HC Deb 30 June 1986 vol 100 cc445-6W
Sir William Clark

asked the Secretary of State for Transport (1) 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;

(2) 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;

(3) 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

I will answer these questions shortly.

Sir William Clark

asked 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 secondhand ships; what is the size and nature of such assistance; and what conditions are imposed on the availability of such assistance.

Mr. Moore

The information is as follows:

France

Interest subsidies are provided for the purchase of second-hand vessels less than 10 years old or in the case of tankers to be used in cabotage trades less than 13 years old. The proportion of the subsidised loan cannot count for more than 60 per cent. of the purchase price including necessary repairs; the scheme applies to loans for a period of up to seven years, and the purchaser of a foreign vessel has to prove that no foreign credits exist.

In order to benefit from the subsidy the vessel must be at least half owned by a French national or be entirely owned by companies having their headquarters in France. The vessel must be at least 150 grt and fly the French flag and all conversions must be carried out in French shipyards.

Italy

A grant of up to 1.88 per cent. is provided for the purchase of a foreign flag ship between three and 10 years old and not exceeding 10,000 grt.

Netherlands

A fleet modernisation scheme in the form of a premium of 2.3 per cent. a year for five years exists for ships less than five years old. Vessels have to be Dutch-owned and flagged but the scheme is not restricted to those built in Dutch shipyards.