| 2. |
Identify the legal provisions (EC and/or EC Member
State provisions) with full references on the basis of which each subsidy is identified
in question I and provide the following information on: |
| (i) |
The eligibility criteria, including terms and conditions,
of each subsidy identified in question 1 and any anticipated changes to the criteria
with the documentation substantiating the changes, and in the case of the subsidies
being terminated, the last date that a company could apply for or claim and receive
benefits under the programme. |
| (ii) |
The procedure for authorising and granting each
subsidy, identified in question 1, both in the EC Member States and within the
EC, and whether a formal application and/or specific approval is required each
time benefits are received or the receipt of benefits is automatic after their
initial authorisation. |
|
Reply
The conditions for the granting of the various forms of permitted aid are provided for in the relevant articles of Council Regulation 1540/98 (enclosed). References to the relevant national legal provisions are included in the Official Journal notices listed in our reply to question II.1. According to the Procedure Regulation of the EU on state aid (Council Regulation EC 659/99) Member States can ask for aid to be authorised in the form of ad hoc aid or in the form of schemes. For shipbuilding, even if aid has been approved in the form of schemes, notification of individual aid measures is necessary, except for contract related operating aid.
(Operating Aid)
| 3. |
For each subsidy, identified in question 1, provided
as an operating aid, please provide the following information on: |
| (i) |
The forms in which the subsidy was or has been granted
(e.g., grants, loans, loan guarantees, bond infusions, tax benefits), the amounts
provided in each form, and terms and conditions of each form of the subsidy. |
| (ii) |
The name and address of the agency or authority
responsible for administering and authorising the subsidy within the EC or within
an EC Member State. |
| (iii) |
The name of the shipyard(s) to which the subsidy was or has been provided,
the type (including CGT) and buyer of the vessel, and the time of sales contract
and delivery of the vessel. The examples of types of vessels are following: |
| - |
Crude oil tankers (single hull only) |
| - |
Crude oil tankers (double hull only) |
| - |
Product and chemical carriers |
| - |
Bulk carriers |
| - |
Combined carriers |
| - |
General cargo ships |
| - |
Reefers |
| - |
Full container ships |
| - |
Ro-Ro vessels |
| - |
Car carriers |
| - |
LPG carriers |
| - |
LNG carriers |
| - |
Ferries |
| - |
Passenger ships including cruise ships |
| - |
Fishing vessels |
| - |
Other non-cargo vessels. |
| (iv) |
The ratio of the total amount of the subsidy to the total sales value at
delivery and order book level for each type of vessel concerned for each of the
above calendar years within the period mentioned above. |
| (v) |
The total amount of the subsidies afforded by each
EC Member State per each of the above calendar years. |
| (vi) |
The number of vessels delivered and corresponding CGT separately for |
| - |
holding owners within the EC |
| - |
holding owners outside the EC |
|
Reply
The information is contained in the references listed in question II.2 above. We also refer to the EC's subsidy notification. For question (v) see the sections on shipbuilding in the Commission Surveys on state aid published on the internet ( http://europa.eu.int/comm/competition/state_aid/others/).
(Restructuring, Closure Aid, etc)
| 4. |
For each subsidy, identified in question 1, provided
as a restructuring, closure aid, and other aids, please provide the following
information on: |
| (vii) |
The forms in which the subsidy is granted (e.g.,
grants, loans, loan guarantees, bond infusions, interest relief, debt rescheduling,
equity for debt swaps, other debt write-offs, tax benefits), the amounts provided
in each form, and terms and conditions of each form of the subsidy. |
|
Reply
The information is contained in the references listed in question II.1 above. We also refer to the EC's subsidy notification.
| (viii) |
The name and address of the agency or authority
responsible for administering and authorising the subsidy within the EC or within
an EC Member State. |
| (ix) |
The name of the shipyard(s) to which the subsidy
was or has been provided, and the types of vessels (including CGT) the shipyard
has produced since 1998. |
|
Reply
The information can be found in the references provided for each closure aid and restructuring aid case in our reply to question II.1.
| (x) |
For each restructuring aid, the methodology applied
to determine the viability of the shipyard and to develop detailed plans, and
the name of the institution that conducted the field study and evaluated the value
of the shipyard in difficulty. |
|
Reply
For restructuring aid, the shipyard develops a restructuring plan, submitted by the Member State. The Commission assesses these plans based on criteria outlined in the Community guidelines for rescuing and restructuring firms in difficulty (OJ C 288, 09.10.1999).
| (xi) |
The total amount of the subsidies afforded by each
EC Member State per each of the above calendar years in terms of each category
of aids (restructuring aid, closure aid, etc). |
|
Reply
The information is contained in the references listed in question II.2 above. We also refer to the EC's subsidy notification.
(Equity Infusion)
| 5. |
If any of the subsidies identified in question 1 takes the form of equity
infusion or a debt-for-equity swap, please include the following specific information
in the answers to questions 3 and 4 in this section of the questionnaire. |
| (i) |
The name of the recipient of each investment/conversion. |
| (ii) |
The name of the federal, regional or local authorities, another public
body or private institutions directed or entrusted by public body, which approved
the equity investme nt/conversion and the date at which it did so. |
| (iii) |
The exact amount of the equity infusion. |
| (iv) |
The methodology to determine equity worthiness of the shipyard and, if
any reports or other documents were prepared in support thereof, the conclusions
of the studies or reports. |
| (v) |
If the government of the EC Member State concerned attempted to, or did,
secure equity investment for a shipyard in difficulty from private sources, please
describe the circumstances surrounding the investment, any agreement entered into
between the government and the private parties, and provide all relevant documentation
(e.g., a copy of the agreement, discussion memoranda, etc.). |
|
Reply
In the assessment of the Commission, equity to firms in difficulties are generally treated as grants. Therefore, if equity has been provided e.g. in restructuring cases, the information is included in the decisions published in the Official Journal, referred to above. In case the equity is provided on normal market conditions with an expected normal return on capital, this would not be considered as state aid.
(Loans, Loan Guarantees, Export credits)
| 6. |
If any of the subsidies identified in question 1 takes the form of a loan
or a loan guarantee, please include the following specific information in the
answers to questions 3 and 4 in this section of the questionnaire. |
| (a) |
Short-term loans |
| If short-term loans (less than one year) were provided by a
public body or a private institution directed or entrusted by a public body in
EC Member States, and principal or interest was repaid, accrued and/or waived
during the years referred to above, please provide the following: |
| (i) |
The types of institutions (e.g., banks, leasing firms, brokers, insurance
companies) that provide short-term commercial loans in the EC Member States concerned.
In addition, please explain the role of the government in controlling/directing
those institutions and their lending policies. For each type of institution, specify
whether loans are provided in domestic currency, foreign exchange, or both. |
| (ii) |
The predominant national average short-term interest rate in the EC Member
States concerned (including copies of the source materials) for the period concerned.
If a predominant national average interest rate does not exist, please provide
the interest rate in the EC Member State concerned for each type of short-term
financing and the weight each type represents as a percentage of the total of
outstanding short-term loans. |
| (iii) |
Specify other charges or practices used in normal commercial transactions. |
| (iv) |
The date mid amount of any forgiveness or assumption of any principal or
interest payments during the years referred to above. |
| (b) |
Long-term loans |
| If long-term loans (longer than one year) were provided by a public body or a private institution directed or entrusted by a public body, which had principal or interest outstanding during the years referred to above, please provide the following information |
| (i) |
The types of institutions (e.g., banks, leasing firms, brokers, insurance
companies) that provide long-term credit in the EC Member States concerned. In
addition, please explain the role of the government in controlling/directing those
institutions and their lending policies. For each type of institution, specify
whether loans are provided in domestic currency, foreign exchange or both. |
| (ii) |
The following information for each year in which a long-term loan was approved
which had principal or interest outstanding: |
| - |
If the loan has a fixed interest rate, please provide the long-term fixed
interest rate(s) available from private commercial lenders to most companies in
the country in question at the time the loan was approved. If such a figure(s)
is (are) not available, please provide the long-term variable interest rate(s)
available from private commercial lenders to most companies in the EC Member State
in question during the same period. If this figure is not available, please provide
all types of short-term financing available in the EC Member State at the time
the loan was approved, the percentage each type represented of the total amount
of short-term financing, and the corresponding monthly average interest rates
for each type in the period concerned. |
| - |
If the loan has a variable interest rate, please provide the long-term
variable interest rate(s) available from private comme rcial lenders to most companies
in the EC Member State in question at the time the loan was approved. If a long-term
variable interest rate from commercial lenders is not available, please provide
the long-term fixed interest rate(s) available from commercial lenders to most
companies in the EC Member State concerned at the time the loan was approved.
If this figure is not available, please provide all types of short-term financing
available in the EC Member State concerned at the time the loan was approved,
the percentage each type represented of the total amount of short-term financing,
and the corresponding monthly average interest rates for each type in the period
concerned. |
| - |
In all cases, state whether the applicable rate is
for loans provided by publicly owned or controlled institutions or by privately
held institutions, and whether such rate is subject to any government-mandated
ceiling or cap. |
| (iii) |
Specify other charges or practices used in normal commercial transactions. |
| (iv) |
Provide the date and amount of any forgiveness or assumption of any principal
or interest payment. |
|
Reply to the questions above
In the assessment of the Commission, loans to firms in difficulties are generally considered as aid. Therefore, if loans have been provided e.g. in restructuring cases, this information is included in the decisions published in the Official Journal, referred to above. In case the loans are provided on normal market conditions with an expected normal return on capital, this would not be considered as state aid.
| (c) |
Loan guarantees |
| For any loans with principal or interest outstanding that were guaranteed or insured by a public body or a private institution directed or entrusted by a public body in EC Member States, please provide, as relevant, the information requested in sections (i) and (ii) above. |
|
Reply
Some such schemes have been used in some Member States. The guarantees were evaluated and, if appropriate, given an aid value, which was counted within the 9 per cent operating aid ceiling permitted at the time. Guarantees with an aid value are no longer permitted since 1 January 2001, and since the end of 2000 no loan guarantees have been approved by the Commission.
| (d) |
Export credit facilities |
| To the extent that export credit guarantees or export loans are granted which the EC and its Member States consider to be compatible with the requirements of the OECD Arrangement on Guidelines for Officially Supported Export Credits and, in particular, of Annex I thereto, i.e. the Sector Understanding on Export Credits for Ships, explain the grounds for such compatibility and supply relevant supporting factual evidence. |
|
Reply
The schemes assessed by the Commission must fulfil the requirements of the relevant OECD provisions (1981 or 2002 Understanding of export credits for ships) in order for the Commission to be able to approve such schemes.
(Tax Benefits)
| 7. |
If any of the subsidies identified in question 1 takes the form of a tax
benefit, please include the following specific information in the answers to question
3 and 4 in this section of the questionnaire. |
| (i) |
The type of the tax benefils: i.e. deduction from taxable income, credit
toward taxes payable, exemption from taxes owed, deferral of taxes owed, or other
type of tax benefit. |
| (ii) |
The specific methods of the companies using these tax subsidies to calculate
the tax benefits they claim and a sample calculation using a blank tax form. |
| (iii) |
If a company is in a tax loss situation, the effects of the tax benefit
programme on the company. |
| (iv) |
If tax losses are generated through the use of this tax benefit programme,
whether the company carry forward these losses? What are the normal tax provisions
for loss carried forward? Please provide the relevant provisions of the tax laws
and regulations. |
| (v) |
If the programme involves deferral of taxes owed, please provide the predominant
national average short-term interest rate in the EC Member State concerned. |
|
Reply
In the assessment of the Commission, tax benefits are recalculated to a grant equivalent and evaluated as grants. Therefore, for e.g. aid for restructuring, such provisions are included in the decisions published in the Official Journal, referred to above.
(Other Relevant Matters)
| 8. |
Please provide the following information for the period from 1998 until
to date (per calendar year except for the current year) based on the vessels delivered. |
| - |
The total turnover of the EC shipyards per EC Member State and the breakdown
of these total turnover figures into the turnover figures for each type of vessel. |
| - |
Actual production, in CGT, of the EC shipyards per EC Member State both
on a total basis and for each shipyard and type of vessel. |
| - |
The Commission's plans for the following three years in terms of limitations
of production capacity or the release of the limitations currently imposed for
each EC Member State and shipyard. |
|
Reply
According to Council directive 1013/97 (OJ L 148, 6.6.1997), the shipbuilding capacity in the territories of the former German Democratic Republic was reduced to 327,000 cgt, and this limitation can be maintained until the end of the year 2005.
According to the Commission decision on case C 56/95 (OJ C 354, 21.11.1997) authorising restructuring aid to civil Spanish shipyards, the annual production capacity for the concerned yards (Puerto Real, Sestao, Sevilla, Barreras, Juliana) had to be reduced to 210000 cgt. Furthermore, their annual production shall not exceed that limit for a period of ten years from the date (6/8-1997) of the letter announcing the decision.
According to Commission decision on case C 40/02 (OJ C 186, 6.8.2002) Hellenic shipyards will not increase the production capacity in the civil shipbuilding sector for the next ten years from the date (5/6-2002) of the decision.
(Statistical Data for Specified Subsidies)
|
