WORLD TRADE
ORGANIZATIONG/SCM/N/48/EEC/Add.15
4 January 2000
(00-0019)
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 the United Kingdom.
______________G/SCM/N/48/EEC/Add.15
Page 2
UNITED KINGDOM
TABLE OF CONTENTS
Page
1. Advanced Technology Programme (ATP)..........................................................................4
2. Business Connect Wales ....................................................................................................... 4
3. Business Links............................................................................................................... ........5
4. Civil Aircraft Research And Demonstration Programme (Carad)..................................6
5. Cardiff Bay Development Corporation ..............................................................................7
6. Company Development Programme (Ni) ...........................................................................8
7. Compete Programme (Ni) ....................................................................................................98. Development Board For Rural Wales...............................................................................10
9. Energy Efficiency Best  Practice Programme ...................................................................10
10. Environmental Technology Best Practice Programme ...................................................11
11. Environmental Technology Innovation Scheme ..............................................................12
12. Eureka (UK) ................................................................................................................. .......13
13. Expert Help ................................................................................................................. ........14
14. General Industrial Collaborative Projects (GICP)..........................................................14
15. Highlands And Islands Enterprise ....................................................................................15
16. Highland Equity Capital ....................................................................................................1 6
17. Highland Opportunity Limited .........................................................................................1718. Highland Prospect Limited ................................................................................................18
19. Home Shipbuilding Credit Guarantee Scheme................................................................18
20. Industrial Development Board (IDB) - Provision Of Sites And Standard Advance
Factories...................................................................................................................... .........19
21. Industrial Development Board (IDB) - Property Development Agreement..................2022. Industrial Development Board (IDB) - Shortfall Guarantee Scheme............................21
23. Inward Investment Support Programme .........................................................................22
24. Launch Aid .................................................................................................................. ........22
25. Leader II Programme In Wales.........................................................................................23
26. Link Initiative............................................................................................................. .........24
27. Local Challenge............................................................................................................. ......25
28. LEDU - Selective Financial Assistance .............................................................................26
29. LEDU - Buying Time.......................................................................................................... 26
30. LEDU - R&D.................................................................................................................. .....27
31. LEDU - Property Development Scheme ...........................................................................28
32. LEDU - Local Enterprise Programme..............................................................................29
33. NETS  (New Entrants Training Scheme)..........................................................................2934. Offshore Supplies And Service Company Assistance For Research..............................30
35. Open Courses ................................................................................................................ ......31
36. Redundant Building Grant ................................................................................................31
37. RDP Economic ................................................................................................................ ....32
38. Regional Enterprise Grants For Innovation (RIG Only)................................................3339. Regional Selective Assist ance In Great Britain................................................................34
40. SCEEMAS ..................................................................................................................... ......35
41. Science And Technology Programme (START) (NI) ......................................................36
42. Scottish Enterprise......................................................................................................... .....36
43. Sector Challenge ............................................................................................................ .....37
44. Shipbuilding Intervention Fund ........................................................................................38G/SCM/N/48/EEC/Add.15
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45. Single Regeneration Budget...............................................................................................39
46. Small Firms Loan Guarantee Scheme ..............................................................................40
47. SMART (formerly known as Small Firms Merit Award for Research and
Technology) .................................................................................................................... .....40
48. Special Support Programme For Peace And Reconciliation In NI ................................4249. UK Coal R&D Programme................................................................................................42
50. UK New And Renewable Energy Programme .................................................................43
51. Urban Development Grant Scheme ..................................................................................44
52. Use Of Discretionary Resources By Tr aining And Enterprise Councils (TECs)
In Wales ....................................................................................................................... ........45
53. WDA Business Advisory Services......................................................................................46
54. WDA Equity Investment ....................................................................................................4655. WDA Property Development Grant..................................................................................47
56. WDA Rent Concessions......................................................................................................48
57. WDA Technology Growth Fund........................................................................................49
58. Industrial Development Board - Selective Financial Assistance.....................................49
59. Mid-Wales Developm ent Grant Scheme...........................................................................50
I. NOTIFICATION OF FISHER IES SUBSIDIES 1997/98................................................51
1. Grants Towards the Acquisition of Freshwater Fishing Vessels and Engines
(Northern Ireland) ............................................................................................................. .51
2. Grants Towards Fish Farm ing (Northern Ireland).........................................................52
3. Aid to Highlands and Islands Fish Farmers and Processors ..........................................52
4. Highland Prospect Limited: Fish Processing and Fish Farming Loans. .......................53
5. Highland Opportunity Limited: Fishing Vessel, Fish Processing and Fish Farming
Loans.......................................................................................................................... ..........54
6. Aid to Highlands and Islands Fishermen..........................................................................557. Safety Improvements on Fishing Vessels..........................................................................56
8. The Fish Producer’s Organization (Formation Grants) Scheme. ..................................57
9. Relief from Excise Duty on Mineral Oil used on Commercial Marine Voyages...........57
10. Fisheries & Aquacu lture (Wales). .....................................................................................58
11. Small Firms Loan Guar antee Scheme (SFLGS). ..............................................................59G/SCM/N/48/EEC/Add.15
Page 4
1. Advanced Technology Programme (ATP)
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage pre-competitive collaborative research in new technologies; to build up UK
capabilities; and to accelerate the application of these technologies.
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
At least three independent firms or organizations must participate -  at least two should be
capable of exploiting the results - of a bid for the 50 per cent of eligible costs of  a project available
under this scheme.  The scheme was closed to new applicants from 1 September 1993.
6. Total amount budgeted
£1,000,000
7. Duration of programme
Until existing projects are complete.
8. Assessment of trade effects
Minimal, since the scheme is aimed at improving new technology in SMEs.
2. Business Connect Wales
1. Form of subsidy
Support for the establishment, and infrastructure development, of the Business Connect Wales
network
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
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3. Policy objectives
(i) Single point of telephone entry to the Business Connect Wales business support
infrastructure for anyone seeking help to establish a new business, or for established
businesses needing information and advice on available services. Business ConnectWales encompasses a variety of local and national organizations operating in
partnership through eight local consortia, via over 30 local centres.
(ii) Through Business Connect Wales, the Welsh Office supports the development of new
services, to be delivered locally, targetting companies with the potential to grow.
4. Background authority for the scheme
1. Employment and Training Act 1973, section 2( 2) as substituted by Section 25 of the
Employment Act 1988.
2. Industrial Development Act 19825. To whom and how the subsidy is provided
Via the Training and Enterprise Councils, and the Development Board for Rural Wales,
through funding contracts.
6. Total amount budgeted
£0.1m
7. Duration of programme
Up to 1999
8. Assessment of trade effects
Minimal.
3. Business Links
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
Business Links are part of a broad strategy to improve the competitiveness of UK firms and to
help them respond to the challenges of the next decade in terms of their products, technology,
management, quality, marketing and customer focus.G/SCM/N/48/EEC/Add.15
Page 6
Business Links provide a single point of access for business support services - a national
network of local partnerships between Training  and Enterprise Councils (TECs), Chambers of
Commerce, Enterprise Agencies, Local Authorities, DTI and other providers of business support.
4. Background authority for the scheme
The proposal to develop a national network of  One Stop Shops (now branded Business Link)
was announced by the President of the Board of Trade in July 1992.  A prospectus was issued in
December 1992 inviting bids for a competition to select up to 15 pilots.
Statutory basis for activities are covered by Section 2(1) and 2(2) of the Employment and
Training Act 1973 as substituted by section 25 of  the Employment Act 1988.  Also Section 11 of the
Industrial Development Act 1982.
5. To whom and how the subsidy is provided
Most of the budget is allocated through Governme nt Offices’ contracts with TECs to ensure a
consistent level of high quality business support by TECs and Business Links across the country.  A
new funding regime was introduced from 1 April 1997 and is working well.  This radical reduction in
the number of central DTI programmes, together with the simplification of funding streams to TECs
and Business Links, has reduced bureaucracy and enables much greater local discretion.
The DTI contribution to the Local Competitiveness Budget continues to be complemented by
a contribution from the Department for Education and Employment, mainly for Investors in People.
6. Total amount budgeted
£117.4m  in 1998/99
7. Duration of programme
Ongoing
8. Assessment of trade effects
Minimal
4. Civil Aircraft Research And Demonstration Programme (Carad)
1. Form of subsidy
Grant
2. Period of notification
1998 - 1999G/SCM/N/48/EEC/Add.15
Page 7
3. Policy objectives
To maintain the competitiveness of the UK aeronautics industry by ensuring that essential
aircraft technologies are available in the long term CARAD helps UK industry overcome the problem
of financing long term research.
4. Background authority for the scheme
Civil Aviation Act 1982
5. To whom and how the subsidy is provided
Support for up to 50 per cent of eligible costs for collaborative projects is available in core
civil aircraft technology sectors.  Beneficiaries include companies, research establishments and
universities.
6. Total amount budgeted
£20,283
7. Duration of programme
The Programme has formal EC approval for the three years 1 April 1996 to 31 March 1999.
UK ministerial approval has been given for funding until March 2001, subject to review in
April 1999.
8. Assessment of trade effects
The objective is to support long term research in essential aircraft technologies, not to assist
production.  CARAD does not form part of the Airbus programme
5. Cardiff Bay Development Corporation
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To regenerate Cardiff’s designated development area, which is polluted and socially deprived,
and to encourage the development of existing and new industry and commerce.
4. Background authority for the scheme
Local Government, Planning and Land Act 1980G/SCM/N/48/EEC/Add.15
Page 8
5. To whom and how the subsidy is provided
Aid is offered for investment up to 30 per cent for SMEs and 20 per cent for others. Such
grants are taxable. Grant may be required to be repaid on sale of capital assets which are acquired,
built or improved with grant support.
6. Total amount budgeted
£3,158,759
7. Duration of programme
Until 31 March 2000
8. Assessment of trade effects
None, since the intention of the scheme is to improve the business.
6. Company Development Programme (Ni)
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
Assisting companies to develop a structured company development plan which addresses
training and development needs, particularly at management and organization levels. The emphasis is
on linking training and development to business performance and ultimately make Northern Irelandindustry more competitive.
4. Background authority for the scheme
The Employment and Training Act (NI) 1950 (as amended).
5. To whom and how the subsidy is provided
The scheme is available to IDB client and LEDU growth companies in manufacturing or
tradable services and hotels registered with the NITB.
Companies are encouraged to work towards the Investors in People standard and National
Vocational Qualifications, and eligible costs include the achievement of accreditation and
qualifications.
6. Total amount budgeted
£13.69mG/SCM/N/48/EEC/Add.15
Page 9
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. The scheme aims to increase the competitiveness and efficiency of companies in an
area suffering chronic under-employment.
7. Compete Programme (NI)
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To stimulate manufacturing businesses in Northern Ireland to develop innovative and high
technology products and processes within a strategic business framework, that improves the national
and international competitiveness of the business.
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
The scheme is available for industrial and computer software. Industrial businesses in
Northern Ireland receive up to 50 per cent assistance for approved project definition and for certain
projects bringing significant environmental benefits; and up to 40 per cent for all other project
developments.
6. Total amount budgeted
£5,100,067
7. Duration of programme
Indefinite
8. Trade effect
MinimalG/SCM/N/48/EEC/Add.15
Page 10
8. Development Board For Rural Wales
1. Form of subsidy
Counselling and rent reductions
2. Period covered by notification
1998-1999
3. Policy objectives
The Development Board for Rural Wales was established to counterattack the cumulative
effect of sustained job losses and depopulation for over a century. The objectives of the three
schemes: Business Advisory Services, Rent Conces sions and Factory Building and Site Development,
are to develop a flourishing enterprise culture in Wales and to improve social conditions
4. Background authority for the scheme
Development of Rural Wales Act 1976
5. To whom and how the subsidy is provided
The Business Advisory Service is available to new and expanding businesses in the DBRW’s
area; aid is in the form of advice. Rent Concessions are available to SMEs establishing themselves in
the area; aid is in the form of whole or partial rent waiver for up to 5 years, with the shortfall recouped
by the payment of higher subsequent rents, and clawback in the event of earlier termination. Factory
Building and site development is undertaken to attract competitive manufacturing investors to thearea, with rents and sales at market rate.
6. Total amount budgeted
£0.66m
7. Duration of programme
Unlimited
8. Assessment of trade effects
None.
9. Energy Efficiency Best Practice Programme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
Page 11
3. Policy objectives
The aim of the scheme is to encourage the development and take-up of energy efficient
technologies and techniques. The bulk of the scheme involves the appraisal and dissemination ofinformation on energy efficiency measures. Under the R&D element of the scheme, support is offered
for basis R&D, leading to the acquisition of basic knowledge required for subsequent development of
energy efficiency measures which do not lead directly to any new product or process as an immediate
outcome.
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
Support of up to 49 per cent is offered to two or more companies working  together, except
where the European Union has agreed lower limits. Up to 100 per cent may also be made available for
fundamental research to increase scientific knowledge or provide generic background information to
underpin subsequent basic research. Such support for fundamental research is only offered to research
organizations, and not to manufacturers.
6. Total amount budgeted
£15 million
7. Duration of programme
Indefinite.
8. Assessment of trade effects
None, since the programme is an information transfer scheme.
10. Environmental Technology Best Practice Programme
1. Form of subsidy
The purpose of the programme would primarily be to promote the adoption of best practice in
environmental technology by potential users and suppliers.  A major proportion of the programme
spend would be in order for the contractor to acquire and disseminate authoritative validated
information in order to meet its technology transfer objectives.  The programme is NOT primarily one
of grant assistance to firms but there would be provision for limited payment to firms which agree toco-operate in technology transfer activity and for R&D support.  R&D support amounts to less than
10 per cent of programme spend.
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
Page 12
3. Policy objectives
Horizontal - The programme will concentrate on the provision of information rather than
financial aid to firms. Its overall aim will be to stimulate an effective business response to
environmental developments in order to improve industrial competitiveness and reduce pollution. Itwill encourage technology transfer and make best practice more widely known to potential users and
suppliers of environmental technology.
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
SMEs with technology transfer projects received up to 10 per cent aid.
6. Total amount budgeted
£0.1m
7. Duration of programme
1994-2000
8. Trade effects
Minimal
11. Environmental Technology Innovation Scheme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To promote innovation and competitiveness in environmental technology
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
Closed to new applications - September 1993G/SCM/N/48/EEC/Add.15
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6. Total amount budgeted
£94,000
7. Duration of programme
Final project was completed in 1998/99.
8. Assessment of trade effects
Minimal
12. Eureka (UK)
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
EUREKA aims to encourage and assist collaborative research and development projects
between European countries, research organiza tions and higher education institutes. EUREKA’s
overall aim is to enhance productivity and competitiveness in world markets. EUREKA has no rigid
programme, and projects can be in any technology area; but each project aims to achieve a significant
advance in products, processes or services for the market through mechanisms of European co-
operation.
4. Background authority for the scheme
Network covering 25 countries plus the European  Commission, set in place in 1985 by
members signing Hanover Declaration
5. To whom and how the subsidy is provided
EUREKA is not in itself a funding mechanism for supporting EUREKA projects. However, in
common with most other EUREKA member states , the UK provides funding support to project
participants in some instances. But many projects go ahead without public funding. SMEs, research
institutions and universities are eligible for funding up to 50 per cent of eligible costs. Large
companies are more likely to be offered funding if they are partnering a number of UK SMEs in acluster project. All types of organizations are eligible for 50 per cent of putting projects together, eg
researching potential partners and visiting them to discuss potential collaboration.
6. Total amount budgeted
£397,000G/SCM/N/48/EEC/Add.15
Page 14
7. Duration of programme
No fixed cut-off date.
8. Assessment of trade effects
Collaborative R&D schemes were established to assist UK industry in maintaining and
improving its competitive position by undertaking pre-competitive innovative R&D projects which
would, after DTI support ended, lead to the deve lopment of improved processes and products.
13. Expert Help
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage SMEs to use external experts when to assist them with strategic management
and technical problems.
4. Background authority for the scheme
Industrial Development Act 1982
5. To whom and how the subsidy is provided
SMEs, through a 50 per cent grant
6. Total amount budgeted
£2m
7. Duration of programme
Undecided, but at least until 31 March 2000
8. Assessment of trade effects
Too early to measure
14. General Industrial Collaborative Projects (GICP)
1. Form of subsidy
GrantG/SCM/N/48/EEC/Add.15
Page 15
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage collaborative research projects that will benefit many companies and in
particular SMEs.
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
To companies involved in all areas of technology, at up to a maximum of 50 per cent of
eligible costs; but this may be on a tapering basis, i.e. the intensity will decrease in successive years;eg 1/3 in year two and 1/4 in year three.
6. Total amount budgeted
£1,000,000
7. Duration of programme
No fixed termination date, but closed to new applicants from September 1993.
8. Assessment of trade effects
None, since the scheme is directed at research for SMEs
15. Highlands And Islands Enterprise
1. Form of subsidy
Consultancy; grants; loans; acquisitions
2. Period covered by notification
1997-1998
3. Policy objectives
Highlands and Islands Enterprise is an agency of central government, established to further
the social and economic development of the Highlands and Islands of Scotland, and to enhance skills,
establish self-employment, promote industrial efficiency and competitiveness and improve the
environment of that area.G/SCM/N/48/EEC/Add.15
Page 16
4. To whom and how the subsidy is provided
HIE exercises its powers through a number of individual schemes. Many of these do not
provide state aid to enterprises; and others are de minimis. Two: Finance for Business and Property
Provision, involve the provision of discretionary financial assistance to the private sector to enablenew businesses to start up and expand; in terms of 20 year loans at commercial rate for premises and
equipment; 3-4 year interest relief grants; of up to 50 per cent building grants for properties where the
total project cost is below £80,000; and to ensure that such establishment is not inhibited by the lack
of suitable business accommodation, through new build or by acquisition or improvement of existing
premises.
5. Total amount budgeted
£78.0 million (1998/9)
6. Duration of programme
Indefinite
7. Assessment of trade effects
None, since the HIE’s objective is to revitalise a socially and economically deprived area.
8. Background/authority for the scheme
Enterprise and New Town (Scotland) Act 1990.
16. Highland Equity Capital
1. Form of subsidy
Investment
2. Period covered by notification
1998-1999
3. Policy objectives
A regional scheme targeting investments in new growing SME’s for diversification,
innovation and technology development in Objective 1 area of the Highlands.
4. Background authority for the scheme
Section 48(4) of the Finance Act 1982
5. To whom and how the subsidy is provided
Investments are normally by way of disc retionary equity funding between £30,000 - £50,000.
These investments would normally be made as redeemable preference shares. Investments in firms
employing up to 50 persons and having a turnover of up to ECU 7m, or a balance sheet total of up toG/SCM/N/48/EEC/Add.15
Page 17
ECU 5m and not more than 0 per cent owned by one or more companies not falling within this
definition, except public investment corporations, venture capital companies or, provided no control is
exercised, institutional investors.
6. Total amount budgeted
£660,000. Investments of £200,000 p.a. (50 per cent ERDF funding) and administration costs
of £20,000 p.a. (25 per cent ERDF funding) for Highland Equity Capital with the balance being met
by Highland Opportunity Limited.
7. Duration of programme
Initially 8 years but open ended
8. Assessment of trade effects
Minimal to date, one investment of £50,000 has been made, but company involved has since
ceased trading.
17. Highland Opportunity Limited
1. Form of subsidy
Loan
2. Period covered by notification
1998-1999
3. Policy objectives
A regional scheme targeting viable SME’s encouraging growth in Objective 1 area of the
Highlands
4. Background authority for the scheme
The Secretary of State for Scotland approved Highland Opportunity Limited as a Local
Enterprise Trust under Section 48(4) of the Finance Act 1982.
5. To whom and how the subsidy is provided
Discretionary reduced interest loans linked to free technical and business advice. The scheme
is only available for viable SME’s located in the Objective I area of the Highlands and normally ofless than 30 employees.
6. Total amount budgeted
The scheme is “open ended”.
£371,350G/SCM/N/48/EEC/Add.15
Page 18
7. Duration of programme
The scheme is “open ended”
8. Assessment of trade effects
Minimal.
18. Highland Prospect Limited
1. Form of subsidy
Loan
2. Period covered by notification
1998-1999
3. Policy objectives
To secure major investment prospects in the Highlands of Scotland.
4. To whom and how the subsidy is provided
Any business enterprise in the Highland area can apply for consideration for a low interest
secured loan.
5. Total amount budgeted
£233,535
6. Duration of programme
Indefinite
7. Background authority for the scheme
Section 83 – The Local Government (Scotland Act)
8. Trade effects
Minimal
19. Home Shipbuilding Credit Guarantee Scheme
1. Form of subsidy
Loan GuaranteesG/SCM/N/48/EEC/Add.15
Page 19
2. Period covered by notification
1998-1999
3. Policy objectives
The objective of the scheme is to finance the construction, completion or alteration of ships
and mobile offshore installations at a yard first approved by the Secretary of State, through guarantee
of the repayment of loans (and the repayment of related interest) made to UK bodies.
4. Background authority for the scheme
Section 10 of the Industry Act (as amended by section 23 and 24 of the Industry Act 1979)
5. To whom and how the subsidy is provided
Shipowners, by way of a fixed rate of interest (7.5 per cent on loan repayment periods up to
8.5 years; commercial interest reference rate for loan repayment periods between 8.5 and 12 years)
and interest equalisation arrangements with the Banks.
6. Total amount budgeted
As a loan guarantee Scheme, the HCS only has expenditure if a loan defaults and the DTI
Guarantee is called. There are no payments and committed expenditure.
7. Duration of programme
To continue in its current form until an OECD agreement on Shipbuilding Subsidies is
ratified or the Understanding on Shipbuilding Subsidies is adopted.
8. Assessment of trade effects
The aim of the scheme is to ensure that UK buyers of ships have financing arrangements
available to them which are as good as in other countries which are signatory to the OECDUnderstanding, and hence that UK yards are not relatively disadvantaged.
20. Industrial Development Board (IDB) - Provision Of Sites And Standard Advance
Factories
1. Form of subsidy
IDB finances the acquisition of sites and building of standard advance factories which are
then provided to client companies of IDB and LEDU at current market value.
2. Period covered by notification
1998-1999
3. Policy objectives
To provide sites and factories for client companies of IDB and LEDUG/SCM/N/48/EEC/Add.15
Page 20
4. Background authority for the scheme
The Industrial Development (NI) Order 1982
5. To whom and how the subsidy is provided
IDB finances the acquisition of sites and building of standard advance factories which are
then provided to client companies of IDB and LEDU at current market value. Provision is an ongoing
process with a number of sites and factories remaining unleased or not sold at any given time.
6. Total amount budgeted
£25m
7. Duration of programme
Indefinite
8. Assessment of trade effects
Minimal
21. Industrial Development Board (IDB) - Property Development Agreement
1. Form of subsidy
Property Development Agreements
- Provide for a Government contribution towards the total development costs of
industrial or office-type buildings for use by companies supported by IDB
2. Period covered by notification
1998-1999
3. Policy objectives
Encourage the private sector to construct buildings for occupation by IDB assisted projects.
4. Background authority for the scheme
The Industrial Development (NI) Order 1982
5. To whom and how the subsidy is provided
The subsidy is paid to property developers usually as a lump sum on satisfactory completion
of the building.
6. Total amount budgeted
£1.365mG/SCM/N/48/EEC/Add.15
Page 21
7. Duration of programme
Ongoing
8. Assessment of trade effects
Minimal.
22. Industrial Development Board (IDB) - Shortfall Guarantee Scheme
1. Form of subsidy
Guarantee
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage the sale of an existing IDB factory to a new or sitting tenant, or a new advance
factory to a prospective investor.
4. Background authority for the scheme
The Industrial Development (NI) Order 1982
5. To whom and how the subsidy is provided
Guarantees are provided to Banks funding the purchase of IDB owned factories by client
companies of IDB and LEDU. The Guarantee provides that in the event of default by the company,
IDB will cover any shortfall between the sale price of the property and the company’s outstandingindebtedness to the Bank. Actual expenditure under the scheme only occurs when a guarantee is
called by a bank in the event of foreclosure. The potential maximum is the value of the mortgage.
6. Total amount budgeted
£Nil
7. Duration of programme
The scheme started in 1982 and the intention is to continue with it indefinitely or until there
are no more IDB factory tenants.
8. Assessment of trade effects
Minimal.G/SCM/N/48/EEC/Add.15
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23. Inward Investment Support Programme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage inward investment and job creation by Large Companies (i.e. those exceeding
the various criteria which define SMEs, and in particular the 250 employee criterion)
4. Background authority for the scheme
Local Government (Scotland) Act 1994, Section 171
5. To whom and how the subsidy is provided
To inward investing companies. Wage s ubsidies for recruits who were previously
unemployed and grants for work on buildings, roads and landscaping.
6. Total amount budgeted
£600,000 per annum, subject to annual budget adoption.
7. Duration of programme
Indefinite, but refer to 6. above
8. Assessment of trade effects
To date -none
24. Launch Aid
1. Form of subsidy
Repayable but risk-sharing government investment
2. Period covered by notification
1998-1999
3. Policy objectives
Design, development and education aid, labour materials and overheads.G/SCM/N/48/EEC/Add.15
Page 23
4. Background authority for the scheme
Civil Aviation Act 1982
5. To whom and how the subsidy is provided
Assistance towards research and development is reimbursable and is pegged against sales of
airframes, engines and their supplies applied throughout their lifetime.  The recipients are
manufacturers of civil aircraft and aircraft engines.
6. Total amount budgeted
£50m
7. Duration of programme
Indefinite
8. Assessment of trade effects
Collaborative R&D schemes were established to assist UK industry in maintaining and
improving its competitive position by undertaking pre-competitive innovative R&D Programmeswhich would, after DTI support ended, lead to the development of improved processes and products.
25. Leader II Programme In Wales
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The objective of the scheme is to implement the wider EC Leader initiative in Wales; it
combines funds from ERDF, ESF and EAGGF. Leader aims to implement integrated ruraldevelopment throughout the Community. With the intention of benefiting local SME and agricultural
communities.
4. Background authority for the scheme
Welsh Development Agency Act 1975
5. To whom and how the subsidy is provided
SMEs and farms may attract up to Ecu 100,000 each, in the form of technical support,
vocational training, development of tourism initiatives, marketing and consultancy.G/SCM/N/48/EEC/Add.15
Page 24
6. Total amount budgeted
1998 = 2,059,483 ecu
7. Duration of programme
November 1994 - December 1999
8. Assessment of trade effects
None. The intention is to revitalise rural areas.
26. Link Initiative
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme encourages collaborative research between industry and academia. It operates via
managed programmes in 5 broad areas: Electronics/communications/IT; Food/Agriculture;
Biosciences/Medical; Materials/Chemicals; and Energy/Engineering. Currently 22 programmes are
open to new project proposals, while 10 programmes are open to new project proposals, while
10 programmes have been completed and 24 are closed to new proposals but still have live projects.
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
Aid of up to 50 per cent of total eligible costs is given to a variety of recipients, which include
industrial organizations, research associations, government bodies and individual companies.
6. Total amount budgeted
£30.813m
7. Duration of programme
IndefiniteG/SCM/N/48/EEC/Add.15
Page 25
8. Assessment of trade effects
Collaborative R&D schemes were established to assist UK industry in maintaining and
improving its competitive position by undertaking pre-competitive innovative R&D projects which
would, after DTI support ended, lead to the deve lopment of improved processes and products.
27. Local Challenge
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To provide permanent and systematic improvements in the capabilities and competencies of
SMEs through assisting local partnerships to design high quality business support facilities.
4. Background authority for the scheme
Section 8 of the Industrial Development Act 1982
5. To whom and how the subsidy is provided
Intermediate organizations, including Local Authorities, Chambers of Commerce and
Training and Enterprise Councils may receive grant  amounting to less than £1,000 per SME assisted
under the scheme. Assistance to SMEs is discretionary , within EU state aid rules; it includes training
and consultancy and gross aid intensities of 50 per cent or less.
6. Total amount budgeted
£23,650,307
7. Duration of programme
1997-2000 (1st round: although scheme currently under review)
8. Assessment of trade effects
The intention of the scheme is to enable intermediary bodies to offer assistance to local
SMEs, enabling them to become more commercially viable. Trade effects are minimal.G/SCM/N/48/EEC/Add.15
Page 26
28. LEDU - Selective Financial Assistance
1. Form of subsidy
Grant, Loan, Equity
2. Period covered by notification
1998-1999
3. Policy objectives
(i) to promote the creation of more start-up businesses capable of survival and growth;(ii) to encourage and accelerate the development of companies capable of profitable
growth and international competitiveness.
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
SMEs in NI - targeted on new projects which have the prospect of viability, and on existing
businesses which can demonstrate that they are export orientated, provide a substitute for imports,
offer a novel product or service and/or satisfy an unfilled local market opportunity. The forms of aid
are all discretionary rather than automatic and LEDU’s input is restricted to the minimum amount
necessary to ensure that the project can proceed.
6. Total amount budgeted
£14,485,913
7. Duration of programme
Indefinite
8. Assessment of trade effects
No direct effects
29. LEDU - Buying Time
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
Page 27
3. Policy objectives
To enable a firm which is experiencing difficulty to examine its viability.
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
SMEs in NI - a grant of up to £2,000 per job for a maximum of 3 months to enable a business
to continue operating pending resolution of its future. Buying Time may be provided only once to acompany.
6. Total amount budgeted
£24,8000
7. Duration of programme
Indefinite
8. Assessment of trade effects
Annual survey of client performance and rolling schedule of evaluations.
Analysis reveals a progressive reduction in business closures.
30. LEDU - R&D
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage research and development activity among SMEs in NI
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
SMEs in NI attract up to 50 per cent funding to a maximum grant of £35,000 for applied
research.G/SCM/N/48/EEC/Add.15
Page 28
6. Total amount budgeted
£921,626
7. Duration of programme
Indefinite
8. Assessment of trade effects
No short or medium term effects, since the objective is to encourage SMEs to undertake
research.
31. LEDU - Property Development Scheme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage private sector involvement in the provision of industrial premises.
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
Assistance is selected and calculated on a sh ortfall basis; that is, LEDU conducts its own
development appraisal of each project application and offers the amount of financial assistance which
from this appraisal is the minimum required for the project to proceed.
6. Total amount budgeted
£461,000
7. Duration of programme
Indefinite
8. Assessment of trade effects
No direct effectsG/SCM/N/48/EEC/Add.15
Page 29
32. LEDU - Local Enterprise Programme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To assist with the capital costs of developing a local enterprise agency
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
A grant not exceeding 50 per cent of cost to assist local groups with the purchase and
refurbishment of premises for use by small businesses
6. Total amount budgeted
£597,000
7. Duration of programme
Indefinite
8. Assessment of trade effects
None made
33. NETS  (New Entrants Training Scheme)
1. Form of subsidy
Direct assistance
2. Period covered by notification
1998-1999
3. Policy objectives
To provide apprenticeship training in selected rural crafts and skill areas.G/SCM/N/48/EEC/Add.15
Page 30
4. Background authority for the scheme
DoE authority 1980.
5. To whom and how the subsidy is provided
A subsidised training scheme for young people employed in rural craft businesses.  The
scheme is delivered by the RDC with twelve w eeks of training over a two/three year period.
6. Total amount budgeted
£0.2m.
7. Duration of programme
Indefinite.
8. Assessment of trade effects
The assistance provided increases the level of skills and also diversifies the types of skills that
can be undertaken.
34. Offshore Supplies And Service Company Assistance For Research
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme is intended to encourage research and development of new products and
techniques for use in oil and gas exploration, development and production
4. To whom and how the subsidy is provided
SMEs in the oil and gas industry may develop ideas in drilling and production technology.
Projects must involve significant innovation; maximum support is 50 per cent grant.
5. Total amount budgeted
£1.6 million
6. Duration of programme
£0.8mG/SCM/N/48/EEC/Add.15
Page 31
7. Assessment of trade effects
None
35. Open Courses
1. Form of subsidy
Direct assistance
2. Period covered by notification
1998-1999
3. Policy objectives
To provide modular skill enhancement training in selected rural crafts and skills.
4. Background authority for the scheme
DoE authority 1980.
5. To whom and how the subsidy is provided
A subsidised training programme for people working in craft trades located in rural areas.
Modular skill enhancement training provided by the RDC.
6. Total amount budgeted
£0.5m.
7. Duration of programme
Indefinite.
8. Assessment of trade effects
The assistance provided increases the level of skills and also diversifies the types of skills that
can be undertaken.
36. Redundant Building Grant
1. Form of subsidy
Grant.
2. Period covered by notification
1998-1999.G/SCM/N/48/EEC/Add.15
Page 32
3. Policy objectives
The intention of the Redundant Building Grant scheme is to create new job opportunities in
rural areas experiencing social or economic difficulties by encouraging the private sector to bringback into commercial use buildings which woul d otherwise remain redundant (and possibly decline
into dereliction).
4. To whom and how the subsidy is provided
To any private sector individual or firm, including sole traders, partnerships, limited
companies and co-operatives.  Grants provided up to 25 per cent of eligible costs to a maximum of£62,500 and exceptionally up to 30 per cent up to a maximum of £75,000 to projects located in the
Commission’s Rural Development Areas (RDAs).
5. Total amount budgeted
£4,050,000.
6. Duration of programme
Indefinite.
8. Assessment of trade effects
The aim of the scheme is to encourage existing industry or new businesses to locate, or
remain, in rural areas and to create new job opportunities by bringing redundant buildings intocommercial use.
37. RDP Economic
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To address the needs of a Rural Development Area that have been identified through a
strategic operating plan by tackling economic diversification or regeneration and improve the
conditions for business growth.
4. Background authority for the scheme
To concentrate a large part of the resources in the areas of greatest need, identified as the
Rural Development Areas in 1984 (using a combination of census data and local information),through the mechanism of the Rural Development Programme.G/SCM/N/48/EEC/Add.15
Page 33
5. To whom and how the subsidy is provided
Into partnerships with local authorities, English Partnerships, Rural Community Councils and
a range of public and private organizations via the Rural Development Programme administered in the
Commission’s Rural Development Areas.
6. Total amount budgeted
£5,125,000.
7. Duration of programme
Indefinite.
8. Assessment of trade effects
None, since the aim of the scheme is to impr ove the quality of life in the Commission’s Rural
Development Areas by providing for the needs of those who live and work in country areas, ensuring
that they are not disadvantaged as a result of rurality by contributing to the economic development of
these areas.
38. Regional Enterprise Grants For Innovation (RIG Only)
1. Form of subsidy
Grants for innovation projects.
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme offers assistance for SME innovation projects in Development, Intermediate, EC
Objective 2, Task Force and City Challenge Areas and areas affected by colliery closures, and
requires evidence of additionality. The scheme now operates only in Wales.
4. Background authority for the scheme
DTI White Paper ‘Department for Enterprise’ 1 April 1988. Inner Urban Areas Act 1978.RIN was closed for applications in England in September 1996 and in Scotland in
December 1995. In Wales, it was brigaded with SMART, SPUR and SPUR Plus under the “SmartWales” banner and continues to be offered as a discreet scheme.
RIN’s “sister scheme”, Regional Investment Grants (RIG) was merged with Regional
Selective Assistance in January 1997 in Scotland and Wales and from 1 April 1997 in England.G/SCM/N/48/EEC/Add.15
Page 34
5. To whom and how the subsidy is provided
Regional Innovation Grants (RIN) are available to SMEs at 50 per cent of expenditure on the
introduction of new products or processes, up to £25K.
6. Total amount budgeted
£907,000
7. Duration of programme
Indefinite
8. Assessment of trade effects
The intention of the scheme is to help companies in a socially and economically deprived area
become competitive on a par with manufacturers and service providers elsewhere.
39. Regional Selective Assistance In Great Britain
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To assist economic development in areas of special hardship
4. Background authority for the scheme
The Industrial Development Act 1982
5. To whom and how the subsidy is provided
The scheme is available to manufacturing and service sector firms of any size based in or
moving into the Assisted areas of Great Britain.
The financial assistance is available on a discretionary basis in the form of a grant phased
against achievement of progress on the project (jobs & capital costs).  The UK authorities must submita map showing those areas of the country that they wish to accord assisted area status to the
Competition Directorate of the EC Commission, at regular intervals.
6. Total amount budgeted
£265.5mG/SCM/N/48/EEC/Add.15
Page 35
7. Duration of programme
Indefinite
8. Assessment of trade effects
This scheme is designed to help areas of special difficulty to compete on level terms with
more advantaged regions.
40. SCEEMAS
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme is intended to provide incentiv es to SMEs to help them improve their
environmental performance by hiring external  consultants to carry out an environmental review,
implement an environmental management system and register sites under EMAS (the EC Eco-
Management and Audit Scheme) or gain certification to ISO 14001.
4. Background authority for the scheme
Industrial Development Act
5. To whom and how the subsidy is provided
SMEs can claim 40 per cent of consultancy costs for Stage One of the scheme (The
Environmental Review); 40 per cent can be claimed for Stage Two (Implementing the Environmental
management system) and 50 per cent + 10 per cent  from Stages One and Two can be claimed for
Stage Three (producing  an externally verified Environmental Statement)
6. Total amount budgeted
£183,478
7. Duration of programme
Indefinite
8. Assessment of trade effects
None, since the scheme is intended to help existing companies work more efficiently in an
environmental context.G/SCM/N/48/EEC/Add.15
Page 36
41. Science And Technology Programme (START) (NI)
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage strategic and pre-competitive R&D within Higher Education Institutions and
industry in areas relevant to industrial growth.
4. Background authority for the scheme
The Industrial Development (NI) Order 1982
5. To whom and how the subsidy is provided
NI companies and universities, with priorities given to those in software engineering;
telecommunications; electronics; biotechnology; new materials and their processing; and advancedmanufacturing methods; attract up to 50 per cent for collaborative projects and up to 100 per cent for
strategic research which will subsequently be made generally available.
6. Total amount budgeted
£2,828,066
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. All expenditure on the programme is for basic research, as defined.
42. Scottish Enterprise
1. Form of subsidy
Consultancy and practical assistance
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
Page 37
3. Policy objectives
Scottish Enterprise is an agency of central government established to further the development
of Scotland’s economy, enhance skills, establish self-employment, promote industrial efficiency and
competitiveness and improve the environment
4. Total amount budgeted
£475 million
5. Duration of programme
Indefinite
6. Assessment of trade effects
None. The objective is maintenance and enhancement of employment opportunities.
7. Background and authority for the subsidy
Section 2(4) (f) of the Scottish Development Agency Act 1975 and the Enterprise and New
Town (Scotland) Act 1990.
8. To whom and how the subsidy is provided
Grants, loans, guarantees, etc. paid to firms.
43. Sector Challenge
1. Form of subsidy
Grant
2. Period covered by notification
1997-1998
3. Policy objectives
To encourage sectoral projects to raise the competitiveness of sectors of business.
4. Background authority for the scheme
Science and Technology Act 1965 Development of Tourism Act 1969
Industrial Development Act 1982 Employment and Training Act 1973
Food Industry Development Scheme 1997G/SCM/N/48/EEC/Add.15
Page 38
5. To whom and how the subsidy is provided
To sectoral business intermediaries organizations,  who will normally be obtaining at least
matching funding from the private sector. Grants are paid as expenditure is incurred during the course
of a project. 
6. Total amount budgeted
£120 million, of which £35.1 million allocated to Round 1 projects.
7. Duration of programme
Four years for Round 1 projects. The longer -term future of the programme is being
determined in the context of the Government’s Comprehensive Spending Review.
8. Assessment of trade effects
The programme is providing limited direct support to sectoral business organizations for a
wide variety of projects from raising people skills, to the transfer of technology, to improving access
to finance, to developing market entry strategies. The projects are directed at helping SMEs in the
relevant sectors. The trade effect is therefore likely to be minimal.
44. Shipbuilding Intervention Fund
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The purpose of the scheme is to enable UK shipbuilding yards to secure contracts against
international competition in order to secure jobs.
4. Background authority for the scheme
The EC 7th Directive to Aid on Shipbuilding and the Industrial Development Act 1982,
Sections 7 and 8.
5. To whom and how the subsidy is provided
By grant paid directly to the shipyard, in instalments pro rata with the payment of the
purchaser’s instalment and when each building stage has been reached. Ships take on average one
year to build. 10 per cent is retained until the final construction costs are known.
6. Total amount budgeted
£10.54 millionG/SCM/N/48/EEC/Add.15
Page 39
7. Duration of programme
31 December 1998
8. Assessment of trade effects
The aim of the scheme is to secure jobs in the UK.
45. Single Regeneration Budget
1. Form of subsidy
Grant.
2. Period covered by notification
1998-1999
3. Policy objectives
The Single Regeneration Budget is not sector-specific; it enables regeneration policy to build
on past strengths, with the objective of building on initiatives proposed by local partners; be
responsive to local needs and priorities; and attract private and public investment.
4. Background authority for the scheme
Housing Grants, Construction and Regeneration Act 1996.
5. To whom and how the subsidy is provided
The grant provided under the Single Regeneration Budget supports a wide range of activities,
including development funds offering grants and loans to new and existing small businesses;consultancy, advisory services and training; the provision of business facilities and joint marketing
initiatives; and the provision of managed workspace/office areas.
6. Total amount budgeted
£29,919,210
7. Duration of programme
Indefinite
8. Assessment of trade effects
None, since the intention is to rectify di sadvantages in employment opportunities due to
external factors.G/SCM/N/48/EEC/Add.15
Page 40
46. Small Firms Loan Guarantee Scheme
1. Form of subsidy
Guarantee
2. Period covered by notification
1998-1999
3. Policy objectives
To help meet the gap in the market, where small businesses with viable business proposals are
unable to raise finance because of a lack of security.
4. Background authority for the scheme
Section 8, Industrial Development Act 1982
5. To whom and how the subsidy is provided
Nineteen lenders authorised to make loans available under the Scheme. Guarantees of 70 per
cent or 85 per cent provided to lenders on eligible loans to eligible small firms.
6. Total amount budgeted
£41.339m net
7. Duration of programme
Indefinite
8. Assessment of trade effects
Last evaluation report (1992) identified that for every £1 of scheme loan, after two years there
is a £4 increase in sales and £0.7 increase in profits. Changes to eligibility conditions in 1993 and
1996 excluded certain business activities where a high level of local displacement had been identified.
47. SMART (formerly known as Small Firms Merit Award for Research and Technology)
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
Page 41
3. Policy objectives
Smart, SMART: SCOTLAND (in Scotland) and SMART (in Wales) aim help small to
medium sized businesses (small businesses only in Scotland and Wales, where medium sized firms
are helped through different schemes) improve their competitiveness by developing new, highlyinnovative products and processes to the benefit of the national economy, and to stimulate the creation
of new viable and durable technology-based businesses.  Additionally in Scotland, the scheme aims to
promote and facilitate the commercialisation of the Scottish science base within academia.
NB: In Wales, SMART is part of the SMART WALES initiative which includes two related
schemes, SPUR and RIN.
4. To whom and how the subsidy is provided
In England and Northern Ireland :
Firms with fewer than 50 employees and indi viduals may apply for grants of up to £45,000
towards feasibility studies into innovative technology. Firms with up to 250 employees may apply for
grants of up to ECU 200,000 (including any grant already received for feasibility studies) to develop -
up to pre-production prototype stage new - products  or processes which demonstrate significant
technological advances.
In Scotland:
Firms with fewer than 50 employees may receive up to £45,000 towards the start-up of
innovation technology projects with commercial promise, and a further £88,391 (at 1998 rates) for
continued development, thus bringing the total to 200,000 ECU.
In Wales:
Firms with under 50 employees, and individuals wh o intend to start a business if they win an
award, may receive up to £45,000 for a technical and commercial feasibility study, and a further
£60,000 for further development, up to pre-production prototype stage.
5. Total amount budgeted
£568,574,38
6. Duration of programme
Indefinite
7. Assessment of trade effects
Minimal; the objective of the scheme is to stimulate research among SMEs.
8. Background and authority for the subsidy
The Science and Technology Act 1965G/SCM/N/48/EEC/Add.15
Page 42
48. Special Support Programme For Peace And Reconciliation In NI
1. Form of subsidy
Interest subsidy scheme
2. Period covered by notification
1998-1999
3. Policy objectives
The aim is to create a positive investment climate which will contribute to economic
development growth and employment, especially in the most deprived areas and thereby facilitate
reconciliation in Northern Ireland.
4. Background authority for the scheme
Article 7 of the Industrial Development Order (NI) 1982 and Article 11 of the Tourism (NI)
Order 1992.
5. To whom and how the subsidy is provided
The provision of an interest relief subsidy at 4 per cent for a maximum of 5 years on approved
loans for small and medium - sized enterprises.
6. Total amount budgeted
£3,658,297.
7. Duration of programme
Open from 1.4.96 to 31.3.97, with a subsidy payable on qualifying loans for a 5 year period.
8. Assessment of trade effects
A subsidy allocation of £23m has levered in £164m of EIB loans and total investment in
excess of  £400m.
49. UK Coal R&D Programme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999G/SCM/N/48/EEC/Add.15
Page 43
3. Policy objectives
The scheme was set up to encourage research and development leading to the more economic
and environmentally acceptable use of coal.
4. Background authority for the scheme
Science and Technology Act 1965
5. To whom and how the subsidy is provided
Organizations developing the use of solid fuels in an environmentally acceptable manner, and
collaborative projects between companies and research organizations, may attract up to 50 per cent of
costs of research (or more, where the Community Framework for State Aids for Research and
Development applies).
6. Total amount budgeted
£1,815k
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. The scheme is intended to promote the development of environmentally-friendly
energy sources in opposition to traditional sources.
50. UK New And Renewable Energy Programme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme was developed to promote research and development in the renewable energies
field, with the intention of producing compatible, economic and feasible sources of energy for thebenefit of the environment; and encouraging their uptake.
4. Background authority for the scheme
Science and Technology Act 1965G/SCM/N/48/EEC/Add.15
Page 44
5. To whom and how the subsidy is provided
Researchers and manufacturers of alternative energy equipment attract 25-50 per cent of
costs; and possibly a greater percentage where fundamental research, as guided in the Community
State Aid Framework for Research and Development, is involved.
6. Total amount budgeted
£11.1 m
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. The intention of the scheme is to bring new energy sources into line with traditional
sources of energy.
51. Urban Development Grant Scheme
1. Form of subsidy
Owner occupier projects - new build 30 per cent  refurbishment 50 per cent of eligible costs.
Speculative developments - shortfall identified by an investment appraisal up to maximum of 30 per
cent of total development costs.  Enhanced rates in Making Belfast Work of up to 50 per cent.
2. Period covered by notification
1998 - 1999
3. Policy objectives
Economic and Physical regeneration of inner city areas by stimulation of private enterprise
and investment.
4. Background authority for the scheme
The Social Need (Northern Ireland) Order 1986.
5. To whom and how the subsidy is provided
To owner occupiers/developers in the form of grant payments.
6. Total amount budgeted
£5,442,000
7. Duration of programme
IndefiniteG/SCM/N/48/EEC/Add.15
Page 45
8. Assessment of trade effects
None
52. Use Of Discretionary Resources By Training  And Enterprise Councils (TECs) In Wales
1. Form of subsidy
Direct Grant/Loan
2. Period covered by notification
1998-1999
3. Policy objectives
Regional. TECs use their discretionary resources to provide training to support local
objectives. These objectives are focused upon the promoting and diversification of economic activity
in areas in Wales which have been subject to high levels of structural unemployment and social
deprivation for many years as a result of the decline of the traditional industries of coal mining, steelproduction and hill farming. Assistance is provided both to indigenous enterprises and inward
investors often in conjunction with other forms of assistance from other agencies and, of course,
subject to National Government Expenditure limits and EC regional aid ceilings. Within this, TECs
specialise in support for training or retraining programmes, particularly where this helps to reduce
unemployment.
4. To whom and how the subsidy is provided
Use of TEC discretionary resources is for determination by each TEC subject to quality
assurance on a Regional basis by the Welsh Office under the terms of the annual operating agreement.
5. Total amount budgeted
£7,288,540 (1997/98)
6. Duration of programme
£9.693m
7. Background and authority for the subsidy
Section 2 of the Employment and Training Act 1973, and Sections 11 and 12 of the Industrial
Development Act 1982.
8. Trade effects
MinimalG/SCM/N/48/EEC/Add.15
Page 46
53. WDA Business Advisory Services
1. Form of subsidy
Programmes to assist the growth of Welsh SMEs - no direct grant is involved
2. Period covered by notification
1998-1999
3. Policy objectives
Providing assistance to Welsh SMEs by the development of the right climate for the removal
of barriers to their growth
4. Background authority for the scheme
Welsh Development Agency Act 1975
5. To whom and how the subsidy is provided
Programmes to assist the growth of Welsh SMEs - no direct grant is involved
6. Total amount budgeted
£ 4,73m
7. Duration of programme
Ongoing subject to annual review
8. Assessment of trade effects
New and safeguarded jobs                         1,045
New business gained                       £42,200,000
54. WDA Equity Investment
1. Form of subsidy
Equity Investment
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme is intended to provide venture and development investment funds for new and
expanding companies in Wales where there is an equity gap, i.e. funds are not available in the private
sectorG/SCM/N/48/EEC/Add.15
Page 47
4. Background authority for the scheme
Welsh Development Agency Act 1975
5. To whom and how the subsidy is provided
All sectors of manufacturing and services (except media, agriculture and horticulture, or films
meeting a purely local need) may apply. The WDA operates on a commercial investor principle and
will carry out a detailed assessment of the need for the proposed investment and the impact if the
investment is not made. Investment will be to maximum of 30 per cent of voting equity, with the
package tailored to the company’s prospects and objectives. Size of equity is usually between £5-500K. The WDA will also take account of the benefits such an investment will offer to the
development or regeneration of the Welsh economy.
6. Total amount budgeted
£0.81
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. the intention of the scheme is to bring the economy of a depressed area into line with
the rest of the UK
55. WDA Property Development Grant
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme was set up to encourage additional private sector investment in industrial and
commercial property development th roughout Wales, except DBRW area.
4. Background authority for the scheme
Welsh Development Agency Act 1975G/SCM/N/48/EEC/Add.15
Page 48
5. To whom and how the subsidy is provided
Grant is available to private sector development companies at the minimum necessary to
bring the project forward. Grant is based on the gap between the cost of development and the
completed value. The maximum grant is 30 per cent of the project costs
6. Total amount budgeted
£ 4.7 million
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. The object of the scheme is to attract private investment from elsewhere to a deprived
area.
56. WDA Rent Concessions
1. Form of subsidy
Reduction or waiving of rent for periods of up to 4 years
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme’s aim is to utilise industrial accommodation which has proved difficult to let at
market rates throughout Wales except DBRW area.
4. Background authority for the scheme
Welsh Development Agency Act 1975
5. To whom and how the subsidy is provided
The shortfall is recouped through imposition of higher rents later. Clawback is instigated if
the lease is terminated within 7 years
6. Total amount budgeted
£ 0.79m
7. Duration of programme
IndefiniteG/SCM/N/48/EEC/Add.15
Page 49
8. Assessment of trade effects
None. The intention of the scheme is to attract viable businesses which are already
established, and the whole sum invested is recouped.
57. WDA Technology Growth Fund
1. Form of subsidy
Venture funding
2. Period covered by notification
1998-1999
3. Policy objectives
The scheme is essentially a seed capital fund for the development of innovative ideas and
products based on technological advances
4. Background authority for the scheme
Welsh Development Agency Act 1975
5. To whom and how the subsidy is provided
Welsh-based enterprises attract up to £150K or 50 per cent of the cost of a project, whichever
is lower, for the development of innovative ideas and products based on technological advances. TGF
support is provided in the form of a loan secure d on Intellectual Property Rights (IPR). The Fund
seeks a commercial return on its investments through interest charges, royalties on sales and/or an
option to subscribe for equity. A key feature of the investment mechanism is that the timing of capital
repayments, interest, royalties and capital profits match the investee company’s ability to pay.
6. Total amount budgeted
£0.05
7. Duration of programme
Indefinite
8. Assessment of trade effects
None. The scheme is intended to develop technical advances in Wales.
58. Industrial Development Board - Selective Financial Assistance
1. Form of subsidy
Grant, Loans, SharesG/SCM/N/48/EEC/Add.15
Page 50
2. Period covered by notification
1998-1999
3. Policy objectives
To assist economic development in Northern Ireland
4. Background authority for the scheme
The Industrial Development (Northern Ireland) Order 1982
5. To whom and how the subsidy is provided
Companies in the manufacturing and tradeable services sectors
6. Total amount budgeted
£99,047,374
7. Duration of programme
Indefinite
8. Assessment of trade effects
The scheme is designed to help an area of special difficulty compete on level terms with more
advantaged regions
59. Mid-Wales Development Grant Scheme
1. Form of subsidy
Grant
2. Period covered by notification
1998-1999
3. Policy objectives
To encourage new employment opportunities in Powys, and parts of Gwynedd and
Ceredigion Counties in the manufacturing sector and some service sector projects.
4. Background authority for the scheme
Local Government and Housing Act 1989G/SCM/N/48/EEC/Add.15
Page 51
5. To whom and how the subsidy is provided
To private sector manufacturing and other projects involving expenditure on fixed assets in
the relevant area which create new or safeguard existing employment, in tranches on completion or
progression of capital expenditure and job creation/safeguarding with a 12 month interval betweentranches
6. Total amount budgeted
£0.66 million payments
7. Duration of programme
Indefinite
8. Assessment of trade effects
Minimal, as the scheme is aimed at developing enterprises in an area which has only a limited
labour-force and relatively few enterprises and is remote from main markets.
I. NOTIFICATION OF FISHERIES SUBSIDIES 1997/98
1. Grants Towards the Acquisition of Freshwater Fishing Vessels and Engines
(Northern Ireland)
1. Name of subsidy
Grants Towards the Acquisition of Freshwater Fishing Vessels and Engines
(Northern Ireland).
2. Form of subsidy
Grants.
3. Amount of subsidy
Grant of 25 per cent of approved expenditure incurred in providing a freshwater fishing vessel
the overall length of which does not exceed  7.924 metres (26ft.) or in providing a new engine for
such.
Total Cost per Budget Year:
See Financial Table.
5. Purpose of subsidy
To encourage the modernisation of the freshwate r fishing fleet and to sustain the local boat
building industry.G/SCM/N/48/EEC/Add.15
Page 52
6. Duration of subsidy
Indefinite.
7. Trade effects
Unavailable.
2. Grants Towards Fish Farming (Northern Ireland).
1. Name of subsidy
Grants Towards Fish Farming (Northern Ireland).
2. Form of subsidy
Grants.
3. Amount of subsidy
Grant of 30 per cent of approved costs of works and facilities for the purpose of fish farming.
Total Cost per Budget Year:
See Financial Table.
4. Purpose of subsidy
To encourage  the establishment of fish farms and hatcheries which supply fish for the table.
The scheme assists the trout and salmon farming industry and encourages the development of
mariculture, e.g. oysters and mussels.
5. Duration of subsidy
Indefinite.
6. Trade effects
Unavailable.
3. Aid to Highlands and Islands Fish Farmers and Processors
1. Name of subsidy
Aid to Highlands and Islands Fish Farmers and Processors.
2. Form of subsidy
Grants and Loans under Section 8 of the Enterprise and New Towns (Scotland) Act 1990.G/SCM/N/48/EEC/Add.15
Page 53
3. Amount of subsidy
Variable dependent on the viability of the project.  Projects of up to £60,000 costs may be
assisted by grants of up to 50 per cent and larger projects by grants of up to 20 per cent.  Buildingscan be assisted by grants of up to 35 per cent .  Loans at variable concessionary rates of interest can be
given on their own or in conjunction with grants normally up to 50 per cent of total project costs.  For
smaller projects in fragile areas and in exceptional circumstances assistance can be given of up to
70 per cent of total project costs.
Total Cost per Budget Year:
See Financial Table.
4. Purpose of subsidy
To maintain and increase employment and incomes in fragile areas.
5. Duration of subsidy
Indefinite.
6. Trade effects
Unavailable.
4. Highland Prospect Limited: Fish Processing and Fish Farming Loans.
1. Name of subsidy
Highland Prospect Limited: Fish Processing and Fish Farming Loans.
2. Form of subsidy
Discretionary reduced interest loans linked to free technical and business advice.
3. Amount of subsidy
Interest rate set on a case by case basis, normally at a minimum of 7.5 per cent or at no more
than 2 per cent below usual commercial interest rates available on the open market at any one time.
Loans vary from £31,000 up to £250,000 in any one investment, repayable over three or up to seven
years.  Public sector investment no more than 50 per cent of the total value of the investment.
Total Cost per Budget Year:
Anticipated annual loan provision is limited to £500,000 per year.G/SCM/N/48/EEC/Add.15
Page 54
4. Purpose of subsidy
To assist the limited financial capacity of SMEs trading as fish processing and fish farms,
thereby supporting sustainable regional development opportunities and related employment,
particularly  in peripheral locations.
5. Duration of subsidy
Indefinite, Subject to available funds.
6. Trade effects
Unavailable.
5. Highland Opportunity Limited: Fishing Vessel, Fish Processing and Fish Farming Loans.
1. Name of subsidy
Highland Opportunity Limited: Fishing Vessel,  Fish Processing and Fish Farming Loans.
2. Form of subsidy
Discretionary reduced interest loans linked to free technical and business advice.
3. Amount of subsidy
Interest rate normally 5 per cent p.a. or at around 2 per cent p.a. below usual commercial
interest rates.  For young people aged 18-25 rate is normally 4 per cent p.a. or at around 4 per cent p.a.
below usual commercial interest rates.  Except in certain circumstances loans generally unsecured.
Amounts vary from £1,000 to £30,000 normally repayable over three to seven years.
Total Cost per Budget Year:
Anticipated annual loan provision is £50,000 for fishing vessels, £25,000 for fish processing
and £5000 for fish farms (total £80,000 per year ).  The grant equivalent of this loan provision is
thought to be some £2,000 per year.
1995/96 provisional £25,000 (2 low interest loans ).
1996/97 £24,525 (4 low interest loans ).
1997/98 provisional £36,800 (3 low interest loans).
1998/99 estimated £60,000 (10 low interest loans).
4. Purpose of subsidy
To assist the limited financial capacity of SMEs trading as fishing vessels, fish processing and
fish farms, thereby supporting sustainable regional development opportunities and related
employment, particularly  in peripheral locations.
5. Duration of subsidy
Indefinite, subject to available funds and annual reviews.G/SCM/N/48/EEC/Add.15
Page 55
6. Trade effects
Unavailable.
6. Aid to Highlands and Islands Fishermen.
1. Name of subsidy
Aid to Highlands and Islands Fishermen.
2. Form of subsidy
Grants and Loans under Section 8 of the Enterprise and New Towns (Scotland) Act 1990.
3. Amount of subsidy
Variable dependent on the viability of the project under the following headings:
New vessels over 12 metres
Grants of up to 20 per cent where SFIA assistance was not available.  Otherwise variable
concessionary rate loans effectively up to £500,000 (our maximum discretionary limit).  No vessel
would be assisted without aggregation of existing pressure stock licences.
New vessels under 12 metres
Grant and loan based on a minimum private contribution of 30 per cent from the applicant.
Grant level being 20 per cent and loan the remainde r over a period of up to 15 years at concessionary
rates of interest.
Second-hand vessels
Concessionary loans of up to 50 per cent of the cost within a ceiling of £500,000.  Loans
normally to be repaid within 10 years.  All assist ance for second-hand vessels is subject to a condition
that the vessel will not normally be greater than 10 years of age.
Port infrastructure
Assistance to small piers, harbours and fish markets with grant aid of up to 30 per cent.
Total Cost per Budget Year:
See Financial Table
.
4. Purpose of subsidy
To maintain and increase employment and incomes in fragile areas.G/SCM/N/48/EEC/Add.15
Page 56
5. Duration of subsidy
Indefinite.
6. Trade effects
Unavailable.
7. Safety Improvements on Fishing Vessels
1. Name of subsidy
Safety Improvements on Fishing Vessels.
2. Form of subsidy
Grants.
3. Amount of subsidy
Vessels between 12 - 33 metres in length        30 per cent
Vessels  over 33 metres in length                    10 per cent
Total Cost per Budget Year:
        1993/94              £1,713,778
        1994/95              £2,245,317
        1995/96              £2,297,136        1996/97                 £791,007
        1997/98                 £395,853
        1998/99                 £304,789
£52,488.79 of the above expenditure was paid under the 1987 fishing vessel grant schemes in
respect of a new vessel.  The rest was payable under the 1993 and 1995 fishing vessel safety
improvement grant schemes.
4. Purpose of subsidy
To enable applicants to make essential safety improvements in order to obtain Department of
Transport Safety Certificate.
5. Duration of subsidy
1 January 1992 - 31 December 1999.
6. Trade effects
Unavailable.G/SCM/N/48/EEC/Add.15
Page 57
8. The Fish Producer’s Organization (Formation Grants) Scheme.
1. Name of subsidy
The Fish Producer’s Organization (Formation Grants) Scheme.
2. Form of subsidy
Grant (50 per cent recoverable from FEOGA).
3. Amount of subsidy
The annual aid granted cannot exceed the lesser of 3 per cent, 2 per cent and 1 per cent
respectively of the value of the Organization’s mark eted production over a previous three year period
or of 60 per cent,40 per cent and 20 per cent of its administrative expenses in the first, second and
third year respectively.
Total Cost per Budget Year:
See Financial Table.
4. Purpose of subsidy
To encourage the development of recognised Fish Producers’ organizations in the UK and
facilitate their operation in the early years.
5. Duration of subsidy
First three years following recognition.
6. Trade effects
Unavailable.
9. Relief from Excise Duty on Mineral Oil used on Commercial Marine Voyages.
1. Name of subsidy
Relief from Excise Duty on Mineral Oil used on Commercial Marine Voyages.
2. Form of subsidy
Heavy Oil may be shipped duty-free direct from  warehouse to entitled vessel OR repayment
of excise duty may be claimed on all mineral oil used as fuel on board entitled vessel.
3. Amount of subsidy
Duty rates in pence per litre are:G/SCM/N/48/EEC/Add.15
Page 58
Old Rate (17/3/98-9/3/99)                  New Post Budget Rate (from 6pm 9/3/99)
         2.82                                 gas oil                                          3.03
         2.18                                 heavy fuel oil                               2.65
       49.26                                 leaded petrol                              52.88       43.99                                unleaded petrol                           47.21
Total Cost per Budget Year:
Figures no longer available.
4. Purpose of subsidy
To implement Directive 92/81/EC.
5. Duration of subsidy
Subject to EC review.
6. Trade effects
Unavailable.
10. Fisheries & Aquaculture (Wales).
1. Name of subsidy
Fisheries & Aquaculture (Wales).
2. Form of subsidy
Grants.
3. Amount of subsidy
Up to 5 per cent of approved expenditure.
Total Cost per Budget Year:
See financial Table.
4. Purpose of subsidy
To provide matching finance for FIFG aided fishery products.
5.. Duration of subsidy
Until 31 December 1999.G/SCM/N/48/EEC/Add.15
Page 59
6. Trade effects
Unavailable.
11. Small Firms Loan Guarantee Scheme(SFLGS).
1. Name of subsidy
Small Firms Loan Guarantee Scheme(SFLGS).
2. Form of subsidy
Government Loan.
Total Cost per Budget Year:
No specific budget for the sector.
3. Amount of subsidy
Guarantees on loans between £5,000 and £100,000 for businesses trading less than two years,
and up to £250,000 for businesses trading two years or  more.  Repayment terms between two and ten
years.  The Department charges a premium of 0.5 per cent on fixed interest rate loans, and 1.5 per cent
on variable interest rate loans.  Interest rates are decided by the lender, who also usually charge an
arrangement fee.
4. Purpose of subsidy
To provide an additional source of finance to small firms with viable business proposals,
where conventional loans are not available, due to a lack of security or business track record.  By
providing a government guarantee of 70 per cent (or 85 per cent for businesses which have been
trading for 2 years or more) to banks and other fina ncial institutions against default by the borrower,
the Scheme encourages them to lend.
5. Duration of subsidy
Indefinite.
6. Trade effects
Unavailable.
__________