Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 29 May 1996

Vol. 466 No. 2

Written Answers. - Grant Aid for Tugboat.

Tony Killeen

Question:

36 Mr. Killeen asked the Minister for the Marine the action, if any, taken by his Department regarding an application for Structural Fund support for a tugboat on the Shannon Estuary; and if he will make a statement on the matter. [9403/96]

A tugboat for the Shannon Estuary was included in the Commercial Seaport Programme of the Operational Programme for Transport, OPT, 1994-99, as announced by Ministers on 22 May 1995. This was subsequently communicated to the EU Commission and the Operational Programme for Transport Monitoring Committee.

EU policy on aid to shipbuilding is currently set out in Council Directive 90/684/EEC of 21 December 1990 as last amended by Directive 9473/EC of 19 December 1994. Tugs of 365 kw or above all within the scope of the Directive. Aid is allowed, to the yard or shipowner, up to 9 per cent of a contract value, if this is equal to or higher than 10 million ECU. For contracts of a lower value, the aid limit is set at 4.5 per cent of the contract price.
However, in December 1994 an international agreement was signed within the OECD, under which all direct or indirect aid to shipbuilding is to be considered unlawful. This agreement, to which the EU is a party together with the USA, Japan, Korea and Norway, has not yet entered into force. This should have happened on 1 January 1996 but is expected to do so in the near future.
The EU Commission, however, has already signalled that it will no longer approve grant aid for tug projects as it would be against the spirit of Union policy to seek such support given the pending imposition of a blanket ban on aid to shipbuilders and shipowners.
While this OECD agreements would appear to preclude the EU from grant aiding a tug project, I have asked officials of my Department to continue dialogue with the Commission on this subject.
Top
Share