ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)672
Vol.1979/0229

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)672 final
Brussels.28November 1979
*«v--■
REPORTS FROMTHECOMMISSION TOTHECOUNCIL ANDTHEta YEUROPEANPARLIAMENT
-*
W"'*
■,^//•Stateaidstoshipbuilding
C0MC79)672final

a
ReportoftheCommissiontotheCouncil
1.InapprovingDirective78/338/EEConStateaidtoshipbuiIding,
theCouncilaskedtheCommissiontolaybeforeitregularreports
tontheaidsgiventothissector.(Articles4,6,7and8ofthe
Directive). •
2.Thisreportcoverstheperiodfrom1.1,1978to30.6.1978.
Thenextreportisinpreparation andwillcoverthe.second
halfof1978. V •

Annex1
Aidsgrantedtoshipbuilding intheCommunity
(period:January-June 1978)
1.Aidstoproductiongrantedtoshipbuilding -Art,6and7ofthe
4thDirectiveonaidtoshipbuilding.
Period:January7June 1978
MemberState Numberof
casesgrt Estimatedproportionof
:ontractprice
F.R.ofGermany
Belgium
Denmark
France 14 82.-000 7to25%.Inaddition,in
10casesofpriceguaran­
tee,with6,5%threshold,
estimatedproportion 3,4%.
Ireland
Italy 16 171.435 B.43-6.35%
UnitedKingdom ~ >7 123.500 7.5-25.2%.Inaddition,2%
Shipbuilders Relief(1)
Netherlands(2) 15 317.850(3)
(+76.700hp)5to27%
(1)The"costescalation schemewasnotappliedinthesecases.
(2)period1.1.1978-1.11.1978
(3)cgrt

2„Aidstoshipbuilding investment-Art,4
(period:January-June1978)
MemberState AmountofNatureofProportion
investment .aid
F.R.ofGermany
Belgiurn
Denmark
France
Ireland
Italy
UnitedKingdom
Netherlands

3.Aidstoshipowners -Art*8(periodJanuary-June 1978)
Volumeofaidedcontracts
Me.-.aer 1
State IITotalvolume Forbuilding in
national yardsForbuilcins in'
jotherEICyards IForbuilding in
thirdcountries
art.•"■aticr.ai .
ciïVrer.cyr,i-io,-)5i
currency|Srt-
Innîtio-.al
r;rrc^rvcrïnîtic.-.al
F.R.of1
Ger.-na.iv l|
■(1)j
S
(
(
I
.-,!
i
lvolume
o-*con
tracts
aided
(A)
volume
ofcon
tracts
turned
dourCB ^»
!:-\
total
volume
<C>
Belgium i
f
I
»A4.050 550mio.4.050 550miol |_
I-■I
_.._I
B
I■"■-tI-- i j
! I
c
I4,050 |550mio4.050 550mio}
ii-j-J– i
i
DenmarxI
A16.200 252mio
ι "I16.200 252mio
ι
B -I ■- iΓ" "I I- i:Li_j~116.200 j252mio j|16.200252mio!«• .
-;!" i
FranceAI53.200275,560
1mio3.200113.200jI
I".
I50.000162.360 j
mio !
Βϋ12.000•215^000
mio•12.000 215.000
mio
C|65.200490,560 ■
mio15.200 323.200
mio50.000 162.360
mio
Irelandnr- r^i - L;~
L
ι~ :
ι■ L_~_ii
c.-~ -ijr- i
Italy A!,126.700 |76„956-rnïôiI126.700 i76>956.'niq ~ 1 il- L
B.I .-h-i–_ r
! L-I=
cII126.700 i7o*75omio !126.700 i76/956emK5l I".iL"i_ ;
i i
United -
Kinç-Om
(2)A160.058 152,67TITQ160.058 ■152,67
mio ;I I.
i
!r§r -.i1-". L
C||160.058 1152.67alio|(1όυ.0^8 I152,ό7,τποί -I* ίir ι- ί
Netherland!A-235.998 ,□.111,7miop55.510892,9mioj18.200 !50,8 !
■I inuo62.288I
.168,0mioj
[s^
J69.248 1,136,2mio!19.248 67,7mioi-i !:j i L50-.00068,5mioi
c505.2461.247,9mioj|174.758 j960,6miójl8.200|50,8mio!jl12.288 j.238,5mioI
«
•.(1)P^riod1.1.1975-31.12.1978 "
® ar,tUh°:'ners"fc0*»•-•'*'•«»•

Annex2
Listofaidsandinterventions forshipbuilding
t '' andshiprepair ,
(a)Aidstoshipbuilding March1979
Description
*Levelofintervention > Remarks
Germany 1)National-directassistancefor
■.,■ 'building.Fund"ofDM660m
2)Hamburg-allocationofDM35mfor
investmentintheportof
Hamburgandconversionof
theshipbuilding sectorto
shiprepairandother,
sectorsMax.20Aofcontractprice Planned.Intendedfororders
takenbetween1.12.78and
31.12.81.
DM31mforinvestments on
publicly-owned land.DM4m
forinvestments onprivate
land.
»
3)Lower--subsidiesuptoDM3m
Saxony( .1Fordiversification measures
(outofshipbuilding )
Ireland-compensation oflossesincurred Max.30%ofcontractpriceThismeasurelastsyntilthe
endof1980.
Netherlands-1)compensation oflossesincurred
onorders vMax.30%ofcontractprice
2)acquisition ofsharesincertain
undertakings (Fl80m)Equivalentto43%ofthe
capitalPlanned.
aidstoinvestment (Fl375m)
'rescueaids(Fl180m)Assistanceforinvestment .
upto30%oftheamountof
theinvestmenti,
UnitedKingdom-singlerefundofcertaintaxes
(shipbuilders 1relief
I■2%oftheconstruction costThepartwhichdoesnotcon­
stitutearepaymentisvalued
-t1?mfundforHarland &Wolff
(N.Ireland) \Max.30%ofcontractpriceat0.5%
Availablefororderstaken
uptoMarch1980.

Cb)Aidstoshiprepair
Description Levelofintervention Remarks
France-Restructuring aid-FundofFF52m Planned
!
Netherlands -Shareacquisition ofFl14mEquivalent to20Aofthe>
capital )
vForrestructuring I
-specialcontribution ofFl30m
' forrestructuring.ofshiprepairin
.theportofAmsterdam
)
-assistance ofFl42mfor 30%oftheamountofthe)
)
investments tobecarried out
/investments * '

(c)Creditfacilitiesforsales
Description ofaidQualifyingtransactions
Germany
1)National
1)Bremen,
Hamburg,
Lower
Saxony,
Belgium
Denmark
France
Ireland
Italy
Netherlands-interestrebate
-creditguarantees
-interestrebate
-preferential credit
-preferential credit
-preferential credit
-preferential credit
-interestrebateAilsales-(1)
SalestootherEuro­
peancountries
SalestootherMember
Statesandthird
countries
Ailsaleâ
SalestootherMember
Statesandthird
countries
Ailsales
Ailsales
AilsalesLevelof
interventionRemarks
-maximuminterest
rebate2%(0ECD
limit)
-OECDconditions
-maximuminterest
rebate2%(0ECD
limit)
-OECDconditions
■OECDconditions
■OECDconditions
2%ofselling
price(OECDlimit)
maximuminterest
rebate2%<3,5%for
smallships)(OECD
limit)specialscheme
forships
specialscheme
forships.Planned
généralscheme
specialscheme
forships
généralscheme
specialscheme
forships
specialscheme
forships
specialscheme
forships

-3a-
Description ofaidQualifyingtransactions
ν
UnitedKingdom-preferential credit
•1<•SalestootherMember
Statesandthird*
countries
?1)Only60%ofshipssatisfyingtheconditionsmayobtainaid*
(2)Duration7years,rate8%,owners'contribution30%«/
Levelof
interventionRemarks
-OECDconditions généralscheme

d)Creditfacilitiesforpurchaseinvolvingaidtoshipbuilding
A
■Description ofaid Levelofintervention Remarks
Denmark
i-creditfacilitiesforDanishowners
onpurchaseofshipsinaCommunity
yard
! . *-creditat8%for14years
(with4yearsmoratorium on
repayment)on 80%ofcon­
tractprice
UnitedKingdom-creditfacilitiesforthepurchase
ofshipsbyBritishownersinBritish
:yardsChomecreditscheme)-OECDconditionsof18.7*74
-inaddition,asubvention
schemehasbeenintroduced
underSection25ofthe
IndustryAct1975Theapplicationof
thisschememustnot
resultinconditions
morefavourablethan
thosecontainedinthe
OECDunderstanding .
e)Priceguaranteemechanisms
France ~Governmenttakesoverresponsibility
forincreaseincostbetweenordering
anddeliveryonfixedpricesalesto
thirdcountryowners'
-apremiumof0,5%peryearispaid
whenthethresholdisnotexceeded.-intervention relatesto.80%
ofthecostforanincrease
inexcessof7,5%«Duration
2years .;
V t •
/ *
UnitedKingdom* Ν 1-responsibility forincreaseincost
betweenorderinganddeliveryonfixed
pricesalestothirdcountryandhome
owners
-apremiumof1%peryearonthe
amountcoveredispayable-forcreditsales,thevari-
:ablepartofthe-cost(70%)
intheband7%–17%is
covered.Forcashsales,
thelimitis15%*Itis
.possibletochoosethestar­
ting-pointforintervention,
between7and15%ofthe
increaseincost

Description ofaid Levelofintervention Remarks
|Italy -responsibility forincrease-intervention relatestoThisschemehasnot
incostbetweenorderingandanannualincreasebetweenbeenappliedtoship-
delivery 5and15%ofthecost buiIding
-the,premiumiswithinthe
band0-1to1.25%ofthe
costoftheship
-thisschemeisappliedonly
toexports