Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Grant Aid.

Tony Killeen

Question:

972 Mr. Killeen asked the Minister for the Marine the current position regarding the grant aiding from EU or national sources of a tug for the Shannon estuary. [15310/96]

I refer the Deputy to my reply to his Parliamentary Question No. 36, regarding Structural Fund support for a tugboat for the Shannon estuary, answered on 29 May 1996 in which I stated that 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 94/73/EC of 19 December 1994. Tugs of 365 Kilowatts or above fall within the scope of the Directive. Aid is allowed, to the yard or to the 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 it will no longer approve grant aid for tug projects as it would be against the spirit of Community policy to seek such support given the pending imposition of a blanket ban on aid to shipbuilders and shipowners. As stated in my reply of 29 May 1996 I asked officials of my Department to discuss this matter further with the Commission. Such discussions have taken place and the Commission's position remains unchanged.

Top
Share