§ Ms. QuinTo ask the Secretary of State for Trade and Industry what is his Department's policy on implementation of the recent EC decision on the level of intervention funding allowed to smaller ships.
§ Mr. LeighFollowing the decision of the European Commission, notified to member states on 7 January 1992, I have decided to reduce the maximum level of support for large merchant ships from 13 to 9 per cent. with effect from 1 January 1992. I have similarly decided that maximum support for small ships will be reduced from 9 to 4.5 per cent. from the same date. The new levels, which are the maximum permitted by the European Commission are inclusive of shipbuilders relief at 2 per cent. A sliding scale will no longer be applied to applications for aid in respect of small ships. In addition, the United Kingdom definition of "small ship" will be amended to
a ship costing less than the equivalent of ECU10 million to buildthus aligning it with the EC definition. Vessels costing less than £1 million will no longer be eligible for shipbuilding intervention fund support.