31975L0432

24 . 7 . 75 Official Journal of the European Communities No L 192/27

COUNCIL DIRECTIVE of 10 July 1975

on aid to shipbuilding

(75 /432/EEC )

THE COUNCIL OF THE EUROPEAN Whereas the objectives of a competitive and COMMUNITIES; balanced shipbuilding industry require an appropriate adjustment of production structures so that the undertakings in the sector may eventually be Having regard to the Treaty establishing the able to follow general economic developments and European Economic Community, and in particular meet competition on the world market without the Articles 92, 3 ( d), and 113 thereof; support of intervention by the public authorities and so that the investment efforts of the sector are Having regard to the proposal from the compatible with the world balance between supply Commission ; and demand;

Whereas distortions in competition on the world Having regard to the Opinion of the European market have been reduced through a series of Parliament (*); understandings concluded by the main shipbuilding countries within the framework of the OECD with the object of harmonizing export credit conditions Having regard to the Opinion of the Economic and for ships ; whereas, within this same organization, Social Committee (2 ); the principal shipbuilding countries have concluded a general arrangement on the progressive reduction Whereas Council Directive No 72/273 /EEC (3) of 20 of specific aid measures distorting competition in the July 1972 on aid to shipbuilding, which was shipbuilding industry, with a view to their abolition designed to offset distortions in competition on the by 1 November 1975 ; world market, has helped to reduce and to harmonize direct aids to shipbuilding in the Whereas, furthermore, the objective of making the Community; whereas this Directive, last extended by shipbuilding industry competitive in a relatively Directive No 74/59/EEC (4), expired on 30 June short time requires consideration of the overall 1975 ; effects of aids and interventions directly or indirectly affecting competition and trade conditions on the market for the building, conversion or repair of Whereas the position of shipbuilding in the ships ; Community has improved since the adoption of Directive No 72/273 /EEC, due to favourable market Whereas the continued application of aids to developments and to the rationalization and shipbuilding has a protective effect which was restructuring efforts of shipyards ; whereas, however, justifiable in the past but is not likely in the long if undertakings are to be made competitive and a term significantly to improve the world balance achieved in this sector, these efforts must be competitiveness of the Community shipbuilding intensified; whereas this is particularly urgent in industry; whereas, however, elmination of such aids view of the serious difficulties threatening the sector; must take place gradually to enable shipyards to adjust to the new conditions ; Whereas a sound and competitive shipbuilding industry is necessary to the Community; whereas it Whereas aid to shipbuilding should not, however, contributes to its economic and social development, adversely affect trading conditions to an extent by providing a substantial market for a range of contrary to the common interest, sectors, including those using advanced technology, and as an employer in a number of Community regions ; whereas this is also the case with ship HAS ADOPTED THIS DIRECTIVE : conversion and ship repair;

Article 1 (*) OJ No C 76, 3. 7. 1974, p. 41 . (2) OJ No C 97, 16. 8. 1974, p. 40. (3) OJ No L 169, 27. 7. 1972, p. 28. Aid and intervention to assist shipbuilding may be (4) OJ No L 38, 11 . 2. 1974, p. 1 . considered compatible with the common market,

No L 192/28 Official Journal of the European Communities 24 . 7 . 75

under this Directive, in so far as they satisfy the The Commission shall regularly draw up an overall conditions set out in Article 2 ( 1 ) and (2 ) and report to serve as the basis for discussion with Article 3 . national experts.

Article 2 Article 3 1 . Article 1 shall apply to aid and intervention for the building, in the Community, of the following Article 1 shall apply to aid and intervention in the metal-hulled sea-going vessels : form of credit facilities for export and for all other sales of ships, provided that such facilities satisfy the conditions laid down in the understanding on export — merchant vessels for the carriage of cargo and/or passengers of not less than 150 gross registered credit for ships contained in the resolution of the tons , Council of the OECD of 18 July 1974, or in any agreements replacing it. — fishing vessels of not less than 150 gross These aids and interventions may apply under the registered tons, same conditions to the conversion of metal-hulled sea-going vessels of not less than 5 000 gross — dredgers of not less than 150 gross registered tons , registered tons, on condition that conversion operations entail radical alterations to the cargo plan, the hull or the propulsion system. — tugs of not less than 500 hp .

2. ( a) Article 1 shall apply to the aid and Article 4 intervention referred to in paragraph 1 until 31 December 1975 only, on condition that The Member States shall inform the Commission of their present level is not increased. their decisions to grant aid to investments in ( b) Nevertheless, Article 1 shall apply beyond 31 shipbuilding, conversion or repair yards where the December 1975 when these aids and amount x of such investment is in excess of five interventions are granted : million units of account. This information shall be provided every year in the form of a table based on — in Ireland, provided that such aids and the specimen in Annex II : on 1 March, in respect of interventions are progressively reduced the decisions taken in the second half of the previous and that there is at the same time a calendar year and on 1 September for those taken in rationalization plan, the first half of the current calendar year.

— in Italy, provided that such aids and interventions are progressively reduced Article 5 and that there is at the same time put into operation a plan for the rationalization of Aid and intervention of a conservatory nature the shipbuilding industry the effect of intended as a temporary solution for the rescue of a which would be to make the industry properly competitive and able to continue shipbuilding, ship conversion or ship repair without such measures, undertaking pending a solution to the problems confronting the undertaking concerned shall be notified individually to the Commission, pursuant to — in France, in the form of a price guarantee Article 93 of the Treaty. introduced — under the specific intervention scheme to assist shipbuilding — by the law of 24 May 1951 , provided that the terms of this scheme are made Article 6 progressively more restrictive.

3 . The Member States shall provide a table, for The Member States shall refrain from any the exclusive use of the Commission, based on the intervention measures to promote within their specimen given in Annex I, setting out the decisions national territories the building, conversion and on the aid and intervention referred to in paragraph 1 repair of ships to be used for navigation or for use at and an estimate of their effects . This information sea and the manufacture of products intended to will be provided on 1 March of each year in respect form part of such ships, other than those provided of the decisions taken during the second half of the for in Articles 2 and 3 or those considered previous calendar year and on 1 September for those compatible with the common market under Articles taken in the first half of the current calendar year. 92 and 93 of the Treaty.

24. 7. 75 Official Journal of the European Communities No L 192/29

Article7¶

The Member States shall inform the Commission of This Directive shall apply until 31 December 1977. their rules and procedures for implementing the aid and intervention systems to assist the building, conversion and repair of ships before such rules and Article 10 procedures enter into force. This Directive is addressed to the Member States .

Article 8 For the Council The Council, acting by a qualified majority on a The President proposal from the Commission, shall amend this Directive as and when appropriate. E. COLOMBO

ANNEX I Information to be furnished by the Member States concerning the aid and intervention referred to in Article 2 (3 )

Serial Type of Gross Financial effect, as a percentage number vessel ( registered tons) of the contract price f1 )

(') Subsidy equivalent shall be calculated by adjusting amounts upwards by 8 °/o . Where payment is by instalments , the relevant subsidy equivalents are shown in the table relating to the period in which the payments were made .

ANNEX II Table of investment aid under Article 4

Amount Form Net subsidy equivalent Description Purpose of assistance as a percentage of investment of investment (') of investment of the investment

(') Where applicable , indicate whether part of a sectoral or regional development programme .