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DOCUMENTS "COM"
COM (80)918
Vol.1980/0288

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)918 final
Brussels,9thJanuary1981
K/'y.',
STATEAIDSTOSHIPBUILDING
.t.
(ReportfromtheCommission totheCouncil)
COM(80)918final

ReportoftheCommissiontotheCouncil
1.InapprovingDirective78/338/EEConStateaidtoshipbuldmg,
I
theCouncilaskedtheCommissiontolaybeforeitregularreports
ontheaidsgiventothissector.(Articles4,6,7and8ofthe
Directive)
2.Thereportforthesecondhalfof1979isattachedasAnnex1.
3.Alsoattached(Annex2)isascheduleofcurrentaidschemesin
favourofshipbuiIdrng.

ANNEXI
AIDGRANTED TOSHIPBUILDING INTHEEEC
1.Production aid:Articles 6+7ofthe4thDirective onaidto
shipbuilding .
PeriodJuly-December1979
Member-Numberof
State Casesgrt Estimatedproportion of
contractprice
(1)
FR.Germany 83392,180 3%to20%
Belgium- -
ί
Denmark- -
France 13274,750(cgrt )10%to30%
Ireland - -
Italy42199 10„2%to18.5%
Nethei–
lands 9133,344 '
+17,830hp2.9%to28.6%
United
Kingdom 11599 24%(2)(3)
(InadditionShipbuilder's Relief2%
(1)thefiguresgivenrelatetothe'wholeyear1979,alldecisionshaving
beentakeninthesecondhalfoftheyear.31shipswerenotaided,although
theymettheaidrequirements .
*•2)costescalationinsurance wasnotappliedinthiscase.
(3)corrigendum toreportforperiodJanuary-June 1979(average weighted
byton)jfor-"29.2%"read"28.4%".

2.Aid toinvestment :Article 4ofthe
Shipbuilding4th Directive onaid to
Period July -December 1979
Member - Amount of Nature of Effect onproduction
State investment aid capacity
R.F. Germany(1)DM 50mio 10% ofinvest -
ment amount
(max. DM5Mio )\
Inshipbuilding construction
decrease ofproduction hours
from 1,4Mio to0,8 Mio .
Increase inrepairsector anc ·
innon-shipbuilding produc­
tion .
Belgium– –
Denmark ..-
" ' ' ■
France-- ,
Ireland-
A.
Italy' '– '
.
Netherlands - -
United Kingdom- ■
'
'1'Part oftheHamburg yards' restructuring programme .

3.Aidtoshipowners:art.8ofthe4thDirectiveonaidstoshipbuilding .Ί.
a)Volumeofcontracts
A:Contractsaided.B:contractsrefused.C:Totalvolumeofcontracts.
PeriodJuly-December1979.
TotalvolumeForbuildingsin
nationalyardsForbuiIdingiη
otherEECcountrieForbuiIdingsin
sthirdcountry
yards.
GRTnational
currencyGRTnational
currencyGRTnationaI
currencyGRTnational
currency
F.R.Germany(1)A.45.207 1602.496K 445.207 1602.496Γ·
Β14Ó.236
59ΪΤ443244.45Sf
1846.954!"146.236 244.45Si <
C591.443 1846.954?·
3elgium(2) A209.000 4673.0f209.0004673.0 f·
Β~ -1
-
C209-000 4673.0 ?209.C0046-73.0 Ν
Denmark A106.800 1.900V106.800 1.900Γ -
Β- - -
C106.S00 1.900V106.8001.900r|
France A3.800 72.12GI"3..80072.1201 ί
I1
1,
Β !I
I
C3.800 !72.120¡í3.800I72.120:1
1 I ιi
IrelandA i-1
8- –
i
Γ- -
II
I
I
ItalyA142.469 2759 M142.469¡2759M2952,979M
Β– –
I
C142.469 J2759M142.469 |2759M
I2952,979M
NetherlandsA2.36017.8C0R2.3Ó0j17.80C
I !!
Β4.862 38.200rç4.862 I38.¿1)1ί'
C7.222 56.0007.222j56.00CJtt
ilinited
IKingdom(3>A21.10?73.07921.109 73.07Η
Β
1
C21.10973.079|21.10·;73.0791
1)Thefiguresgivenrelatetothewholeyearof1979(alldecisions on
shipowners-' aidaretaxenintriesecondhalfoftheyearinquestion).
2)Corrigendun)toreportonoeriodJanuary-June 1979.For"86.571grt"
read157.7i4grt"anafor"3416Mio"(nationalcurrency)reaa"8483mio".
3)TheBritishschemerelatestoBritishownerswhoplaceanorderwith
aBritishyard.OECDconditions.

b)AverageeffectofaidPercontract(Fullyear1979-Yearlycommunication )
Member-
StateTotal
AverageForbuilding -
innat.yardsForbuilding
inotherEEC ■
countriesForbuiIding'in
thirdcountryyards
R.F.A. 11,35%11,35%- -
Belgium(1)• ·
Denmark 5,7%5,7%■
France 13,947.t
13,94%
Ireland(2)■.·'-^'''
Italy(3)-
Netherlancfe5χ1,1% 5χ1,1%<·•
U.K.(2) – –
-
(1)Information notsupplied.
(2)Nospécialschemeforshipowners .
(3)Theinformation providedbytheItalianauthorities isbasedondifferent
criteriathanthoseusedbytheotherMemberStatesandisnotcomparable .

1....i
O¡
1
Listofaidsandinterventions forshipbuilding Annex2
a)Aidstoshipbuilding July1980
Description Levelofintervention Remarks
GermanydNational-directaidforbuilding
fundofDM660mMax.20'Aofcontractprice(average10%)
(after1.1.1981max.15%,average75%)Fororderstakenbetween
1.12.78and31.12.1981
2)Hamburg-allocationofDM35m
forinvestment inthe
portofHamburgandcon­
versionoftheshipbuil-
dingsectortoship-
repairar.dothersectors
(1975-1983 )DM31mforinvestment on
publicly-owned landDMAm
forinvestments onprivate
land.
/.
3)Lower--subsidies uptoDM3m
SaxonyFordiversification measures
(outofshipbuilding )
' I
Ireland-compensation oflossesincurred Max.30%ofcontractprice Thismeasurelastsuntilthe
endof1980.
France-directaidforconstruction Max.25%of,contractprice Fororderstakenin1979and
1980.
Netherlands-compensation oflossesincurred
onorders75%oflossesincurredwithlimit
of30%ofcontractpriceToendof1980.
UnitedKingdom-singlerefundofcertaintaxes
(shipbuilders' relief)2%oftheconstruction cost
-Directaidforconstruction .
Fundoft120mforBritish
Shipbuilders andt25mfor
HarlandandWolff(Northern
Ireland)Max.25%ofcontractprice
(includingshipbuilders' relief)Financialyears1979/80and
80/81.
Italy-directaidforconstruction :budge-
taryallocationLit.110bio.Maximum30%ofcontractprice Forcontracts takenin1979
and1980.TheCommission opened
theArt.93(2)EECprocedure
againstthisschemeon28.3.80.

-2-
b)Creditfacilitiesforsales
Description ofaidQualifying .transactions Levelof
intervention _Remarks
Germany -interestrebate Allsales
i-maximuminterestrebate
2%(limit OECDcondi­
tions)(1)specialscheme
forships
Belgium -interestrebate SalestootherMember .
Statesandthirdcoun-
tries-OECDconditions generalscheme
\Denmark -preferential
creditAllsales -OECDconditions
rspecialscheme
forships
France .-preferential creditSalestootherMember
Statesandthird
countries-OECDconditions generalscheme
'Ireland -preferential creditAllsales -OECDconditions specialscheme
forships
Italy -preferential creditAllsales -OECDconditions specialscheme
forships
Netherlands -interestrebate
'' ιAllsales' 1 -maximuminterest
rebate2%(3,5%
forsmallships)
limitOECDConditionsspecialscheme
forships
/
UnitedKingdom -preferential creditExportsales -OECDconditions generalscheme
(1)Repaymentperiod81/2years,interestrate8%,downpayment20%.

c)Creditfacilitiesforpurchaseinvolvingaidtoshipbuilding
Description ofaid LevelofIntervention Remarks
Denmark
UnitedKingdom-creditfacilitiesforDanishowners
onpurchaseofshipsinaCommunity
yard
-creditfacilitiesforthepurchase
ofshipsbyBritishownersin
Britishyards(homecreditscheme)-creditat8%for14years
(with4yearsmoratorium on
repayment)on80%ofcontract
price.
-OECDconditions of18.7.74
-inaddition,asubvention
schemehasbeenintroduced
underSection25ofthe
IndustryAct1975Theapplication ofthis
schememustnotresultin
conditions morefavorable
thanthosecontainedinthe
OECDunderstanding
d)Priceguaranteemechanisms '
France
UnitedKingdom-Governmenttakesoverresponsibi-
lityforincreaseincostbetween
orderinganddeliveryonfixed
pricesalestothirdcountry
owners.
-apremiumof0,5%peryearispaid
whenthethresholdisnotexceeded
-responsibility forincreasein
costbetweenorderinganddelivery
onfixedpricesalestothird
countryandhomeowners
-apremiumof1%peryearonthe
amountcoveredispayable-intervention relatesto80%
ofthecostforanincrease
inexcessof7,5%.Duratior >
2years.
-forcreditsales,thevari­
ablepartofthecost(70%)
intheband7%-17%iscove-
red.Forcashsales,thelimit
is15%.Itispossibletochoose
thestarting-point forinter­
vention,between7and15%of
theincreaseincost.Thisschemehasnowbeen
terminated (1980).

Description ofaid
Italy-responsibility forincreasein
costbetweenorderingand
delivery.
,
-thepremiumiswithintheband
0.1to1.25%ofthecostofthe
ship.
r-thisschemeisappliedonlyto
exports.Levelofintervention
intervention relatesto
anannualincreasebe­
tween5and15%ofthe
cost.Remarks
Avallable,butnever
usedforshipbuilding
todate.