WORLD TRADE
ORGANIZATIONG/SCM/N/48/EEC/Add.8
2 November 1999
(99-4739)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Ireland.
______________G/SCM/N/48/EEC/Add.8
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IRELAND
TABLE OF CONTENTS
Page
1. Aughinish Alumina Relief ....................................................................................................32. Sea Fishing - Repayment of hydrocarbon oil and LPG excise duty in the case of
Seafishing..................................................................................................................... ..........3
3. Relief for Glasshouse/mushroom operators .......................................................................4
4. Enterprise Areas Scheme. ....................................................................................................5
5. Scheme of Premiums for Maintaining Pure Bred Kerry Herds of Cattle. ......................76. Grant-in-aid to Federati on of Irish Beekeepers.................................................................8
7. Tomato Marketing Improvement Assistance Programme................................................9
8. Scheme of Assistance for weather related crop losses in 1997 (State Aid/Ireland
No 821/97) ..................................................................................................................... .........9
9. Winter Fodder Scheme 1998..............................................................................................1010. Ewe Supplementary Measure 1998 ...................................................................................11G/SCM/N/48/EEC/Add.8
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1. Aughinish Alumina Relief
1. Title of Subsidy
Aughinish Alumina Relief
2. Period Under Review
1998.
3. Policy objective of the Subsidy
To maintain competitiveness.
4. Background and authority for the Subsidy
The relief was introduced under S.I. No. 126 of 1983.  Council decision 92/510/EEC
authorised Ireland to continue to grant excise duty relief in respect of oil used in the production of
alumina in the Shannon region (Aughinish).  This relief was granted in accordance with provisions of
Article 8.4 of Directive 92/81/EEC which sets out the structure of excise duty for oil products in the
Single Market.
5. Form of the Subsidy
Excise duty relief.
6. How the Subsidy is provided (destination)
The subsidy is provided to Aughinish Alumina Ltd. in the form of relief from payment of
duty on Heavy Fuel Oil used to produce aluminium.
7. Total Amount of Subsidy
The total amount was IEP £3,471,405.
8. Duration of the Subsidy
The relief in operation since 1983 is not time limited but will be subject to review as indicated
above.
9. Assessment of the trade effect of Subsidy
None available.
2. Sea Fishing - Repayment of hydrocarbon oil and LPG excise duty in the case of
Seafishing
1. Title of Subsidy
Sea Fishing - Repayment of hydrocarbon oil and LPG excise duty in the case of SeafishingG/SCM/N/48/EEC/Add.8
Page 4
2. Period Under Review
1998.
3. Policy objective of the Subsidy
To assist the sea-fishing industry.
4. Background and authority for the Subsidy
Imposition of Duties (NO. 255) (Hydrocarbon Oils) Order, 1981.
5. Form of the Subsidy
Repayment of Excise Duty.
6. How the Subsidy is provided (destination)
The subsidy is provided to sea-fishermen.
7. Total Amount of Subsidy
The total amount was IEP £1,586,267
8. Duration of the Subsidy
The relief in operation since 1981 is not time limited.
9. Assessment of the trade effect of Subsidy
None available.
3. Relief for Glasshouse/mushroom operators
1. Title of Subsidy
Relief for Glasshouse/mushroom operators .
2. Period Under Review
1998.
3. Policy objective of the Subsidy
To assist the commercial glasshouse operators and mushroom growers.
4. Background and authority for the Subsidy
The relief was originally introduced in the Imposition of Duties (no. 232) (Hydrocarbon Oils)
Order, 1977 which came into effect on 1 September 1997 provided for the repayment of excise duty atG/SCM/N/48/EEC/Add.8
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the then rate of 2p per gallon.  In the 1980 Finance Act, when the duty was increased to 7p per gallon,
it was decided that a rate of 2p should apply to glasshouse operators.
5. Form of the Subsidy
Reduced rate for purchase of hydrocarbon oil.
6. How the Subsidy is provided (destination)
Commercial glasshouse operators and mushroom growers.
7. Total Amount of Subsidy
The total amount was IEP £267,775
8. Duration of the Subsidy
The relief in operation in various forms since 1977 is not time limited
9. Assessment of the trade effect of Subsidy
None available.
4. Enterprise Areas Scheme
1. Title of Subsidy
Enterprise Areas Scheme
1.2  Brief description/identification of the subsidy
This is a scheme of tax incentives aimed at encouraging the provision of jobs in certain
deprived areas of the country.  The Enterprise Areas incentives involve capital allowances which areavailable to owners and lessors of property and double rent relief and rates relief available to tenants.
2. Period Under Review
August 1994 to date.
3. Policy objective of the Subsidy
To promote investment and encourage the provision of jobs in certain deprived areas of the
country.
4. Background and authority for the Subsidy
Scheme was first introduced in the 1995 Finance Act, Section 35(1).  Legislation consolidated
in Sections 339 to 350 of the Taxes Consolidation Act 1997, as amended.G/SCM/N/48/EEC/Add.8
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5. Form of the Subsidy
(a) A tax concession in the form of capital allowances for owner occupiers and lessors of
commercial and industrial buildings.
(b) A tax concession in the form of double rent allowance for the lessees of such
buildings (not available to regional airport enterprise areas)
(c) A relief from local authority taxes/rates for the tenants of such buildings (not
available for areas in paragraph 8 marked with an asterisk*)
6. How the Subsidy is provided (destination)
Companies eligible under the Scheme are manufacturing or service firms which must have
been certified as qualifying trading operations by the Minister for Enterprise, Trade and Employment
and must have been approved for financial assistance by one of the State agencies (either IDA Ireland,
Enterprise Ireland or Udaras na Gaeltachta).
7. Total Amount of Subsidy
Companies benefiting under the Scheme qualify for tax relief’s over a ten year period.  The
Excheq uer cost is estimated at 6.6 million (undiscounted).  This cost was calculated over 10 yearsbased on 16 companies assisted at the time of estimation.  The discounted figure is approximately
3.7 million.  The value of incentives claimed in respect of the calendar years 1996 and 1997 by
companies certified up to 30 September 1998 is £1.094 million.
8. Duration of the Subsidy
Area Name Qualifying period Comments
East Point Business Park 1/08/1994-31/12/1998 The developer has an
Dublin. additional year (to 
31/12/1999) to secure  
qualifying tenants
Fitzs Boreen 1/08/1994-31/12/1997 The developer has an
Cork additional year (to 
31/12/1998) to secure
qualifying tenants
Westside 1/08/1994-31/12/1998 The developer has an
Galway         additional year (to 
31/12/1999) to secure
qualifying tenants
Spring Lane Blackpool 1/08/1994-31/07/1997 Expired
Cork
Macken Street/ 1/08/1994-31/07/1997 Expired
Grand Canal Street
DublinG/SCM/N/48/EEC/Add.8
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*Rosslare 1/07/1997-31/12/1999
Co. Wexford
*Cherry Orchard 1/07/1997-31/12/1999
Dublin
*Finglas 1/07/1997-31/12/1999
Dublin
*Regional Airport From date of designation Subject to EU 
Enterprise Areas to 31/12/1999 Commission approval
9. Assessment of the trade effect of Subsidy
Since Ireland currently has a cohort of just 32 companies entitled to benefit under the Scheme
and since qualification is dependent on location within certain restricted areas, the effect of the
Scheme is primarily on the internal locations of a small number of enterprises in Ireland.Accordingly, any effects on trade arising from the Scheme are likely to be minimal.
5. Scheme of Premiums for Maintaining Pure Bred Kerry Herds of Cattle
1. Title of Subsidy
Scheme of Premiums for Maintaining Pure Bred Kerry Herds of Cattle.
2. Period Under Review
1998
3. Policy objective of the Subsidy
To maintain Pure Bred Kerry Herds of Cattle in Ireland for the purposes of environment and
heritage conservation.
4. Background and authority for the Subsidy
National scheme run by Department of Agri culture and Food.  No specific legislation.
5. Form of the Subsidy
Grant
6. How the Subsidy is provided (destination)
Provided to breeders of Pure Bred Kerry Cattle.  Fixed amount per unit.
7. Total Amount of Subsidy
IR£60.00 per calf born.G/SCM/N/48/EEC/Add.8
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8. Duration of the Subsidy
On-going scheme - no duration limit.  Commenced 1983.
9. Assessment of the trade effect of Subsidy
N/A
6. Grant-in-aid to Federation of Irish Beekeepers
1. Title of Subsidy
Grant-in-aid to Federation of Irish Beekeepers.
2. Period Under Review
1998
3. Policy objective of the Subsidy
To assist the Federation of Irish Beekeepers which in turn provides advice for its members
through the publication of a journal, organisation of summer courses etc.
4. Background and authority for the Subsidy
Grant made by the Department of Agriculture and Food.  No specific legislation.
5. Form of the Subsidy
Grant.
6. How the Subsidy is provided (destination)
Provided to Federation of Irish Beekeepers.  Fixed amount - not related to numbers of units.
7. Total Amount of Subsidy
Total amount of subsidy:  IR£3,000
8. Duration of the Subsidy
On-going scheme - no duration limit.  Commenced 1986.
9. Assessment of the trade effect of Subsidy
N/AG/SCM/N/48/EEC/Add.8
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7. Tomato Marketing Improvement Assistance Programme
1. Title of Subsidy
Tomato Marketing Improvement Assistance Programme
2. Period Under Review
1998.
3. Policy objective of the Subsidy
To improve the quality of Irish tomatoes
4. Background and authority for the Subsidy
Scheme operated by An Bord Glas (the Government agency with responsibility for
developing the horticulture industry).  No specific legislation.
5. Form of the Subsidy
Grant.
6. How the Subsidy is provided (destination)
Provided to tomato producers at a rate of 50 per cent of the cost of qualifying expenditure on
quality and hygiene control systems.
7. Total Amount of Subsidy
50 per cent of eligible costs.  Total budget allocation for 1999 is IR£8,000.
8. Duration of the Subsidy
No duration limit set.
9. Assessment of the trade effect of Subsidy
N/A
8. Scheme of Assistance for weather related crop losses in 1997 (State Aid/Ireland
No 821/97)
1. Title of Subsidy
Scheme of Assistance for weather related crop losses in 1997
(State Aid / Ireland No 821/97)
2. Period Under Review
1998.G/SCM/N/48/EEC/Add.8
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3. Policy objective of the Subsidy
To assist a small number of  farms whose viability was seriously threatened because of
weather related crop losses in 1997.
4. Background and authority for the Subsidy
Ex-gratia payment.  No specific legislation.
5. Form of the Subsidy:
Grant.
6. How the Subsidy is provided (destination)
Growers of arable crops, potatoes, certified grass seed and horticulture crops, the viability of
whose farms was threatened because of severe weather-related crop losses in 1997.
7. Total Amount of Subsidy
(a) Arable crops: IR£250 per hectare unharvestable
Potatoes: IR£750 per hectare unharvestable
Grass seed: IR£200 - IR£400 per tonne depending on yield and 
unharvestable area  - Maximum grant  IR£5,000
(b) Horticultural Crops: Full recoupment of losses in excess of 40 per cent and 
less than 50 per cent - Maximum grant IR£1,000
Full recoupment of losses in excess of 50 per cent 
subject to overall maximum of IR£20,000
8. Duration of the Subsidy
Once-off payment to farmers concerned.
9. Assessment of the trade effect of Subsidy
N/A
9. Winter Fodder Scheme 1998
1. Title of Subsidy:
Winter Fodder Scheme 1998
2. Period Under Review
Winter 1998G/SCM/N/48/EEC/Add.8
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3. Policy objective of the Subsidy
To assist farmers to purchase fodder which had become very expensive because of shortages
due to very poor weather conditions.
4. Background and authority for the Subsidy
Government decision.
5. Form of the Subsidy
Grant.
6. How the Subsidy is provided (destination)
Paid to producers at fixed rates -
IR£4 each on sheepIR£40 each on suckler cows
IR£30 per 1,000 gallons of milk quota
Maximum payment on any one of these categories or any combination of categories was
IR£300.
7. Total Amount of Subsidy
See 6.
8. Duration of the Subsidy
Winter 1998.  Payments commenced in December 1998.
9. Assessment of the trade effect of Subsidy
N/A.
10. Ewe Supplementary Measure 1998
1. Title of Subsidy
Ewe Supplementary Measure 1998.
2. Period Under Review
November 1998.
3. Policy objective of the Subsidy
To deal with the problem of overgrazing by sheep on commonages in the six worst affected
western counties by reducing sheep numbers by 30 per cent.
4. Background and authority for the Subsidy
Government decision.G/SCM/N/48/EEC/Add.8
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5. Form of the Subsidy
Grant.
6. How the Subsidy is provided (destination)
£5,435,560 paid to sheep farmers at the rate of £10 per ewe on 70 per cent of their quota.  The
balance of £887,637 was paid to factories for slaughtering the sheep disposed of by the producers.
7. Total Amount of Subsidy
See 6.
8. Duration of the Subsidy
Payments commenced in the third week of December 1998 and the bulk of payments were
made by the 31 December 1998.
9. Assessment of the trade effect of Subsidy
N/A.
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