HC Deb 08 November 1982 vol 31 cc70-2W
Mr. Trotter

asked the Secretary of State for Industry what information he has as to the extent to which shipbuilding capacity for (a) merchant and (b) naval vessels is State-owned in each of the major shipbuilding countries; and to what extent Government assistance is given to privately owned yards in each country.

Mr. Butcher

State holdings can take many forms and are not necessarily revealed. The available information on state ownership is as follows:

Merchant Yards Naval Yards
United Kingdom
Predominantly State-owned State owned
Germany
Largely private—some public sector holding in certain yards As merchant
France
Private State owned
Italy
Substantail Public sector holding Appears to be as merchant
Netherlands
Minority state holdings Appears to be as merchant
Denmark
Merchant Yards Naval Yards
Predominantly private Not significant
Sweden
One state owned major company—remainder private Not significant
Norway
Mainly private Not significant
Finland
One state owned company remainder private Not significant
Spain
Large proportion of state ownership As merchant

ECC Countries
Direct aid to shipbuilding, and aid to shipowners
Direct Aid to Shipbuliding Home Credit Scheme Aid to Shipowners
United Kingdom
Up to 17 per cent. of contract price (Includes 2 per cent Shipbuilders Relief) Home Credit Scheme 80 per cent. over 8½ years at 7 per cent. (On orders placed in United Kingdom yards only)
Belgium
Nil Home Credit Scheme 70 per cent. over 15 years. Interest relief subsidy (maximum 3 percentage points)
Denmark
Nil Home Credit Scheme 80 per cent. over 12 years at 8 per cent. interest including 2 year grace period
France
Up to 20 per cent. of contract price. (Excludes cost escalation insurance which benefit ranges from zero to 3 percentage points) Home Credit Scheme 80 per cent. over 8½ years at 7½ per cent. interest.
Germany
Nil 12½ per cent. investment grant. 4 per cent. interest subsidy. (The Investment Grant automatically reduces the amount of credit to which the Interest Subsidy applies.) Credit Guarantees at OECD terms.
Ireland
Up to 30 per cent. of contract price. (Scheme expired 31 December 1980. No detail of new scheme yet available) Home Credit Scheme 80 per cent. over 8½ years at 7½ interest.
Italy
Up to 30 per cent. of contract price. (This relates to 1980 practices under an old scheme. A new scheme is believed to be under discussion with the EC Commission) Home Credit Scheme 70 per cent. over 15 years. Interest subsidy 50 per cent. of official rate.
Netherlands
Up to 15 per cent. of contract price (1980 scheme, no details of aid scheme for 1981–82 Yet available.) Home Credit Scheme 80 per cent. over 8½ years at minimum of 8 per cent. interest. Investment subsidy of 15 per cent. plus investment premium of 1.1 per cent. for 5 years.
Finland
Nil Home Credit Scheme 80 per cent. over period of construction (at least 2 years, normally not more than 8 years at 11 per cent. interest.
Japan
Nil Home Credit Scheme.* Government (Japanese Development Bank) loan of 60 or 70 per cent. over 13 years at 7½ per cent. interest including 3 year grace period. Further loan available from commercial banks, acting in conjunction with JDB, for 15 or 20 per cent. of contract over 8 years at 8½ per cent. interest. Supplementary provision in certain cases for interest subsidies of 2½ per cent. to 3½ per cent.
Norway
Nil 80 per cent. of contract price over 8½ years plus interest subsidy of up to 5½ per cent.
Spain
Up to 9½per cent. of contract price Home Credit Scheme. 85 per cent. over 12 years at 8 per cent. interest with up to 2 years grace period. (Smaller subsidy—70 per cent. of value at 8 per cent. for 5 years plus 1 year grace—available for conversions and major repair work.)
Sweden
Nil Credit guarantees of 90 per cent. of contract price for up to 15 years on commercial loans with 3 year grace priod on capital repayments. Interest rate subsidy about 2½per cent. available in certain cases.

Department of Industry, London,

July 1982

Note:

* The 70 per cent. and 20 per cent. loans are available only for LNG carriers. Other types of vessel attract the lower percentages.

Merchant Yards Naval Yards
Japan
Private Not significant
South Korea
Substantially private As merchant
United States
Private Private

The available information indicates that merchant shipbuilding in each of these countries, whether ownership is in private or Government hands, qualifies for direct and/ or indirect state aids. The position as at July 1982 was as follows:

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