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DOCUMENTS "COM"
COM(82)511
Vol.1982/0170

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COMMISSION
OFTHE
EUROPEAN COMMUNITIES
SecretariatCOM(82)511 final
Brussels,30July1982
FOROFFICIAL USEONLY
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Requestforassent,pursuanttoArticle56(2a)oftheECSCTreaty
tothegrantingofaconversion loantoNordiskFaergefart A/S,
Danmark
COM(82)511final

FOR OFFICIAL USE ONLY
COMMUNICATION FROM THECOMMISSION TOTHECOUNCIL
Subject :Request forassent ,pursuant toArticle 56 (2a)ofthe ECSC Treaty
tothegranting ofaconversion loan toNordisk Faergefart A/S,
Danmark .
I.THE COMPANY No.364
Appi ieant Nordisk Færgefart A/S
Registered Office :Faaborg
Parent company of
appl icantNoparent company -shares aredispersed .
Recipient :Nordisk Færgefart A/S
Field ofactivity of :Thecompany currently runs aferry service between
recipient Denmark andGermany ,using itsferry "Getting Nord ".
Another ferry owned bythecompany ,ischartered to
thegovernment ofTrinidad andTobago tobeused as
.carferry between thetwoislands .

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II.THEPROJECT
Description :Theprojectinvolvestheestablishment ofacarferry
servicebetweenHundested,DenmarkandSandefjord,
SouthNorway.Thecompanywillusethecarferry
GettingNordforthisrouteandwillbuythemotor
ferry"Stella Scarlet"atacostofDKr34mtoreplacethe"Gelting Nord"onthe
routeFaaborg/Getting.
Establishing costforthenewrouteamountinNorwaytoaboutNKs2.5m(about
DKr3.32m)whilstthecompany'sinvestmentcostinHundestedwillbeabout
DKr400.000mainlyfornewbuildings.Tooverhaultheferry"StellaScarlet"
willcostthecompanyanotherDKr3.5m.
Cost Ferry"StellaScarlet"DkR37,5m
Establishing cost DkR3,7m
Total DKR41,2(+5,07MioECU)
Schedule :Theferryrouteshouldbecomeoperational in1983.
Market :Accordingtothecompany,thenewroutewillbenefitfroj
thegrowthintransportbetweenHundestedandNorway.
Thenewcarferryroutewillbeanattractivealternative
bothfromaneconomicandtime-savingpointofview,to
thelandroutebetweenZealandandNorway,becausethe
onlyexistingferryroute,theCopenhagen/Osloroute,canonlytakealimitednumberof
privatecarsandlorriesandisless.,attracti vefor<transporttothatpartofNorway
whichliesSouthofOslo. * I
Environment :Environ'mentalprotectionmeasuresmaccordance
withcurrentlegislation
Thesectoralandcompetitionaspectsoftheprojecthavebeencloselyexamined;
theydonotmilitateagainstthegrantingoftheloanappliedfor.
Theprojectappearstobeeconomically sound;itwillmakeasignificant
contribution totheredevelopment oftheregionwhichissufferingtheeffects
ofadeclineinECSCindustries .

J
-3-
III.THEREGION
Projectlocation Hundested,NorthZealand-Danmark
Unemployment rate
NationalaidstatusofInApril1982,theunemployment ratestoodat
15.2%inHundestedand15.8%inFrederiksvcerk ,
Thecorresponding rateforDenmarkwas13.2%.
Theareaisnotdesignatedasassistedarea.
Projectarea
TheECSCindustryhasbeenanimportantsourceofemploymentinthearea.
IV.CONFORMITY WITHARTICLE56OFTHEECSCTREATY
ECSCredundancies in
projectareaTherehavebeenabout800joblossesatDanish
steelworks (DetDanskeStålvalseværk ,DDS)in
Frederiksværk intheyears1980and1981.
Jobstobecreatedbytheproject
TraininqAminimumof104jobsintheHundestedarea,
whereemploymentopportunities havebeen
sharplyreducedasaresultofthereduction
ofjobsatthesteelworksinFrederiksvaerk .
Trainingwillbeprovidedbythecompanybut
manyofthepeopledismissedortobedismissed
byDDSwereformerlyemployedinferryservices
andwillthusbeabletotakeupworkwiththe
ferrywithoutfurthertraining.
TheCommissionconsidersthattheapplication complieswithArticle56(2a)
oftheECSCTreatyandthatthenewjobstobecreatedbytheprojectare
capableofabsorbingredundant ECSCworkersintoproductiveemployment.

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V.CONVERSION LOAN
Loan applied for :DKR14m
Loan tobegranted :The Commission hasapproved aloan of
DKR 14m (about 1.72 MioECU >
orequivalent tothe above mentioned
company inaccordance with Article 56
application criteria (OJC82,
29March 1979 )
Interest rebate 3percentage points peryear for five
years on1.72 MioECU .
Job basis ofinterest rebate 86 jobs suitable forformer ECSC
industry workers ,towhom they will be
offered inpriority .
VI,COUNCIL ASSENT
TheCommission requests theCouncil togive itsassent totheforegoing
deci sion -