Area Generale di Coordinamento n. 12 «Sviluppo Attività Settore Secondario»

Dirigente del Settore Artigianato Dr.ssa Vittoria Capriglione «Sviluppo e Promozione Attività Artigiane e della Cooperazione».

Centro Direzionale

I-Isola A6

Telefono 081.7966724, 081.7966725; fax 081.7966718

e-mail: v.capriglione@regione.campania.it

Large individual aid grants

In conformity with Article 6 of the Regulation

Yes

| Aid No | XS 24/06 |
| --- | --- |
| Member State | United Kingdom |
| Region | West Wales & The Valleys Objective 1 Region |
| Title of aid scheme or name of company receiving individual aid | Energy Tech Ltd |
| Legal basis | Council Regulation (EC) No 1260/99 |
| The Structural Funds (National Assembly for Wales) Regulations 2000 (No/906/2000)
  The Structural Funds (National Assembly for Wales) Designation2000 |
| Annual expenditure planned under the scheme or overall amount of individual aid granted to the company | Aid scheme | Annual overall amount | |
| Loans guaranteed | |
| Individual aid | Overall aid amount | GBP 300 300 |
| Loans guaranteed | |
| Maximum aid intensity | In conformity with Articles 4(2)-(6) and 5 of the Regulation | Yes |
| Date of implementation | From 17.1.2006 |
| Duration of scheme or individual aid award | Until 31.12.2006
  NB. As noted above, the grant was committed prior to 31 December 2006. Payments against this commitment will, potentially (in line with N+2) continue until 30 April 2008 |
| Objective of aid | Aid to SMEs | Yes |
| Economic sectors concerned | Limited to specific sectors | Yes |
| Other services (Renewable energy) | Yes |
| Name and address of the granting authority | National Assembly for Wales |
| C/o Welsh European Funding Office |
| Cwm Cynon Business Park |
| Mountain Ash CF45 4ER |
| United Kingdom |

Aid No

XS 24/06

Member State

United Kingdom

Region

West Wales & The Valleys Objective 1 Region

Title of aid scheme or name of company receiving individual aid

Energy Tech Ltd

Legal basis

Council Regulation (EC) No 1260/99

The Structural Funds (National Assembly for Wales) Regulations 2000 (No/906/2000)

The Structural Funds (National Assembly for Wales) Designation2000

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company

Aid scheme

Annual overall amount

Loans guaranteed

Individual aid

Overall aid amount

GBP 300 300

Loans guaranteed

Maximum aid intensity

In conformity with Articles 4(2)-(6) and 5 of the Regulation

Yes

Date of implementation

From 17.1.2006

Duration of scheme or individual aid award

Until 31.12.2006

NB. As noted above, the grant was committed prior to 31 December 2006. Payments against this commitment will, potentially (in line with N+2) continue until 30 April 2008

Objective of aid

Aid to SMEs

Yes

Economic sectors concerned

Limited to specific sectors

Yes

Other services (Renewable energy)

Yes

Name and address of the granting authority

National Assembly for Wales

C/o Welsh European Funding Office

Cwm Cynon Business Park

Mountain Ash CF45 4ER

United Kingdom

Large individual aid grants

In conformity with Article 6 of the Regulation

Yes

| Aid No | XS 48/06 |
| --- | --- |
| Member State | United Kingdom |
| Region | West Wales & The Valleys Objective 1 Region |
| Title of aid scheme or name of company receiving individual aid | Trac Môn Ltd |
| Legal basis | Council Regulation (EC) 1260/99 |
| The Structural Funds (National Assembly for Wales) Regulations 2000 (No 906/2000)
  Local Government Act 2000 |
| Annual expenditure planned under the scheme or overall amount of individual aid granted to the company | Aid scheme | Annual overall amount | |
| Loans guaranteed | |
| Individual aid | Overall aid amount | GBP 1 369 647 |
| Loans guaranteed | |
| Maximum aid intensity | In conformity with Articles 4(2)-(6) and 5 of the Regulation | Yes |
| Date of implementation | From 16th March 2006 |
| Duration of scheme or individual aid award | Until 31st December 2006
  NB. As noted above, the grant was committed prior to 31 December 2006. Payments against this commitment will, potentially (in line with N+2) continue until 31st December 2007. |
| Objective of aid | Aid to SMEs | Yes |
| Economic sectors concerned | Limited to specific sectors | Yes |
| Other services (motorsport) | Yes |
| Name and address of the granting authority | National Assembly for Wales |
| C/o Welsh European Funding Office |
| Cwm Cynon Business Park |
| Mountain Ash CF45 4ER |
| United Kingdom |

Aid No

XS 48/06

Member State

United Kingdom

Region

West Wales & The Valleys Objective 1 Region

Title of aid scheme or name of company receiving individual aid

Trac Môn Ltd

Legal basis

Council Regulation (EC) 1260/99

The Structural Funds (National Assembly for Wales) Regulations 2000 (No 906/2000)

Local Government Act 2000

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company

Aid scheme

Annual overall amount

Loans guaranteed

Individual aid

Overall aid amount

GBP 1 369 647

Loans guaranteed

Maximum aid intensity

In conformity with Articles 4(2)-(6) and 5 of the Regulation

Yes

Date of implementation

From 16th March 2006

Duration of scheme or individual aid award

Until 31st December 2006

NB. As noted above, the grant was committed prior to 31 December 2006. Payments against this commitment will, potentially (in line with N+2) continue until 31st December 2007.

Objective of aid

Aid to SMEs

Yes

Economic sectors concerned

Limited to specific sectors

Yes

Other services (motorsport)

Yes

Name and address of the granting authority

National Assembly for Wales

C/o Welsh European Funding Office

Cwm Cynon Business Park

Mountain Ash CF45 4ER

United Kingdom

Large individual aid grants

In conformity with Article 6 of the Regulation

Yes

| Aid No | XS 85/06 |
| --- | --- |
| Member State | Malta |
| Title of aid scheme or name of company receiving individual aid | Eureka Programme Scheme |
| Legal basis | Malta Enterprise Corporation Act (CAP 463) |
| Annual expenditure planned under the scheme or overall amount of individual aid granted to the company | Aid scheme | Annual overall amount | EUR 0,2 million |
| Loans guaranteed | |
| Individual aid | Overall aid amount | |
| Loans guaranteed | |
| Maximum aid intensity | In conformity with Articles 4(2)-(6) and 5 of the Regulation | Yes |
| Date of implementation | 8.6.2006 |
| Duration of scheme or individual aid award | Until 30.6.2007 |
| Objective of aid | Aid to SMEs | Yes |
| Economic sectors concerned | All sectors eligible for aid to SMEs | Yes |
| Name and address of the granting authority | Malta Enterprise Corporation |
| Malta Enterprise |
| Enterprise Centre, Industrial Estate, |
| MT-San Gwann SGN 09 |

Aid No

XS 85/06

Member State

Malta

Title of aid scheme or name of company receiving individual aid

Eureka Programme Scheme

Legal basis

Malta Enterprise Corporation Act (CAP 463)

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company

Aid scheme

Annual overall amount

EUR 0,2 million

Loans guaranteed

Individual aid

Overall aid amount

Loans guaranteed

Maximum aid intensity

In conformity with Articles 4(2)-(6) and 5 of the Regulation

Yes

Date of implementation

8.6.2006

Duration of scheme or individual aid award

Until 30.6.2007

Objective of aid

Aid to SMEs

Yes

Economic sectors concerned

All sectors eligible for aid to SMEs

Yes

Name and address of the granting authority

Malta Enterprise Corporation

Malta Enterprise

Enterprise Centre, Industrial Estate,

MT-San Gwann SGN 09

Large individual aid grants

In conformity with Article 6 of the Regulation

N/A

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/21 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/21

---

Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 2204/2002 of 12 December 2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment

(2006/C 258/06)

(Text with EEA relevance)

| Aid No | XE 12/06 |
| --- | --- |
| Member State | France |
| Region | Limousin |
| Title of aid scheme | Aid for the recruitment of an operations deputy |
| Legal basis | — | Commission Regulation (EC) No 2204/2002 of 5 December 2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment |

Aid No

XE 12/06

Member State

France

Region

Limousin

Title of aid scheme

Aid for the recruitment of an operations deputy

Legal basis

—

Commission Regulation (EC) No 2204/2002 of 5 December 2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment

| — | Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) |
| --- | --- |

—

Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF)

| — | Code rural — Art. R.113-13 à R. 113-17 relatifs à la délimitation des zones agricoles défavorisées [l'ensemble du territoire Limousin est en zone défavorisée, à l'exception de la commune de Limoges] |
| --- | --- |

—

Code rural — Art. R.113-13 à R. 113-17 relatifs à la délimitation des zones agricoles défavorisées [l'ensemble du territoire Limousin est en zone défavorisée, à l'exception de la commune de Limoges]

Annual expenditure planned under the scheme

Annual overall amount

EUR 0,5 million

Loans guaranteed

Maximum aid intensity

In conformity with Articles 4(2)-(5), 5 and 6 of the Regulation

| — | 50 % of gross salaries and employers' social security contributions over 24 months, except in the municipality of Limoges, where the maximum rate is reduced to 15 % |
| --- | --- |

—

50 % of gross salaries and employers' social security contributions over 24 months, except in the municipality of Limoges, where the maximum rate is reduced to 15 %

Yes

Date of implementation

24.9.2004

Duration of scheme

Until 31.12.2010

Objective of aid

Art. 4 Creation of employment

Yes

Art. 5 Recruitment of disadvantaged and disabled workers

No

Art. 6 Employment of disabled workers

No

Economic sectors concerned

| — | All Community sectors (1) eligible for employment aid |
| --- | --- |

—

All Community sectors (1) eligible for employment aid

No

| — | All manufacturing (1) |
| --- | --- |

—

All manufacturing (1)

No

| — | All services (1) |
| --- | --- |

—

All services (1)

No

| — | Other: entire agricultural sector (activities related to the production, processing and marketing of products listed in Annex I), similar aid having already been granted under the 4th planning contract between the State and the Region 2000-06 for other areas of activity under FRAC scheme No 2/99 |
| --- | --- |

—

Other: entire agricultural sector (activities related to the production, processing and marketing of products listed in Annex I), similar aid having already been granted under the 4th planning contract between the State and the Region 2000-06 for other areas of activity under FRAC scheme No 2/99

Yes

Name and address of the granting authority

Conseil Régional du Limousin

| 27, Boulevard de la Corderie |
| --- |
| F-87031 Limoges Cedex |

27, Boulevard de la Corderie

F-87031 Limoges Cedex

Other information

If the scheme is co-financed by Community funds, please add the following sentence:

The aid scheme is co-financed by Community funds through the European Social Fund under the SPD for the Limousin Region — submeasure 2.3.3. ‘Support for getting started and for acquiring skills in the agricultural and forestry sectors’

Aid subject to prior notification to the Commission

In conformity with Article 9 of the Regulation

Yes

---

(1)  With the exception of the shipbuilding sector and any other sectors subject to special rules in regulations and directives governing total state aid within the sector.

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/23 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/23

---

Commission communication in the framework of the implementation of the Council Directive 88/378/EEC of 3 May 1988 on the approximation of the laws of the Member States concerning the safety of toys

(2006/C 258/07)

(Text with EEA relevance)

(Publication of titles and references of harmonised standards under the directive)

| ESO

   (1) | Reference and title of the harmonised standard
  (and reference document) | Reference of superseded standard | Date of cessation of presumption of conformity of superseded standard
  Note 1 |
| --- | --- | --- | --- |
| CEN | EN 71-1:1998 (2)
   (3)

  Safety of toys — Part 1: Mechanical and physical properties | EN 71-1:1998 | Date expired
  (31.1.2001) |
| EN 71-1:1998/A5:2000 | Note 3 | Date expired
  (31.5.2001) |
| EN 71-1:1998/A1:2001 | Note 3 | Date expired
  (31.7.2001) |
| EN 71-1:1998/A2:2002 | Note 3 | Date expired
  (31.8.2002) |
| EN 71-1:1998/A6:2002 | Note 3 | Date expired
  (30.9.2002) |
| EN 71-1:1998/A7:2002 | Note 3 | Date expired
  (30.11.2002) |
| EN 71-1:1998/A8:2003 (4) | Note 3 | Date expired
  (31.3.2004) |
| EN 71-1:1998/A4:2004 | Note 3 | Date expired
  31.12.2005 |
| EN 71-1:1998/A10:2004 | Note 3 | Date expired
  31.12.2005 |
| EN 71-1:1998/A11:2004 | Note 3 | Date expired
  31.12.2005 |
| CEN | EN 71-2:2006
  Safety of toys — Flammability | EN 71-2:2003 | Date expired
  31.7.2006 |
| EN 71-2:2006/AC:2006 | | |
| CEN | EN 71-3:1994
  Safety of toys — Part 3: Migration of certain elements | EN 71-3:1988 | Date Expired
  (30.6.1995) |
| EN 71-3:1994/A1:2000 | Note 3 | Date Expired
  (31.10.2000) |
| EN 71-3:1994/A1:2000/AC:2000 | | |
| EN 71-3:1994/AC:2002 | | |
| CEN | EN 71-4:1990
  Safety of toys — Part 4: Experimental sets for chemistry and related activities | — | |
| EN 71-4:1990/A1:1998 | Note 3 | Date Expired
  (31.10.1998) |
| EN 71-4:1990/A2:2003 | Note 3 | Date Expired
  (31.1.2004) |
| CEN | EN 71-5:1993
  Safety of toys — Part 5: Chemical toys (sets) other than experimental sets | — | |
| EN 71-5:1993/A1:2006 | Note 3 | Date expired
  31.7.2006 |
| CEN | EN 71-6:1994
  Safety of toys — Part 6: Graphical symbol for age warning labelling | — | |
| CEN | EN 71-7:2002
  Safety of toys — Part 7: Finger paints — Requirements and test methods | — | |
| CEN | EN 71-8:2003
  Safety of toys — Part 8: Swings, slides and similar activity toys for indoor and outdoor family domestic use | — | |
| EN 71-8:2003/A1:2006 | Note 3 | 30.11.2006 |

ESO

(1)

Reference and title of the harmonised standard

(and reference document)

Reference of superseded standard

Date of cessation of presumption of conformity of superseded standard

Note 1

CEN

EN 71-1:1998 (2)
   (3)

Safety of toys — Part 1: Mechanical and physical properties

EN 71-1:1998

Date expired

(31.1.2001)

EN 71-1:1998/A5:2000

Note 3

Date expired

(31.5.2001)

EN 71-1:1998/A1:2001

Note 3

Date expired

(31.7.2001)

EN 71-1:1998/A2:2002

Note 3

Date expired

(31.8.2002)

EN 71-1:1998/A6:2002

Note 3

Date expired

(30.9.2002)

EN 71-1:1998/A7:2002

Note 3

Date expired

(30.11.2002)

EN 71-1:1998/A8:2003 (4)

Note 3

Date expired

(31.3.2004)

EN 71-1:1998/A4:2004

Note 3

Date expired

31.12.2005

EN 71-1:1998/A10:2004

Note 3

Date expired

31.12.2005

EN 71-1:1998/A11:2004

Note 3

Date expired

31.12.2005

CEN

EN 71-2:2006

Safety of toys — Flammability

EN 71-2:2003

Date expired

31.7.2006

EN 71-2:2006/AC:2006

CEN

EN 71-3:1994

Safety of toys — Part 3: Migration of certain elements

EN 71-3:1988

Date Expired

(30.6.1995)

EN 71-3:1994/A1:2000

Note 3

Date Expired

(31.10.2000)

EN 71-3:1994/A1:2000/AC:2000

EN 71-3:1994/AC:2002

CEN

EN 71-4:1990

Safety of toys — Part 4: Experimental sets for chemistry and related activities

—

EN 71-4:1990/A1:1998

Note 3

Date Expired

(31.10.1998)

EN 71-4:1990/A2:2003

Note 3

Date Expired

(31.1.2004)

CEN

EN 71-5:1993

Safety of toys — Part 5: Chemical toys (sets) other than experimental sets

—

EN 71-5:1993/A1:2006

Note 3

Date expired

31.7.2006

CEN

EN 71-6:1994

Safety of toys — Part 6: Graphical symbol for age warning labelling

—

CEN

EN 71-7:2002

Safety of toys — Part 7: Finger paints — Requirements and test methods

—

CEN

EN 71-8:2003

Safety of toys — Part 8: Swings, slides and similar activity toys for indoor and outdoor family domestic use

—

EN 71-8:2003/A1:2006

Note 3

30.11.2006

| Note 1 | Generally the date of cessation of presumption of conformity will be the date of withdrawal (‘dow’), set by the European Standardisation Organisation, but attention of users of these standards is drawn to the fact that in certain exceptional cases this can be otherwise. |
| --- | --- |

Note 1

Generally the date of cessation of presumption of conformity will be the date of withdrawal (‘dow’), set by the European Standardisation Organisation, but attention of users of these standards is drawn to the fact that in certain exceptional cases this can be otherwise.

| Note 3 | In case of amendments, the referenced standard is EN CCCCC:YYYY, its previous amendments, if any, and the new, quoted amendment. The superseded standard (column 3) therefore consists of EN CCCCC:YYYY and its previous amendments, if any, but without the new quoted amendment. On the date stated, the superseded standard ceases to give presumption of conformity with the essential requirements of the directive. |
| --- | --- |

Note 3

In case of amendments, the referenced standard is EN CCCCC:YYYY, its previous amendments, if any, and the new, quoted amendment. The superseded standard (column 3) therefore consists of EN CCCCC:YYYY and its previous amendments, if any, but without the new quoted amendment. On the date stated, the superseded standard ceases to give presumption of conformity with the essential requirements of the directive.

Note:

| — | Any information concerning the availability of the standards can be obtained either from the European Standardisation Organisations or from the national standardisation bodies of which the list is annexed to the Directive 98/34/EC (5) of the European Parliament and Council amended by the Directive 98/48/EC (6). |
| --- | --- |

—

Any information concerning the availability of the standards can be obtained either from the European Standardisation Organisations or from the national standardisation bodies of which the list is annexed to the Directive 98/34/EC (5) of the European Parliament and Council amended by the Directive 98/48/EC (6).

| — | Publication of the references in the Official Journal of the European Union does not imply that the standards are available in all the Community languages. |
| --- | --- |

—

Publication of the references in the Official Journal of the European Union does not imply that the standards are available in all the Community languages.

More information about harmonised standards on the Internet at

http://europa.eu.int/comm/enterprise/newapproach/standardization/harmstds/

---

(1)  ESO: European Standardisation Organisation:

| — | CEN: rue de Stassart 36, B-1050 Brussels, Tel.(32-2) 550 08 11; fax (32-2) 550 08 19 (http://www.cenorm.be) |
| --- | --- |

—

CEN: rue de Stassart 36, B-1050 Brussels, Tel.(32-2) 550 08 11; fax (32-2) 550 08 19 (http://www.cenorm.be)

| — | CENELEC: rue de Stassart 35, B-1050 Brussels, Tel.(32-2) 519 68 71; fax (32-2) 519 69 19 (http://www.cenelec.org) |
| --- | --- |

—

CENELEC: rue de Stassart 35, B-1050 Brussels, Tel.(32-2) 519 68 71; fax (32-2) 519 69 19 (http://www.cenelec.org)

| — | ETSI: 650, route des Lucioles, F-06921 Sophia Antipolis, Tel.(33) 492 94 42 00; fax (33) 493 65 47 16 (http://www.etsi.org) |
| --- | --- |

—

ETSI: 650, route des Lucioles, F-06921 Sophia Antipolis, Tel.(33) 492 94 42 00; fax (33) 493 65 47 16 (http://www.etsi.org)

(2)

Notice: In accordance with the Commission Decision of 30 July 2001 (OJ L 205, 31.7.2001, p.39), Clause 4.20(d) of EN 71-1:1998, concerning the C-weighted peak emission sound pressure level produced by a toy using percussion caps, grants presumption of conformity only as from 1 August 2001.

(3)

Notice: In accordance with the Commission Decision of 9 March 2005 (OJ L 63, 10.3.2005, p.27), Clause 4.6 of standards EN 71-1:1998 and Clause 8.14 thereof, in so far as it relates to the 24-hour period during which a toy must be submerged in a container, do not cover all the risks presented by toys and component parts of toys made of expanding materials. The standard does not give a presumption of conformity in that respect.

(4)

Notice: The standard EN 71-1:1998/A8:2003 only addresses the risks caused by ‘small balls’ (as defined in the standard as ‘spherical ovoid, or ellipsoidal object’) that are designed or intended to be thrown, hit, kicked, rolled, dropped or bounced. Toys containing small balls which are not covered by the standard shall undergo an EC type-examination certificate before placed on the market.

(5)  OJ L 204, 21.7.1998, p. 37.

(6)  OJ L 217, 5.8.1998, p. 18.

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/25 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/25

---

Prior notification of a concentration

(Case COMP/M.4314 — Johnson & Johnson/Pfizer Consumer Healthcare)

(2006/C 258/08)

(Text with EEA relevance)

| 1. | On 19 October 2006, the Commission received notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertaking Johnson & Johnson (‘J&J’, USA), acquires within the meaning of Article 3(1)(b) of the Council Regulation control of part of the undertaking Pfizer Inc. (‘Pfizer’, USA), namely Pfizer's entire consumer healthcare division, Pfizer Consumer Health Care (‘PCH’, USA), by way of purchase of shares and assets. |
| --- | --- |

1.

On 19 October 2006, the Commission received notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertaking Johnson & Johnson (‘J&J’, USA), acquires within the meaning of Article 3(1)(b) of the Council Regulation control of part of the undertaking Pfizer Inc. (‘Pfizer’, USA), namely Pfizer's entire consumer healthcare division, Pfizer Consumer Health Care (‘PCH’, USA), by way of purchase of shares and assets.

| 2. | The business activities of the undertakings concerned are:






  — | for Johnson & Johnson: consumer care products, pharmaceuticals, medical devices and diagnostics; |
| --- | --- | --- |

2.

The business activities of the undertakings concerned are:

—

for Johnson & Johnson: consumer care products, pharmaceuticals, medical devices and diagnostics;

| — | for Pfizer Consumer Healthcare: personal care and over-the-counter pharmaceutical products. |
| --- | --- |

—

for Pfizer Consumer Healthcare: personal care and over-the-counter pharmaceutical products.

| 3. | On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved. |
| --- | --- |

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved.

| 4. | The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.
  Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (fax No (32-2) 296 43 01 or 296 72 44) or by post, under reference number COMP/M.4314 — Johnson & Johnson/Pfizer Consumer Healthcare, to the following address:





  European Commission |
| --- | --- |
| Directorate-General for Competition |
| Merger Registry |
| J-70 |
| B-1049 Bruxelles/Brussel |

4.

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (fax No (32-2) 296 43 01 or 296 72 44) or by post, under reference number COMP/M.4314 — Johnson & Johnson/Pfizer Consumer Healthcare, to the following address:

European Commission

Directorate-General for Competition

Merger Registry

J-70

B-1049 Bruxelles/Brussel

---

(1)  OJ L 24, 29.1.2004, p. 1.

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/26 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/26

---

Non-opposition to a notified concentration

(Case COMP/M.4405 — Walter Frey Holding/Mitsubishi Motors Europe)

(2006/C 258/09)

(Text with EEA relevance)

On 17 October 2006, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in German and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32006M4405. EUR-Lex is the on-line access to European law. (http://ec.europa.eu/eur-lex/lex) |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32006M4405. EUR-Lex is the on-line access to European law. (http://ec.europa.eu/eur-lex/lex)

---

| 26.10.2006 | EN | Official Journal of the European Union | C 258/26 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/26

---

Non-opposition to a notified concentration

(Case COMP/M.4294 — Arcelor/SNCFL/CFL Cargo)

(2006/C 258/10)

(Text with EEA relevance)

On 9 October 2006, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in French and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32006M4294. EUR-Lex is the on-line access to European law. (http://ec.europa.eu/eur-lex/lex) |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32006M4294. EUR-Lex is the on-line access to European law. (http://ec.europa.eu/eur-lex/lex)

---

EUROPEAN ECONOMIC AREA

EFTA Court

| 26.10.2006 | EN | Official Journal of the European Union | C 258/27 |
| --- | --- | --- | --- |

26.10.2006

EN

Official Journal of the European Union

C 258/27

---

Action brought on 31 July 2006 by the EFTA Surveillance Authority against the Kingdom of Norway

(Case E-2/06)

(2006/C 258/11)

An action against the Kingdom of Norway was brought before the EFTA Court on 31 July 2006 by the EFTA Surveillance Authority, represented by Niels Fenger, acting as Agent of the EFTA Surveillance Authority, 35, Rue Belliard, B-1040 Brussels.

The applicant claims that the Court should:

| 1. | Declare that the Kingdom of Norway, by maintaining in force measures, as laid down in Act 16 of 14 December 1917, which grant a time limited concession on the acquisition of waterfalls for energy production to private and all undertakings from other Contracting Parties to the EEA Agreement and require them to give all installations to the Norwegian State without compensation, at the expiry of the concession, to the exclusion of Norwegian public undertakings which benefit from concessions for an unlimited period of time, Norway has infringed Articles 31 and 40 of the EEA Agreement.
  and |
| --- | --- |

1.

Declare that the Kingdom of Norway, by maintaining in force measures, as laid down in Act 16 of 14 December 1917, which grant a time limited concession on the acquisition of waterfalls for energy production to private and all undertakings from other Contracting Parties to the EEA Agreement and require them to give all installations to the Norwegian State without compensation, at the expiry of the concession, to the exclusion of Norwegian public undertakings which benefit from concessions for an unlimited period of time, Norway has infringed Articles 31 and 40 of the EEA Agreement.

and

| 2. | Order the Kingdom of Norway to bear the costs of the proceedings. |
| --- | --- |

2.

Order the Kingdom of Norway to bear the costs of the proceedings.

Legal and factual background and pleas in law adduced in support:

| — | The case concerns transfer of property rights to hydroelectric power plants to the Norwegian State without compensation at the expiry of the concession period. This transfer is referred to in Norwegian law as ‘reversion’ (‘hjemfall’ in Norwegian), even if the State never held any property rights to the waterfall or hydroelectric installation in the past. |
| --- | --- |

—

The case concerns transfer of property rights to hydroelectric power plants to the Norwegian State without compensation at the expiry of the concession period. This transfer is referred to in Norwegian law as ‘reversion’ (‘hjemfall’ in Norwegian), even if the State never held any property rights to the waterfall or hydroelectric installation in the past.

| — | Under Act No 16 of 14 December 1917 (the ‘Industrial Licensing Act’), the duration of a concession to use waterfalls and hydroelectric installations is unlimited to companies owned at least 2/3 by the Norwegian State, county municipalities or municipalities, but is limited to all others, including all companies in which owners from other EEA States, alone or together with Norwegian private owners, hold more than 1/3 of the share capital. |
| --- | --- |

—

Under Act No 16 of 14 December 1917 (the ‘Industrial Licensing Act’), the duration of a concession to use waterfalls and hydroelectric installations is unlimited to companies owned at least 2/3 by the Norwegian State, county municipalities or municipalities, but is limited to all others, including all companies in which owners from other EEA States, alone or together with Norwegian private owners, hold more than 1/3 of the share capital.

| — | The consequence is that reversion only applies to the latter category. |
| --- | --- |

—

The consequence is that reversion only applies to the latter category.

| — | This, according to the EFTA Surveillance Authority, means that reversion as it now operates discriminates against owners from other EEA States, which is an infringement of Articles 31 and 41 of the EEA Agreement. |
| --- | --- |

—

This, according to the EFTA Surveillance Authority, means that reversion as it now operates discriminates against owners from other EEA States, which is an infringement of Articles 31 and 41 of the EEA Agreement.

| — | The EFTA Surveillance Authority pleads that this difference in treatment is not objectively justified, nor falling within the ambit of Article 125 of the EEA Agreement. |
| --- | --- |

—

The EFTA Surveillance Authority pleads that this difference in treatment is not objectively justified, nor falling within the ambit of Article 125 of the EEA Agreement.

---

EFTA Surveillance Authority

| 26.10.2006 | EN EN | Official Journal of the European Union | C 258/28 |
| --- | --- | --- | --- |

26.10.2006

EN EN

Official Journal of the European Union

C 258/28

---

Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on a newly proposed scheme in Norway on the grant of financial support to unpaid labour in research and development activities, the ‘Unpaid R&D Labour Scheme’

(2006/C 258/12)

By means of Decision No 59/06/COL of 8 March 2006, reproduced in the authentic language on the pages following this summary, the EFTA Surveillance Authority initiated proceedings pursuant to Article 1(2) in Part I of Protocol 3 of the Agreement between the EFTA States on the establishment of a Surveillance Authority and a Court of Justice (Surveillance and Court Agreement). The Norwegian authorities have been informed by means of a copy of the decision.

The EFTA Surveillance Authority hereby gives the EFTA States, EU Member States and interested parties notice to submit their comments on the measure in question within one month from the publication of this notice to:

| EFTA Surveillance Authority |
| --- |
| 35, Rue Belliard |
| B-1040 Brussels |
| Registry fax: (32-2) 286 18 00 |

EFTA Surveillance Authority

35, Rue Belliard

B-1040 Brussels

Registry fax: (32-2) 286 18 00

The comments will be communicated to the Norwegian authorities. Confidential treatment of the identity of the interested party submitting the comments may be requested in writing, stating the reasons for the request.

SUMMARY

The Authority has decided to open the formal investigation procedure in respect of a newly proposed scheme by the Norwegian authorities to provide grants to support unpaid labour in research and development activities (the ‘Unpaid R&D Labour Scheme’) with the underlying objective of stimulating increased investments in research and development activities by small companies, such as entrepreneur and one-man enterprises.

The Unpaid R&D Labour Scheme was proposed because the Norwegian authorities considered that unpaid labour in research and development activities could not be supported under the existing ‘Skattefunn Scheme’ (approved by the Authority in its Decision No 171/02/COL of 25 September 2002 and Decision No 16/03/COL of 5 February 2003). Under the Skattefunn Scheme aid is granted in the form of a tax deduction. However, the Norwegian authorities considered it incompatible with general tax legislation in Norway to deduct, in the taxable amount, an amount which is based on unpaid labour costs which have not been incurred nor paid in reality.

The Authority has assessed the Unpaid R&D Labour Scheme under the State Aid Guidelines on research and development. The Authority has taken the preliminary view that the aid awarded under the Unpaid R&D Labour Scheme is not an evident incentive to carry out research and development activities. In this respect the Authority considers that the unpaid research and development activities would be carried out even without the aid because the individuals carrying out unpaid labour were apparently prepared to undertake the relevant work without pay in any event. The aid appears therefore not to be necessary in order to achieve the aim of having the relevant research and development activities carried out. Moreover, the Authority considers that the cost of unpaid labour do not qualify as eligible costs within the meaning of the State Aid Guidelines on research and development.

The Norwegian authorities have further explained that many companies have been in charge of projects that were approved under the Skattefunn Scheme but that certain of these companies were subsequently prevented from receiving the tax deduction (or had to pay an amount corresponding to an already received tax deduction) due to the fact that unpaid labour was involved. The Norwegian authorities therefore introduced a scheme for purposes of compensating companies for financial losses caused to their research and development projects during the years between 2002-2004 as a result of the fact that unpaid labour could not be covered by the Skattefunn Scheme.

The compensation to be paid out for the above stated purpose will be paid out as de minimis aid and if the total amount of de minimis aid to an applicant exceeds Euro 100,000 during a period of three years the compensation will be reduced. Moreover, applicants must submit a complete overview of all de minimis aid the applicant has received as of 1 January 2003. The Authority has therefore taken the preliminary view that the Compensation Scheme falls under the de minimis threshold in the ‘de minimis Regulation’. (1)

---

(1)  Commission Regulation (EC) No 69/2001 on the application of Articles 87 and 88 of the EC Treaty to de minimis aid (OJ L 10, 13.1.2001, p. 30), incorporated into Annex XV in Section 1(e) to the EEA Agreement by means of Joint Committee Decision No. 88/2002 (OJ L 266, 3.10.2002, p. 56 and EEA Supplement No. 49, 3.10.2002, p. 42).

---

EFTA SURVEILLANCE AUTHORITY DECISION

No 59/06/COL

of 8 March 2006

to initiate the procedure provided for in Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement with regard to financial support to unpaid labour in research and development activities

(NORWAY)

THE EFTA SURVEILLANCE AUTHORITY,

Having regard to the Agreement on the European Economic Area (1), in particular to Articles 61 to 63 and Protocol 26 thereof,

Having regard to the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice (2), in particular to Article 24 thereof and Article 1(2) in Part I of Protocol 3 thereof,

Having regard to the Authority's Guidelines (3) on the application and interpretation of Articles 61 and 62 of the EEA Agreement, and in particular Chapter 14 thereof on aid for research and development,

Whereas:

I.   FACTS

1.   Procedure

By letter dated 14 October 2005 from the Norwegian Mission to the European Union, forwarding a letter from the Norwegian Ministry of Trade and Industry, dated 5 October 2005, both received and registered by the Authority on 17 October 2005 (Event no: 346675), the Norwegian authorities notified, pursuant to Article 1(3) in Part I of Protocol 3 to the Surveillance and Court Agreement, a proposal for a new scheme for State aid to support unpaid labour in research and development activities. The newly proposed scheme is referred to in the following as the ‘Unpaid R&D Labour Scheme’.

By letter dated 27 October 2005 (Event no: 348209), the Authority acknowledged receipt of the notification.

By letter dated 13 December 2005 the Authority requested additional information according to Article 5(1) in Part II of Protocol 3 to the Surveillance and Court Agreement (Event no: 348961). The Norwegian authorities responded by letter dated 10 January 2006, enclosed in a letter from the Norwegian Mission to the European Union, dated 13 January 2006, both received and registered by the Authority on 16 January 2006 (Event no: 358121).

2.   Description of the proposed measures

2.1.   The objective, legal basis and function of the Unpaid R&D Labour Scheme

It appears from legislative preparatory works that the overall objective of the Unpaid R&D Labour Scheme is to stimulate increased investments in research and development activities, particularly by small companies, such as entrepreneur and one-man enterprises (4). More specifically, the objective of the new scheme is to stimulate efforts by individuals in research and development oriented companies which, in the start-up phase, often are dependent on work resources that cannot be paid for. Research and development oriented companies are considered by the Norwegian authorities to be important for purposes of value creation derived from research as well as for innovation.

On a more detailed level, the Norwegian authorities have explained that the introduction of the Unpaid R&D Labour Scheme was motivated by the fact that under the existing ‘Skattefunn Scheme’ (5), it is not possible to support unpaid labour in research and development activities undertaken by entrepreneur and one-man enterprises due to the fact that the Skattefunn Scheme is a tax deduction scheme (6). In this respect the authorities have explained that under the Skattefunn Scheme aid is granted to research and development activities in the form of a tax deduction (or tax credit) whereby an amount, corresponding to a percentage of the eligible costs, is deducted from the amount due in tax by the company. However, the Norwegian authorities considered that it would not be in compliance with general tax legislation to deduct, in the amount to be paid in tax, an amount which is not based on actual eligible costs but rather on unpaid labour ‘costs’ which have not been incurred in reality. On this basis it was considered that unpaid labour costs could not qualify as eligible costs under the Skattefunn Scheme.

It is against this background that the Norwegian authorities proposed the establishment of a new Unpaid R&D Labour Scheme under which financial support is to be awarded to unpaid labour in research and development activities in the form of grants which are exempt from tax. As such the Norwegian authorities consider the Unpaid R&D Labour Scheme as a mere correction or supplement to the existing Skattefunn Scheme.

The Norwegian authorities have further explained that many companies have been in charge of projects that were approved under the Skattefunn Scheme but that some of these companies were subsequently prevented from receiving the tax deduction (or had to pay an amount corresponding to an already received tax deduction) due to the fact that unpaid labour was involved. As a result the profitability of entrepreneurs and one-man enterprises has been affected negatively. It is against this background that the Norwegian authorities adopted a decision to introduce a compensation scheme (the ‘Compensation Scheme’) for purposes of compensating companies for financial losses caused to their research and development projects during the years between 2002-2004 as a result of the fact that unpaid labour could not be covered by the Skattefunn Scheme (7). However, the Norwegian authorities consider that the Compensation Scheme does not form part of the notification in the present case as it falls under the de minimis threshold in the ‘de minimis Regulation’ (8).

In a proposition on the fiscal budget from the Norwegian Government to the Norwegian Parliament (9), which was followed up by a Recommendation from a Parliamentary Committee to the Parliament (10), the Government proposed to grant a budget of a total amount of NOK 70 million for the establishment of the Unpaid R&D Labour Scheme as well as the Compensation Scheme. The budget was approved by the Parliament on 17 June 2005.

In parallel, the Government presented a proposal to the Parliament in order to amend the Norwegian Act on Taxation of wealth and income for purposes of introducing provisions on tax treatment and ceilings in respect of the grants to be awarded under the Unpaid R&D Labour Scheme (hereinafter referred to as the ‘Tax law on the Unpaid R&D Labour Scheme’) (11). The proposal was furthered in a Recommendation from the Finance Committee in the Parliament (12). On 17 June 2005 the Norwegian Parliament adopted the Tax law on the Unpaid R&D Labour Scheme (13).

Aside from the adoption of the budget and the Tax law on the Unpaid R&D Labour Scheme, the measure intended to govern the new scheme in practice consists of draft guidelines on the implementation of the Unpaid R&D Labour Scheme (hereinafter referred to as the ‘Guidelines on the Unpaid R&D Labour Scheme’).

Finally, as regards the Compensation Scheme, the Norwegian authorities have proposed a Royal Decree on the implementation of the Compensation Scheme as well as the authorities' plan to prepare and issue draft Guidelines on the functioning of the Compensation Scheme (14).

It appears from the Guidelines on the Unpaid R&D Labour Scheme that eligible projects must involve research and development activities performed by individuals who are not receiving any pay or other compensation for their labour. Individuals who receive payment by means of other public sources are not covered (15).

As regards the type of the projects covered by the scheme, it appears moreover from the Guidelines on the Unpaid R&D Labour Scheme that eligible projects must be aimed (but also limited to) providing new information, knowledge or experience that is presumed to be of use to the enterprise in connection with the development of new or better products, services or production methods. Moreover, activities where results from industrial research are transferred into a plan, a project or a design for new enhanced products, services or production processes, and the development of a first prototype or pilot project that cannot be commercially exploited are also eligible activities under the Unpaid R&D Labour Scheme (16). The Norwegian authorities have stated that this definition of eligible research and development projects is identical to the definition of eligible research and development projects under the existing Skattefunn Scheme. In fact, in practice the Norwegian authorities refer to eligible projects under the Unpaid R&D Labour Scheme as projects which meet the ‘Skattefunn criteria’ or have been approved under the Skattefunn Scheme (17).

The Unpaid R&D Labour Scheme is administered and implemented by ‘Norges forskningsråd’. The latter body is also the secretariat and the administering body, assessing whether projects are eligible under the Skattefunn scheme (18). The Norwegian authorities have explained that the fact that the definition of eligible research and development activities are defined in the same manner under both the Skattefunn Scheme and the Unpaid R&D Labour Scheme, and that the administering body, assessing whether the projects qualify as eligible, is the same under both schemes, means that for purposes of implementation the two schemes are also closely coordinated. In this regard applicants applying for support to eligible research and development activities must complete one single application form only in which the applicant has had the option to tick off whether support is sought for paid or unpaid labour in the relevant research and development activities (19). Moreover, financial support to be granted under the Unpaid R&D Labour Scheme will be taken into account when applicants also request support under the Skattefunn Scheme and is also limited by the maximum limit for support under the latter scheme (20). In fact, according to the Norwegian authorities the only difference between the two schemes is the type of eligible costs (i.e., paid as opposed to unpaid labour) and the form in which support is granted (i.e., a tax deduction as opposed to a grant).

2.2.   Recipients

The Norwegian authorities have explained that the Unpaid R&D Labour Scheme is open to all tax payers with tax liability in Norway, including all enterprises, irrespectively of their size and sector (21). Recipients may include undertakings jointly participating in a co-operation project (22).

The Norwegian authorities have explained that the reason that the Unpaid R&D Labour Scheme includes medium-sized and large companies is to keep it in conformity with the conditions of the Skattefunn Scheme (which is open to all enterprises regardless of size) (23). However, the Norwegian authorities have also made it clear that, in practice, the Unpaid R&D Labour Scheme is intended to target only entrepreneur firms and one-man enterprises: ‘Even if the scheme includes enterprises of all sizes, the very nature of the scheme (support for unpaid labour) implies that the incentive effect will be most significant for entrepreneur-firms and one-man enterprises.’
   (24) In the same vein the authorities have stated that the Unpaid R&D Labour Scheme is ‘...primarily targeting newly established technology-based companies with no ability to pay salaries to the individuals performing the R&D activity.’ and ‘As the Unpaid R&D Labour Scheme shall give support to unpaid labour performed by R&D personnel not receiving salary or other compensation for the labour, the scheme will not be relevant for ordinary medium-sized and large companies.’
   (25)

On this basis the Norwegian authorities have stated that ‘Companies with an annual turnover or an annual balance sheet total corresponding to the ESA definition of medium-sized companies will in practise not receive support for unpaid labour.’ The reason for this is that, according to the Norwegian authorities, ‘Larger companies generally use employed and paid R&D personnel to perform the actual R&D activity in a Skattefunn-project.’ and ‘The costs of paying these employees will be eligible for tax-refund in the Skattefunn Scheme, and such companies will therefore neither have need nor basis for applying for subsidy from the Unpaid R&D Labour Scheme.’ (26)

Finally, the Norwegian authorities point out that the maximum limit for support to an eligible project is the same both in case support is granted exclusively in the form of a tax deduction under the Skattefunn Scheme or by a combination of a tax deduction and a grant under the Unpaid R&D Labour Scheme. There is therefore no incentive for large companies to obtain support from both schemes. By contrast, research and development activities performed by companies which only rely on unpaid labour will not be eligible for support under the Skattefunn Scheme.

2.3.   Eligible costs and aid intensity

Under the Unpaid R&D Labour Scheme, eligible expenditure consists of the unpaid labour costs in an eligible project (27). In terms of identifying the appropriate wage rate(s) for the unpaid labour, the Norwegian authorities have explained that as formal qualifications of an individual are not always reflected in the ability to carry out research and development projects, it was difficult to identify separate wage rates which correspond to relevant education, experience and field of work. It was therefore decided to use one common rate for the calculation of support under the Unpaid R&D Labour Scheme.

The hourly rate is based on 1,6 ‰ of the nominal annual industrial worker salary which for the year of 2005 results in an hourly rate of NOK 550. However, as a mark-up for social and overhead/administrative costs for purposes of unpaid labour costs was considered exaggerated, it was decided to use one common hourly rate of NOK 500 for unpaid labour performed in 2005 (28). The hourly rate of NOK 500 may be subject to adjustment by the Ministry of Trade and Industry on the basis of general wage developments.

As regards a ceiling on the eligible costs, it appears from the Guidelines on the Unpaid R&D Labour Scheme that the unpaid labour costs eligible for financial support is subject to a fixed ceiling of NOK 2 million annually per undertaking (29).

Finally, as regards control measures, the unpaid labour and the rest of the project costs must be certified by an accountant (30). The Norwegian authorities have explained that as there is no evidence of reported hours in unpaid labour, companies are required to record the date, tasks, number of hours spent and the name of the relevant individual. In projects with more than one individual, the records must be signed both by the individual having carried out the unpaid labour and the individual responsible for the project. The reported number of hours may be reduced if it is deemed to be out of proportion of what may be considered as ‘normal’ in comparable projects.

The Guidelines on the Unpaid R&D Labour Scheme provide that grants awarded under the Unpaid R&D Labour Scheme are subject to the thresholds set out in Section 16-40 of the Norwegian Act on Taxation of wealth and income (31). The latter provision is the basis for the Skattefunn Scheme and provides that eligible projects may be supported with aid intensities of up to 18 % or alternatively 20 % in the case of small and medium-sized enterprises ‘SMEs’ (that is, the support may amount to 18 % or 20 % of eligible costs).

The Norwegian authorities first stated that this means that the net aid intensities under the Unpaid R&D Labour Scheme are 18 % and 20 % (for SMEs) which correspond to gross aid intensities of respectively 25 % and 27,8 % (for SMEs) (32). However, the authorities have subsequently explained and confirmed that since the support under the Unpaid R&D Labour Scheme is paid in the form of a grant, 18 % and 20 % (for SMEs) constitute gross aid intensities (33). The grants are exempt from corporate tax, the rate of which is currently 28 %. Finally, the Norwegian authorities have confirmed that in view of the fact that the ceiling for eligible unpaid labour costs is NOK 2 million, and that the aid intensities are 18 % and 20 % (for SMEs), the aid ceilings in absolute figures are NOK 360 000 and NOK 400 000 (for SMEs) on an annual basis (34).

The grants awarded under the Unpaid R&D Labour Scheme are considered in conjunction with aid received under the Skattefunn Scheme. In this respect it appears from the proposed and adopted Tax law on the Unpaid R&D Labour Scheme (35) that if, in an eligible project, it can be concluded that the total amount of the tax deduction (under the Skattefunn Scheme) and the grant (under the R&D Labour Scheme) exceeds the limits set forth in the Skattefunn scheme, the tax deduction will be diminished. The Norwegian authorities have explained that under the Skattefunn Scheme the total amount of support may not exceed 18 % or 20 % (for SMEs) of eligible costs, and the eligible costs may not be in excess of NOK 4 million. The Norwegian authorities have also clarified that these limits are, however, without prejudice to the fact that the costs of unpaid labour must still be within the abovementioned ceiling of NOK 2 million. Finally the authorities have explained that in case grants under the Unpaid R&D Labour Scheme and public support from sources, other than the Skattefunn Scheme, are the cause of exceeding the limit for total support, a reduction in the support granted under the Unpaid R&D Labour Scheme will be made.

2.4.   De minimis

As stated above, the Norwegian authorities consider that the Compensation Scheme does not form part of the notification as it falls under the de minimis threshold under the ‘de minimis Regulation’ (36).

Section 6 of the Royal Decree on the Compensation Scheme provides that the compensation will be calculated on the basis of an hourly rate of NOK 500 and that it must constitute 18 % or 20 % (for SMEs) of the costs for unpaid labour in eligible projects. The total amount of eligible costs may not exceed NOK 4 million in the relevant financial year where research and development is carried out by the undertaking itself or NOK 8 million in case of research and development activities carried out by research institutions (37).

The Norwegian authorities have stated that Article 3(1) of the de minimis Regulation has been complied with by virtue of a reference to the de minimis character of the compensation in Section 8 of the Royal Decree on the Compensation Scheme. The latter provision provides that compensation will be paid out as de minimis aid in accordance with the ‘de minimis Regulation’; and that if the total amount of de minimis aid to the applicant exceeds Euro 100 000 during a period of three years, the compensation will be reduced. Applicants which cannot receive de minimis aid cannot claim to be entitled to receive compensation under the Royal Decree on the Compensation Scheme (38).

Applicants requesting compensation must submit an overview of the total amount of all tax deductions received under the Skattefunn Scheme during the years for which compensation is sought as well as a complete overview of all de minimis aid received by the applicant as of 1 January 2003 (39). Applicants must request compensation within six weeks of the publication of the Royal Decree on the Compensation Scheme (40). The compensation will be paid out in the form of lump sums during 2006.

2.5.   Budget and duration

It appears from legislative preparatory works on the fiscal budget that out of a total amount of NOK 70 million, financed by the Ministry of Trade and Industry for 2005, NOK 60 million is the budget for the Unpaid R&D Labour Scheme (of which NOK 5 million is for administration costs) while NOK 10 million is the budget for the Compensation Scheme (41).

The Unpaid R&D Labour Scheme is not limited in time. In this respect the Norwegian authorities have stated that as the objective of the Unpaid R&D Labour Scheme is to stimulate unpaid research and development activities to the same extent as paid research and development activities are stimulated under the Skattefunn Scheme, the time frame for the Unpaid R&D Labour Scheme must be the same as that for the Skattefunn Scheme. In this respect it appears from the Authority's approval of amendments to the Skattefunn Scheme that the Skattefunn Scheme is not limited in time (42). However, just as under the Skattefunn Scheme, the continuation of the Unpaid R&D Labour Scheme is dependent on the approval of an annual budget each year (43).

II.   APPRECIATION

1.   Procedural requirements

Pursuant to Article 1(3) in Part I of Protocol 3 to the Surveillance and Court Agreement, ‘the EFTA Surveillance Authority shall be informed, in sufficient time to enable it to submit its comments, of any plans to grant or alter aid. [...]. The State concerned shall not put its proposed measures into effect until the procedure has resulted in a final decision’.

By means of a letter dated 5 October 2005, the Norwegian authorities have submitted a notification for purposes of introducing the Unpaid R&D Labour Scheme under which financial support may be granted to unpaid labour in research and development activities.

As regards the entry into force of the Unpaid R&D Labour Scheme, it appears from legislative preparatory works (on the budget) that entry into force of the scheme is dependent on what would be determined in the context of adopting the Tax law on the Unpaid R&D Labour Scheme (44). The Norwegian authorities therefore consider the Tax law on the Unpaid R&D Labour Scheme as the legal measure determining when the Unpaid R&D Labour Scheme enters into force. It appears from the adopted Tax law on the Unpaid R&D Labour Scheme that the Ministry of Finance decides when the law enters into force. It appears, moreover, from the relevant preparatory legislative works that this provision is based on the prerequisite that the Unpaid R&D Labour Scheme must be notified to, and approved by, the Authority before entering into force (45). Subject to approval by the Authority the original objective was to have the scheme enter into force during the autumn of 2005 (46).

In these circumstances — where the power of the Ministry of Finance to command the entry into force of the Unpaid R&D Labour Scheme is subject to the condition of obtaining a prior approval by the Authority — the Authority considers that the Norwegian authorities have respected its notification requirement pursuant to Article 1(3) in Part I of Protocol 3 to the Surveillance and Court Agreement.

2.   The presence of State aid

2.1.   State aid within the meaning of Article 61(1) of the EEA Agreement

Article 61(1) of the EEA Agreement reads as follows:

‘Save as otherwise provided in this Agreement, any aid granted by EC Member States, EFTA States or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Contracting Parties, be incompatible with the functioning of this Agreement.’

To be termed aid, within the meaning of Article 61(1) of the EEA Agreement a measure must meet the following four cumulative criteria: The measure must (i) confer on recipients an economic advantage which is not received in the normal course of business; (ii) the advantage must be granted by the State or through State resources and must (iii) be selective by favouring certain undertakings or the production of certain goods; and (iv) distort competition and affect trade between Contracting Parties. In the following it is examined whether the four cumulative criteria are met in the present case.

2.2.   Economic advantage

The measure must confer on recipients an economic advantage which is not received in the normal course of business.

Under the Unpaid R&D Labour Scheme the Norwegian authorities will award financial grants to tax payers, including all enterprises. The recipients of such grants therefore receive an economic advantage, i.e., a grant, which they would not have received in their normal course of business.

Moreover, recipients of grants are exempted from paying corporate tax on the grants. The tax exemption relieves recipients from a charge that is normally borne out of their budgets and they therefore receive one further economic advantage in addition to the grant.

2.3.   Presence of State resources

The measure must be granted by the State or through State resources.

The grants awarded under the Unpaid R&D Labour Scheme are financed by the Ministry of Trade and Industry and are therefore financed by the State.

Moreover, with respect to the exemption of grants from corporate tax, a tax exemption means that the State foregoes tax revenue and a loss of tax revenue is equivalent to consumption of State resources in the form of fiscal expenditure (47).

47

2.4.   Favouring certain undertakings or the production of certain goods

The measure must be selective in that it favours ‘certain undertakings or the production of certain goods’.

‘certain undertakings or the production of certain goods’.

In its decision (16/03/COL) of 5 February 2003 in which the Authority assessed a notified amendment to the Skattefunn Scheme for purposes of extending the scheme to be open to all undertakings, irrespective of their size and sector, the Authority considered that the bodies administering and implementing the Skattefunn Scheme (i.e., ‘Statens nærings- og distriktsutviklingsfond’ and‘Norges forskningsråd’), enjoyed discretionary powers for purposes of assessing the research character of the projects and the incentive effect of the support measure.

In view of the above and the fact that the criteria for determining the eligibility of projects under the Skattefunn Scheme and the Unpaid R&D Labour Scheme are the same and are assessed by the same administering body, i.e., Norges forskningsråd, the Authority takes the view that the latter enjoys discretionary powers also for purposes of implementing the Unpaid R&D Labour Scheme. This means that the Unpaid R&D Labour Scheme is, de facto, selective. In this regard the Authority recalls that the European Court of Justice has held that discretionary powers enjoyed by the public authorities, administering a financial support scheme, means that the scheme is, de facto, selective (48).

48

In addition hereto, it is recalled that the Norwegian authorities state that the Unpaid R&D Labour Scheme will, in practice, only favour one-man enterprises and entrepreneur firms. To the extent that this means that Norges forskningsråd will also implement the R&D Labour Scheme in this manner (i.e., by turning down applications for support from medium-sized or large companies), the Authority considers that this is a mere confirmation of the fact that Norges forskningsråd enjoys discretionary powers and that the scheme is, de facto, selective (in favour of one-man enterprises and entrepreneur firms). Indeed the statement of the Norwegian authorities that ‘...there is no

  formal

  discrimination against larger companies in the Unpaid R&D Labour Scheme's definition of beneficiaries.’ (emphasis added) could be an indication that the scheme is to be implemented in the above-stated manner.

‘...there is no

formal

discrimination against larger companies in the Unpaid R&D Labour Scheme's definition of beneficiaries.’

Finally, the assessment set out above is equally valid for the exemption from corporate tax enjoyed by recipients of grants under the Unpaid R&D Labour Scheme.

2.5.   Distortion of competition and effect on trade between Contracting Parties

The measure must distort competition and affect trade between the Contracting Parties.

The Unpaid R&D Labour Scheme covers all sectors of the economy established in Norway. In view of the fact that for the year of 2006 exports to the EU will represent about 70 % out of total exports from Norway, whereas imports from the EU will represent approximately 68 % out of total imports to Norway, there is extensive trade between Norway and the EU (49).

49

In such circumstances, the Authority considers that the grant of support and the connected tax exemption in favour of undertakings under the Unpaid R&D Labour Scheme will strengthen the relative position of recipients compared to other undertakings located in other EEA countries and competing in similar sectors or businesses. Furthermore, in case the administering body of the Unpaid R&D Labour Scheme may indeed preclude larger companies from receiving support, the position of one-man enterprises and entrepreneur companies, receiving support under the scheme will be reinforced compared to any larger companies which would be denied support. The Unpaid R&D Labour Scheme is therefore to be regarded as affecting trade and distorting or threatening to distort competition.

2.6.   Conclusion

In light of the above, the preliminary conclusion of the Authority is that the grant of support, including the tax exemption under the Unpaid R&D Labour Scheme, satisfies the test of Article 61(1) of the EEA Agreement and hence involves State aid.

3.   Compatibility of the aid and de minimis aid

de minimis

As the preliminary conclusion of the Authority is that the Unpaid R&D Labour Scheme satisfies the test of Article 61(1) of the EEA Agreement and hence involves State aid, it has to be examined whether the Unpaid R&D Labour Scheme may be considered compatible with the functioning of the EEA Agreement under Article 61(2) or (3) of the EEA Agreement.

3.1.   Compatibility with Article 61(2) of the EEA Agreement

It appears that none of the exceptions under Article 61(2) apply in this case as the Unpaid R&D Labour Scheme is not aimed at the objectives listed in those provisions.

3.2.   Compatibility with Article 61(3) of the EEA Agreement

A State aid measure is considered compatible with the functioning of the EEA Agreement under Article 61(3)(a) when it is designed to promote the economic development where the standard of living is abnormally low or where there is serious underemployment. However, as no such areas are defined by the Norwegian regional aid map, this provision does not apply (50).

50

Moreover, the exception in Article 61(3)(b) of the EEA Agreement does not apply since the State aid granted under the Unpaid R&D Labour Scheme is not intended to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of Norway.

However, the exception laid down in Article 61(3)(c) of the EEA Agreement which provides that State aid may be considered compatible with the common market where it facilitates the development of certain economic activities or of certain economic areas and does not adversely affect trading conditions to an extent contrary to the common interest, may be applicable.

In the following the Authority considers the compatibility of the Unpaid R&D Labour Scheme with the functioning of the EEA Agreement under Article 61(3)(c) by virtue of Chapter 14 in the State Aid Guidelines on aid for research and development.

(i)   Eligible research and development projects and aid intensities

In Chapter 14 of the State Aid Guidelines aid granted to firms for research and development may be regarded as compatible with the functioning of the EEA Agreement on the basis of Article 61(3)(c) of the EEA Agreement. Chapter 14 sets out indicative definitions of different types of research and development, such as ‘fundamental research’, ‘industrial research’ and ‘precompetitive development activity’ and the aid intensities which apply.

‘fundamental research’

‘industrial research’

precompetitive development activity’

It appears from paragraph 2 of Chapter 14.2.1 that by ‘precompetitive development activity’ is meant ‘the shaping of the results of industrial research into a plan, arrangement or design for new, altered or improved products, processes or services, whether they are intended to be sold or used, including the creation of an initial prototype which could not be used commercially. This may also include the conceptual formulation and design of other products, processes or services and initial demonstration projects or pilot projects, provided that such projects cannot be converted or used for industrial applications or commercial exploitation. It does not include the routine or periodic changes made to products, production lines, manufacturing processes, existing services and other operations in progress, even if such changes may represent improvements.’

‘precompetitive development activity’

‘the shaping of the results of industrial research into a plan, arrangement or design for new, altered or improved products, processes or services, whether they are intended to be sold or used, including the creation of an initial prototype which could not be used commercially. This may also include the conceptual formulation and design of other products, processes or services and initial demonstration projects or pilot projects, provided that such projects cannot be converted or used for industrial applications or commercial exploitation. It does not include the routine or periodic changes made to products, production lines, manufacturing processes, existing services and other operations in progress, even if such changes may represent improvements.’

The Authority considers that the description of eligible projects under the Unpaid R&D Labour Scheme, set out above in Section 2.1 of Part I hereof, seems to be in line with the description given of ‘pre-competitive development activity’ in paragraph 2 of Chapter 14.2.1 of the State Aid Guidelines.

‘pre-competitive development activity’

According to paragraph five of Chapter 14.5.1 of the State Aid Guidelines, the permissible gross aid intensity for pre-competitive development activities is fixed at 25 % of eligible costs. Moreover, according to paragraph one of Chapter 14.5.3 of the State Aid Guidelines, an extra 10 percentage points may be granted where the aid is given to SMEs (as defined in the Annex to the block exemption on aid to SMEs), bringing the aid intensity up to 35 % of eligible costs in the case of pre-competitive activities by SMEs (51).

51

Since the support granted under the Unpaid R&D Labour Scheme is paid in the form of a grant, 18 % and 20 % (for SMEs) constitute gross aid intensities. However, the fact that the grant is tax exempt is a further aid element, the value of which corresponds to the current tax rate of 28 %. In the present case the total gross aid intensity corresponds, therefore, to the combined maximum value of the grant and the tax exemption which is 23,04 % and 25,6 % (for SMEs) (52). The Authority therefore considers that the maximum aid intensities of the Unpaid R&D Labour Scheme are currently on an acceptable level by reference to Chapter 14 of the State Aid Guidelines. However, if the corporate tax rate should be increased, the total gross aid intensity may become higher. Therefore, in the absence of any general aid intensity ceilings which ensure that individual aid awards under the Unpaid R&D Labour Scheme do not exceed the aid intensities set out in Chapter 14.5.1 of the State Aid Guidelines, the Authority cannot be reassured that the aid intensities, which may result from the application of the Unpaid R&D Labour Scheme, will be on an acceptable level by reference to Chapter 14 of the State Aid Guidelines also in the future. On this basis the Authority has doubts that the aid intensities resulting from the application of the Unpaid R&D Aid Scheme may be considered as compatible on the basis of Chapter 14 of the State Aid Guidelines.

52

(ii)   Eligible costs and incentive effect

Section 14.6 of the State Aid Guidelines sets out a list of costs which are to be regarded as eligible for purposes of calculating the aid intensity set out in Chapter 14. One of such cost items is personnel costs which cover the costs of researchers, technicians and other supporting staff employed solely for the research activity.

While section 14.6 of the State Aid Guidelines does not elaborate on whether personnel costs may cover costs of unpaid labour, the Authority considers that when the word ‘costs’ has been used without any further explanation it means that the intention was only to cover the situation where costs have actually been incurred and paid. Moreover, for purposes of interpreting Chapter 14 of the State Aid Guidelines, which are based on the research and development guidelines established by the European Commission, (53) the Authority considers it relevant that under the Community Research Framework Programmes, financial support from the Community for unpaid labour costs cannot be obtained (54). In this context the European Commission has adopted the view that if the value of the labour costs cannot be identified and registered in the books of the company it cannot be charged to the Framework Programme either (55).

53

54

55

As regards the incentive effect, it appears from section 14.7 of the State Aid Guidelines that aid for research and development should serve as an incentive for firms to undertake research and development activities in addition to their normal day-to-day operations or it may encourage firms not carrying out research and development to undertake such activities. Where the incentive effect is not evident the Authority may consider such aid less favourably than it usually does.

In the present case the Authority considers that it is doubtful whether the aid awarded under the Unpaid R&D Labour Scheme may be considered as an evident incentive to carry out research and development activities in line with section 14.7 of the State Aid Guidelines. In this respect the Authority takes the preliminary view that unpaid research and development activities would be carried out in any event, i.e., even without the aid, since the individuals carrying out unpaid labour were apparently prepared to undertake the relevant work without pay in any event. In other words, the Authority considers that the aid appears not to be necessary in order to achieve the aim of having the relevant research and development activities carried out.

Moreover, to the extent that the Unpaid R&D Labour Scheme would also apply to larger companies, it is clear that such companies could (over time) (re-)organise their research and development activities into basing themselves on using unpaid labour instead of paid labour due to knowledge of the fact that support for unpaid labour may be obtained. In such circumstances it is certain that the support under the Unpaid R&D Labour Scheme is not the incentive for undertaking the relevant research and development activity. In this context the Authority considers that the fact that the company may — for the same project — obtain a tax deduction under the Skattefunn Scheme (by using paid labour) is irrelevant because the reason for using unpaid labour in these cases would precisely be that it is financially more attractive to obtain support for paying the labour than a tax deduction in respect of already paid labour.

On this basis the Authority takes the preliminary view that it is doubtful whether the unpaid labour costs qualify as eligible costs and whether there is any incentive effect under the Unpaid R&D Labour Scheme. In light of the comments set out above, the Norwegian authorities are invited to submit reasons as to why it may be considered that the Unpaid R&D Labour Scheme does create an incentive to carry out research and development activities and on what basis unpaid labour costs should qualify as eligible costs.

3.3.   Conclusions

In view of the fact that the Unpaid R&D Labour Scheme appears not to qualify for any of the exceptions provided for in the EEA Agreement, the Authority doubts that the Unpaid R&D Labour Scheme may be considered compatible with the functioning of the EEA Agreement.

3.4.   De minimis aid: The Compensation Scheme

The grant of State aid may qualify as de minimis under the ‘de minimis Regulation’ where the total aid granted to any one enterprise does not exceed Euro 100 000 over any three-year period with the consequence that there is no obligation to notify (56). It appears from Article 3(1) of the de minimis Regulation that the national authorities can only grant de minimis aid after first having verified that the total amount of de minimis aid received by the company is not raised beyond the ceiling by virtue of other de minimis aid having been received during the previous three years. One way of verifying the de minimis threshold is by obtaining full information from the recipient on this matter.

de minimis

de minimis

56

de minimis

de minimis

de minimis

de minimis

de minimis

In the present case compensation under the Compensation Scheme will be paid out as de minimis aid and if the total amount of de minimis aid to an applicant exceeds Euro 100 000during a period of three years, the compensation will be reduced. Moreover, the Norwegian authorities will obtain from the applicants, via their applications requesting compensation, an overview of the total amount of all tax deductions received by the applicant under the Skattefunn Scheme during the years for which compensation is sought, as well as a complete overview of all de minimis aid the applicant has received as of 1 January 2003.

de minimis

de minimis

de minimis

On the basis of the above and on the assumption that the Norwegian authorities will not grant de minimis aid under the Compensation Scheme where it is clear that the de minmis threshold has been or will, as a result of the new grant, be exceeded, the Authority considers that the Compensation Scheme is in compliance with the de minimis Regulation, including the requirement of verifying that the potential recipient has not received other de minimis aid in excess of the relevant ceiling.

de minimis

de minmis

de minimis

de minimis

On the basis of the information available, the Authority therefore takes the preliminary view that the aid granted to undertakings under the Compensation Scheme will qualify as de minimis aid.

de minimis

III.   CONCLUSION

Based on the information submitted by the Norwegian authorities, the Authority cannot exclude that the Unpaid R&D Labour Scheme constitutes aid within the meaning of Article 61(1) of the EEA Agreement. Furthermore, the Authority has doubts that the Unpaid R&D Labour Scheme can be regarded as complying with Article 61(3)(c) of the EEA Agreement, in combination with the requirements laid down in Chapter 14 of the Authority's State Aid Guidelines. Consequently, the Authority has doubts that the Unpaid R&D Labour Scheme is compatible with the functioning of the EEA Agreement.

Consequently, and in accordance Article 4(4) in Part II of Protocol 3 to the Surveillance and Court Agreement, the Authority is obliged to open the procedure provided for in Article 1(2) in Part I of Protocol 3 of the Surveillance and Court Agreement. The decision to open proceedings is without prejudice to the final decision of the Authority, which may conclude that the Unpaid R&D Labour Scheme is compatible with the functioning of the EEA Agreement.

In light of the foregoing considerations, the Authority, acting under the procedure laid down in Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement, requests the Norwegian authorities to submit its comments and to provide all such information which may help to assess the Unpaid R&D Labour Scheme, within one month of the date of receipt of this decision.

one month

HAS ADOPTED THIS DECISION:

| 1. | The Authority has decided to open the formal investigation procedure provided for in Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement against Norway with regard to the ‘Unpaid R&D Labour Scheme’. |
| --- | --- |

1.

The Authority has decided to open the formal investigation procedure provided for in Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement against Norway with regard to the ‘Unpaid R&D Labour Scheme’.

| 2. | The Norwegian authorities are requested, pursuant to Article 6(1) in Part II of Protocol 3 to the Surveillance and Court Agreement, to submit their comments on the opening of the formal investigation procedure within one month from the notification of this decision and to provide all such information which may help to assess the Unpaid R&D Labour Scheme. |
| --- | --- |

2.

The Norwegian authorities are requested, pursuant to Article 6(1) in Part II of Protocol 3 to the Surveillance and Court Agreement, to submit their comments on the opening of the formal investigation procedure within one month from the notification of this decision and to provide all such information which may help to assess the Unpaid R&D Labour Scheme.

| 3. | Other EFTA States, EC Member States, and interested parties shall be informed by means of publication of this decision in its authentic language version, accompanied by a meaningful summary in languages other than the authentic language version, in the EEA Section of the Official Journal of the European Union and the EEA Supplement thereto, inviting them to submit comments within one month from the date of publication. |
| --- | --- |

3.

Other EFTA States, EC Member States, and interested parties shall be informed by means of publication of this decision in its authentic language version, accompanied by a meaningful summary in languages other than the authentic language version, in the EEA Section of the Official Journal of the European Union and the EEA Supplement thereto, inviting them to submit comments within one month from the date of publication.

Official Journal of the European Union

| 4. | This decision is authentic in the English language. |
| --- | --- |

4.

This decision is authentic in the English language.

| 5. | This decision is addressed to the Kingdom of Norway. |
| --- | --- |

5.

This decision is addressed to the Kingdom of Norway.

Done at Brussels, 8 March 2006

For the EFTA Surveillance Authority

Bjørn T. GRYDELAND

President

Kurt JAEGER

College Member

---

(1)  Hereinafter referred to as the ‘EEA Agreement’.

1

(2)  Hereinafter referred to as the ‘Surveillance and Court Agreement’.

2

(3)  Procedural and Substantive Rules in the Field of State Aid — Guidelines on the application and interpretation of Articles 61 and 62 of the EEA Agreement and Article 1 of Protocol 3 to the Surveillance and Court Agreement, adopted and issued by the EFTA Surveillance Authority on 19 January 1994, published in OJ L 231, 3.9.1994, p. 1, EEA Supplement No 32, 3.9.94, p.1, last amended by the Authority's Decision No 329/05/COL of 20 December 2005 on financing of airports and start up aid to airlines (hereinafter referred to as the ‘State Aid Guidelines’).

3

(4)  Section 3.9 of St. prp. No 65 (2004-2005).

4

(5)  The Skattefunn Scheme was approved by the Authority in its Decision No 171/02/COL of 25 September 2002 and amendments to the Skattefunn Scheme were approved by the Authority in its Decision No 16/03/COL of 5 February 2003.

5

(6)  The terms used by the Norwegian authorities for the mentioned company forms are ‘gründerselskaper’ and‘enkeltpersonforetak’.

6

gründerselskaper

‘enkeltpersonforetak’

(7)  The Compensation Scheme is described in section 3.9 of St. prp. No 65 (2004-2005).

7

(8)  Commission Regulation (EC) No 69/2001 on the application of Articles 87 and 88 of the EC Treaty to de minimis aid (OJ L 10, 13.1.2001, p. 30), incorporated into Annex XV in Section 1(e) to the EEA Agreement by means of Joint Committee Decision No 88/2002 (OJ L 266, 3.10.2002, p. 56 and EEA Supplement No 49, 3.10.2002, p. 42).

8

de minimis

(9)  Section 3.9 of St. prp. No 65 (2004-2005): Chapter 928, item 71 concerns the Unpaid R&D Labour Scheme and Chapter 1500, item 73 concerns the Compensation Scheme.

9

(10)  Innst. S. No 240 (2004-2005): Section 10.1.1.2, Chapter 928, item 71 concerns the Unpaid R&D Labour Scheme; and Section 16.2.4, Chapter 1500, item 73 concerns the Compensation Scheme.

10

(11)  Section 14.1 of Ot. prp. No 92 (2004-2005) which also refers to the original budget proposition in St. prp. No 65 (2004-2005).

11

(12)  Section 15.1 of Innst. O. No 125 (2004-2005).

12

(13)  ‘Lov 2005-06-17 nr 74: Lov om endringer i lov 26. mars 1999 No 14 om skatt av formue og inntekt (skatteloven).’

13

‘Lov 2005-06-17 nr 74: Lov om endringer i lov 26. mars 1999 No 14 om skatt av formue og inntekt (skatteloven).’

(14)  ‘Forskrift om kompensasjon for ulønnet arbeidsinnsats i Skattefunn-godkjente forsknings- og utviklingsprosjekter for inntektsårene 2002, 2003 og 2004’. The draft Guidelines is intended to be based on ‘Høringsnotat om utkast til forskrift om kompensasjon for ulønnet arbeidsinnsats i Skattefunn-godkjente forsknings- og utviklingsprojsekt for inntektsårene 2002, 2003 og 2004.’ (in the following referred to as ‘Høringsnotat’).

14

‘Forskrift om kompensasjon for ulønnet arbeidsinnsats i Skattefunn-godkjente forsknings- og utviklingsprosjekter for inntektsårene 2002, 2003 og 2004’

‘Høringsnotat om utkast til forskrift om kompensasjon for ulønnet arbeidsinnsats i Skattefunn-godkjente forsknings- og utviklingsprojsekt for inntektsårene 2002, 2003 og 2004.’

Høringsnotat

(15)  Section 6 of Part III.6.A in the Standard Notification Form and Section 3 of the Guidelines on the Unpaid R&D Labour Scheme.

15

(16)  Section 6 of Part I in the Standard Notification Form and Section 3 of the Guidelines on the Unpaid R&D Labour Scheme. However, ordinary business oriented product development without having the character of research are not encompassed, such as projects that have a continuing character or include modification of methods without requiring the development of new knowledge or the use of existing knowledge in new ways, are of an organisational character, or consist of inquires, etc.

16

(17)  Section 3 of the Guidelines on the Unpaid R&D Labour Scheme; and Section IX of the Tax law on the Unpaid R&D Labour Scheme.

17

(18)  Section 3.9 of St. prp. No 65 (2004-2005), Section 14.1 of Ot. prp. No 92 (2004-2005) and the introduction to the Guidelines on the Unpaid R&D Labour Scheme.

18

(19)  Section 7 of the Guidelines on the Unpaid R&D Labour Scheme.

19

(20)  See further Section 2.3 herein below on ‘Eligible costs and aid intensity’.

20

(21)  See also Section 3.9 of St. prp. No 65 (2004-2005) where it is stated that the Unpaid R&D Labour Scheme is addressed to one-man enterprises, limited companies and other types of companies.

21

(22)  In this case the cost frame of the project is allocated to the participants in proportion to their share of participation.

22

(23)  The Norwegian authorities have in this context stated that ‘This is also why there is no formal discrimination against larger companies in the Unpaid R&D Labour Scheme's definition of beneficiaries.’ (emphasis added).

23

‘This is also why there is no formal discrimination against larger companies in the Unpaid R&D Labour Scheme's definition of beneficiaries.’

(24)  Section 8.1 in Part III.6.A of the Standard Notification form.

24

(25)  Letter, dated 10 January 2006, from the Norwegian Ministry of Trade and Industry.

25

(26)  Letter dated 10 January 2006, from the Norwegian Ministry of Trade and Industry.

26

(27)  Section 6 of Part III.6.A of the Standard Notification form.

27

(28)  A similar method is applied in the context of the Skattefunn Scheme where the basis for the calculation of support to personnel and indirect costs per hour is 1,6‰ of the nominal salary. However, under the Skattefunn Scheme the nominal salary also includes social and overhead/administrative costs.

28

(29)  Section 3 of the draft Guidelines on Unpaid R&D Labour Scheme. It appears from Section 3.9 of St. prp. No 65 (2004-2005) that the ceiling is a result of the fact that only up to 50 % of the maximum limit for support to projects (carried out by the undertaking itself) under the Skattefunn scheme (of NOK 4 million) may constitute the value of unpaid labour in the project.

29

(30)  Section 4 of the Guidelines on the Unpaid R&D Labour Scheme.

30

(31)  Section 3 of the Guidelines on the Unpaid R&D Labour Scheme.

31

(32)  Section 7 of Part III.6.A of the Standard Notification form.

32

(33)  This should be compared to the situation under the Skattefunn Scheme where the Authority considered in its Decision No 171/02/COL of 25 September 2002 (approving the Skattefunn Scheme) that as the aid is granted in the form of a tax deduction, the 18 % is a net grant which corresponds to a gross aid intensity of 25 % (taking into account a tax rate of 28 %).

33

(34)  Section 3 of the Guidelines on the Unpaid R&D Labour Scheme and Section 6 of Part I in the Standard Notification form.

34

(35)  Section 14.2.1 of Ot. prp. No 92 (2004-2005) and Section IX of the Tax law on the Unpaid R&D Labour Scheme.

35

(36)  Article 2(1) of the de minimis Regulation, see reference in footnote 8 above.

36

de minimis

(37)  Section 7 of the Royal Decree on the Compensation Scheme.

37

(38)  It appears from the ‘Høringsnotat’ that this statement refers to Article 1 of the de minimis Regulation which lists sectors and activities excluded from receiving de minimis aid.

38

‘Høringsnotat’

de minimis

de minimis

(39)  Section 9(h) and (i) of the Royal Decree on the Compensation Scheme.

39

(40)  See Section 3 of the Royal Decree on the Compensation Scheme and the second paragraph in the ‘Høringsnotat’.

40

‘Høringsnotat’

(41)  Section 3.9 of St. prp. No 65 (2004-2005) and Section 5 in Part I of the Standard Notification form.

41

(42)  Decision No 16/03/COL adopted by the Authority on 5 February 2003. The Skattefunn Scheme is currently the subject of an evaluation (to be terminated in 2007) for purposes of determining whether the scheme should be continued in its present form, be altered or terminated.

42

(43)  Section 5 in Part I of the Standard Notification form.

43

(44)  Section 3.9 of St. prp. No 65 (2004-2005).

44

(45)  Section 14.3 of Ot. prp. No 92 (2004-2005) which refers to Section 3.9 of St. prp. No 65 (2004-2005).

45

(46)  See Section 7.2 in Part I of the Standard Notification form.

46

(47)  See point 3 of Chapter 17.B.3 of the State Aid Guidelines.

47

(48)  See Case 241/94 France v Commission [1998] ECR I-7907, paragraphs 23 and 24; Case C-295/97 Industrie Aeronautiche e Meccaniche Rinaldo Piaggio SpA v International Factors Italia SpA (Ifitalia), Dornier Luftfahrt GmbH and Ministero della Difesa [1999] ECR I-3735, paragraph 39; Case 200/97 Ecotrade Srl v Altiforni e Ferriere di Servola SpA (AFS) [1998] ECR I-7907, paragraph 40.

48

France

Commission

Industrie Aeronautiche e Meccaniche Rinaldo Piaggio SpA

International Factors Italia SpA (Ifitalia), Dornier Luftfahrt GmbH and Ministero della Difesa

Ecotrade Srl

Altiforni e Ferriere di Servola SpA (AFS

(49)  The relevant statistics have been issued by ‘Statistisk Sentralbyrå’ and are entitled ‘Samhandelen med land og landområder. Januar. 2005 og 2006.’ (Table 3). The statistics are available at:

49

‘Statistisk Sentralbyrå’

‘Samhandelen med land og landområder. Januar. 2005 og 2006.’

http://www.ssb.no/emner/09/05/muh/tab-2006-02-15-03.html

(50)  The Authority's Decision No 110/98/COL of 28 April 1998 on the map of assisted areas (Norway).

50

(51)  Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (OJ L 10, 13.1.2001, p. 33), as amended by Commission Regulation (EC) No 364/2004 of 25 February 2004 (OJ L 63, 28.2.2004, p. 22). Both Regulations have been incorporated into Section 1(f) in Annex XV to the EEA Agreement by Joint Committee Decision No 88/2002 (OJ L 266, 3.10.2002, p. 56 and EEA Suppl. No 49, 3.10.2002, p. 42) and Joint Committee Decision No 131/2004 (OJ L 64, 10.3.2005, p. 67 and EEA Supplement No 12, 10.3.2005, p. 49).

51

(52)  18 % and 5,04 % (corresponding to 28 % of 18 %) is in total 23,04 %. For SMEs 20 % and 5.6 % (corresponding to 28 % of 20 %) is in total 25,6 %.

52

(53)  Community framework for State aid for research and development (OJ C 45, 17.2.1996, p. 5) as amended.

53

(54)  The EU's research Framework Programme is the EU's main instrument for research funding in Europe. In Part B.II.22.3 of Annex II to the general model contract used for purposes of granting support under Framework Programme 6, it appears that ‘Physical persons may not charge any labour cost in relation to their personal involvement in the project.’ and in Part B.II.19.1(a) it appears that eligible costs ‘must be actual, economic and necessary for the implementation for the project.’

54

‘Physical persons may not charge any labour cost in relation to their personal involvement in the project.’

‘must be actual, economic and necessary for the implementation for the project.’

(55)  E.g., the Framework Programme 6.

55

(56)  Article 2 of the de minimis Regulation, see reference in footnote 8.

56

de minimis

---

| 26.10.2006 | EN EN | Official Journal of the European Union | C 258/42 |
| --- | --- | --- | --- |

26.10.2006

EN EN

Official Journal of the European Union

C 258/42

---

Invitation to submit comments pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement on state aid granted by the Research Council of Norway in connection with the software programme Turborouter

(2006/C 258/13)

By means of Decision No 60/06/COL of 8 March 2006, reproduced in the authentic language on the pages following this summary, the EFTA Surveillance Authority initiated proceedings pursuant to Article 1(2) in Part I of Protocol 3 of the Agreement between the EFTA States on the establishment of a Surveillance Authority and a Court of Justice (Surveillance and Court Agreement). The Norwegian authorities have been informed by means of a copy of the decision.

The EFTA Surveillance Authority hereby gives the EFTA States, EU Member States and interested parties notice to submit their comments on the measure in question within one month from the publication of this notice to:

| EFTA Surveillance Authority |
| --- |
| Registry |
| 35, Rue Belliard |
| B-1040 Brussels |
| Fax: (32-2) 286 18 00 |

EFTA Surveillance Authority

Registry

35, Rue Belliard

B-1040 Brussels

Fax: (32-2) 286 18 00

The comments will be communicated to the Norwegian authorities. Confidential treatment of the identity of the interested party submitting the comments may be requested in writing, stating the reasons for the request.

SUMMARY

By letter dated 5 March 2002 (Doc. No. 02-1733-A), the Authority received a complaint alleging that state aid had been granted by Norway through the Research Council of Norway (hereinafter: ‘the RCN’) to various research projects in connection with the development of the software programme Turborouter.

On 8 March 2006, after an extensive exchange of correspondence between the Authority and the Norwegian authorities as well as with the complainant, the Authority decided to open the formal investigation procedure with regard to the projects referred to in the complaint.

The RCN had granted aid to four projects related to the development of the software programme Turborouter within the framework of the aid scheme Industrial R&D Programme. The Authority had assessed this programme, together with other existing aid schemes, and adopted Decision No 217/94/COL in December 1994 proposing appropriate measures to Norway. The Norwegian authorities accepted the appropriate measures. Accordingly, thereafter, any granting of aid under this scheme had to be done in accordance with the State Aid Guidelines on R&D aid adopted by the Authority in 1994.

On the basis of the information available, the Authority has doubts whether the granting of aid to the concerned research projects complied with the provisions of the R&D Guidelines. It is questionable whether the projects were correctly classified. This is in particular the case regarding the three projects considered as pre-competitive research projects, which could be too close to the market to be eligible for aid.

The Authority also has doubts about the financing of the project. It is not clear whether the companies participating in the projects actually contributed to the research costs of the projects or whether regular operating costs were considered as part of the research projects. Should this be the case, the aid intensities will have to be revised.

In this context, the Authority has doubts whether the aid beneficiaries misused the aid granted by the RCN.

Should the granting of aid to the projects concerned not be covered by the scheme Industrial R&D Programme, each project will have to be assessed individually on the basis of the provisions of the R&D Guidelines applicable at the time the grants were given or directly on the basis of the rules of the EEA Agreement.

---

EFTA SURVEILLANCE AUTHORITY DECISION

No 60/06/COL

of 8 March 2006

on R&D aid granted by the Research Council of Norway in connection with the development of the software programme Turborouter

(NORWAY)

THE EFTA SURVEILLANCE AUTHORITY (1),

Having regard to the Agreement on the European Economic Area (2), in particular to Articles 61 to 63 and Protocol 26 thereof,

Having regard to the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice (3), in particular to Article 24 thereof,

Having regard to Article 1(2) and (3) in Part I and Articles 1, 4, 6, 10, 13, 14, 16 and 20 in Part II of Protocol 3 to the Surveillance and Court Agreement (4),

Having regard to the Authority's Guidelines (5) on the application and interpretation of Articles 61 and 62 of the EEA Agreement, and in particular Chapter 14 thereof, ‘Aid for Research and Development’,

Having regard to the Authority's Decision of 14 July 2004 on the implementing provisions referred to under Article 27 in Part II of Protocol 3 (6),

Having regard to the Authority's Decision No 217/94/COL of 1 December 1994 to propose appropriate measures to Norway on, amongst others, the aid scheme Industrial R&D Programmes,

Having regard to Norway's acceptance of the proposed appropriate measures by letter dated 19 December 1994,

Whereas:

I.   FACTS

1.   Procedure

By letter dated 5 March 2002 (Doc. No 02-1733-A), the Authority received a complaint alleging that state aid had been granted by Norway through the Research Council of Norway (hereinafter: ‘the RCN’) to various research projects in connection with the development of the software programme Turborouter.

The Authority requested information from the Norwegian authorities by letter dated 26 April 2002 (Doc. No 02-2605-D). The Ministry of Trade and Industry replied by letter dated 3 June 2002 (Doc. No 02-4177-A), which included RCN's comments on the so-called Turborouter project.

In October 2002, a meeting between representatives from the Authority and the Norwegian authorities took place in Oslo in order to clarify some technical aspects.

On 28 February 2003, the Authority requested further clarification and documentation on certain aspects raised during the above-mentioned meeting (Doc. No 03-1159-D). The required information was supplied by the Norwegian authorities by letter dated 11 April 2003 (Doc. No 03-2338 A) and completed by letter of 20 June 2003 (Doc. No 03-4083-A).

Representatives of the Authority and the Norwegian authorities discussed the case at a meeting in the framework of the package meeting which took place in Oslo on 23 September 2004. Some of the issues raised during this meeting were later addressed by the Authority in a letter dated 11 November 2004 (Event No 294194). The Norwegian authorities answered by letter of 31 January 2005 (Event No 307137).

The Authority lastly requested information in a letter dated 7 July 2005 (Event No 323594). The Authority furthermore stated that should the response from the Norwegian authorities not dispel the remaining doubts of the Authority, the formal investigation procedure would have to be opened with respect to the granting of R&D aid in connection with the development of the software programme Turborouter.

The Norwegian authorities replied in a letter dated 22 August 2005 (Event No 331615).

The complainant contacted the Authority on various occasions during the preliminary investigation and submitted additional information.

2.   The complaint

In March 2002, the Authority received a complaint alleging that the RCN had granted R&D aid to ‘projects in the maritime sector that violate the EEA rules. The projects that have received state aid are commercial software programs that are marketed and sold in the international markets. We refer specifically to the software program called TURBOROUTER’.

According to the complainant, the Turborouter programme is distorting the competition with other European or international companies which develop software programmes for the maritime industry. The complainant, who has software products in the same sector, has stated to have invested important sums of money in developing mathematical algorithms, which seem to be similar to the ones used in Turborouter.

The complaint concerns not only the projects that led to the development of a commercial software programme called Turborouter but also its development in several sub-projects. Although the complainant identified Project 136171 Algopt and Project 144214 Optimisation routines, it explicitly stated that the complaint is not limited to these projects but concerns ‘all of these projects that have been targeting the development of a commercial software program called Turborouter’.

The complainant mainly argued that (1) the projects that received aid were too close to the market to be eligible for R&D aid and had been marketed for sale to third companies in Norway and abroad; (2) the research results had not been disseminated but the research institute Marintek, which developed the software programme Turborouter, had received the property rights to sell the programme; (3) the maximum aid intensities had not been respected due to the fact that the own capital contribution from the concerned companies was in reality lower than stated in the application form. The complainant brought forward the following arguments to support the complaint:

| 1) | ‘The RCN has given aid to projects which are very close to the market. Turborouter has for more than two years been actively marketed for sale both domestically in Norway and abroad. This marketing has been done partly by the research institute Marintek and partly by Shipnet, a privately owned commercial vendor of software systems for the maritime industry with which, according to the information submitted by the complainant, Marintek has an agreement. The Turborouter projects cannot be classified into “fundamental research” nor “industrial research” according to the definitions laid down by the EEA. In view of the complainant, the projects are even far beyond pre-competitive development activity. “Turborouter projects are aimed at developing software programs that are developed in close co-operation with a limited number of users, and in parallel is actively marketed towards any maritime company in need of such program”.’ |
| --- | --- |

1)

‘The RCN has given aid to projects which are very close to the market. Turborouter has for more than two years been actively marketed for sale both domestically in Norway and abroad. This marketing has been done partly by the research institute Marintek and partly by Shipnet, a privately owned commercial vendor of software systems for the maritime industry with which, according to the information submitted by the complainant, Marintek has an agreement. The Turborouter projects cannot be classified into “fundamental research” nor “industrial research” according to the definitions laid down by the EEA. In view of the complainant, the projects are even far beyond pre-competitive development activity. “Turborouter projects are aimed at developing software programs that are developed in close co-operation with a limited number of users, and in parallel is actively marketed towards any maritime company in need of such program”.’

| 2) | ‘As the Turborouter projects have received public aid and where in the R&D programs it has been stated that reports will be made available for any party interested, it is a breach of the regulations to give Marintek the proprietary rights to sell and market the program. In view of the complainantthis confirms the argument that Turborouter is a commercial product far beyond any R&D stage.’ |
| --- | --- |

2)

‘As the Turborouter projects have received public aid and where in the R&D programs it has been stated that reports will be made available for any party interested, it is a breach of the regulations to give Marintek the proprietary rights to sell and market the program. In view of the complainantthis confirms the argument that Turborouter is a commercial product far beyond any R&D stage.’

| 3) | ‘In calculating the aid intensities, the RCN has used the pro forma funding assumed in the R&D application to be given by the aid receiving firm.’ The complainant claimed neither to have seen any documentation that the firms actually contributed with their own resources to the alleged funds, nor any audited reports where such contribution is proven. ‘For many projects in the maritime sectors the aid receivers are supposed to chip in their own contribution, but quite often there is in actual fact very little man time hours or any other costs that the receivers chip in.’ |
| --- | --- |

3)

‘In calculating the aid intensities, the RCN has used the pro forma funding assumed in the R&D application to be given by the aid receiving firm.’ The complainant claimed neither to have seen any documentation that the firms actually contributed with their own resources to the alleged funds, nor any audited reports where such contribution is proven. ‘For many projects in the maritime sectors the aid receivers are supposed to chip in their own contribution, but quite often there is in actual fact very little man time hours or any other costs that the receivers chip in.’

3.   The four projects related to the software programme Turborouter supported with RCN funds

a)   Description of the projects

1)   Project 40049 — Strategic activities within maritime transport and logistics (The first version of the software programme Turborouter)

Together with the Centre for International Economy and Shipping (SIØS), which is an integral part of the Norwegian School of Economics and Business Administration, Marintek applied to the RCN for support for the project ‘Strategic activities within maritime transport and logistics’ under the ‘Strategic Institute Programme’ (SIP) in 1995. SIP was a programme for long term research, characterised by a large proportion of fundamental research, but strategic in its orientation to serve future needs of industry. Under SIP, research projects could receive public financing up to 100 %.

According to the information provided by the Norwegian authorities, due to limited funds available under this programme, the RCN re-classified the project as a ‘three-year strategic competence development project’ under the sub-programme ‘Short Sea Shipping’ (1995-1998) within the Industrial R&D Programme. The whole project was re-classified as industrial research although some activities constituted fundamental research.

Project 40049 ‘Strategic activities within maritime transport and logistics’ was broad in concept and covered several sub-projects. The first version of the pilot software Turborouter was developed in the first year of research of one of the sub-projects called ‘Methods and analytical tools for design and operation of integrated transport and logistics chains’.

Nowadays, Turborouter is a tool (7) for optimising vessel fleet scheduling, i.e. to decide which vessels to assign different cargoes to. The design philosophy has been to combine the knowledge and experience of the planners with the calculating capabilities of the computer. Optimisation software implemented on a computer can calculate millions of alternatives in only a few seconds but tend to have restricted ability to handle all practical constraints that occur in real life. Turborouter is based on electronic sea charts where scheduling information can be displayed. Other key elements of Turborouter include a database for vessels, ports, cargoes, etc; automatic calculation of port-to-port distances; vessel position reports and automatic update of estimated time of arrival; sophisticated optimisation routines for fleet scheduling; schedule visualisation or schedule calculator for manual planning.

According to the information provided by the Norwegian authorities, out of the total NOK 10,5 million budget for Project 40049, the RCN contributed NOK 4,6 million, the Norwegian Ship-owners' Association (NSA) NOK 1,4 million and Marintek NOK 4,5 million.

The table below recapitulates the costs of the project and its financing of the project in NOK (8):

| Costs | | | Financing | |
| --- | --- | --- | --- | --- |
| Personal and indirect costs | 8 700 000 | | Own financing | 4 500 000 |
| Purchase of R&D | 600 000 | | RCN | 6 000 000 |
| Equipment | 450 000 | | Total | 10 500 000 |
| Other operating costs | 750 000 | | | |
| Total | 10 500 000 | | | |

Costs

Financing

Personal and indirect costs

8 700 000

Own financing

4 500 000

Purchase of R&D

600 000

RCN

6 000 000

Equipment

450 000

Total

10 500 000

Other operating costs

750 000

Total

10 500 000

According to the information provided by the Norwegian authorities, the project costs for the sub-project ‘Methods and analytical tools for design and operation of integrated transport and logistics chains’ amounted to NOK 5,1 million. The state support for it amounted to NOK 2,24 million.

According to the information provided by the Norwegian authorities, the RCN selected several projects related to the development of the software package Turborouter for R&D support. According to the RCN, even though they had elements of industrial research, these projects were classified as ‘pre-competitive development activity’. The RCN considered that the results from each of these projects were company specific prototype demonstrators which would need considerable further in-house development to become day-to-day tools in the companies' operations.

2)   Project 138811 — AlgOpt

The aim of this project (9) was to develop and carry out practical tests of algorithms to calculate the optimal utilisation of a fleet of ships, given the obligations to load cargoes for several customers, the requirements as to when cargoes must be loaded and discharged in the destination port, the possibility of carrying joint cargoes of a limited number of bulk goods on each voyage as well as limitations that mean that not all the vessels involved are suitable for serving all customers or all ports.

The overreaching objective of AlgOpt was that the algorithms should be integrated into a software concept that would offer users full control and the possibility of overriding the suggestions made by the algorithms. The software should help decision-makers to combine their own experience with the ability of the numerical processes to test a number of possibilities rapidly and in a manner that offers the best possible basis for making decisions.

The principal activities of the Project AlgOpt were the definition of user dialogues and criteria for good capacity utilisation; the development of algorithms for working out optimal voyage combinations; the testing of algorithms and the follow-up and documentation of benefits.

According to the information submitted by the Norwegian authorities, the Project AlgOpt was only a pre-study defining the user requirements and investigation of the feasibility of using Turborouter for the contract partner, the company Beltship Management AS. Total costs amounted to NOK 925 000. The project was classified as pre-competitive research. The financing was split between the RCN (NOK 300 000) and private funds from participating companies (NOK 625 000). The table below recapitulates the costs of the project as well as its financing (10):

| Costs | | | Financing | |
| --- | --- | --- | --- | --- |
| Personal and indirect costs | 545 000 | | Own financing | 625 000 |
| Purchase of R&D | 380 000 | | RCN | 300 000 |
| Other operating costs | | | Total | 925 000 |
| Total | 925 000 | | | |

Costs

Financing

Personal and indirect costs

545 000

Own financing

625 000

Purchase of R&D

380 000

RCN

300 000

Other operating costs

Total

925 000

Total

925 000

3)   Project 144265 — Shiplog II

The Shiplog project mainly dealt with transport at sea. This project (11) should use the results of a previous project called Shiplog (which did not involve the use of Turborouter) to focus on the requirements for door-to-door delivery of goods, when transport at sea is a key element. The objectives of the project were:

| — | to support interaction between parties involved in door-to-door transport. This objective was shared by the EU proposal ‘D2D’, which aimed at demonstrating an integrated management and communication system for door-to-door intermodal freight transport operation, |
| --- | --- |

—

to support interaction between parties involved in door-to-door transport. This objective was shared by the EU proposal ‘D2D’, which aimed at demonstrating an integrated management and communication system for door-to-door intermodal freight transport operation,

| — | to demonstrate the communication of information between software systems by using XML (12) messages, |
| --- | --- |

—

to demonstrate the communication of information between software systems by using XML (12) messages,

| — | to demonstrate how TurboRouter could be integrated in a door-to-door transport service. |
| --- | --- |

—

to demonstrate how TurboRouter could be integrated in a door-to-door transport service.

The project should utilise the results obtained in other projects such as Intermodal Portal, Themis, D2D, INTRA, INFRATRANS, TRANSDATA or INFOLOG.

The activities of the project included:

| 1. | Methodology for modelling business processes which concerned the evaluation of business processes required in door-to-door transport. |
| --- | --- |

1.

Methodology for modelling business processes which concerned the evaluation of business processes required in door-to-door transport.

| 2. | The use of XML messages in system communication, which should specify the requirements for system communication and will implement XML messages supporting the exchange of information. |
| --- | --- |

2.

The use of XML messages in system communication, which should specify the requirements for system communication and will implement XML messages supporting the exchange of information.

| 3. | Development of demonstrator of door-to-door transport, which should implement an Internet application demonstrating a door-to-door transport operation. |
| --- | --- |

3.

Development of demonstrator of door-to-door transport, which should implement an Internet application demonstrating a door-to-door transport operation.

| 4. | Integrating Transport Chain Management System (TCMS) and TurboRouter, which should specify the interface and demonstrate the exchange of information between TurboRouter and the TCMS demonstrator. |
| --- | --- |

4.

Integrating Transport Chain Management System (TCMS) and TurboRouter, which should specify the interface and demonstrate the exchange of information between TurboRouter and the TCMS demonstrator.

According to the information provided by the Norwegian authorities, this project failed to achieve its objective because TCMS and Turborouter could not be satisfactorily integrated.

The RCN classified this project as pre-competitive development and awarded it state aid for an amount of NOK 2,15 million out of the NOK 6,2 million of the total project costs. The project received funds from the NSA for an amount of NOK 750 000 which were channelled through the RCN. The remainder was financed by the contract partner of this project, the company United European Car Carriers AS (UECC), and other participating companies. The table below recapitulates both the costs and the financing of the project (13):

| Costs | | | Financing | |
| --- | --- | --- | --- | --- |
| Personal and indirect costs | 800 000 | | Own financing | 800 000 |
| Purchase of R&D | 2 150 000 | | Other private means | 3 250 000 |
| Equipment | 100 000 | | RCN | 2 150 000 |
| Other operating costs | 3 150 000 | | Total | 6 200 000 |
| Total | 6 200 000 | | | |

Costs

Financing

Personal and indirect costs

800 000

Own financing

800 000

Purchase of R&D

2 150 000

Other private means

3 250 000

Equipment

100 000

RCN

2 150 000

Other operating costs

3 150 000

Total

6 200 000

Total

6 200 000

4)   Project 144214 — Library of optimisation routines for scheduling in shipping

The pre-competitive research project ‘Library of optimisation routines for scheduling in shipping’ aimed at developing algorithms for advanced optimisation and scheduling of very complex shipping operations. The Norwegian authorities have explained that the library of algorithms is very trade and company specific and must thus be company-owned and not part of the standard Turborouter ‘tool kit’. Nevertheless, it may give rise to development of additional Turborouter functionalities demanded by the applications development.

The overall project costs amounted to NOK 7 million, of which NOK 1,5 million were covered by the RCN, NOK 805 000 by the NSA and the remaining amount of NOK 4,7 million by private funds. The company Beltship Management AS was the contract partner of this project.

The table below recapitulates the costs and the financing of the project (14):

| Costs | | | Financing | |
| --- | --- | --- | --- | --- |
| Personal and indirect costs | 4 100 000 | | Own financing | 1 950 000 |
| Purchase of R&D | 2 900 000 | | Other private means | 2 750 000 |
| Equipment | | | RCN | 2 300 000 |
| Other operating costs | | | Total | 7 000 000 |
| Total | 7 000 000 | | | |

Costs

Financing

Personal and indirect costs

4 100 000

Own financing

1 950 000

Purchase of R&D

2 900 000

Other private means

2 750 000

Equipment

RCN

2 300 000

Other operating costs

Total

7 000 000

Total

7 000 000

b)   The beneficiaries

The projects addressed in the current Decision have been developed in cooperation between the research institute Marintek and several private companies. Two of the private companies were the contract partners of the concerned projects and are therefore addressed in the following. In this context the other companies involved in the said projects could also be considered as potential beneficiaries for the purposes of this Decision.

1)   Marintek

Marintek is a research institution, 56 % owned by the SINTEF group, a private research foundation, 26 % by the Norwegian Shipowners' Association, 9 % by Det Norske Veritas, an independent foundation, and the rest by several shareholders in the maritime community.

Marintek delivers marine technology research and development services. Together with the Department of Marine Technology at the Norwegian University of Science and Technology (NTNU), it constitutes the Marine Technology Centre in Trondheim. The Norwegian Marine Technology Research Institute does research, development and technical consulting in the maritime sector for industry and the public sector. The Institute develops and verifies technological solutions for the shipping and maritime equipment industries and for offshore petroleum production. Marintek's business areas include shipping, shipbuilding, offshore marine industry and marine industry (15).

According to the information provided by the Norwegian authorities, Marintek has developed several software packages. Most of them are only for ‘internal use’ but others are made available as commercial products through marketing alliances.

2)   United European Car Carriers (UECC)

UECC (16) is a provider of logistics and sea transportation services for the vehicle manufacturing industry in Europe with an extensive route network to transport all sorts of rolling cargo to most destinations in Europe.

According to current figures, UECC is a short sea operator which transports approximately 1,8 million new vehicles a year on behalf of the global automotive industry. As a major logistics provider, UECC is able to offer total management solutions, which encompass the full transport chain, from the manufacturing plant through to the final retail destination. In addition to a fleet of over 20 specially-designed vessels, UECC also operate the own vehicle handling centres and provide full tracking information at unit level using the latest IT-systems.

UECC is owned in equal shares by Nippon Yusen Kabushiki Kaisha (NYK) of Tokyo, one of the world's largest shipping companies, and by Wallenius Lines of Stockholm, a Swedish shipping enterprise.

3)   Beltship Management AS

Beltship Management is a company which operates a highly specialised fleet of so-called self-unloading bulk carriers. Beltship Management was established in 1997 as a 50/50 partnership between Jebsens Shipping Company and Heidelberger Zement Group of Germany. The company is located in Bergen, Norway. Beltships has 9 vessels at their disposal, mainly with independently operated belt self-unloaders. Most of the vessels operate in the North Sea basin and in the Mediterranean. Beltship Management has been involved in the development of TurboRouter since 1999, and has used the tool for optimizing fleet scheduling in the North Sea basin since then (17).

4.   Description of the relationship between the four grants of aid and the Norwegian aid scheme for industrial R&D programmes

According to the information provided by the Norwegian authorities, the four grants of aid covered by the present Decision received aid within the framework of the aid scheme ‘Industrial R&D Programmes’ (brukerstyrte forskningsprogrammer).

a)   The aid scheme Industrial R&D Programmes

Prior to the entry into force of the EEA Agreement, the Norwegian authorities established an aid scheme called ‘Industrial R&D Programmes’ (brukerstyrte forskningsprogrammer) which was administered by the RCN. According to the information provided by the Norwegian authorities, this scheme covered awards of aid in the form of direct grants to research programmes of 3-5 years duration, either thematic or sector-oriented, implemented through a variable number of projects.

In December 1994, the Authority adopted a Decision on several aid schemes for research and development existing in Norway prior to the entry into force of the EEA Agreement, amongst others, the aid scheme Industrial R&D Programme (brukerstyrte forskningsprogrammer, case no 93-183). In this Decision, the Authority proposed appropriate measures to bring the scheme in line with the state aid rules of the EEA Agreement (18). In this Decision, the Authority noted that:

‘Clear guidelines or specific provisions of a binding nature have not been developed for the scheme. Awards of aid are granted at the discretion of the responsible authorities within the framework of the Research Council's society rules.’

In order to bring the scheme in line with the state aid rules, the Authority proposed to Norway, in particular, the introduction of detailed provisions which would ensure that awards of aid were granted in accordance with the principles laid down in Chapter 14 of the State Aid Guidelines.

The Decision reads as follows:

| ‘1(i) | The Norwegian authorities shall introduce detailed provisions for the schemes listed in Annex I to this decision which ensure that awards of aid are granted in accordance with the principles laid down in Chapter 14 of the State Aid Guidelines. This means that the provisions must





  — | distinguish between the different types of R&D activities by providing definitions for basic industrial research as well as for applied research and development in line with the provisions of paragraph 14.1(2) of the State Aid Guidelines, |
| --- | --- | --- |

‘1(i)

—

distinguish between the different types of R&D activities by providing definitions for basic industrial research as well as for applied research and development in line with the provisions of paragraph 14.1(2) of the State Aid Guidelines,

| — | define the aid intensities in such a way that as a general rule aid for basic industrial research does not exceed 50 % and that aid for applied research and development does not exceed 25 % of the eligible costs. These intensities can, if so desired, be adjusted according to the principles laid down in the State Aid Guidelines and |
| --- | --- |

—

define the aid intensities in such a way that as a general rule aid for basic industrial research does not exceed 50 % and that aid for applied research and development does not exceed 25 % of the eligible costs. These intensities can, if so desired, be adjusted according to the principles laid down in the State Aid Guidelines and

| — | define the eligibility costs for the purpose of calculating the aid intensity in compliance with the definitions in paragraph 14.5(1) of the State Aid Guidelines.’ |
| --- | --- |

—

define the eligibility costs for the purpose of calculating the aid intensity in compliance with the definitions in paragraph 14.5(1) of the State Aid Guidelines.’

Norway accepted the appropriate measures proposed by the Authority by letter dated 19 December 1994. The acceptance of appropriate measures implied that the award of aid under the Industrial R&D Programme would be done in accordance with the provisions of the Authority's R&D Guidelines as they were drafted in 1994. Following the wording of the Authority's Decision No 217/94/COL, this is in particular the case when it concerns the definition of the different types of R&D activities, the aid intensities and the eligible costs.

In the framework of the current preliminary investigation, the Norwegian authorities have stated that, as a follow-up of the acceptance of the appropriate measures, the RCN developed provisions to ensure that aid was awarded in compliance with Chapter 14 of the State Aid Guidelines on R&D aid. This set of rules is called DOKSY, ‘Aid intensities in accordance with EEA rules’. According to the information provided by the Norwegian authorities, Doksy is a set of provisions adopted by the RCN which correspond mainly to the R&D Guidelines of the Authority. It serves as the basis guidelines for the granting of R&D aid by the RCN.

‘Aid intensities in accordance with EEA rules’

It is regrettable that the Norwegian authorities did not provide the amended version of the scheme Industrial R&D Programmes to the Authority for its review (19). Notwithstanding this, it is the understanding of the Authority that the Norwegian authorities amended the set of rules called Doksy in accordance with the amendments of Chapter 14 of the Authority's State Aid Guidelines.

19

b)   The Research Council of Norway

The aid granted to the undertakings for the four projects was granted by the RCN, which is the responsible body in charge of the aid scheme Industrial R&D Programmes.

According to its own statement (20), the RCN is a national strategic body and funding agency for research and innovation activities. The RCN covers all fields of research and innovation and works together with research institutions as well as the private and public sectors to reach the national financial goals and quality targets set in this area.

20

The RCN plays a vital role in developing and implementing the country's national research strategy. It acts as:

| — | a government adviser, identifying present and future needs for knowledge and research, and recommending national priorities; |
| --- | --- |

—

a government adviser, identifying present and future needs for knowledge and research, and recommending national priorities;

| — | a funding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The RCN has an annual budget of some NOK 4,5 billion and utilises specifically-targeted funding schemes to help translate national research policy goals into action; |
| --- | --- |

—

a funding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The RCN has an annual budget of some NOK 4,5 billion and utilises specifically-targeted funding schemes to help translate national research policy goals into action;

| — | a co-ordinator, initiating networks and promoting co-operation between research institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research. |
| --- | --- |

—

a co-ordinator, initiating networks and promoting co-operation between research institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research.

II.   APPRECIATION

1.   Introduction: the applicable legal framework

According to the information submitted by the Norwegian authorities, the four projects which are assessed in this Decision were granted R&D aid in the framework of the Industrial R&D Programme (brukerstyrte forskningsprogrammer, case no 93-183). As mentioned above, the Industrial R&D Programme was already in place before 1994. Following the entry into force of the EEA Agreement in Norway, the Authority assessed the Industrial R&D Programme together with other existing aid schemes and adopted Decision No 217/94/COL in December 1994. In this Decision, the Authority proposed appropriate measures with respect to the Industrial R&D Programme to mainly require that awards of aid would be granted in accordance with the principles laid down in Chapter 14 of the State Aid Guidelines.

brukerstyrte forskningsprogrammer

The Norwegian authorities accepted the proposed appropriate measures. Thus, thereafter, any grant of aid under the Industrial R&D Programme had to be done in accordance with the R&D rules applicable when the Authority adopted Decision No 217/94/COL.

The R&D rules applicable when the Authority adopted Decision No 217/94/COL were Chapter 14 of the State Aid Guidelines as adopted in 1994 (hereinafter referred to as the R&D Guidelines of 1994 (21)).

21

Hence, by definition, any aid granted under the scheme Industrial R&D Programmes which does not comply with the provisions of the version of the R&D Guidelines applicable in 1994, when the Authority proposed the appropriate measures which Norway accepted, falls outside the scope of application of the scheme. Accordingly, such a measure would constitute new individual aid and would as such need to be notified to the Authority individually.

In this context it is important to note that the present decision only concerns the application of the scheme Industrial R&D Programmes to the four concrete projects identified as relating to the development of the software programme Turborouter on which a complaint was lodged in 2002.

Should the granting of aid to the four questioned projects not be covered by the scheme Industrial R&D Programmes as explained above, each of the projects would need to be assessed individually. In this assessment, the Authority would have to determine whether state aid was granted in each of the projects and whether this aid could have been considered compatible aid on the basis of the provisions of the R&D Guidelines applicable at the time where the grants were given or directly on the basis of the rules of the EEA Agreement.

As far as Project 40049 ‘Strategic activities within maritime transport and logistics’, which led to the development of the first software programme Turborouter, is concerned, the aid was granted by a decision of the RCN of December 1995. The applicable rules governing the granting of R&D aid were Chapter 14 of the Authority's State Aid Guidelines as originally adopted in Decision No 4/94/COL. In other words, the provisions of the scheme Industrial R&D Programmes as amended following the appropriate measures of the Authority should correspond to the provisions of the generally applicable R&D Guidelines in 1995, when aid was granted to Project 40049. Thus, should the granting of aid to this project not have been done in compliance with these rules, the aid will have to be considered incompatible aid, unless its compatibility can be established on the basis of the state aid provisions in Article 61(3) (a), (b) or (c) of the EEA Agreement directly.

‘Strategic activities within maritime transport and logistics’

As far as the other three projects assessed in this Decision are concerned, they received aid on the basis of decisions taken by the RCN in 2000. Prior to that date, the Authority had amended Chapter 14 of the Guidelines with Decision No 53/96/COL adopted on 15.5.1996 to incorporate the amended Community Framework for state aid for research and development (22). Thus, an individual assessment of the granting of aid to Projects 138811 ‘AlgOpt’, 144265 ‘Shiplog II’ and 144214 ‘Library of optimisation routines for scheduling in shipping’ as individual aid should be done in accordance with the provisions of the version of Chapter 14 of the Guidelines existing since May 1996 or directly on the basis of the state aid rules in Article 61(3) (a), (b) or (c) of the EEA Agreement.

22

‘AlgOpt’

‘Shiplog II’

‘Library of optimisation routines for scheduling in shipping’

2.   State aid assessment of the projects

Article 61(1) of the EEA Agreement states that:

‘Save as otherwise provided in this Agreement, any aid granted by EC Member States, EFTA States or through state resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Contracting Parties, be incompatible with the functioning of this Agreement’.

Thus, in order for a measure to be considered state aid, it must constitute a selective advantage in favour of certain undertakings, be granted through state resources, distort competition and affect trade between the Contracting Parties to the EEA Agreement.

Firstly, the measure must confer on certain undertakings an advantage that reduces the costs they normally bear in the course of business and relieves them of charges that are normally borne from their budgets. By paying grants to support certain R&D projects, the RCN confers an economic advantage only on the promoters of the selected R&D projects.

Secondly, the advantage must be granted by the State or through state resources. The RCN develops and implements the country's national research strategy and specially acts as a funding agency for research. In particular, for the development of the Maritime research programme, the RCN managed funds received from the Ministries of Trade and Industry and of Finance. Thus, the public funds channelled through the RCN and which were obtained from the above-mentioned ministries constitute state resources within the meaning of Article 61(1) of the EEA Agreement.

Thirdly, the measure must distort competition. Since there are other Norwegian undertakings which compete with the promoters of the selected R&D projects that may not receive support from the RCN to carry out their R&D projects, the granting of aid has the effect of distorting competition.

Moreover, the beneficiaries of the financing are active in sectors open to competition within the EEA. Therefore, the funds granted by the RCN for the development of R&D projects affect trade between the Contracting Parties to the EEA Agreement.

For these reasons, the grants given by the RCN to the projects related to the development of the software programme Turborouter constitute state aid within the meaning of Article 61(1) of the EEA Agreement.

Whether the four projects fall within the existing aid scheme will be assessed under a).

Under b), the Authority will assess whether the aid grants, if outside the existing aid scheme, nevertheless are in compliance with the state aid rules.

a)   Assessment of the projects on the basis of the aid scheme Industrial R&D Programmes

The RCN granted financing to the above-mentioned projects in the framework of the aid scheme Industrial R&D Programmes, which the Authority classified as state aid within the meaning of Article 61(1) of the EEA Agreement in its Decision No 217/94/COL of 1 December 1994.

As mentioned above, the Norwegian authorities accepted the appropriate measures proposed by the Authority to bring the aid scheme Industrial R&D Programmes in line with the rules of the EEA Agreement in a letter dated 19 December 1994. They accordingly committed to amend the aid scheme Industrial R&D Programmes in accordance with the R&D Guidelines of 1994.

In the following, the Authority will assess whether the granting of aid to the four projects in question falls within the provisions of the scheme Industrial R&D Programmes as amended in accordance with R&D Guidelines of 1994.

As a preliminary remark, the Authority would like to point out that, in general terms, according to the information available to the Authority at this stage, the RCN does not seem to control how the own contributions of the beneficiaries are distributed to various activities and whether they are effectively disbursed. This type of control seems crucial in the determination of whether the beneficiaries receive aid in the amount they are entitled to or whether, on the contrary, they are misusing the RCN's research grants.

1)   The development of the first version of the software programme Turborouter

On the basis of the information provided by the Norwegian authorities, the RCN classified Project 40049 Strategic activities within maritime transport and logistics as industrial research. According to Point 14.1.(2) of the R&D Guidelines of 1994, basic industrial research is defined as ‘original theoretical or experimental work whose objective is to achieve new or better understanding of the laws of science and engineering as they might apply to an industrial sector or the activities of a particular enterprise.’

‘original theoretical or experimental work whose objective is to achieve new or better understanding of the laws of science and engineering as they might apply to an industrial sector or the activities of a particular enterprise.’

Although, according to the information submitted by the RCN, the project consisted of activities which were classified as fundamental research as well as other activities which were classified as industrial research, the project as a whole was considered as industrial research.

The development of the first software programme Turborouter, a tool useful for companies to optimise vessel fleet scheduling, was developed as the result of one of the sub-projects covered by Project 40049. Further, the project was exclusively carried out by the research institute Marintek.

Although Turborouter has become a software tool which seems to be appreciated on the market, the RCN funds allocated to Project 40049 devoted to the sub-project ‘Methods and analytical tools for design and operation of integrated transport and logistics chains’ only led to the development of the first software programme Turborouter, in the application of industrial research. Obviously since the first software was developed in the first phase of the sub-project back in early 1996, the software has been further improved and also marketed. However, it seems that the granting of aid to project 40049 which resulted, amongst others, in the development of the first software Turborouter, cannot by this fact be considered in relation to market proximity to be beyond the stage of industrial research as it was classified by the RCN.

As industrial research, Project 40049 was granted aid from the RCN for an amount corresponding to 43,8 % of the costs of the project. This intensity is below the maximum aid intensity allowed by the Guidelines which read ‘the level of aid for basic industrial research should not be more than 50 % of the gross costs of the project or programme.’

‘the level of aid for basic industrial research should not be more than 50 % of the gross costs of the project or programme.’

For the purpose of calculating the intensity of aid from R&D activities, Section 14.5.1 of R&D Guidelines of 1994 foresaw the following eligible costs:

| — | ‘personnel costs (researchers, technicians, other supporting staff) calculated as a sum of the total amount needed to carry out the project; |
| --- | --- |

—

‘personnel costs (researchers, technicians, other supporting staff) calculated as a sum of the total amount needed to carry out the project;

| — | other running costs calculated in the same way (costs of materials, supplies, etc.); |
| --- | --- |

—

other running costs calculated in the same way (costs of materials, supplies, etc.);

| — | instruments and equipment, land and buildings; |
| --- | --- |

—

instruments and equipment, land and buildings;

| — | consultancy and equivalent services including bought-in research, technical knowledge, patents, etc; |
| --- | --- |

—

consultancy and equivalent services including bought-in research, technical knowledge, patents, etc;

| — | additional overhead costs incurred directly as a result of the R&D project or programme being promoted.’ |
| --- | --- |

—

additional overhead costs incurred directly as a result of the R&D project or programme being promoted.’

It seems that the costs of the projects, as they were taken into account in the determination of the granting of aid, are a priori covered by the definition of eligible costs provided in the R&D Guidelines of 1994.

Therefore, it appears that the RCN had classified Project 40049 as basic industrial research in accordance with the provisions of the R&D Guidelines of 1994.

It is the preliminary opinion of the Authority that the granting of aid to Project 40049 falls within the scheme Industrial R&D Programme as amended on the basis of Chapter 14 of the Authority's R&D Guidelines of 1994. This preliminary opinion is however without prejudice to the Authority's final conclusion.

The complainant has further claimed that the research results had not been disseminated but the research institute Marintek, which developed the software programme Turborouter, had received the property rights to sell the programme.

The Authority would like to point out that under the R&D Guidelines of 1994, and accordingly under the provisions of the aid scheme Industrial R&D Programmes, there was no written obligation to disseminate the results of research as is the case for fundamental research under the currently applicable R&D Guidelines.

2)   The projects relating to the further use of the software programme Turborouter

In 2000, the RCN authorised the granting of R&D aid to three R&D projects which concerned the use and further development of the software programme Turborouter: Project 138811 ‘AlgOpt’, Project 144265 ‘Shiplog II’ and Project 144214 ‘Library of optimisation routines for scheduling in shipping’.

‘AlgOpt’

‘Shiplog II’

‘Library of optimisation routines for scheduling in shipping’

The Norwegian authorities have however indicated that there were other projects which involved the use and further development of the software programme Turborouter which did not receive any support from the RCN (23).

23

The RCN classified all three projects as pre-competitive research.

The complainant has claimed that these projects were far beyond pre-competitive development activities. In his opinion, the so-called Turborouter projects were aimed at developing software programmes developed in close co-operation with a limited number of users while in parallel being marketed towards other maritime companies in need of such programmes.

What in later versions of the R&D Guidelines has been named pre-competitive research largely corresponds to the definition of applied research and development within the meaning of the R&D Guidelines of 1994.

Point 14.1.(2) of the R&D Guidelines of 1994 distinguished between three categories of research: fundamental, basic industrial and applied research and development. According to this provision, applied research ‘covers investigation or experimental work based on the results of basic industrial research to acquire new knowledge to facilitate the attainment of specific practical objectives such as the creation of new products, production processes or services. It could normally be said to end with the creation of a first prototype.’ Development is considered to cover ‘work based on applied research aimed at establishing new or substantially improved products, production processes or services up to but not including industrial application and commercial exploitation.’

‘covers investigation or experimental work based on the results of basic industrial research to acquire new knowledge to facilitate the attainment of specific practical objectives such as the creation of new products, production processes or services. It could normally be said to end with the creation of a first prototype.

‘work based on applied research aimed at establishing new or substantially improved products, production processes or services up to but not including industrial application and commercial exploitation.’

On the basis of the information available to it at this stage of the procedure, the Authority is not in the position of ascertaining whether these projects were correctly classified as applied or pre-competitive research as will be shown below. In the following, the Authority will use the term ‘pre-competitive research’ when referring to applied research and pre-competitive research.

The complainant also claimed that the maximum aid intensities had not been respected due to the fact that the own capital contributions from the concerned companies were in reality lower than stated in the application forms.

The Authority will address these allegations below for each of the projects concerned.

a)   Project 138811 — AlgOpt

—   Doubts concerning the classification of the project

The Norwegian authorities explained that the AlgOpt project was a pre-study defining the user requirements and investigation of the feasibility of using Turborouter for Beltship Management, the contract partner of the project. According to the information provided by the Norwegian authorities, this project was considered as a sort of ‘pre-project’ to Project 144214, Library of Optimisation routines for scheduling in shipping, which will be addressed below.

On the basis of the information available at Marintek's website, the aim of the project was to develop and carry out practical tests of algorithms to calculate the optimal utilisation of a fleet of ships.

It is questionable whether this project goes beyond the stage of applied or pre-competitive research to constitute a commercial product. This application has been developed on the basis of the software programme Turborouter incorporating algorithms to calculate the optimal utilisation of Beltship Management's fleet. It is not clear to the Authority what would make the difference between the pre-competitive phase of the product and the final commercial product. The Authority has doubts as to what is the borderline between a prototype and a commercial product in the case at hand. It is not clear from the information provided whether the result of the project financed with aid granted by the RCN was developed further before it could be used in the daily operation of the company.

—   Doubts concerning the financing of the project and the aid intensities

The Authority would like to point out that there is a slight discrepancy between the figures provided by the Norwegian authorities in the written information submitted to the Authority concerning the financing of the AlgOpt project and the information presented in the application forms for grant to the RCN also forwarded by the Norwegian authorities as follows:

| | |
| --- | --- |

The Norwegian authorities are invited to comment on these figures. They are also invited to provide the correct information concerning the amount of money which the Norwegian Shipowners' Association invested in the AlgOpt project which is included in the amount granted through the RCN in the table above. This information is of the essence when it comes to assessing the aid intensity of the project.

| | |
| --- | --- |

Following the arguments of the complainant, there is a doubt as to whether the real research cost of the project corresponded to NOK 380 000 instead of the amount claimed by Beltship Management in its application for a grant from the RCN, i.e. NOK 925 000.

i.e.

This doubt is substantiated by comparing the figures concerning the costs of the project and its financing. Beltship Management contributes with own means amounting to NOK 625 000 to the financing of the project. According to the information contained in the application form to the RCN, this sum is divided as NOK 80 000 in cash and NOK 545 000 as contribution in kind. The later corresponds exactly to the personnel and indirect costs of the project whereas the cash contribution together with the aid granted by the RCN (NOK 300 000) pays the purchase of R&D which costs NOK 380 000.

It seems that it is Marintek, the research institute that developed the first software programme Turborouter, which had the necessary know-how and technological competence to do the project. Therefore, it appears rational to assume that most of the work would have been carried out by its own staff. This would imply, in principle, that the participation of the staff of Beltship Management, which was the final user of the software, would have most probably been related to the definition of the users needs and/or to some degree of testing.

Although it seems questionable to what extent the staff of the company can carry out activities classified as research activities, the R&D Guidelines of 1994 did not require that staff be employed solely on the research activities for these costs to be eligible for aid.

Notwithstanding this, comparison of the costs of the project shows that the total contribution of Beltship Management's staff to the project which amounted to 545 000 NOK is more important and costly than the development of the R&D which was acquired from Marintek for a total of 380 000 NOK. It seems questionable to what extent the staff of the company has carried out research activities or whether these costs rather concerned normal operational activities of the company. The Authority would appreciate documentary evidence which can substantiate that the hours behind these research costs were actually used in the project.

To the extent that Beltship's contribution in kind may not have corresponded to research costs, the overall costs of the research project would be lower and the aid intensities accordingly higher.

b)   Project 144265 — Shiplog II

—   Doubts concerning the classification of the project

According to the information provided by the Norwegian authorities, the main objective of Shiplog II was to develop a pilot demonstrator of door-to-door logistics management in the shipping of chemicals and cars.

According to Point 14.1.(2) of the R&D Guidelines of 1994, applied research covers investigation or experimental work based on the results of basic industrial research which could normally be said to end with the creation of a first prototype. The Authority has doubts whether the definition of applied research covers cases such as this where the pilot demonstrator or prototype seems to be very close to what the final product would have been. According to the information submitted by the Norwegian authorities, the integration of the Transport Chain Management System (TCMS) and Turborouter, the main objective of this project, failed.

—   Doubts concerning the financing of the project and the aid intensities

A comparison of the figures corresponding to the project costs and its financing shows that the amount granted by the RCN equals the sum necessary to purchase R&D. Further, the contribution of UECC's (own financing), the company in charge of the project, corresponds to the personnel and indirect costs. The rest of the gross costs of the project covers equipment and other operating costs and equals the financing brought by the other companies participating in the project.

The Norwegian authorities have contended in their letter dated 22 August 2005 that ‘in order to promote cooperation [between private companies and public R&D institutions] we may in some calls for proposals for industry-driven projects, state that the application will be evaluated favourably if the external purchases of R&D from research institutes (institutes or universities) are at least as high as the support given by the RCN.’
   (24)

‘in order to promote cooperation [between private companies and public R&D institutions] we may in some calls for proposals for industry-driven projects, state that the application will be evaluated favourably if the external purchases of R&D from research institutes (institutes or universities) are at least as high as the support given by the RCN.’

24

The Authority questions whether the figures for the total project costs have been inflated to seemingly obtain more financing. It is questionable whether this approach has led beneficiaries to include part of their normal operating costs in the R&D costs allocated to the research projects financed with support from the RCN.

Should this be the case and should the R&D project in reality only correspond to the purchased R&D, the intensity of the aid granted would have to be revised. It would then be necessary to assess whether the revised aid intensity falls within the parameters of the Industrial R&D Programme.

c)   Project 144214 — Library of optimisation routines for scheduling in shipping

—   Doubts concerning the classification of the project

According to the information provided by the Norwegian authorities, in this specific project the requirements of Beltship Management and another company, Iver Ships, were used as an example to gain some more experience from this kind of scheduling software in shipping organisations. This could have been of great value to Marintek's further development of Turborouter. Even if the requirements of these two companies would not be the same as for other shipping companies, it would be possible to build on some main principles in the used algorithms.

The Authority has difficulties in understanding which are the determining features of this project in classifying it as applied research and not as a commercial project.

During the preliminary investigation, the Norwegian authorities have argued that the result of the activities in any of the projects classified as applied or pre-competitive research cannot be exploited commercially and sold to other users because they are company-specific applications. According to the information provided by the Norwegian authorities, Turborouter will never be an ‘off-the-shelf’ product but will always need, by definition, further adaptations.

The Norwegian authorities acknowledge the difficulty in distinguishing between a commercial and a pre-competitive product where the result of the activity is not a physical product but a new, altered or improved process, service or procedure to be used internally. In their opinion, the activity that has created these results may be classified as a pre-competitive development activity if it is not part of the day-to-day operation of the company and not part of routine or periodic changes or improvements.

The borderline between a pilot project, which could not be used commercially, and a commercial final product seems very diffuse in the case at hand because the software needs to be adapted anew for each new application specific to each final user. The Authority questions to what extent the further development of the software programme Turborouter for use in developing applications which serve concrete needs for the final users can be covered by the definition of applied research. It is not clear to the Authority what would be considered as a commercial product and what would fall under a prototype regarding the concrete application of the software programme Turborouter to the specific needs of a given company.

The Authority doubts whether, due to the specific characteristics of the software programme Turborouter, the development of each new application necessarily goes beyond the stage of pilot project to be a new commercial product or whether, on the contrary, it constitutes applied research.

Furthermore, although the project as such was considered pre-competitive research, the RCN classified certain activities within Project 144214 ‘Library of optimisation routines for scheduling of shipping’ such as map chart status or the writing and publishing of articles as industrial research. The correctness of this classification seems doubtful.

—   Doubts concerning the financing of the project and the aid intensities

As was the case of the previously mentioned projects, the comparison of the figures provided for as the cost and financing of the project raises doubts as to whether the project only concerns research activities or whether it covers part of the operational costs of the company, in this case of Beltship Management and Iver Ships.

From the information provided by the Norwegian authorities, it seems that the object of the project was to allow Marintek to use the two companies as an example to gain some more experience from this kind of scheduling software in shipping organisations. In principle, this would imply that the majority of the research work will be done by Marintek itself. It is the understanding of the Authority that this research done by Marintek is covered by the rubric ‘Purchase of R&D’ in the costs of the project and amounts to NOK 2 900 000. It follows logically that the work of the personnel has an auxiliary function, to provide the researchers with the experiences acquired ‘on the job’ while using the software tool Turborouter. In the understanding of the Authority, this information should serve as a basis for the research of Marintek and should be processed into new algorithms for advanced optimisation and scheduling of shipping operations. It does not seem that the aim of the project was the development of a given prototype or pilot demonstrator. In such a situation, it seems unusual that the costs of personnel and indirect costs are higher than the cost of purchasing R&D.

The Authority welcomes any comment regarding this issue.

3)   The necessity to open the formal investigation procedure

On the basis of the information available at this stage of the procedure, the Authority is not in the position of ascertaining whether these projects were correctly classified as pre-competitive development activities or whether, on the contrary, they were already too close to the market to be eligible for state aid.

Furthermore, the Authority has doubts concerning the financing of the projects, in particular regarding the effective disbursement of the own contributions in kind of the beneficiaries of the projects.

In light of the above, the Authority has doubts both as to whether the above-mentioned projects have received aid in compliance with the R&D Guidelines of 1994 and as to whether the beneficiaries have used the aid in contravention of the accepted appropriate measures on the scheme Industrial R&D Programmes. On the basis of the definition in Article 1(g) in Part II of Protocol 3, aid used by the beneficiary in contravention of a decision taken pursuant to Article 4(3) or Article 7(3) or (4) constitutes misuse of aid. This definition covers, in the Authority's view, individual aid awards within a scheme approved by the Authority by means of appropriate measures.

According to Article 4(4) in Part II of Protocol 3, the Authority shall decide to initiate the formal investigation procedure where, after a preliminary investigation, it finds that doubts are raised as to the compatibility of a measure with the functioning of the EEA Agreement. Furthermore, according to Article 16 in Part II of Protocol 3, the Authority may in cases of misuse of aid open the formal investigation procedure pursuant to Article 4(4) in Part II of Protocol 3.

With regard to the correct classification of the projects and the respective aid intensities, should the Authority find out in the course of this formal investigation that the above-mentioned projects have received aid which was not awarded on the basis of the aid scheme Industrial R&D Programmes, it will consider these projects as individual aid awards which were not notified to the Authority in due time. Any aid which is put into effect in contravention of Article 1(3) in Part I of Protocol 3, i.e. that was not notified and authorised by the Authority prior to being put into effect, is considered unlawful aid by virtue of Article 1(f) in Part II of the same Protocol.

Both in the case of misuse of aid and of the granting of unlawful aid which is incompatible with the state aid rules of the EEA Agreement, the aid will have to be recovered from the beneficiaries.

b)   Assessment of the projects as individual aid grants

1)   Introduction

Should the granting of financial support by the RCN to the projects concerning the development of the software programme Turborouter not be covered by the aid scheme Industrial R&D Programmes, as assessed above, these measures will constitute individual aid and should have been notified in accordance with Article 1(3) in Part I of Protocol 3 and will have to be assessed individually.

2)   Compatibility

At this stage of the procedure, the Authority is not in the position of determining whether the granting of aid to the projects related to the further development of the software programme Turborouter can be considered compatible on the basis of the provisions of the R&D Guidelines as amended by the Authority with Decision No 53/96/COL (25). For this reason, in the following, the Authority will only recall provisions which may seem relevant for a possible assessment of these grants in light of the R&D Guidelines.

25

On the basis of the provisions of Chapter 14 of the State Aid Guidelines ‘Aid for research and development’, aid granted to firms for R&D may be regarded as compatible with the functioning of the EEA Agreement by virtue of Article 61(3)(c) of the EEA Agreement which provides a derogation for aid that facilitates the development of certain economic activities as long as it does not adversely affect trading conditions to an extent contrary to the common interest.

‘Aid for research and development’

State aid for R&D should serve as an incentive for firms to undertake research activities in addition to their normal day-to-day operations (26). In order to verify that the planned aid will induce firms to pursue research which they would not otherwise have pursued, the Authority takes particular account of quantifiable factors such as changes in R&D spending or in the number of people assigned to R&D activities, market failures, other additional costs connected with cross-border cooperation and other relevant factors.

26

When examining the compatibility of an aid for research and development, under the R&D Guidelines, the Authority pays special attention to the type of research carried out, the beneficiaries, the aid intensity or the accessibility to the results. The closer the aid is to the market, the more significant the distortive effect of the state aid may be.

In order to determine the proximity to the market of the aided R&D, the Authority makes a distinction between fundamental research, industrial research and pre-competitive development activity. By pre-competitive development activity is meant (27)
  ‘the shaping of the results of industrial research into a plan, arrangement or design for new, altered or improved products, processes or services, whether they are intended to be sold or used, including the creation of an initial prototype which could not be used commercially. It may include conceptual formulation and design of other products, processes or services and initial demonstration projects or pilot projects, provided that such projects cannot be converted or used for industrial applications or commercial exploitation’. The permissible gross aid intensity for such activities is fixed at 25 % of the eligible costs.

27

‘the shaping of the results of industrial research into a plan, arrangement or design for new, altered or improved products, processes or services, whether they are intended to be sold or used, including the creation of an initial prototype which could not be used commercially. It may include conceptual formulation and design of other products, processes or services and initial demonstration projects or pilot projects, provided that such projects cannot be converted or used for industrial applications or commercial exploitation’

According to Point 14.5.9 of the R&D Guidelines, in cases of R&D activity spanning industrial research and pre-competitive development activities, the permissible aid intensity will not normally exceed the weighted average of the permissible aid intensities applicable to the two types of research.

However, in the event of failure of the research concerned, the Authority, in line with past practice, may allow a higher level of aid intensity since the project's failure reduces the risk of competition and trade being distorted (28).

28

Under Annex II to Chapter 14, the R&D Guidelines, the Authority revised the concept of eligible costs for the purpose of calculating the aid intensity to cover:

| — | personnel costs (researchers, technicians and other supporting staff employed solely on the research activity) |
| --- | --- |

—

personnel costs (researchers, technicians and other supporting staff employed solely on the research activity)

| — | cost of instruments, equipment, and land and premises used solely and on a continual basis (except where transferred commercially) for the research activity |
| --- | --- |

—

cost of instruments, equipment, and land and premises used solely and on a continual basis (except where transferred commercially) for the research activity

| — | cost of consultancy and equivalent services used exclusively for the research activity, including the research, technical knowledge and patents, etc. bought from outside sources |
| --- | --- |

—

cost of consultancy and equivalent services used exclusively for the research activity, including the research, technical knowledge and patents, etc. bought from outside sources

| — | additional overheads incurred directly as a result of the research activity |
| --- | --- |

—

additional overheads incurred directly as a result of the research activity

| — | other operating expenses (e.g. cost of materials, supplies and similar products) incurred directly as a result of the research activity. |
| --- | --- |

—

other operating expenses (e.g. cost of materials, supplies and similar products) incurred directly as a result of the research activity.

Should the granting of aid to any of these projects not be considered compatible on the basis of the R&D Guidelines of 1996 or on another state aid provision of the EEA Agreement, any illegally granted aid will have to be recovered from the beneficiaries, pursuant to Article 14 of Protocol 3.

3.   Conclusion

In light of the above, the Authority has doubts as to whether all or any of the above-mentioned four projects have received aid in compliance with the R&D State Aid Guidelines.

In particular regarding the projects related to the further development of the software programme Turborouter, on the basis of the information available to it at this stage of the procedure, the Authority is not in the position of ascertaining whether these projects were correctly classified as pre-competitive development activities or whether, on the contrary, they were already too close to the market to be eligible for state aid.

The Authority has doubts regarding the real research costs of the projects. Should the Authority, in the framework of the current investigation, find out that they were lower than alleged in the application for funding to the RCN, the aid intensities will have to be reviewed.

Furthermore, the Authority also has doubts regarding the effective disbursement of all contributions in kind from the beneficiaries.

The two concerns mentioned above with respect to the pre-competitive research projects may lead to the conclusion that aid could have been granted for an amount exceeding 25 % of the real costs of the project. As far as the industrial research project is concerned, this percentage can reach 50 %. Any amount exceeding this figure not covered by the state aid rules on R&D aid might need to be recovered.

The Authority also doubts whether the beneficiaries have used the aid in contravention of the accepted appropriate measures on the scheme Industrial R&D Programmes.

Therefore, in accordance with Articles 4(4), 10 and following and 16 in Part II of Protocol 3, the Authority is obliged to open the formal investigation procedure provided for in Article 1(2) in Part I of Protocol 3. The decision to open proceedings is without prejudice to the final decision of the Authority.

The Norwegian authorities should inform Marintek, Beltship Management, UECC and any other beneficiary of possible state aid by means of a copy of this Decision —

HAS ADOPTED THIS DECISION:

Article 1

The EFTA Surveillance Authority has decided to open the formal investigation procedure pursuant to Article 1(2) in Part I of Protocol 3 to the Surveillance and Court Agreement regarding the R&D aid granted by the Research Council of Norway in connection with the development of the software programme Turborouter.

Article 2

The Norwegian Government is invited, pursuant to Article 6(1) in Part II of Protocol 3 to the Surveillance and Court Agreement to submit its comments on the opening of the formal investigation procedure within one month from the notification of this decision.

Article 3

Other Contracting Parties to the EEA Agreement and interested parties shall be informed by the publishing of a meaningful summary and the full text of this Decision in the EEA Section of the Official Journal of the European Union and the EEA Supplement thereto, inviting them to submit comments within one month from the date of publication of this Decision.

Article 4

The Authority requests the Norwegian authorities to forward a copy of this letter to the recipients of the aid immediately.

Article 5

This Decision is addressed to the Kingdom of Norway.

Article 6

This Decision is authentic in the English language.

Done at Brussels, 8 March 2006.

For the EFTA Surveillance Authority

Bjørn T. GRYDELAND

President

Kurt JAEGER

College Member

---

(1)  Hereinafter referred to as ‘the Authority’.

1

(2)  Hereinafter referred to as ‘the EEA Agreement’.

2

(3)  Hereinafter referred to as ‘the Surveillance and Court Agreement’.

3

(4)  Hereinafter referred to as ‘Protocol 3’.

4

(5)  Procedural and Substantive Rules in the Field of State Aid, Guidelines on the application and interpretation of Articles 61 and 62 of the EEA Agreement and Article 1 of Protocol 3 to the Surveillance and Court Agreement, adopted and issued by the EFTA Surveillance Authority on 19 January 1994, published in OJ 1994 L 231, EEA Supplements 3.9.94 No 32, last amended on 14 December 2005, hereinafter referred to as ‘the Guidelines’.

5

(6)  Not yet published in the OJ or the EEA Supplement. Available at:

6

http://www.eftasurv.int/fieldsofwork/fieldstateaid/legaltexts/ms2decision.DOC. This Decision has been last amended by the Authority's Decision No 329/05/COL of 20.12.2005.

(7)  The following information has been obtained from the brochure TurboRouter Vessel schedule optimizing software, available at the website of Marintek: http://www.marintek.no

7

(8)  These figures have been obtained from the form submitted to the RCN for the application for a grant.

8

(9)  Information obtained from Marintek's website: http://www.marintek.no

9

(10)  These figures have been obtained from the form submitted to the RCN for the application for a grant.

10

(11)  Information obtained from Marintek's website.

11

(12)  XML (Extensible Mark-up Language) is a flexible way to create common information formats and share both the format and the data on the World Wide Web, intranets, and elsewhere. XML is a formal recommendation from the World Wide Web Consortium (W3C) similar to the language of today's Web pages, the Hypertext Mark-up Language (HTML).

12

(13)  These figures have been obtained from the form submitted to the RCN for the application for a grant.

13

(14)  These figures have been obtained from the form submitted to the RCN for the application for a grant.

14

(15)  Information issued from Marintek's website: http://www.sintef.no/Content/page2____690.aspx.

15

(16)  Information issued from UECC's website: www.uecc.com.

16

(17)  Information issued from ‘TurboRouter, Vessel schedule optimizing software’, a publication from Marintek.

17

(18)  Decision of the EFTA Surveillance Authority No 217/94/COL of 1.12.1994. The schemes covered by this decision were: Industrial R&D Contracts (case 93-147) and Public R&D Contracts (case 93-182) granted by the SND and Industrial R&D Projects (case 93-181) and Industrial R&D Programs (case 93-183) granted by the RCN.

18

(19)  According to the Decision, ‘The Norwegian authorities must inform the EFTA Surveillance Authority on the adoption of such provisions [the appropriate measures], insofar as these involve state aid, before they are put into effect’.

19

(20)  Information taken from the website of the RCN at http://www.forskningsradet.no/english/

20

(21)  In January 1994, the Authority had taken Decision No 4/94/COL on the adoption and issuing of the Procedural and Substantive Rules in the Field of State Aid (Guidelines on the application and interpretation of Articles 61 and 62 of the EEA Agreement and Article 1 of Protocol 3). Chapter 14 thereof deals with Aid for research and development, which mainly corresponded to the Community framework for state aid for research and development. This Decision was published on the Official Journal L 231 of 3.9.1994, pages 1 to 84.

21

(22)  Published in the OJ C 45 of 17.2.1996, pages 5 to 16.

22

(23)  See chart ‘Projects involving development of Turborouter’ handed over by the RCN during the meeting with representatives of the Authority held in Oslo in September 2004.

23

(24)  See page 1 in the letter from the Norwegian authorities dated 22.8.2005.

24

(25)  Should the granting of R&D aid to Project 40049 fall outside the scheme Industrial R&D Programmes, its compatibility as individual aid can only be established on the basis of the EEA Agreement directly (see page 12 of this Decision).

25

(26)  See Section 14.7 Incentive effect of R&D aid in Chapter 14 of the State Aid Guidelines, R&D Guidelines, as amended in 1996.

26

(27)  See Annex I to Chapter 14 of the State Aid Guidelines, R&D Guidelines, as amended in 1996.

27

(28)  See Section 14.5.6 in Chapter 14 of the State Aid Guidelines, R&D Guidelines, as amended in 1996.

28

---