| 9. |
Please provide information of the statistical data permitting an assessment
of the trade effects of the subsidies provided or to be provided in accordance
with the following subsidy schemes. |
| 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.5 |
|
Reply
The information can be found in OJ C 24, 1999 and in state aid case N 802/97. It can be noted that the restructuring aid to shipyards in the new eastern Gennan lands was authorised only on condition of strict reductions (40 per cent in average) in capacity.
| (ii) |
The Commission's approval of a DM 129.6 million restructuring aid for Volkswerft
shipyard in Stralsund.6 |
|
Reply
The information can be found in OJ C 24, 1999, and in state aid case N 803/97. It can be noted that the restructuring aid to shipyards in the new eastern German lands was authorised only on condition of strict reductions (40 per cent in average) in capacity.
| (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. |
|
Reply
The aid was approved by the European Commission in 1999. The decision stated the following: The measures which Germany has implemented and will implement in favour of naval shipbuilding and in favour of Lürssen Maritime Beteiligungen GmbH & Co. KG, totalling DEM 10.5 million (EUR 5.25 million), are measures necessary for the protection of Germany's essential security interests within the meaning of Article 223(l)(b) of the EC Treaty. Accordingly, Articles 92 and 93 of the EC Treaty are not applicable to those measures. Accordingly, Articles 92 and 93 of the EC Treaty are not applicable to those measures. The investment aid of DEM 900,000 (EUR 450,000), as far as it relates to building, conversion or repair of yachts, is compatible with the common market pursuant to Article 92(3)(c) of the Treaty.
Further information can be found in OJ L 301, 1999 and in state aid case C 9/98.
| (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.7 |
|
Reply
The information can be found in OJ C 27, 2000 and in state aid case N 694/98. It can be noted that the restructuring aid to shipyards in the new eastern German lands was authorised only on condition of strict reductions (40 per cent in average ) in capacity.
| (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.8 |
|
Reply
The information on this scheme can be found in the OJ referred to in the footnote.
| (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.9 |
|
Reply
The aid value of the approved measures fell within the 9 per cent operating aid ceiling for any given ship, thus complying with Council regulation 1540/98. Further information can be found in OJ C 288, 1999 and in state aid case N 180/1999.
| (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. |
|
Reply
This fund has to this date not issued any guarantees and therefore no subsidy has been conferred.
| (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. |
|
Reply
The first amount concerns operating aid falling under Council Regulation 1540/98, while the other concern regional investment aid approved as state aid case N 16/95, OJ C 295 1995.
| (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 relief might continue to be granted in different forms. |
|
Reply
We refer to the general comments in the introduction of this questionnaire.
| (x) |
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 support.10 |
|
Reply
All aid, besides contract related operating aid, has to be individually notified to the Commission, which would take separate decision on whether such aid would be allowed or not. Therefore, if any aid other than operating aid would have been approved by the Commission, it would be included in the list under question II.1 above.
| (xi) |
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. |
|
Reply
All aid, besides contract related operating aid, has to be individually notified to the Commission, which would take a separate decision on whether such aid would be allowed or not. Therefore, if any aid other than operating aid would have been approved by the Commission, it would be included in the list under question II.1 above.
| (xii) |
In 2001, the Dutch Government increased its budget
for aid to the shipbuilding indus try by an extra US$28 million after the budget
of DF 130 million had been exhausted.11 |
|
Reply
This is a nonnal procedure in case there was more orders, and thus more contract related aid provided than originally budgeted.
| (xiii) |
AP Moller in Denmark was reported as potentially receiving over 500 million
Kroner in subsidies for its Lindoevaerft shipyard.12 |
|
Reply
We refer to the general comments in the introduction of this questionnaire.
| (xiv) |
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.13 |
|
Reply
If Germany needs to put aside a budget in order to be able to provide financing in accordance with the OECD sector agreement for ships, this is normal procedure.
| (xv) |
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.14 |
|
Reply
The European Commission in June 2002 approved  51.1 million in support of the restructuring of Koninldijke Schelde Groep (KSG) linked to the sale of the company to Damen Shipyards Group (Damen). The aid consisted of capital injections of 47.7 million and interest subsidies worth 7.4 million. However, this aid was not directly linked civil shipbuilding. The aid linked to civil shipbuilding as defined in the Shipbuilding regulation 1540/98 was not approved. The state aid case number was C 64/01. The decision will be published in the Official Journal in the near future.
| (xvi) |
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 £2.8 million.15 |
|
Reply
This information is not correct. The British government funding for the SS Marketing Service is limited to £176,000 up to the end of January.
| (xvii) |
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.16 |
|
Reply
We refer to the general comments in the introduction of this questionnaire.
| (xviii) |
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 re suit 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.17 |
|
Reply
This is normal procedure in case there was more orders, and thus more contract related aid to be provided, than originally budgeted.
| (xix) |
The government funds provided for the modernisation of the Vulkan group's
Eastern German shipyards and reportedly misused by Vulkan's management.18 |
|
Reply
We refer to the general comments in the introduction of this questionnaire.
| (xx) |
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.19 |
|
Reply
We refer to the general comments in the introduction of this questionnaire.
| (xxi) |
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 through
its export credit agency Coface.20 |
|
Reply
We refer to the general comments in the introduction of this questionnaire.
5 European Commission News Release No IP/98/720.
6 European Commission News Release No IP/98/186.
7 European Commission News Release No IP/99/962.
8 The scheme was authorised by the European Commission on 1 March 1995 (Official Journal No C 266, 13 October 1995, p. 16).
9 European Commission News Release No IP/00/1513.
10 European Commission News Release No IP/99/182.
11 Dutch top up shipbuilding subsidy, Fairplay, 5 July 2001.
12 Moller Shipyard may receive new subsidy, Dow Jones International News, 4 September 2001.
13 Germany prepares subsidy package for shipyards under new CIRR regime, Lloyd's List, 25 July 2001.
14 Commission investigates restructuring and privalisation of mixed shipyard KSG in The Netherlands, European Commission press conference of 25 July 2001.
15 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.
16 40-ship German deal queried, Fairplay, 13 December 2001.
17 Schleswig-Holseein State grants subsidy to its shipyards, Lloyd's List, 20 September 2001.
18 Firmer Vulkan bossesfacingfraud retrial, Lloyd's List, 18 September 2001.
19 Alstom shipyard plan scuppered, Financial Times, 12 November 2001.
20 French investorspay $700m to buy back six Renaissance cruiseships, Lloyd's List, 29 November 2001.
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