Proposal for a COUNCIL REGULATION (EC) on aid to shipbuilding
Date: 1995-07-26
Institutions: European Commission
Subjects: OECD, State aid, competition policy, control of State aid, exchange of information, shipbuilding

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

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tr 

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ir 

Brussels,  26.07.1995 
COM(95)  410  final 

95/0219  (CNS) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

on aid to  shipbuilding 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

I.  Introduction 

The  current  rules  on  state  aid  to  shipbuilding  are  laid  down  in  the  Seventh  Directive  on 
Aid  to  Shipbuilding  (Directive  90/684/EEC,  as  most  recently  amended  by  Directive 
94/73/EC).  The  period  of  validity  of  the  Directive,  which  as  from  1 January  1995  has 
extended  to  the  EEA,  expires  on  31  December  1995.  New  arrangements  need  to  be 
established to comply with the Community's obligations under an international  agreement, 
concluded within the framework  of OECD, respecting normal competitive conditions in the 
commercial  shipbuilding  and repair industry, which is due to enter into force on  1 January 
1996. 

II.  Existing  Policy 

The  Community's  current  policy  towards  aid to  shipbuilding,  as enshrined  in the  Seventh 
Directive  and its predecessor  the  Sixth Directive, was introduced  primarily  as a  defensive 
instrument  in  the light  of the  particular  difficulties  the  sector  has faced  for  several  years 
characterised  by  a  serious  imbalance  between  world  supply  and  demand  leading  to 
depressed prices, aggravated by the unfair  pricing practices of certain competitors and state 
subsidies  and  other  indirect forms  of support like home credit  schemes.  At the same time 
the  aim  has  been  to  provide,  in  accordance  with  the  aims  of  the  internal  market,  a  level 
playing  field  so  far  as  intra-Community  competition  in  shipbuilding  is  concerned  by 
providing  a common  set of rules. 

Overall  that  policy  has  largely  achieved  its  aims,  safeguarding  the  Community  yards  by 
maintaining  Community  shipbuilding  activity  in those  segments where  Community  yards 
will  remain competitive under normal market conditions and encouraging less competitive 
yards  to  undertake  the  necessary  restructuring.  Although  the  size  of  the  Community's 
shipbuilding  industry  has  declined  over the years,  a competitive  industry  remains  of vital 
interest  to the  Community  and  contributes  to its  economic  and  social  development. 

In parallel  with  this approach the Community  sought to negotiate  a balanced  international 
agreement  to  re-establish  normal  competitive  conditions  in  the  shipbuilding  sector  which 
would  eliminate  injurious  competition.  After  nearly  five  years  of  negotiations  such  an 
agreement  was  reached  last  year  within  the  framework  of  OECD.  Since  this  agreement, 
which  is due to enter into force on  1  January  1996, includes inter alia a strict aid discipline 
the Community  needs to adapt its shipbuilding  aid policy  accordingly  in order to meet its 
obligations under  the  agreement. 

111.  The  OECD Agreement,  in  particular  the  regime  applying  to aids 

The agreement  will  enter into force  on  1  January  1996 and can  be reviewed  after  3 years. 

There  are  two  elements  of  the  agreement  which  require  Community  implementing 
legislation:  those  relating  to  "antidumping"  and  to  aids.  As  regards  the  former  the 
Commission  will  be  making  a  separate  proposal  to  the  Council  for  a  regulation  to 
implement the injurious pricing instrument at Community  level to ensure in particular that 
Community  shipbuilders are able to have full  and effective  recourse to its provisions. The 
latter  will  entail  a  Council  Regulation  putting  into  effect  within  the  Community  the 
provisions  of the  agreement. 

Under  the  agreement  all  measures  of  support  specifically  provided,  directly  or indirectly, 
to commercial  shipbuilding are prohibited  except those expressly  provided  for.  Aid is only 
allowed  in  certain  limited  circumstances  as follows. 

-  aid  for  research  and  development; 
- 
social  aid  related  to closures; 
-  export  credits for  ships in  accordance with the revised 

OECD Understanding  on Export  Credits for  Ships which  predated  the  agreement; 

-  domestic  credits under  equivalent terms and  conditions. 

Aid  for  restructuring  is  generally  not  allowed  except  for  Korea  and  -  within  the 
Community  - Belgium,  Portugal  and  Spain. 

IV.  Commission  Proposal 

The  attached  proposal  for  a  regulation  is  intended  to  give  effect  to  these  provisions.  In 
addition  it  provides,  like  the  Seventh  Directive,  for  notification  and  monitoring 
arrangements so that the Commission can effectively  ensure compliance with the rules and 
fulfil  the  reporting  requirements under the  agreement. 

It  is  proposed  that  the  regulation  should  have  a  duration  of  3  years,  ie  up  until 
31 December  1998, when  policy  can  be reviewed  in the  light  of  experience  of  operation 
of the  agreement  and  prevailing  market  conditions. 

V.  Current  Market  Situation 

The  market  situation  remains  difficult  with  capacity  still  well  in  excess  of  demand. 
However  the  latest  data  available  to  the  Commision  services  show  some  signs  of 
improvement  in the  overall  market  situation. 

-ia,-

World  and  Community  production  in  1994  remained  stable,  with  ships  completed 
amounting  to  12.5 million  cgt  and  2.6  million  cgt  respectively.  Elsewhere  in  Western 
Europe,  Finland,  Norway  and  Sweden  registered  decreases.  Japan  and  Korea  increased 
their  market  shares to 41% and  16.6% respectively. 

in  the  Community 

However  in  1994 there was  a further  increase  in  new  orders  at the world  level,  totalling 
16.753  million  cgt,  representing  an  increase  of  15.3% compared  with  1993  (which  itself 
showed  a  64.7%  increase  on  the  previous  year)  and  the  highest  level  ever  recorded. 
However 
there  was  a  slight  decrease.  New  orders  totalling 
2.883  million  cgt  were  obtained,  which  represents  a  reduction  of  1.2%.  Elsewhere  in 
Western  Europe,  Finland,  Norway  and  Sweden together  experienced  a reduction  of  some 
10%. At world  level, Japan,  with  an increase  in  orders  of 42.2%,  experienced  the  largest 
increase and maintained its lead. In Korea, which recorded an increase of 238.4% in  1993, 
there was a  16% reduction  in new orders in  1994. 

Moreover  the world  order book as at the end of  1994 had  increased by  16.8% on  1993 to 
reach  28.9 million  cgt,  the  highest  level  since  the  beginning  of  the  1980s.  Within  the 
Community  the order book increased to  5.512  million  cgt,  an increase of 3 7% compared 
with  the  position  as  at  31 December  1993. This  represented  a  share  of  the  world  order 
book  of  19%,  down  2.4%  on  1993.  The  other  Western  European  shipbuilders  slightly 
increased  their  market  share to 4.7%. Japan  and Korea  substantially  increased  their  order 
books to 8 million  cgt and 5.8  million  cgt respectively, representing increases of27.8% and 
22.4%  respectively  compared  with  1993 levels. 

The upturn  in  orders was not however  matched  by  a parallel  increase  in  prices. 

Nevertheless despite this somewhat mixed picture there are encouraging signs of a market 
upturn being maintained with the prospect of a continuing need for replacement vessels due 
to  the  old  age  of  the  world  fleet  and  stricter  safety  and  environmental  protection 
requirements  and  the expected  boost to world  trade  deriving from  the GATT  agreement. 
However at the same time there is concern about the adverse effect  of planned  substantial 
increases of capacity in Korea. In this respect the Commission will continue with its  efforts 
to exert the necessary  pressure, both  on a bilateral  and  on a multilateral level,  in order to 
find  a  solution  to this  problem. 

VI.  Conclusion 

In  the  light  of  the  above  it  is  accordingly  proposed  that  the  Council  adopts,  after 
consultation  of  the  European  Parliament  and  the  Economic  and  Social  Committee,  the 
attached  proposal  for  a  regulation.In  order  to  avoid  a  legal  vacuum,  the  Commission 
requests the Council  to take a decision  before  the end  of  1995. 

-  1b  -

Proposal  for  a 

COUNCIL  REGULATION (EC) 
on  aid  to  shipbuilding 

THE  COUNCIL  OF  THE  EUROPEAN  UNION 

Having  regard  to  the  Treaty  establishing the  European  Community,  and  in  particular  Articles 
92(3)(e),  94,  113 and  228 thereof, 

Having  regard  to the proposal  from  the  Commission, 

Having  regard  to the  opinion  of the European  Parliament, 

Having  regard  to the  opinion  of the Economic  and  Social  Committee, 

Whereas Council Directive 90/684/EEC, as last amended by Directive 94/73/EC, will expire on 
31 December  1995. 

Whereas  within  the  framework  of  the  Organisation  for  Economic  Co-operation  and 
Development  (OECD)  an  agreement(1) has been  concluded  between  the European  Community 
and  certain  third  countries  respecting  normal  competitive  conditions  in  the  commercial 
shipbuilding  and  repair  industry, 

Whereas  that  agreement  should  enter  into force  on  1 January  1996, 

Whereas the agreement provides for the elimination  of all direct shipbuilding aids except social 
aids  related  to  closures;  and  aids  to  research  and  development  within  the  limit  of  certain 
ceilings; 

Whereas  indirect  measures  of  support  to  shipbuilding  in the  form  of  credit  facilities  and  loan 
guarantees for  shipowners are permitted  by  the agreement provided  that these measures  are in 
conformity  with  the  OECD  understanding  on  export  credits  for  ships1. 

Whereas the  agreement  can be  reviewed  three years  after  it has  come into  force; 

HAS  ADOPTED THIS REGULATION 

(Official  Journal  of the European  Communities  C375 of 30 December  1994 - Proposal for a Council  Decision 
on the conclusion  of the  Agreement  respecting  normal  competitive  conditions  in the shipbuilding  and  repair 
industry) 

-tc 

CHAPTER I 

GENERAL 

Article 1 

For  the  purposes  of this Regulation  the following  definitions  shall  apply: 

(a)  "Shipbuilding" 

means the building in the Community  of the following  self-propelled  seagoing commercial 
vessels: 

-  vessels  of  not  less than  100 gt used  for  the transportation  of  passengers  and/or  goods; 

-  vessels of not less than  100 gt for the performance  of a specialised  service (for  example 

dredgers  and  ice-breakers,  excluding  floating  docks and  mobile  offshore  units); 

-  tugs  of  not  less than  365 Kw; 

-  fishing  vessels of not less than  100 gt for  export outside the European  Economic  Area; 

-  unfinished  shells  of the above vessels that  are  afloat  and  mobile. 

but  excludes  military  vessels  and  modifications  made  or  features  added  to  other  vessels 
exclusively  for  military  purposes provided  that any  measures or practices taken  in respect 
of  such  vessels,  modifications  or  features  are  not  disguised  actions  taken  in  favour  of 
commercial  shipbuilding  inconsistent  with  this  regulation. 

(b)  "Ship  Repair" 

means  the  repair  or  reconditioning  in  the  Community  of  self-propelled  seagoing 
commercial  vessels  as defined  in (a); 

(c)  "ship  conversion"  means  the  conversion  in  the  Community  of  self-propelled  seagoing 
commercial vessels, as defined  in (a), of not less than  1000 gt on condition that conversion 
operations  entail  radical  alterations to the cargo  plan,  the  hull  or the propulsion  system; 

(d)  "self-propelled  seagoing"  means that by  means of its permanent propulsion  and  steering a 

vessel  has  all  the  characteristics  of  self-navigability  on the high  seas; 

(e)  "OECD  agreement"  means the agreement respecting normal  competitive  conditions  in the 

commercial  shipbuilding  and repair  industry; 

(0  "aid"  means  State  aid  within  the  meaning  of  Articles  92  and  93  of the  Treaty,  including 
not only aid granted by the State itself but also that granted  by regional or local  authorities 
or  other  bodies  and  any  aid  elements  contained  in  financing  measures  taken  by  Member 
States  in  respect  of  shipbuilding,  conversion  or  repair  undertakings  which  cannot  be 
regarded  as a genuine  provision  of  risk  capital  according  to  standard  investment  practice 
in  a market  economy. 

(g)  "related  entity"  means  any  natural  or  juridical  person  (i)  who  owns  or  controls  a 
shipbuilder  or (ii)  is owned  or  controlled  by  a shipbuilder,  directly  or  indirectly,  whether 
through  stock  ownership  or  otherwise.  Control  is  presumed  to  arise  when  a  person  or a 
shipbuilder  owns  or controls an  interest  of  25%  in  the  other. 

Article 2 

1.  Aid  granted  specifically,  whether  directly  or  indirectly,  for  shipbuilding,  conversion  and 
repair,  as  defined  under  this Regulation,  financed  by  Member  States  or  their  regional  or 
local  authorities  or  through  State  resources  in  any  form  whatsoever  may  be  considered 
compatible  with  the  common  market  only  if  it  complies  with  the  provisions  of  this 
Regulation.  This  applies  not  only  to  undertakings  engaged  in  such  activities  but  also  to 
related  entities. 

2.  No  aid  granted  pursuant  to  this  Regulation  may  be  conditional  upon  discriminatory 

practices  as to products  originating  in other Member  States. 

CHAPTER  II 

COMPATIBLE  MEASURES 

Article 3 

Aid for  closures 

1.  Aid to cover the cost of measures for the exclusive benefit  of workers who lose retirement 
benefits or who are made redundant or otherwise separated permanently  from  employment 
in  the  respective  shipbuilding  enterprise,  when  such  assistance  is  related  to  the 
discontinuance or curtailment of shipyards, bankruptcy,  or changes in activities away  from 
shipbuilding may  be considered  compatible with the common  market. 

2.  The costs eligible for  such  aid  are, in  particular: 

-  payments to workers made redundant  or retired  before  legal  retirement  age; 

-  counselling  services  to  workers  made  or  to  be  made  redundant  or  retired  before  legal 
retirement  age  including  payments  made  by  yards  to  facilitate  the  creation  of  small 
undertakings; 

-  payments to workers  for  vocational  retraining. 

Articled 

Aid  for  research  and  development 

1.  Aid for research and development to the shipbuilding, conversion  and repair industry  may 
be considered compatible with the common market where this public assistance relates to: 

(i) 

fundamental  research, 

(ii)  basic  industrial  research  (provided  that the aid  intensity  is limited  to 50% of  eligible 

costs); 

(iii)  applied  research  (provided  that  the aid  intensity  is limited  to 35% of  eligible costs), 

(iv)  development  (provided  that  the aid  intensity  is limited  to 25% of  eligible costs). 

2.  The  maximum  allowable  aid  intensity  for  research  and  development  carried  out by  small 
and medium  sized  shipbuilding  enterprises  (for  the purposes of this regulation  defined  as 
enterprises with less than 300 employees whose yearly turnover does not exceed 20 mecus 
and  which  are  not  more  than  twenty-five  per  cent  owned  by  a  large  company)  shall  be 
20 percentage  points  higher  than  those  specified  at  (ii)  to  (iv)  in  paragraph  1  of  this 
Article. 

3.  For  the  purposes  of  this  Article  the  following  definitions  apply  to  research  and 

development: 

(a)  Eligible  costs  shall  be  only  those relating to: 

(i) 

costs of instruments,  material, land  and buildings to the extent that they  are used  for 
the  specific  research  and development  project; 

(ii)  costs of researchers, technicians and other  supporting  staff  to the extent that they  are 

engaged  in the  specific  research  and  development  project; 

(iii)  consultancy  and  equivalent  services  including  bought  in  research, 

technical 

knowledge,  patents, etc; 

(iv)  overhead  costs (infrastructure  and support  services) to the extent that they  are related 
to  the  research  and  development  project,  on  condition  that  they  do  not  exceed 
45  percent  of  the  total  costs  of  the  project  for  basic  industrial  research  and 
20  per  cent  for  applied  research  and  10 per  cent for  development; 

(b)  the  term  "fundamental  research"  means  research  activities  independently  conducted  by 
higher  education  or research  establishments  for  the  enlargement  of  general  scientific  and 
technical  knowledge,  not  linked  to industrial  or commercial  objectives; 

(c)  "basic industrial research" is understood to mean original theoretical and experimental work 
whose  objective  is  to  achieve  new  and  better  understanding  of  the  laws  of  science  and 
engineering  in general  and  as they  might  apply  to  an industrial  sector  or  to the  activities 
of  a particular  undertaking; 

(d)  "applied  research"  is understood  to mean investigation  or experimental  work  on the basis 
of  the  results  of  the  basic  research  with  a  view  to  facilitating  the  attainment  of  specific 
practical  objectives  such  as  the  creation  of  new  products,  production  processes  and 
services. It normally ends with the creation of a first prototype and does not include  efforts 
whose  principal  aim  is the design,  development  or testing  of  specific  items of  services to 
be  considered  for  sale; 

(e)  "development"  is understood  to mean  work  based  on  the  systematic  use of  scientific  and 
technical  knowledge  in  a  design,  development,  testing  or  evaluation  of  a  potential  new 
product,  production  processes  or  service  or  of  an  improvement  of  an  existing  product  or 
service to meet specific performance requirements and objectives. This stage will normally 
include  pre-production  models  such  as  pilot  and  demonstration  projects  but  does  not 
include  industrial  application  and  commercial  exploitation; 

'(f)  aid for  research and development specifically  provided to the shipbuilding, conversion  and 

repair  industry  includes,  but  is not limited  to, the following  cases: 

(i) 

research  and  development  projects  carried  out  by  the  shipbuilding,  conversion  or 
repair  industry  or research  institutes  controlled  by  or financed  by  this  industry; 

(ii) 

research  and  development  projects  carried  out  by  the  shipping  industry  or  research 
institutes controlled by or financed by this industry when the project is directly related 
to  shipbuilding  or  repair; 

(iii)  research  and  development  projects  carried  out  by  universities,  public  and  or 
independent  private  research  institutes  and  other  industrial  sectors  in  collaboration 
with the  shipbuilding  industry; 

(iv)  research  and  development  projects  carried  out  by  universities,  public  and/or 
independent private research institutions and other industrial  sectors, when at the time 
the  project  is  carried  out,  it  is  reasonably  anticipated  that  the  results  will  be  of 
substantial  specific  importance  for  the  shipbuilding,  conversion  and  repair  industry. 

4. 

Information  on the results of research and development is to be published promptly, at least 
annually. 

Article 5 

Indirect  support  measures 

1.  Support  to  shipowners  or  third  parties  in  the  form  of  officially  supported  loans  and 
guarantees  available  as aid for  the building  or  conversion  but  not  repair  of  ships may  be 
considered compatible with the common market provided that such measures comply with 
the  OECD  Understanding  on  Export  Credits  for  Ships  as  set  out  in  document 
C/WP6(94)6(2),  or  any  agreements which  modify  or replace  it. 

2.  Aid  related  to  shipbuilding  and  ship  conversion  granted  as  development  assistance  to  a 
developing  country  may  be  deemed  compatible  with  the  common  market  if  it  complies 
with the terms laid  down for that purpose in the Understanding referred  to in paragraph 1 
of this  Article  or with  any  later  addendum  or corrigendum  to that  Understanding. 

j. 

Support  granted  by  a Member  State to its  shipowners  or to third  parties  in that  state  for 
the  building  or  conversion  of  ships  may  not  distort  or  threaten  to  distort  competition 
between  shipyards  in  that  Member  State  and  shipyards  in  other  Member  States  in  the 
placing  of orders. 

(2)  Official  Journal  C 375 of  30 December  1994, p. 38 

5 

Air "g ci e  o 

Spain,  Portugal,  Belgium 

Restructuring  aid  granted  in  Spain,  Portugal  and  Belgium  in  the  form  of  investment 
assistance  and  any assistance for  social  measures not covered under Article  3 and paid  after 
1  January  1996  may  be  considered  compatible  with  the  common  market.  Release  of  this 
aid  must be  subject  to individual  notification  and  prior  approval  by  the Commission  before 
31  December  1996  and  will  be  subject  to  the  following  maximum  limits  and  payments 
deadlines: 

Aid  Volume 

Ultimate  Payment  Deadline 

Spain 
Portugal 
Belgium 

10 billion  pesetas 
5.2  million  contos 
1320  million  Belgian  francs 

31  December  1998 
31  December  1998 
31  December  1997 

Article  7 

Other  Measures 

1. 

In  extraordinary  circumstances,  and  subject  to  Article  92  of the EC  Treaty,  other  aids  may 
be  deemed  compatible  with  the  common  market.  If  the  Commission  considers  that  this  is 
the case, it is habilitated  to request a derogation  from  the Parties Group under the  provision 
of  Article  5.5  of  the  OECD  agreement. 

2.  For  research  and  development  projects  related  to  safety  and  the  environment,  and  subject 
to  Article  92  of the  EC  Treaty,  a higher  aid  intensity  than  foreseen  in  Article  4  paragraph 
1  points  (ii)  to  (iv)  may  be  deemed  compatible  with  the  common  market.  If  the 
Commission  considers  that  this  is  the  case,  it  is  habilitated  to  request  the  approval  of  the 
project  from  the  Parties  Group  under  the  provision  of  Annex  IB  3.  (2)  of  the  OECD 
agreement. 

3.  Where  any  measures  granted  pursuant  to  this  Regulation  are  subject  of  Dispute  Panel 
Proceedings  under  Article  8  of  the  OECD  agreement  or,  in  the  case  of  export  credits,  the 
subject  of  consultation  mechanisms  as  provided  by  the  OECD  Understanding  on  Export 
Credits  for  Ships,  the  Community's  position  will  be  determined  by  the  Commission  after 
consultation  of  the  special  Committee  set  up  under  Article  113  of  the  EC  Treaty. 

CHAPTER  III 

MONITORING  PROCEDURE 

Article  8 

1. 

In  addition  to  the  provisions  of  Article  93  of  the  Treaty,  aid  to  shipbuilding  and  repair 
undertakings  shall  be  subject  to the  special  notification  rules provided  for  in  paragraph  2. 

2 

The  following  shall  be  notified  to  the  Commission  in  advance  by  the  Member  States  and 
authorised  by  the  Commission  before  they  are  put 

into  effect: 

(a)  any  aid  scheme  -  new  or  existing  -  or  any  amendment  of  an  existing  scheme  covered  by 

this  Regulation; 

(b)  any  decision  to  apply  any  generally  applicable  regional  aid  scheme  to  the  undertakings 
covered  by  this  Regulation  in  order  to  verify  compatibility  with  Article  92  of  the  EC 
Treaty; 

(c)  any  individual  application  of  aid  schemes  in  the  case  referred  to  in  Article  5.2  or  when 
specifically  provided  for  by  the  Commission  in  its  approval  of  the  aid  scheme  concerned. 

Article  9 

1.  For  the  Commission's  monitoring  of  the  implementation  of  the  aid  rules  contained  in 

Chapter  II  , Member  States  shall  supply  the  Commission  with: 

(a)  monthly  reports  on  officially  supported  credit  facilities  granted  for  each  shipbuilding  and 
conversion  contract  by  the  end  of the month  following  the  month  of  signing  each  contract, 
in  accordance  with  the  annexed  schedule  1; 

(b)  where  Member  States  have  schemes  providing  for  official  guarantees  and  insurance  for 
ships,  yearly  reports  including  the  annual  results  of  the  scheme,  claims  paid,  income  from 
premiums  and  fees,  income  from  recoveries  and  any  other  appropriate 
information 
requested  by  the  Commission; 

(c)  completion  reports  on  each  shipbuilding  and  conversion  contract  signed  before  1 January 
1996  by  the  end  of  the  month  following  the  month  of  completion  in  accordance  with  the 
annexed  schedule  2; 

(d)  yearly  reports  -  to  be  provided  by  1 March  of  the  year  following  the  year  subject  to  the 
report  -  giving  details  of  the  total  financial  support  paid  to  each  individual  national 
shipyard  during  the  previous  calendar  year,  in  accordance  with  the  annexed  schedule  3; 

(e) 

in  the  case  of  shipyards  able  to  build  merchant  ships  over  5000  gt,  yearly  reports  -  to  be 
provided  not later than two months after  the annual  general  meeting  approves the  shipyard's 
yearly  report  - giving  publicly  available  information  on  capacity  developments  and  on  the 
structure  of  ownership  in  accordance  with  the  annexed  schedule  4; 

Article  10 

This  Regulation  shall  apply  from  1 January  1996  to  31  December  1998. 

AC  ICI u  c 

ANNEX 

EUROPEAN  COMMUNITY 

REPORT  ON SUPPORT  TO SHIPOWNERS  AND  OTHER THIRD PARTIES  FOR  NEW 
BUILDING  OR CONVERSION  OF SHIPS 

1. Name and  nationality  of  company  in receipt  aid 

2.  Contract  price 

3.  Credit  granted 

- Form (eg export  credit,  home credit  etc..) : 

-  Volume : 

-  Repayment  period  : 

-  Frequency  of payments : 

-  Interest  rate 

4.  Guarantees  granted 

-  Volume : 

-  Premium paid  : 

-  Duration : 

- Other terms and conditions  : 

5. Month of aid  granting 

6. New building  or conversion contract  (please  specify  which) 

-  Ship type  and yard No : 

-  Deadweight  (DWT)  : 

-  Gross tonnage  (GT) : 

-  Compensated  gross tonnage  (CGT)  : 

-  Performing  yard  : 

- Country  : 

- Name : 

.  - Completion/delivery date : 

Contact  for  inquiries  : 

Position  : 

Date  : 

Signature 

KUROPKAN  COMMUNITY 

Schedule 2 

REPORT  OF  MERCHANT  SHIP  COMPLETIONS 

Section  1 : Contracts  details 

Section  3  : Financial  arrangements 

1.  New  building/conversion 

Company 

3.  Yard 

4.  Yard  No 

Currency 

ECU 
(Prevailing 
rate) 

c-mract 
m ce 

5.  Registered  owner 

6.  Holding  owner 

-J) 

7.  Vessel's  country  of  registration 

if.  Date  contract  signed 

9  Completion/delivery  date 

Section  2  :  Ship  details 

10.  Type  of  vessel  (by  OECD  category) 

11  Deadweight 

14. 

Contract-price 

15. 

Estimated  contract  loss (if  any} 

16. 

Contract-related  aid granted  to customer  or  ultimate 
owners  : 

A. 

Granted to  yard  : 

(a)  grants 

(b)  credit  facilities 

(c)  specific  fiscal  concession 

(d)  other  support 

B. 

Granted  to  customer  or ultimate  owners : 

(a)  grants 

(b)  credit  facilities 

(c)  fiscal  concession 

(d)  other  support 

Contract  for  inquiries  : 

Date 

12  Gross  tonnage  (GT) 

13.  Compensated  gross  tonnage  (CGT) 

Position  : 

Signature 

Schedule  3 

EUROPEAN  COMMUNITY 

REPORT  OF  COMPANY  FINANCIAL  SUPPORT 
Name of company 

Eligible  costs 
(including  for  (1) 
details  of numbers  of 
workers  involved) 

Aid received 

Legal  basis  (including  date  of 
approval  by  Commission) 

Form 

Amount 

1. Social  aids : 

(a)  Redundancy  payments 
(b)  Early-retirement  payments 
(c)  Reconversion  payments 
(d) Vocational  retraining 

2.  Research  and  development  aid 

(a)  Fundamental  research 
(b)  Basic  industrial  research 
(c)  Applied  research 
(d)  Development 

3.  Generally  applicable  regional 
aids  (please  specify  nature  of 
support) 

Contact  for  inquiries 

Date 

Position 

Signature 

10 

Schedule  4 

REPORT  ON YARDS  ABLE  TO BUILD  MERCHANT  SHIPS  OVER  5000  GT 

1. 

2. 

3. 

4. 

5. 

6 

7. 

8. 
9. 

Name  of the  company 

Total  available  capacity 

Data  on the dock/berth 

( 

( 

) 

)  (cgt) 

Dock  or berth 

Maximum  size  of  ships  (gt) 

( 
( 
( 

) 
) 
) 

( 
( 
( 

) 
) 
) 

Description  of  any  plans for  future  capacity  expansion  or  reduction 

Structure of ownership (capital  structure, share of direct and indirect public ownership) 

Financial  statements  (balance  sheet,  profit  and  loss  statement,  including,  if  available, 

separate  accounts  covering the  shipbuilding  activities  of  holding) 

Transfer  of  public  resources  (including  debt guarantees,  bond  infusions  etc...) 

Exemptions  from  financial  or other  obligations  (including  tax  privileges,  etc..) 
Capital contribution  (including equity infusions,  withdrawal  of capital dividend,  loans 
and  their refunding,  etc..) 

10. 

Debt  write-off 

11. 

Transfer  of  losses 

il 

•»^B«««a*^JM*^iS^Wu^t^^V!i 

ISSN 0254-1475 

COM(95) 410 final 

DOCUMENTS 

EN 

10 

Catalogue number  :  CB-CO-95-448-EN-C 

ISBN 92-77-92881-6 

Office for Official Publications of the European Communities 

L-2985 Luxembourg