CELEX: 51976PC0321
Language: en
Date: 1976-07-30
Title: PROPOSAL FOR A COUNCIL DIRECTIVE amending Directive 75/432/EEC on aid to shipbuilding (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 321
Vol. 1976/0096
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 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                \
                                                   COM(76)321 final.
            . Ι                :                   ..                      /
                                                   Brussels , 30 July 1976
                         PROPOSAL FOR A COUNCIL DIRECTIVE
                amending Directive 75/432/EEC on aid to shipbuilding
                                                   »
                   ( submitted to the Council "by the Commission)
V
                                                                       \
                                                 /
  COK(76 ) 321 final .
 ---pagebreak---                   Explanatory Memorandum
1. Council Directive 75/ 432/EEC on aid to shipbuilding establishes a
    oategoiy of aids to shipbuilding which may be considered compatible
    with the oommon market for the purpose of Article 92(3 ) (d) and
    harmonizes aids for the export of ships to non-member countries
    under Article 113 .
2 . As regards price guarantees , the Directive authorizes only the
    French scheme , sinoe no others were in operation when the Directive
    was issued.       ' ■
3 * The United Kingdom Government has now deoided to bring in a scheme
    of cost escalation . cover which will operate on sales of ships ty
    British yards both to British and to non- Community shipowners .
    Where the sale is on credit , assistance may be given to cover any
    increase of between 7 i° and 17 i° per annum in the variable part of the
    prioe (approx. 70 $      the price ). In the case of cash con tracts
    the band : is widened to 15 i°* A premium of 1 $ of the insured portion
    of the contract is . payable in advance for each year of the risk 's
    duration. The recipient may also opt for a threshold of assistance
    of between 7 and 15
4• The proposed .'amendmentJwere^maae^posl^ie^n^y when the British
    Government- amended its original scheme .
 ---pagebreak---  Originaliy f goods imported from other Member States fof incorporation
 into ehip3 "being built in the United Kingdom did riot qualify for the
 sohemej but this discrimination has now been removed .
 Furthermore , ty setting 20 February 1977 as the date for review of
 the scheme , the British Government has. Also oomplied with the requirement
 of degressivity .
Direotive 75/ 432/EEC provides for notification of individaal cases of
application (Artide 2(3).
The UK Government has two basio reasons for introducing this scheme :
 (a) shipowners are losing confidence in yards which are due to be
     nationalized }
 (b) competition on prices and credit terms is extremely keen.
       ι
The result has been a fall-off in- orders placed with British shipyards ,
and many are actually threatened / with closure*'
In order to assist the restructuring of British shipbuilding, which is
faced with th4 same general crisis as shipbuilding throughout the world
but in more serious terms for struotural reasons , the present proposal
for amendment of Direotive 75/432/EEC deolareB the - scheme to be
compatible with the ooramon market , subject to the conditions referred
to at paragraph 4 above .. The conditions are the same as those imposed
by the Directive oil the Prenoh guarantee scheme (Artiole 2(2) (b).
 ---pagebreak---     Proposal for a Council Directive amending Directive 75/ 432/EEC
                  on aids to shipbuilding
THE COUNCIL OP THE EUROFEM COMMUNITIES ,
Having regard to the Treaty establishing the European Economio Community ,
and in partioular Articles 92(3 ) (d) and 113 thereof,
Having regard to the proposal from the Commission,
Whereas Direotive 75/432/EEC on aid to shipbuilding establishes a
new categoiy of aid which may be considered compatible with the
common market ,
Whereas Directive 75/432/EEC stipulates uniform principles , as required
by Article 113 6'f the Treaty , for the application of price guarantee schemes
for exports of ships to non-member countries ,
Whereas , mote particularly , Artiole 2(2 ) (b) and (3 ) of the said Directive
specifies the terms on which such schemes may be operated ,
Whereas , therefore , the United Kingdom scheme of cost escalation cover ,
which aims to facilitate the restructuring of British shipbuilding
by keeping enough business going for the restructuring to be made in
an orderly and progressive fashion , may be brought within the Directive
if it conforms to these uniform principles ,
Whereas Directive 75/432/EEC should be amended accordingly ,
HAS ADOPTED THIS DIRECTIVE :
 ---pagebreak---                    Artide 1
Tho following fourth indent is added to Artiole 2\Z) (b) of Directive
75/432/EEC :
   in the United Kingdom , in the form of a scheme of cost escalation
   cover , provided that the .terms of the scheme are made progressively
   more restrictive ."
                 Article 2
This Directive is adressed to the Member States .
                        ■
Bone at Brussels .                          For the Counoil ,
                                            The President