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COM(76)321
Vol.1976/0096

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COMMISSION OFTHEEUROPEAN COMMUNITIES
\
COM(76)321final.
.Ι : .. /Brussels,30July1976
PROPOSAL FORACOUNCILDIRECTIVE
amendingDirective75/432/EEConaidtoshipbuilding
»
(submittedtotheCouncil "bytheCommission)
V
\
/
COK(76)321final.

Explanatory Memorandum
1.Council Directive 75/432/EEConaidtoshipbuilding establishes a
oategoiy ofaids toshipbuilding which maybeconsidered compatible
with theoommon market forthepurpose ofArticle 92(3 )(d)and
harmonizes aids forthe export ofships tonon-member countries
under Article 113 .
2.Asregards price guarantees ,theDirective authorizes only the
French scheme ,sinoe noothers were inoperation when theDirective
was issued . ' ■
3*TheUnited Kingdom Government hasnowdeoided tobring inascheme
ofcost escalation .cover which will operate onsales ofships ty
British yards both toBritish andtonon-Community shipowners .
Where thesale isoncredit ,assistance maybegiven tocover any
increase ofbetween 7i°and17i°perannum inthevariable part ofthe
prioe (approx .70$ theprice ).Inthecase ofcash contracts
theband :iswidened to15i°*Apremium of1$oftheinsured portion
ofthecontract is ..payable inadvance foreach year oftherisk 's
duration .Therecipient mayalso optforathreshold ofassistance
ofbetween 7and 15
4•Theproposed .'amendment Jwere^maae^posl^ie^n^y whentheBritish
Government -amended itsoriginal scheme .

Originaliy fgoodsimportedfromotherMemberStatesfofincorporation
intoehip3"beingbuiltintheUnitedKingdomdidriotqualifyforthe
sohemejbutthisdiscrimination hasnowbeenremoved.
Furthermore ,tysetting20February1977asthedateforreviewof
thescheme,theBritishGovernmenthas.Alsooompliedwiththerequirement
ofdegressivity .
Direotive75/432/EECprovidesfornotificationofindividaalcasesof
application (Artide2(3).
TheUKGovernmenthastwobasioreasonsforintroducingthisscheme:
(a)shipownersarelosingconfidenceinyardswhichareduetobe
nationalized }
(b)competitiononpricesandcredittermsisextremelykeen.
ι
Theresulthasbeenafall-offin-ordersplacedwithBritishshipyards,
andmanyareactuallythreatened/withclosure*'
Inordertoassisttherestructuring ofBritishshipbuilding ,whichis
facedwithth4samegeneralcrisisasshipbuilding throughouttheworld
butinmoreserioustermsforstruoturalreasons,thepresentproposal
foramendmentofDireotive75/432/EECdeolareBthe-schemetobe
compatiblewiththeooramonmarket,subjecttotheconditionsreferred
toatparagraph4above..Theconditionsarethesameasthoseimposed
bytheDirectiveoilthePrenohguaranteescheme(Artiole2(2)(b).

Proposal foraCouncil Directive amending Directive 75/432/EEC
onaids toshipbuilding
THECOUNCIL OPTHEEUROFEM COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economio Community ,
andinpartioular Articles 92(3 )(d)and113thereof ,
Having regard totheproposal from theCommission ,
Whereas Direotive 75/432/EEConaidtoshipbuilding establishes a
newcategoiy ofaidwhich maybeconsidered compatible with the
common market ,
Whereas Directive 75/432/EECstipulates uniform principles ,asrequired
byArticle 113 6'ftheTreaty ,fortheapplication ofprice guarantee schemes
forexports ofships tonon-member countries ,
Whereas ,mote particularly ,Artiole 2(2)(b)and (3)ofthesaid Directive
specifies theterms onwhich such schemes maybeoperated ,
Whereas ,therefore ,theUnited Kingdom scheme ofcost escalation cover ,
which aims tofacilitate therestructuring ofBritish shipbuilding
bykeeping enough business going fortherestructuring tobemade in
anorderly andprogressive fashion ,maybebrought within theDirective
ifitconforms tothese uniform principles ,
Whereas Directive 75/432/EECshould beamended accordingly ,
HAS ADOPTED THIS DIRECTIVE :

Artide1
ThofollowingfourthindentisaddedtoArtiole2\Z)(b)ofDirective
75/432/EEC:
intheUnitedKingdom,intheformofaschemeofcostescalation
cover,providedthatthe.termsoftheschemearemadeprogressively
morerestrictive."
Article2
ThisDirectiveisadressedtotheMemberStates.
■
BoneatBrussels. FortheCounoil,
ThePresident