31972L0273

Official Journal of the European Communities 749

No L 169 /28 Official Journal of the European Communities 27.7.72

COUNCIL DIRECTIVE of 20 July 1972 on aid to shipbuilding

(72/ 273 /EEC)

THE COUNCIL OF THE EUROPEAN COMMUNITIES, Whereas aids designed to improve export credit conditions for ships are still granted in some shipbuilding countries, the aim of existing OECD Having regard to the Treaty establishing the understandings being solely to lay down for European Economic Community, and in particular international transactions maximum credit levels Articles 92 and 113 thereof; above which aid may not be granted; whereas there are forms of aid other than those relating to export Having regard to the proposal from the Commission; credit for ships which cause distortions in competition on the world market; Whereas the Council Directive of 28 July 19691 on Whereas in these circumstances it is in the common the grant of aids to shipbuilding to offset distortions in competition on the world market has effectively interest that aid to shipbuilding within the Community be maintained at a reduced level ; helped to reduce and harmonize aids granted to shipbuilding in the Community; Whereas such aid will, furthermore, facilitate certain Whereas that Directive should be reviewed in the restructuring operations which have yet to be carried out within the Community shipbuilding industry; light of the changes which have occurred in the whereas these operations have been hindered by the world shipbuilding market since its adoption ; deterioration of the financial position of numerous shipyards as a result of distortions in competition on Whereas distortions in competition on the world the world market; shipbuilding market have recently been reduced, principally through a series of understandings Whereas aids granted to shipbuilding should concluded by the main shipbuilding countries within nevertheless not affect trading conditions in a way the framework of the OECD with the object of contrary to the common interest; harmonizing export credit conditions for ships ; Whereas it is in the interest of the Community to find Whereas the Governments of many shipbuilding a solution both to the problem of any excess countries are increasingly convinced that the production capacity that may arise in the shipbuilding industry must ultimately operate shipbuilding industry and to the problem of aid and without aid; intervention significantly affecting, whether directly or indirectly, conditions of competition and trade on the shipbuilding and ship conversion market; Whereas, furthermore, shipbuilding in the Community has shown a relative improvement following an increase in demand and the first results Whereas the Commission should without delay of the restructuring of shipyards ; undertake, with the assistance of the Member States, a study of the various factors responsible for the imbalance of supply and demand on that market— Whereas the Directive of 28 July 1969 should account being taken also of studies made by therefore be revised so as to provide for a reduction international organizations—and of all existing aids in the aids granted to shipbuilding; and interventions , in order to determine the effect of such aids and interventions on the conditions of competition and trade; whereas the Commission will, 1 OJ No L 206, 15.8.1969, p. 25. on the basis of the results of this study, submit

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proposals to the Council for action to prevent supply (b) other credit facilities for sales and conversions of from developing in such a way as might jeopardize ships provided that the conditions referred to in the required balance—without thereby prejudicing (a) are satisfied; any decisions which the Council may choose to take in the field of industrial policy—and will also (c) any form of aid or intervention coming within submit a draft for a new directive designee! to Article 1, other than those specified under (a) coordinate in the common interest all aids and and (b), the amount of which, subject to intervention in respect of shipbuilding and ship exemption, does not exceed 5% of the relevant conversion; whereas the Council should act on the contract price in 1972 and 4% of the contract proposals from the Commission as soon as possible price in 1973 . and in any event not later than 31 December 1973 ; 2. Grants exceeding the aforementioned ceilings shall in the following cases be treated as exemptions HAS ADOPTED THIS DIRECTIVE: for the purposes of paragraph 1(c)

— where the excess is due to the operation of a Article 1 scheme of insurance against exceptional rises in costs ; Aids and interventions to assist shipbuilding may be considered compatible with the common market in — where the grant is to the Italian shipbuilding so far as they satisfy the conditions set out in Articles industry, provided that such grants , are 2 and 3 . progressively reduced at a rate at least equal to that indicated under (c), and there is at the same time put into operation a programme for the Article 2 rationalization of Italian shipbuilding industry designed to make the industry properly Grants of aid and interventions may be made for the competitive at the European level not later than following purposes : the end of 1976 ; (a) the building, in a shipyard of the Community, of — where the excess is the result of indirect aid or metal-hulled sea-going vessels being any of the intervention for the building or conversion of following : ships. — merchant vessels for the carriage of cargo and/or passengers of not less than 150 gross 3 . The contract price means the sale price fixed by registered tons; contract, taking account of any price revision clause. — fishing vessels of not less than 150 gross registered tons ; 4. The Council, acting by a qualified majority on a proposal from the Commission, shall modify this — dredgers of not less than 150 gross registered Article as and when appropriate. tons ; — tugs of not less than 500 hp ; Article 4 (b) the conversion, in a shipyard of the Community, The Member States shall communicate to the of metal-hulled sea-going vessels of not less than Commission, in so far as is necessary, particulars of 5000 gross registered tons, on condition that conversion operations entail radical alterations to their rules governing aid and intervention for the cargo plan, the hull or the main propulsion shipbuilding and ship conversion and of their procedures for applying such rules. system of such vessels. These rules and procedures must make it clear Article 3 whether the conditions laid down in Articles 2 and 3 have been complied with. 1 . , Aid or intervention for the building or conversion of ships falling within Article 2 may Article 5 consist of : (a) export credit facilities in respect of ships, The Member States shall refrain from any provided that such facilities satisfy the conditions discriminatory practice calculated to favour within laid doyvn in the understanding on Export Credit their national territories the building or conversion of for Ships contained in the Resolution of the ships or the manufacture of products intended to Council of the OECD of 16 December 1970; form part of such ships. 1 .

Official Journal of the European Communities 751

Article6¶

On the entry into force of the Treaty concerning the 1. This Directive shall apply until 31 December Accession of the Kingdom of Denmark, Ireland, the 1973 . Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland to the European 2. The Commission shall as soon as possible Economic Community and the European Atomic undertake a study of trends in supply and demand on Energy Community : the world shipbuilding market and of the overall effect of aids and interventions significantly affecting, (a) the following temporary exceptions to whether directly or indirectly, the conditions of subparagraph (a) of Article 2 shall apply : competition and trade on that market within the Community. It shall submit to the Council proposals — the minimum tonnage level for aid and based on the results of this study. The Council shall intervention in the United Kingdom of Great act on these proposals, immediately if possible, but in Britain and Northern Ireland in respect of the any event not later than the end of 1973 . aforementioned shipbuilding operations shall be 100 gross registered tons; Article 8

— the minimum tonnage level for aid and This Directive is addressed to the Member States. intervention in the Kingdom of Norway in respect of the construction of fishing vessels shall be 50 gross registered tons ; Done at Brussels, 20 July 1972.

(b) the following indent shall be added to Article 3 For the Council (2): The President 'where the grant is to the Irish shipbuilding industry.' T. WESTERTERP