Browse by year:


PR(95)07: EFTA Surveillance Authority authorises shipbuilding aid


 Following the integration of the Council Directive on aid to shipbuilding (90/684/EEC) into the EEA Agreement, which took effect on 1 May 1995, the EFTA Surveillance Authority today decided not to raise objections to the following Norwegian schemes: the aid scheme on grants for shipbuilding, new buildings and conversions, the guarantees granted to shipbuilding by the Guarantee Institute for Export Credits, and guarantees for ship construction in Norway.

The Grants for shipbuilding, new buildings and conversions apply to the construction for domestic and export deliveries by Norwegian enterprises of vessels with a gross tonnage (GT) of at least 100, as well as to major conversions of vessels of at least 1000 GT. Drilling platforms and certain other vessels specialised for work at sea, as well as barges without a propelling engine are excluded from the scheme. Ships built for public authorities, as well as normal repair and replacement work, also fall outside the scope of the aid scheme.

The scheme applies to contracts signed until 31 December 1995. It has a budget of NKR 1064 million for 1995. The Authority earlier decided to set the maximum level of aid permissible for the construction of small ships of a contract value of less than ECU 10 million as well as for all ship conversions covered by the Shipbuilding Directive at 4.5%, and at 9% for vessels whose contract value is ECU 10 million or more. As the Authority found that grants under the scheme meet also other relevant criteria of the Shipbuilding Directive, it decided not to raise objections to the aid scheme as notified by the Norwegian authorities.

The Authority further decided not to raise objections to the “Guarantee Scheme for Ship Construction” and to the application to the shipbuilding sector of the general guarantee scheme by the Guarantee Institute for Export Credits (GIEK). It was concluded that the terms for both guarantee schemes, as notified by the Norwegian authorities, are within the limits of the OECD Understanding on Export Credits for Ships, and, therefore, can be considered compatible with the functioning of the EEA Agreement.

The Norwegian Government was reminded of its obligations under the Shipbuilding Directive, in particular that aid related to shipbuilding and ship conversion to be granted as development assistance as well as any decision to apply any general or regional aid scheme to the undertakings covered by the Directive, shall be notified to the Authority in advance and authorized by it before they are put into effect.

For further information please contact Gudlaugur Steffansson (Competition and State Aid Directorate) on tel. 28618 52 or Jorma Pililatie on tel. 286 18 50.

Other EEA Institutions

This website is built with Eplica CMS