§ Mr. CongdonTo ask the President of the Board of Trade if he will make a statement on the level of grants under the shipbuilding intervention fund. [11219]
§ Mr. EggarAs I announced to the House on 20 December, the EC shipbuilding regime laid down by the seventh directive will continue until the OECD shipbuilding agreement enters into force, or until 30 September 1996 at the latest.
Following a decision of the European Commission, I have decided that the maximum level of support for this period from the shipbuilding intervention fund shall continue to be 9 per cent. for large ships. This is inclusive of the shipbuilders' tax relief of 2 per cent.
I have similarly decided that the maximum level for small ships from 1 January for this period shall continue to be 4.5 per cent. This is inclusive of shipbuilders' tax relief. These levels are the maximum permitted by the EC shipbuilding regime.
The OECD agreement is due to come into force by 15 July 1996. When it comes into force, support from the shipbuilding intervention fund and equivalent support in other signatory countries, will be terminated. Shipbuilders' tax relief in respect of merchant ships will be terminated at the same time.