| The information to be supplied include: |
| - |
the eligibility criteria; |
| - |
the name of the shipyard(s) and type of the vessel(s) (including the relevant
CGT) benefiting directly or indirectly of the aid; |
| - |
in the case of operating aid, the intensity of the aid; |
| - |
the amount of the aid; |
| - |
the form in which the aid has been or will be granted; |
| - |
which authority has granted or will grant the aid. |
| (i) |
The Commission's approval of the sale of Eastern German shipyard MTW- Schiffswerft
to the Norwegian Group Aker Yards ASA and the approval of a second and most likely
final tranche of DM 175.1 million of restructuring aid to the shipyard.4 |
| (ii) |
The Commission's approval of a DM 129.6 million restructuring aid for Volkswerft
shipyard in Stralsund.5 |
| (iii) |
According to the information available, on Lürssen's takeover of Bremer Vulkan
Marine (BVM) Schiffbau in bankruptcy, the Land of Bremen offered DEM 900,000 investment
aid (i.e. 15 per cent of the intended total investment envisaged). Moreover, the
Land agreed to contribute DEM 4.6 million to the cost of employing 110 new workers
on Lürssen's wharf and waived DEM 5 million debt plus unspecified interest that
BVM owed the Land's 100 per cent owned Hanseatische Industrie Beteiligungen GmbH
(HIBEG). The two latter measures constituted un-notified aid and were, therefore,
illegal State aid to Lürssen, which was enabled to expand its capacity and improve
its prospects to compete for navy and other orders. |
| (iv) |
The Commission's approval of aid to be granted by Germany for the restructuring
of the shipyard Volkswerft in Stralsund for a total investment aid of DEM 34.2
million. 6 |
| (v) |
Until 1999, the German KG system continued to be in operation whereby investors
received tax allowances permitting the offset of the losses from vessel depreciation
against income tax. While the scheme was not limited to shipbuilding, it was extensively
used in that field to finance containership newbuildings.7 |
| (vi) |
In 1999, the Commission approved indirect shipbuilding aid in Italy in the
form of a tax credit (9 per cent) and a subsidised interest rate (8.9 per cent
grant equivalent) to promote shipyard investment.8 |
| (vii) |
Section 5 of Italian Law No 261 of 31 July 1997 establishing aid to shipbuilding
and shipyards as implemented in the Ministerial Decree No 539 dated 17 December
1999 provides for the establishment of the so-called "Fondo centrale di garanzia
per il credito navale". The main activity of the Fund is to hedge the refund of
capital or interests in relation to State aid to the shipbuilding industry. |
| (viii) |
The UK Shipbuilding Industry Competitiveness Minister, Alan Johnson, informed
the House of Commons on 24 May 1999 that the UK government had approved the following
for the benefit of Appledore Shipbuilders Ltd.: more than £1 million from
the Shipbuilding Intervention Fund (SIF) to build a fisheries protection vessel
for the Irish Navy and about £500,000 Regional Selective Assistance towards a
three year £6.5 million dry dock expansion project. |
| (ix) |
The Netherlands are operating a "Commanditaire Vennootschappen" investment
scheme pursuant to which private investors investing in a partnership limited
by shares can claim back tax on funds invested in the partnership set up specifically
to build a ship. While this scheme should be withdrawn, the information is that
tax reliefmight continue to be granted in different forms. |
| (xi) |
In 1999, the Commission approved the Spanish aid scheme for shipbuilding 1999-2003.
This included operating aid in the form of contract-related aid up to 9 per cent
of the contract value but also included closure aids, restructuring aids, investment
aid for innovation, regional investment aid, aid for R&D and aids for environmental
protection, aid to shipowners in the form of subsidised loans and interest rate
support9. |
| (xii) |
In 2000, the Commission authorised some French aid measures under the Loi
de Finance for contract-related aid but also for investment aid of 22.5 per cent
and 12.5 per cent intensity, respectively, and for R&D aid granted within the
Community framework for R&D aid. |
| (xiii) |
In 2001, the Dutch Government increased its budget for aid to the shipbuilding
industry by an extra US$28 million after the budget of DF 130 million had been
exhausted. 10 |
| (xiv) |
AP Moller in Denmark was reported as potentially receiving over 500 million
Kroner in subsidies for its Lindoevaerft shipyard. 11 |
| (xv) |
Germany is reported to have been preparing to subsidise the interest rates
of shipbuilding loans allegedly under the OECD CIRR regime for an amount of EUR
50 million set aside in its 2002 budget.12 |
| (xvi) |
Aid granted by the Dutch authorities in support of the restructuring of Koninklijke
Schelde Groep through capital injections of EUR 47.7 million and an interest free
loan of EUR 20.4 million.13 |
| (xvii) |
The Shipyard Improvement Programme and the SS Marketing Services launched
in the UK to assist UK shipyards sales of newly built small vessels. The SS Marketing
Service is reported to be initially financed (until 2003) by the British government
up to £2.8million.14 |
| (xviii) |
The granting of soft loans up to about US$ 1.45 Billion for the accession
of 40 German-built ships by Indonesia without the German shipbuilder having been
admitted through the open bidding process and with the official prices having
been fibbed.15 |
| (xix) |
The additional subsidies granted by the state government of Schleswig-Holstein
in September 2001 further to the decision of the German federal government to
provide an additional DM 80 million for the country's yards as a result of the
order rush that took place in the second half of 2000 in view of the imminent
expiry of the EC operating aid scheme.16 |
| (xx) |
The government funds provided for the modernisation of the Vulkan group's
Eastern German shipyards and reportedly misused by Vulkan's management. 17 |
| (xxi) |
The reportedly generous export credit guarantees granted by the French export
credit agency Coface to Chantiers de l'Atlantique in connection with certain cruise
ships being built for troubled Renaissance.18 |
| (xxii) |
The participation of the French government in the establishment of Cruiseinvest
LLC, a Marshal Islands-incorporated company to acquire six of the 684-passenger
Renaissance ships from judicial sales held in Gibraltar and in the UK. Cruiseinvest
is understood to have paid the outstanding value of the existing mortgages on
the ships, an amount in excess of $ 700 million. However, the operation has been
described as a simple change of pocket of the money as all the investors behind
the Marshal Islands company held first guarantees on the mortgages. They are reported
to get back almost 98 per cent of the amount actually paid, while the remaining
2 per cent is to cover the unpaid salaries to the crews and judicial costs. In
addition to Credit Agricole -Indosuez, which had issued all the mortgages for
the ships, among those represented by Cruiseinvest there would be Alsthom, the
owner of Chantier de l'Atlantique that built the ships and the French Government
though its export credit agency Coface.19 |
| (xxiii) |
The financing of a new ferry to be built at Chantiers de l'Atlantique by the
French regions of Bretagne and Pays de Loire reportedly using tax break schemes.
20 |
| (xxiv) |
The financing of two cruise ships for owner Royal Olympic cruises by a German
banking consortium "led by the government's Kreditanstalt für Wiederaufbau"
up to 80 per cent of the total sales price of EUR 312 million. A guarantee was
reportedly secured for EUR 70 million of that amount from the city government
of Hamburg. 21 |
| (xxv) |
The aid granted by Spain for the restructuring of publicly owned shipyards
and leading to the creation of IZAR, currently being investigated by the European
Commission. 22 An earlier aid package granted
in 1998 and consisting of special tax credits was declared incompatible with the
Common Market by Commission Decision 2000/131/EC of 26 October 1999.23 |
| (xxvi) |
The German government's reconstruction and development bank, Kreditanstalt
für Wiederaufbau in Frankfurt is reported to have provided another soft loan of
EUR 81.8 million as part of a programme for building an inter-island passenger
vessel for Indonesia at a German yard.24 |
| (xxvii) |
The French Government's participation in the rescue of the Compagnie Marseillaise
de Reparation shipyard through provision of funds amounting to EUR 1.6 million.25 |
| (xxviii) |
The aid granted by the Greek Government to Hellenic Shipyards in connection
with the privatisation of the company. The Commission approved part of this aid
on 5 June 2002, while at the same time initiating a detailed investigation on
the remaining part.26 |
| (xxix) |
The financing of a new car ferry to be built at German Jos L Meyer shipyard
for French Channel operator Brittany Ferries. According to the press, 75 per cent
of the cost of the ship is to be financed under French tax-break provisions by
a banking pool which includes Credit Agricole Indosuez, BNP Paribas, Crédit Coopératif,
Crédit Industriel de l'Ouest and Germany's KVF. 27 |
| (xxx) |
The granting of aid by the Dutch Government for the building of four new 540-TEU
container ships at shipyard Bodewes Scheepswerf Vlharding for Indonesia's Arpeni
Pratama Ocean Line.28 |
| (xxxi) |
The package of subsidies worth EUR 24 million approved by the German parliament
(plus EUR 48 million to be provided by German coastal states) ahead of the approval
of the EC temporary defensive mechanism to shipbuilding and reportedly designed
to support the construction of container vessels and tankers at German yards.29 |
| (xxxii) |
The financing of the building of a new ferry at insolvent German shipyard
Flender Werft secured by a consortium of banks composed, inter alia, by
German government's reconstruction and development bank Kreditanstalt für Wiederaufbau
(KfW) and the Schleswig-Holstein government-owned Landesbank Kiel. 30 |
| (xxxiii) |
The financial aid provided to German shipowners to compensate for non-wage
labour costs and approved by the Commission on 5 June 2002. 31 |
| (xxxiv) |
The aid granted by the French Government to support the creation of Soreni
Ship Repair Company after the bankruptcy of the shipyard Ateliers et Chantiers
du Havre Constructions Navales in 1999. This aid is currently being investigated
by the Commission.32 |
| (xxxv) |
The Spanish Government is reported to be finalizing a proposal to provide
EUR 500 million in state credits to help the country's shipbuilding and maritime
sector face up competition from, particularly, Asian yards. 33
Please indicate whether this proposal has already been adopted and provide details
of the support measures envisaged therein. |
| (xxxvi) |
Before resigning, in October 2002, the former Dutch economic affairs minister
announced that the Dutch Government would grant the domestic shipbuilding industiy
a new EUR 60 million subsidy package.34 Please
indicate whether the measure has been adopted and whether any subsidies under
the scheme have already been granted. |
| (xxxvii) |
The German shipyard Meyer Werft is reported to have won an order from Indonesia's
government-owned shipowning company Pt Pelni for a 15,000 GT passenger ferry.
Germany's government-owned reconstruction and development bank Kreditanstalt für
Wiederaufbau is reported to have provided an EUR 81.8 million soft loan to finance
the construction of the vessel35. |
| (xxxviii) |
In October 2002, the Danish Government announced to have secured a broad political
agreement to reintroduce shipbuilding subsidies. According to the plan, the new
subsidies would be provided half by the government directly and half through the
specialist shipfinancier DSF36. Please provide
the details of this new subsidy package and whether any subsidies under the scheme
have already been granted. |
| (xxxix) |
The Dutch shipyard Volharding is reported to have applied for operating aid
under the temporary defensive mechanism in relation to a contract for the building
of a 5,700 DWT ordered by an Italian owner. In addition to the information listed
in the chapeau of question 9, please indicate (i) whether the aid has been already
notified to the Commission for approval and, if so, please provide a copy of the
notification; (ii) if the aid has already been approved by the Commission, please
provide a copy of the relevant decision; (ii) explain in detail how the requirement
that there has been competition for the contract from a Korean shipyard offering
a lower price has been assessed by the competent Dutch authorities and the Commission.37 |
| (xl) |
The authorities of the German State of Hamburg are reported to have approved
a 4 million EUR subsidy package for the benefit of Hamburg shipyards on 12 November
2002 for the purpose of implementing the temporary defensive mechanism. The Federal
German Government is reportedly expected to provide further 2 million EUR for
the benefit of Hamburg shipyards.38 |
| (xli) |
German yard Kvaerner Warnow Werft is reported to have applied for operating
aid of 6 per cent intensity under the temporary defensive mechanism in relation
to a contract for the building of four 2,532 TEU container ships ordered by Norway
and Cayman Islands-based Andreas Ove Ugland. The vessels will reportedly be then
chartered to the German shipping company Hamburg Sued. It is also reported that
the project will be financed by Germany's government-owned reconstruction and
development bank Kreditanstalt für Wiederaufbau. In addition to the information
listed in the chapeau of question 9, please indicate (i) whether the aid has been
already notified to the Commission for approval and, if so, please provide a copy
of the notification; (ii) if the aid has already been approved by the Commission,
please provide a copy of the relevant decision; (ii) explain in detail how the
requirement that there has been competition for the contract from a Korean shipyard
offering a lower price has been assessed by the German authorities and the Commission.39 |
| (xlii) |
Two German yards belonging to the Aker Kvaerner Group, Aker MTV in Wismar
and Kvaerner Warnow Werft in Rostock, are reported to have applied for operating
aid of 6 per cent intensity under the temporary defensive mechanism in relation
to a contract for the building of six 2,500 TEU container ships ordered by the
Islamic Republic of Iran Shipping Lines. The two yards are reported to have applied
for financing to Germany's government-owned reconstruction and development bank
Kreditanstalt für Wiederaufbau. In addition to the information listed in the chapeau
of question 9, please indicate (i) whether the aid has been already notified to
the Commission for approval and, if so, please provide a copy of the notification
(ii) if the aid has already been approved by the Commission, please provide a
copy of the relevant decision; (ii) explain in detail how the requirement that
there has been competition for the contract from a Korean shipyard offering a
lower price has been assessed by the Germnan authorities and the Commission.40 |
|
| 4 |
European Commission News Release No IP/98/720. |
| 5 |
European Commission News Release No IP/98/186. |
| 6 |
European Commission News Release No IP/99/962. |
| 7 |
The scheme was authorised by the European Commission on 1 March 1995 (Official
Journal No C 266, 13 October 1995, p.16). |
| 8 |
European Commission News Release No IP/OO/1513. |
| 9 |
European Commission News Release No IP/99/182. |
| 10 |
Dutch top up shipbuilding subsidy, Fairplay, 5 July 2001. |
| 11 |
Moller Shipyard may receive new subsidy, Dow Jones International News, 4 September
2001. |
| 12 |
Germany prepares subsidy package for shipyards under new CIRR regime, Lloyd's
List, 25 July 2001. |
| 13 |
Commission investigates restructuring and privatisation of mixed shipyard
KSG in The Netherlands, European Commission press conference of 25 July 2001. |
| 14 |
UK drives to attract small vessel newbuild market, Lloyd's List, 19
June 2001; UK yards targeting smaller but profitable vessel market, The
Shipping Times, 28 June 2001. |
| 15 |
40-ship German deal queried, Fairplay, 13 December 2001. |
| 16 |
Schleswig-Holstein State grants subsidy to its shipyards, Lloyd's List,
20 September 2001. |
| 17 |
Firmer Vulkan bosses facing fraud retrial, Lloyd's List, 18 September
2001. |
| 18 |
Alstom shipyard plan scuppered, Financial Times, 12 November 2001. |
| 19 |
French investors pay $700m to buy back six Renaissance cruiseships,
Lloyd's List, 29 November 2001. |
| 20 |
Regions to finance new French ferry, Fairplay, 8 January 2002; Brittany
ferries poised to order another newbuild, Lloyd's List, 9 January 2002. |
| 21 |
Olympic Explorer going nowhere fast, Lloyd's List, 18 January 2002. |
| 22 |
European Commission Notice 2002/C 21/03 - State Aid - Spain - C/40/00 (ex
NN 61/00) - Further restructuring of Spanish shipbuilding - Invitation to submit
comments pursuant to Article 88(2) of the EC Treaty, 0.J. C 21, 24January 2002,p.17. |
| 23 |
O.J. No. L 37, 12 February2000, p. 22, recently upheld by the European Court
of Justice in judgment of 21 March 2002, case C-36/00. |
| 24 |
German bank clears loan for Indonesian ferry project, Lloyd's List,
8 February 2002. |
| 25 |
Paris backs Marseilles yard plan, Fairplay, 7 May 2002. |
| 26 |
European Commission News Release No IP/02/816. |
| 27 |
Unions fail to persuade Brittany Ferries to switch to local shipyard,
Lloyd's List, 10 June 2002. |
| 28 |
Arpeni plans orders in the face of delays, Trade Winds, 21 June 2002. |
| 29 |
Berlin defies Brussels ' aid delay, Fairplay, 27 June 2002; IG Metall urges
coastal states to pay up yard aid, Lloyds List, 30 July 2002; German yards get
subsidy go-ahead, Fairplay, 31 July 2002. |
| 30 |
Flender gains newbuilding support, Fairplay, 4 July 2002; German shipbuilding
battle, Fairplay International Shipping Weekly, 11 July 2002. |
| 31 |
European Commission News Release No IP/02/812. |
| 32 |
European Commission Notice 2002/C 222/04 - State Aid - France - Aid C 55/2002
(ex NN 53/2002) ) Aid to Soreni Ship Repair Company (shipbuilding) - Invitation
to submit comments pursuant to Article 88(2) of the EC Treaty, O.J.No C 222, 18
September 2002, p. 21. |
| 33 |
Spanish aid to bolster technology capacity, Lloyd's List, 3 October 2002. |
| 34 |
Subsidy uncertain as cabinet falls, Fairplay, 16 October 2002. |
| 35 |
Jakarta and Meyer Werft in ferry deal and Meyer Werf bullish
on better times ahead, Lloyd's List, 23 October 2002. |
| 36 |
DSF hole in Denmark plan for yard aid, Lloyd's List, 24 October 2002. |
| 37 |
Subsidy saves shipyard subsidiary and All is well ata Volharding,
8 November 2002. |
| 38 |
German Hamburg Approves 4.0 Mln Euro Subsidy for Shipyards, German
News Digest, 13 November 2002. |
| 39 |
German Plead for state yard aid, Fairy 13 November 2002; German
Kvaerner Warnow Werft Receives 128.6 Mln Euro Order, German News Digest, 13
November 2002; Ugland takes plunge - Norway and Cayman Islands based Andreas
Ove Ugland is back into newbuilding in a big way, Tradewinds, 15 November
2002. |
| 40 |
AkerKvaerner in six boxship deal for Iran, Lloyd's List, 19 November 2002. |
