§ Miss Emma NicholsonTo ask the Secretary of State for Trade and Industry if he has any proposals for changes in the European Commission's sixth directive on aid to the shipbuilding industry.
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§ Mr. Douglas HoggIn line with the decision of the European Commission, which was notified to member states on 18 January, I have decided to reduce the maximum level of support for merchant ships from 26 per cent. to 20 per cent. with effect from 1 January 1990.
I have also decided that, from the same date, the sliding scale for ships costing less than £10 million will be reduced from a maximum of 20 per cent. to a maximum of 15 per cent. This will fall by half of one percentage point for every £1 million reduction in the cost of build below £10 million. This when combined with shipbuilder's relief, will bring support for ships costing less than 6 million ecu below the upper level of 14 per cent. set by the Commission.