§ Sir William Clarkasked the Secretary of State for Transport which member states of the European Economic Community make operational subsidies available to their shipping companies; what is the scale of such assistance; and what conditions are imposed on the availability of such assistance.
§ Mr. Moore[pursuant to his reply, 30 June 1986, c. 443]: Up-to-date information is not available, but in general direct operating subsidies in the Community are confined to support for services to outlying communities.
§ Sir William Clarkasked the Secretary of State for Transport which member states of the European Economic Community reserve part of their seaborne trade to their national shipping companies; and what is the nature and extent of such cargo reservation in each case.
§ Mr. Moore[pursuant to his reply, 30 June 1986, c. 443]: France, Greece, Italy, Portugal and Spain all reserve their cabotage trades to their national flagged vessels. Denmark and the Federal Republic of Germany
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Grants Financing Tax or Fiscal Exemption Country Description Volume 1985 1986 Description Volume 1985 1986 Description Volume1986 1985 Germany 12.5 per cent, of construction value for new ships and conversion for home owners (not legally bound to national yards) (eight year German flag obligation) 219.33 m DM (for total construction and conversion costs of 1,733 m DM) Increased to 20 per cent. for conversion Interest free loans (six years) to home owners based on initial costs and present linear book value of fleet under German flag, not more than 14 years old 80mio DM continuing Specific fiscal offsetting of new building losses at a maximum of 150 per cent. of capital share n.a. continuing Denmark none a}14 years (four year grace period 8 per cent. loans to home owners) (construction at EEC yards) Coverage of difference to par: 614 mio DK.R (out of total financed value of 3605.7 mio DKR) Also in certain foreign currencies n.a. Portugal Credit facilities for owners for constructions in Portugal. Credit on 80 per cent. of contract price. Duration ten years interest rate OECD terms Belgium Credit facilities Credit on 70 per cent. of contract price. Interest rate 4–5 per cent. for 15 years with one year moratorium. Credit is available to Belgian ship-owners for building in any country but the vessel under the Belgian flag United Kingdom Home Ship-building Credit Guarantee Scheme conforms with OECD understanding on export credit United Kingdom £207 m continuing France Intensity 0–15 per cent. legally bound to national shipyards n.a. n.a. nil have similar restrictions but in practice waive them for United Kingdom flagged vessels. Spain reserves various cargoes, in particular oil, cereals and tobacco to national flagged vessels. France reserves the carriage of 66 per cent. of her crude oil imports and 40 per cent. of her coal imports to French flag vessels. France, Spain and Portugal also reserve "Government" cargoes to national flagged vessels. Belgium, France, Federal Republic of Germany, Italy, Portugal and Spain have bilateral cargo-sharing agreements of various kinds with certain developing countries.
§ Sir William Clarkasked the Secretary of State for Transport which member states of the European Economic Community provide investment grants or other assistance to their shipping companies for the purchase of new ships; what is the size and nature of such grants or assistance in each case; and whether the grant of such aid is conditional on either building such ships in national shipyards or operating them under the national flag.
§ Mr. Moore[pursuant to his reply, 30 June 1986, c. 443]: The available information is as follows:
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Grants Financing Tax or Fiscal Exemption Country Description Volume 1985 1986 Description Volume 1985 1986 Description Volume1986 1985 Italy Laws 361/82 and 842/85 Half-yearly subventions during 12 years a) 2.75 per cent. of the contract price Internal credit scheme Interest rebate for national owners in order to reach the OECD export n.a. n.a. Exemption of custom duties, exemption of VAT on material for shipbuilding b) 3.20 per cent. of the contract price for tankers under 5.000 DWT and for other vessels under 3.000 DWT credit terms The grants are available for Italian shipowners for vessels built in community yards and the vessels must sail under Italian flag Netherlands Subsidy to owners granted wherever the country of building 19.5 per cent. of the contract price Greece Loans on 30 per cent. of the contract price to Greek and foreign owners. The loans are granted in Drachmas and must be reimbursed in foreign currencies. The interest rate is fixed at 14 per cent. representing a rebate of 4 per cent. Duration four years, half yearly payments. Spain Home credit scheme 85 per cent. of value, max. 12 years with two years grace. Interest rate eight per cent.