§ Mr. Willeyasked the Secretary of State for Industry whether he will make a statement on the future of the Shipbuilding Intervention Fund.
§ Mr. KaufmanI have reached agreement with the EEC Commissioner for Competition on the renewal of the Shipbuilding Intervention Fund. It has been agreed between us that the fund should be used for the period to 31st December 1978, provided that the British Government satisfy the Commission case by case that the assistance to be provided is appropriately degressive and no more than necessary, and that the orders secured with the assistance of the fund are linked to the attainment of industrial restructuring objectives in accordance with Article 6 of the Fourth Directive. This agreement does not prejudge the full period of application of the intervention fund.
187WThe maximum rate of aid will be 30 per cent. of contact price with the possibility for the Commission to approve exceptions in special cases. It will, of course, be the United Kingdom Governmnet's firm intention to keep the assistance to the minimum in each case. The fund is agreed by the Commission at an annual rate of £85 million, provided that the sum is required by the restructuring programme. The Commission has agreed that the United Kingdom may draw on the funds up to an appropriate proportion subject to agreement with the Commission in individual cases.