ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)289
Vol.1980/0107

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)289final
Brussels,30thMay1980
AIDGRANTED TOSHIPBUILDING INTHEEEC
(PERIODJULY/DECEMBER 1978)
(Reportfromthe^Commission totheCouncil)
^ £>"î*(
V– "ïJ^>'O•!^^^-/•r-k", Jtj\yt--y •o N\'VVA vo.//y'
C0M<80)289final

ReportoftheCommissiontotheCouncil
1,InapprovingDirective78/338/EEConStateaidtoshipbuilding,
theCouncilaskedtheCommissiontolaybeforeit.regularreports
ontheaidsgiventothissector,(Articles4,6,7and8ofthe
Directive) !'
2.Thisreportcoverstheperiods1.7,78to31,12,1978and1,1,79
to30,6,79, ' 1

ANNEXI
AidgrantedtoshipbuildingintheEEC
:Articles6+7ofthe4thDirectiveonaidtoship-
PeriodJuly-December1978
MemberState
F.R.Germany
Belgium
ùenmark
France
Ireland
Italy
Netherlands
UnitedKingdomNumberof
Cases
8
6grt
78.000(1)
78.979
14.225
(+2400hp)
69.400Estimatedproportionof
contractprice
25.402naddition,costescalation
guarantee(threshold6.5%,esti­
matedproportionofcontract
price3.4%)
3.43%to7.72%
8.7%to16.9%
Average(weightedbyton)23.7%.
Inaddition,Shipbui Iders'Relief
(2'/.)
(1)cgrt
(2)Intwocases(tugsandpontoons)thegrtisnotavailable.
(3)Costescalationinsurancewasnotappliedinthesecases.
IF.R.Germany»risr~-–i~~–––i
Belgium -
iDenmark-. .
France 13
•- i
i76.050(1)5'/.to25%,inaddition,in10
cases,costescalationinsurance
(threshold6.5%,estimated .pro­
(IrelandI**portionofcontractprice3.8%)
Italy 8117.582 3.51%to23.152Netherlands 11600 18.4y. --
UnitedKingdom 8101,137 Average(weightedbyton)29.2%.
Inaddition,Shipbuilders'Relief
(2%)(2)
(1)cgrt
(2)CostEscalationInsurancewasnotappliedtothesecases.

2,Aidtoinvestment :Article4ofthe4thDirectiveonAidtoShipbuilding
PeriodJuly-December'1978
MemberState Amountof
InvestmentI. . mmmmm–
NatureofAidEffectonproduction
capacity
F.R.Germany
Belgium
JOenmark
France -
Ireland '.^!■ '-
Italy Lit'7580m10%directgran^■ -
Netherlands|I-
i .•-
UnitedKingdom
(1)Paidinsecondhalfof1978,butinvestmentcompletedDecember1975.
./
PeriodJanuary-June1979
F.R.Germany
Belgium -'!''\
s
benmark■-'"I!;"™'1
France
if"'
Ireland •■v! mms"vw..^j
'I
Italy jLit5450m.10%directgranP
!
Netherlands !:>::
IUnitedKingdom
i
."■ •ii
»
il** '
» •
(2)Paidinfirsthalfof1979-butinvestmentcompletedin1976,
t–

3.Aidtoshipowners :Article8ofthe4thDirectiveonAidtoshipbuilding
(a)Volumeofcontracts 4
(1)PeriodJuly-December1978
MemberStates Totalvolume Forbuildingsinnat.yardsForbuildings
inotherEEC
countriesForbuildings
inthirdcountry
yards
grt nat.currency grtnat.currency grtnat,
.currencygrtnat.
currency
F.R.Germany C1)A)contracts
aided
354.076 1639.193 m354.076 1639.193 m
.
B)contracts
refusedv
7.153j151.065m.7.153 151.065 mt.s
Ototal
361.229 1790.258 m.361.229 1790.258 m
IBelgium A53.872
B–
C53.8722542.54 m .53.872 2542.53m'
2542.34 m53.872 2542.54 m
Denmark A49.000
B
C49.000526 m
M
526 m49.000
49.000526 m
526 m
France
\-
IA83.450
B
C83.450707.670 m
mm
707.670 m83.450'
83.450707.670
707.670
i

\
MemberStates
- 1iTotalvolume
r"■1"■ 1■■■–■For
inf
yar<buiIdings
lational
JsForbuildingsin
otherEECcountriesForbuildings irv
thirdcountry
yards
grtnat.currency
/grt ~nat.currencygrt ■■j
■,' jnat.currencygrtnat.currency
Ireland
Italy
Netherlands
UK(2)A
B
C-
A-
e-
c
A
B-
C-
A159.317
B0
C159.317
t139.404 m
0
139.404 mt
159.317
0
159.317v
i -
139.404m ''
0
139.404 ml
(1)Thefiguresgivenrelatetothewholeyear1978CAIIdecisionsonshipowners 1aidaretakeninthesecondhalfoftheyearinquestion)
(2)TheBritishschemerelatestoRritishownerswhoplaceanorderwithaBritishyard,OECDconditions.

3,Aidtoshipowners :Article8ofthe4thDirectiveonaidstoshipbuilding
(ii)PeriodJanuary-June1979
MemberStateTotalVolume Forbuildingsin'
nationalyardsForbuildingsinother
EECcountriesForbuildingsin3rd
countries
I
grtnationalcurrency grt.r
nat,currency9rtInat,currency|grtnat,currency J
F,R,Germany a)-
b>-
c)-mm
Belgium a)86,571
b)-
c)86,5713,416m
3,416m86,571
86,571 j3,416m
0
3,416m!
I ■.'
Denmark a)201,750
b)-
c)201,7501,860m
1,860m201,750
201,7501,860m
0
1,860m
France a)14,000
b)-
c)14,000267,7m
267,7m14,000
14,000267,7m
0
267,7m
Ireland a)-
b)-
c)-". i*
r
Italy a)66,390
b)-
c)66,3903443m
3443m63,248
63,2483369,15m
3369,15m2,643
2,64344,421m
«•
44,421m499
499.29,426m
29,426m
Netherlands a)7,900
b)-
c)7,90024,45m
24,45m7,900
7,90024,45m
24,45m4
United
Kingdom(1)a)46,748
b)-
c)46,74862,839m
62,839m46,748
46,73862,839m
!
62,839m
(1)Seenote(2)above
" /

<b)Averageeffectofaidpercontract(Fullyear1978-Yearly.Communication )
MemberStatesTotalAverageForbuildingih
nationalyardsForbuilding
inother
EECcountriesForbuilding
inthird
country
yards.
F.R.Germany 16.4% 16.4%
Belgium 0
Denmark ..
France2.45%
(1)14.08%".2.45%
14.09% 0 10%;
Ireland
Italy
Holland0
2%interest -
rebate
15.65%
(estim.)0
2%interest
rebate
.15,65%
(estim.)0
0
!o
0
UK 0'- ";|
i
(1)Inthreecases(1forconstruction inaFrenchyard,2forconstruction
inthirdcountryyards)theaidgrantedwasmorethan10%belowthe
averagelevelofaidgrantedforconstruction inFrenchyards.There
werenocaseswheretheaidgrantedforconstruction inFrenchyards
wasmorethan10%abovetheaveragelevel.
(2)Only.0ECDUnderstanding termsareofferedundertheUKHomeCredit
Scheme.ThesetermsarealsoavailableinotherMemberStates.

Listofaidsandinterventions forshipbuilding
andshiprepair _jAnnex2
a)Aidstoshipbuilding January1980
Description
Germany1)National-directaidforbuilding*
FundofDM660m
2)Hamburg-allocationofDM35mfor
investmentintheportof.
, .Hamburgandconversionof
theshipbuilding sectorto
shiprepairandother
sectors-
3)Lower--subsidiesuptoDM3m
Saxony
Ireland-compensation oflossesincurred
France-direct -aidforconstruction
Netherlands -1)compensation oflossesincurred
onorders
2)acquisitionofsharesincertain
undertakings (Fl80m)
aidstoinvestment (Fl350m)
UnitedKingdom-rescueaids(Fl180m)
singlerefundofcertaintaxes
(shipbuilders'relief
%
Directaidforconstruction*»
Fundoffc120mforBritish
Shipbuilders andt25mforHar­
landandWolff(NorthernIreland)Levelofintervention
Max,20%ofcontractprice
Max,30%ofcontractprice
15Zto30%ofcontractprice,
dependingonshiptype
Max,30%ofcontractprice
Equivalentto43%ofthecapital
Assistanceforinvestment,upto
35%oftheamountoftheinvest'
ment
2%oftheconstruction cost
Max,25%ofcontractpriceRemarks
Fororderstakenbetween
1,12,78and31,12,81,
DM31mforinvestment on
publicly-owned land,DM4m
forinvestments onprivate
land.
Fordiversification measures
(outofshipbuilding )
Thismeasurelastsuntilthe
endof1980,
Fororderstakenin1979and
1980,Currentlysubjectof
Article93(2)EECprocedure.
Toendof1980
YardgroupsI+IIonly
^Thepartwhichdoesnotcon­stitutearepaymentisvalued
at0,5%
Financialyears1979/80and80/81,

-2-
(b)Aidstoshiprepair
V ; •;
\'■Description
■Levelofintervention Remarks
Netherlands-Shareacquisition of
Fl14m
-specialcontribution of
Fl25mforrestructuringEquivalentto20'/,ofthe
capital
/ ■'■)
)
)Forrestructuring of
')shiprepairinthe
)portofAmsterdam
)
>
-assistance ofFl12,6m
forinvestments tobe
carriedout30%oftheamountofthe
investments>
>
)
''''
' ' f ;

\,
-3-
(c)Creditfacilities forsales
DescriptionofaidQualifyingtransactions Levelof
interventionRemarks
Germany
1)National -interestrebate iAilsales(1) -maximuminterest
rebate2%(OECD
limit)specialscheme
for.ships
2)Bremen,>
Hamburg,
LowerSaxony,
Schleswig-.
Holstein-creditguarantees SalestootherEuropean
countries-OECDconditions
(2)
Ispecialschemefor
shipsePlanned
Belgium -interestrebate
tSalestootherMember
Statesandthirdcoun­
tries-maximuminterest
rebate2%<0ECD
limit)généralscheme
Denmark ~-preferential
creditAUsales -OECDconditions :specialscheme
forships
France -preferential credit
iSalestootherMember
Statesandthird
countries-OECDconditions généralscheme
Ireland -preferential creditAilsales -OECDconditions specialscheme
forships
Italy -preferential creditAilsales -2%ofselling
price(OECDlimit)specialscheme
forships
Netherlands -interestrebate Ailsales. -maximuminterest
rebate2%G,5%
forsmallships)
OECDlimit)specialscheme
forships

-4-
d)Creditfacilitiesforpurchaseinvolvingaidtoshipbuilding
Description ofaid LeVelofIntervention Remarks I
Denrhark -creditfacilitiesforDanishowners
onpurchaseofshipsinaCommunity
yardcreditat8%for14years
(with4yearsmoratorium on
repayment)on80%ofcon­
tractprice
UnitedKingdom
■■i
I
i
'I-creditfacilitiesforthepurchase
-ofshipsbyBritishownersin
Britishyards(homecreditscheme)
I'' '•'-OECDconditionsof18,7,74
-inaddition,asubvention
schemehasbeenintroduced
underSection25ofthe
IndustryAct1975
j''•.. ■■Theapplicationof
thisschememustnot
resultinconditions
morefavourablethan
thosecontainedinthe
OECDunderstanding
e)Priceguaranteemechanisms .'
France -Governmenttakesoverresponsibility
forincreaseincostbetweenordering
anddeliveryonfixedpricesalesto
thirdcountryowners
-apremiumof0,5%peryearispaid
whenthethresholdisnotexceeded-intervention relatesto80%
ofthecost^foranincrease
inexcessof7,5%,Duration
2years
UnitedKingdom ~responsibility forincreaseincost
•betweenorderinganddeliveryon'
fixedpricesalestothirdcountry
andhomeowners
-apremiumof1%peryearonthe
amountcoveredispayable-forcreditsales,thevari­
ablepartofthecost(70%)
intheband7%-17%is
Covered,Forcashsales,
thelimitis15%,ltis
possibletochoosethestar­
ting-pOintforintervention,
between7and15%ofthe
Increaseincostι

-5-
Description ofaid Level ofintervention Remarks
Italy
i•*
*«
-responsibility forincrease
incost between ordering and
delivery
♦'*
-thepremium iswithin the
band 0.1to1.25 %ofthe
cost ofthe ship
-this scheme'is applied only
toexports«■intervention relates to
anannual increase between.5 and15%ofthe costThis scheme hasnot
been applied toship­
building