RESTRICTED
WORLD TRADE G/SCM/N/3/NOR
L/7611/Add.14
ORGANIZATION 3August 1995
(95-2305)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
NOTIFICATIONS PURSUANT TOARTICLE XVI.1 OFTHE GATT 1994
AND ARTICLE 25OFTHE AGREEMENT ONSUBSIDIES AND
COUNTERVAILING MEASURES
NORWAY
Thefollowingcommunication,dated11July1995,hasbeenreceivedfromthePermanentMission
ofNorway.
Inview ofthedecision taken bytheCONTRACTING PARTIES oftheGATT 1947 on
AvoidanceofProceduralandInstitutionalDuplication(L/7582,dated13December1994)thisnotification
isdeemed tobealsoanotification under Article XVI:1 oftheGATT 1947.
_______________
1. Introduction
Thenotification covers existing programmes/schemes. Theamounts ofsubsidies notified are
subsidies paidoutinthefinancial year1994. (Thenotification ofsubsidies totheAgriculture sector
isbased onthebudget figures for1994 and1995).
General remarks onduration andlegalbasis:
Support measures aregenerally decided bytheStorting (theParliament) eachyearonthebasis
oftheGovernment 'sBudget Proposal. Allbudget decisions aremade forasingle fiscal year. Inthe
following notifications specific additional legislations arereferred toinrelevant cases. Duration is
stated incases ofexplicitly time-limited schemes/programmes. Inother cases theterm"Duration has
notbeenspecified" isused.
Inrelation totheimplementation oftheAgreement ontheEuropean Economic Area(theEEA
Agreement), theNorwegian Storting andtheGovernment have adopted ActNo.117 of
27November 1992toStateAidandRegulations concerning implementations oftheprovisions ofthe
EEA Agreement relating toState Aid.G/SCM/N/3/NOR
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2. Research anddevelopment schemes
2.1 Industrial R&D programmes andprojects
2.1.1 Authority responsible forthesubsidy
TheMinistry ofIndustry andEnergy grants money toTheResearch Council ofNorway (NFR).
NFR administers thescheme.
2.1.2 Legislation under which itisgranted
Theyearly State Budget approved bytheParliament. Thestatutes oftheResearch Council
ofNorway.
2.1.3 Policy objective ofthesubsidy
Research anddevelopment.
2.1.4 Form ofthesubsidy
Grants.
2.1.5 Towhom andhowthesubsidy ispaid
Allfirms areeligible, regardless tobranch, region orsize.
Conditions applying from 01.04.95:
Costs eligible foraidare:personnel cost,materials andsuppliers related toR&D, instruments
andequipment, consultancy services, etc.Only costs directly related totheaccomplishment ofthe
projects areeligible. Maximum aidintensity: 50percentforbasic industrial research and25per
centforapplied research anddevelopment. SMEs (max. 250employees isoneoutofthree criteria)
mayobtain anadditional 10percentage points. TheResearch Council ofNorway hastherighttopublish
thetitleoftheprojects,itsfinancialcontribution,ashortresumeandachievedresults.Projectssupported
byother stateaidschemes donotnormally receive support fromNFR. Totheextent thatthisoccurs,
theaidceilings referred toabove apply tothecombined aid.
2.1.6 Amount ofsubsidy
Total payment inNOK million in1994: 425.
Duetostatistical datalimitations, itisimpossible toexclude theservice sector from these
numbers.
Theaverage subsidy perproject inNOK million in1994: 0.6million.
2.1.7 Duration
Starting date: 1991. Duration hasnotbeenspecified.G/SCM/N/3/NOR
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2.1.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
2.2 Public research anddevelopment contracts
2.2.1 Authority responsible forthesubsidy
TheMinistry ofIndustry andEnergy. TheNorwegian Industrial andRegional Development
Fund (SND) isresponsible fortheadministration ofthisscheme.
2.2.2 Legislation under which itisgranted
Theyearly State Budget.
Guidelines forpublic R&D- contracts andIndustry R&D- contracts, approved bytheMinistry
ofIndustry andEnergy 30.03.95.
2.2.3 Policy objective ofthesubsidy
Reinforce thecapabilities ofNorwegian industries tosatisfy theneeds ofpublic entities.
Improve thequality andeffectiveness ofservices supplied bypublic entities byimplementing
newandimproved technology.
2.2.4 Form ofthesubsidy
Grants
2.2.5 Towhom andhowthesubsidy ispaid
Apublic R&D contract isanagreement between aNorwegian enterprise andapublic authority
thatasksforthedevelopment ofanewproduct orprocess. Thereceiver ofthesubsidy istheproducer.
Theprojects must represent something substantially new.
Thebulkoftheprojects willtypically bewithin thestage ofbasic industrial research and/or
applied research:
Conditions applying from 01.04.95:
Costs eligible foraidare:personnel costs, overhead, current costs, consultancy andequivalent
servicesandinstrumentsandequipment.Onlycostsdirectlyrelatedtotheaccomplishmentoftheprojects
areeligible. Maximum aidintensity: 50percentforbasic industrial research and25percentfor
applied research anddevelopment. SMEs (max. 250employees isoneoutofthreecriteria) mayobtain
anadditional 10percentage points.G/SCM/N/3/NOR
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2.2.6 Amount ofthesubsidy
Total payment in1994 inNOK million: 121.3
Theaverage subsidy perproject wasabout NOK 2million.
2.2.7 Duration ofthesubsidy
Starting date: 1968. Duration hasnotbeenspecified.
2.2.8 Trade effects ofthesubsidy
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
2.3 Industrial R&D Contracts
2.3.1 Authority responsible forthesubsidy
Administered bytheNorwegian Industrial andRegional Development Fund (SND) onbehalf
oftheMinistry ofIndustry andEnergy.
2.3.2 Legislation under which itisgranted
Theyearly State Budget approved bytheParliament.
Guidelines forpublic R&D- contracts andIndustry R&D- contracts, approved bytheMinistry
ofIndustry andEnergy 30.03.95.
2.3.3 Policy objective ofthesubsidy
Thepurpose istostimulate industrial R&D (Product development) andbusiness links(network).
2.3.4 Form ofthesubsidy
Grants.
2.3.5 Towhom andhowthesubsidy ispaid
Theprojects eligible areR&D- cooperation projects between private enterprises -amajor
customer andalesser subcontractor.
Conditions applying from 01.04.95.
Thegrants arerestricted toSMEs (max. 250employees isoneoutofthreecriteria) aspartners
innewbusiness relations. Subsidy isgranted toapplied research anddevelopment projects. Maximum
aidintensity is35percentofproject costs.
Costs eligible foraidare:personnel costs, overhead, current costs, consultancy andequivalent
services andinstrument andequipment. Onlycostsdirectly related totheaccomplishment oftheprojects
areeligible.G/SCM/N/3/NOR
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Thecondition isthattheaidisnecessary tostartupandrealise projects.
2.3.6 Amount ofsubsidy
Total payment in1994 wasNOK 28million.
Subsidy perproject isNOK 1.1million.
2.3.7 Duration ofthesubsidy
Starting date: 01.01.94. Duration hasnotbeenspecified.
2.3.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
2.4 Swedish-Norwegian Industrial
2.4.1 Authority responsible
TheMinistry ofIndustry andEnergy inNorway andtheMinistry ofIndustry inSweden are
theresponsible authorities. Total ofSEK250million hasbeen transferred totheFund from the
Governments ofNorway andSweden. TheFund operates, however, relatively independently.
2.4.2 Legislation under which itisgranted
TheFund isaFoundation regulated bySwedish law. Legal basis isaGovernment Decree
from theSwedish Government dated 19December 1991.
2.4.3 Policy objective ofthesubsidy
Support isnormally given toSMEs andforR&D projects.
2.4.4 Form ofthemeasures:
- grants forpre-feasibility
- loans
- grants withroyalty repayments
2.4.5 Towhom andhowthesubsidy ispaid
TheFund mayenter intoprojects involving cooperation between Swedish andNorwegian
companies inallindustries butextraction ofoilandgas.TheFund offers loans andgrants toprojects
related toproduct development andmarket introduction. Loans andgrants maynormally notexceed
50percentofeligible costs foracertain project, andmay under nocircumstances exceed
SEK50million. Interests onloans arecomparable tothose offered byprivate institutions. Successful
companies receiving grants withroyalties repayment havetorepay according toevenhigher interest
rates.G/SCM/N/3/NOR
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2.4.6 Amount ofsubsidy
Estimated totalnetcostofloans andgrants disbursed in1994 toNorwegian companies:
NOK 7.4million.
(Thenetcostofloans arecalculated as:interest oftheloans outstanding during 1994. The
rateofinterest usedistheaverage costofgovernment borrowing fornewloans in1994; 7.7percent.
Theamount ofinterest received bytheFund issubtracted. Write-offs areadded tothenetcosts.)
2.4.7 Duration ofthesubsidy
Starting date: 1982. Expiry date: 2001.
2.4.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3. Assistance toDisadvantaged Regions
3.1 Regional Investment Grants
3.1.1 Authority responsible forthesubsidy
TheMinistry ofLocal Government andLabour through theNorwegian Industrial andRegional
Development Fund and15county municipalities.
3.1.2 Legislation under which itisgranted
- Parliamentary ActNo.97ofJuly1992
- RegulationofRegionalmeasuresadministeredbytheNorwegianIndustrialandRegional
Development Fund andthecounty municipalities ofMarch 1995
- Regulation onAreas eligible ofRegional AidofMarch 1995
- Theyearly State Budget
3.1.3 Policy objective
Regional aid:jobcreation, permanent andprofitable business activity inareas withspecial
employment problems oralowlevelofeconomic activity.
3.1.4 Form ofthesubsidy
Grants orloans (fewcases).
3.1.5 Towhom andhowthesubsidy ispaid
Enterprises located inassisted areas forregional policy. Allsectors except primary production
inagriculture, forestry andfishing. Oilextracting orrefining activities arealsoexcluded.
Conditions applying from 01.04.95.G/SCM/N/3/NOR
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Theassisted areas aredivided intothree zones. InzoneAthegeneral aidceiling must not
exceed 35percent. However, SMEs (max. 250employees isoneoutthree criteria) mayreceive on
topoftheprevailing rateanextra 15percentage points. InzoneBthegeneral aidceiling must not
exceed 25percentwhere SMEs mayreceive anextra 5percentage points. InzoneCthegeneral aid
ceiling must notexceed 15percentwhere SMEs mayreceive anextra 10percentage points. Ifthe
investment grant iscombined withother measures containing stateaid/subsidy, thetotalaidmustnot
exceed thegeneral ceilings inthedifferent zones.
3.1.6 Theamount ofsubsidy
Total amount ofpayment inNOK million in1994: 4,477.
Average subsidy perproject: NOK 0.6million.
3.1.7 Duration ofthesubsidy
Starting date: 1966. Duration hasnotbeenspecified.
3.1.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.2 Regional Grants fortheDevelopment ofBusiness andIndustry
3.2.1 Theauthority responsible forthesubsidy
TheMinistry ofLocal Government andLabour through TheNorwegian Industrial andRegional
Development Fund and15county municipalities.
3.2.2 Legislation under which itisgranted
Parliamentary ActNo.97ofJuly1992.
- RegulationonRegionalmeasuresadministeredbytheNorwegianIndustrialandRegional
Development Fund andthecounty municipalities ofMarch 1995
- Regulation onAreas eligible ofRegional AidofMarch 1995
- Theyearly State Budget
3.2.3 Policy objective ofthesubsidy
Regional aid;jobcreation, permanent andprofitable business activity inareas withspecial
employment problems oralowlevelofeconomic activity.
3.2.4 Form ofthesubsidy
Grants orloans (fewcases).G/SCM/N/3/NOR
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3.2.5 Towhom andhowthesubsidy ispaid
Enterprises located inassisted areasforregional policy. Allsectors except primary production
inagriculture, forestry andfishing. Oilextracting orrefining activities arealsoexcluded.
Conditions applying from 01.04.95.
Thesubsidy covers costs eligible under thenotion of"soft aid"(costs must meet one-off
requirements forup-to-date knowledge invarious fields orberelated toestablishing ofnetwork
cooperation etc,nophysical investment, nooperating aid)and/or research anddevelopment projects.
Subsidy falling under thenotion of"softaid"mustnotexceed 50percentofeligible costs, anditis
confined toSMEs (max. 250employees isoneoutofthree criteria). Incases where thecosts are
covering research anddevelopment activities, larger companies mayreceive aidwithin amaximum
aidceiling of25percentofeligible costs. Forthesame typeofactivities SMEs mayreceive agrant
within amaximum aidceiling of40percentofeligible costs.
3.2.6 Thetotalamount ortheannual amount budgeted forthesubsidy
Amount ofsubsidy inNOK million in1994: 331.
Average subsidy perproject inNOK million: 0.2.
3.2.7 Duration ofthesubsidy and/or anytime-limits attached toit
Starting date: 1983. Duration hasnotbeenspecified.
3.2.8 Thetrade effects ofthesubsidy
Support isgranted toavoid toavariety ofprojects andsectors. Statistical datashowing the
trade effects ofthesubsidy arenotavailable.
3.3 Scheme forRestructuring inRegions Dependant ofaSingle Industry
3.3.1 Authority responsible forthesubsidy
TheMinistry ofLocal Government andLabour. Thescheme isadministered bylocal
municipalities andtheNorwegian Industrial andRegional Development Fund.
3.3.2 Legislation under which itisgranted
Theyearly State Budget (Ministry ofLocal Government andLabour, Ch.552.post56).
Regulation ofApril 1993 (H-21/93).
3.3.3 Policy objective ofthesubsidy
Restructuring:jobcreationinregionswhereamainenterpriseorbranchreducestheemployment
drastically orcloses down.G/SCM/N/3/NOR
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3.3.4 Form ofthesubsidy
Grants.
3.3.5 Towhom andhowthesubsidy ispaid
Availabletoenterprisesinmunicipalitiesdependentonasingleindustryoronasingleenterprise.
Other criteria forthesubsidy areasfor"Regional Investment Grants" and"Regional Grants
fortheDevelopment ofBusiness andIndustry" administered bytheNorwegian Industrial andRegional
Development Fund andthecounty municipalities.
3.3.6 Amount ofsubsidy
Payments inNOK million in1994: 65.2
Included inthefigures arealsogrants tofinancing different types ofinfrastructure tobuyshares
inlocalenterprises oncommercial terms limited to49percentoftotalshare capital.
3.3.7 Duration ofthesubsidy
Starting date: 1987. Duration hasnotbeenspecified.
3.3.8 Thetrade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.4 TheNorwegian Corporation forIndustrial Estates andDevelopment (SIVA)
3.4.1 Theauthority responsible forthesubsidy
Ministry ofLocal Government andLabour through theNorwegian Corporation forIndustrial
Estates andDevelopment (SIVA).
3.4.2 Thelegislation under which itisgranted
TheState Budget (Ministry ofLocal Government andLabour, Ch.552,55).
Regulation onSIVA of27.11.92.
Letter from Ministry ofLocal Government andLabour toSIVA of28.03.95.
3.4.3 Policy objective ofthesubsidy
Primary objective; regional assistance. Secondary; support tosmall andmedium-sized
enterprises.G/SCM/N/3/NOR
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3.4.4 Form ofthesubsidy
Grants.
3.4.5 Towhom andhowthesubsidy ispaid
SMEs (max. 250employees isoneoutofthree criteria). Primarily manufacturing industry
located inassisted areas.
Grants cover costseligible under thenotion of"softaid"(costs mustmeetone-off requirements
forup-to-date knowledge invarious fieldorberelated toestablishing ofnetwork cooperation etc,no
physical investment, nooperating aid).
Maximum subsidy is50percentofeligible cost.
3.4.6 Theamount ofsubsidy
Budgeted in1994; NOK 16million.
29enterprises havereceived asubsidy in1994.
3.4.7 Duration ofthesubsidy
Starting date:
Duration hasnotbeenspecified.
3.4.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.5 National programmes forregional development (Ch.552.53)
3.5.1 Authority responsible
Ministry ofLocal Government andLabour inmost ofthecases through intermediate
administrative bodies.
3.5.2 Legislation under which itisgranted
Theyearly State Budget andCircular H-11/95 from theMinistry ofLocal Government and
Labour.
3.5.3 Policy objective ofthesubsidy
Regional. Animportant objective istocreate newstructures andwaysofcollaboration between
R&D centres andprivate SMEs.G/SCM/N/3/NOR
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3.5.4 Form ofthesubsidy
Grants.
3.5.5 Towhom andhowthesubsidy ispaid
Mainly SMEs (max. 250employees isoneoutofthree criteria) inprivate sector located in
assisted areas. Most ofthefunds available areusedtosupport R&D -infrastructure. Single enterprises
maynotreceive support from thisscheme unless theyareinvolved inacooperation pluriannual
programme ofbroader national interest.
Other criteria forthesubsidy toenterprises areasfor"Regional Grants fortheDevelopment
ofBusiness andIndustry" administered bytheNorwegian Industrial andRegional Development Fund
andthecounty municipalities.
3.5.6 Amount ofsubsidy
Payment inNOK million in1994: 119. (Themajor parttoresearch institutes/centres located
inassisted areas).
3.5.7 Duration ofthesubsidy
Starting date: 1986. Duration hasnotbeespecified.
3.5.8. Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.6 Funds forrestructuring ofthecommunity ofRana
3.6.1 Theauthority responsible forthesubsidy
TheMinistry ofIndustry andEnergy. TheNorwegian industrial andregional fundhasthe
responsibility concerning aidtoprivate enterprises. Two local institutions alsotakepartinthe
programme.
3.6.2 Thelegislation under which itisgranted
TheProposition totheStorting No.113(1987-88) "Om Rana ogNorsk Jernverk A/S".
3.6.3 Policy objective ofthesubsidy
Regional restructuring; development ofnewindustrial activity andjobcreation inpublic and
private sectors. TheNorwegian steelindustry wasrestructured during 1988-89. Thisaffected the
community ofRana inthecounty ofNordland andledtoaconsiderable reduction intheemployment.
3.6.4 Form ofthesubsidy
Grants.G/SCM/N/3/NOR
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3.6.5 Towhom andhowthesubsidy ispaid
Enterprises located intheCommunity ofRana.
General investments aresupported onthesameconditions asapplying tothescheme "Regional
Investment Grants" administered bytheNorwegian Industrial andRegional Fund.
Itisalsopossible togrant theprocess ofdeveloping newprojects, anddeveloping enterprises
byusing equity capital.
3.6.6 Theamount ofthesubsidy
Thescheme hadatotalbudget ofNOK 500million.
About 2/5ofthegrant goesforinfrastructure andtothefinance ofpublic bodies andabout
3/5ofthegrant goestoprivate investment anddevelopment ofnewindustrial activities.
Total payment in1994 wasNOK 6.1million.
3.6.7 Theduration ofthesubsidy
Starting date: 01.01.88.
Expiry date: 31.12.95.
3.6.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.7 Funds forrestructuring oftheCommunity ofSor-Varanger
3.7.1 Theauthority responsible forthesubsidy
Ministry ofIndustry andEnergy. TheNorwegian Industrial andRegional Fund administers
subsidies toprivate enterprises.
3.7.2 Thelegislation under which itisgranted
Proposition totheStorting No.80(1990-91) ontherestructuring ofSor-Varanger andA/S
Sydvaranger.
3.7.3 Policy objective ofthesubsidy
Regional restructuring; development ofnewindustrial activity andjobcreation inpublic and
private sectors. TheNorwegian ironore/mine industry isrestructured during theperiod 1991-1996.
Thisaffects theCommunity ofSor-Varanger intheCounty ofFinnmark andleads toaconsiderable
reduction intheemployment.G/SCM/N/3/NOR
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3.7.4 Form ofthesubsidy
Grants.
3.7.5 Towhom andhowthesubsidy ispaid
Available toenterprises located inSor-Varanger, Finnmark County.
General investments andtheprocess ofdeveloping newprojects aresupported onthesame
conditions asapplying totheschemes "Regional Investment Grants" and"Regional Grants forthe
Development ofBusiness andIndustry" administered bytheNorwegian Industrial andRegional Fund.
3.7.6 Amount ofthesubsidy
Total amount budgeted forthescheme isNOK 400million.
About 1/3isdistributed toinfrastructure andpublic bodies andabout 2/3toprivate investment
anddevelopment ofnewindustrial activities.
Total payment inNOK million in1994; about 40.
3.7.7 Theduration ofthesubsidy
Starting date: 01.01.91.
Expiry date: 31.12.96.
3.7.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.8 Funds forRestructuring oftheGrenland
3.8.1 Authority responsible forthesubsidy
Ministry ofIndustry andEnergy andMinistry ofLocal Government andLabour. Alocal
industrial development organization isoperating thefund.
3.8.2 Legislation under which itisgranted
TheProposition totheStorting No.7(1992-93).
Theyearly State Budget.
Letter of1.03.95 to"Vekst iGrenland".
3.8.3 Policy objective ofthesubsidy
Regional restructuring; jobcreation.G/SCM/N/3/NOR
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3.8.4 Form ofthesubsidy
Grants.
3.8.4 Towhom andhowthesubsidy ispaid
Available toenterprises located intheGrenland region, mainly SMEs (max. 250employees
isoneoutofthree criteria).
Development projects, preliminary studies andone-off update ofknowledge. Max. intensities
vary, dependent onthetypes ofprojects. Average subsidy perproject in1994: NOK 200,000.
3.8.6 Amount ofsubsidy
Total payment in1994 wasNOK 3.8million.
3.8.7 Duration ofthesubsidy
Starting date: 01.01.93. Expiry date: notyetdecided.
3.8.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
3.9 Viking Business Development A/S
3.9.1 Authority responsible forthesubsidy
Ministry ofIndustry andEnergy.
3.9.2 Legislation under which itisgranted
Proposition totheStorting No.2(1991-92), "Omstilling iAskim".
3.9.3 Policy objective ofthesubsidy
Restructuring inanareaofindustrial decline.
3.9.4 Form ofthesubsidy
Grants.
3.9.5 Towhom andhowthesubsidy ispaid
Enterprises located inAskim inOstfold County areeconomically viable. Theventure company
"Viking Business Development A/S" seeks anddevelops newbusiness opportunities byplacing risk
capital inenterprises.G/SCM/N/3/NOR
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3.9.6 Amount ofsubsidy
Theventure company received agrant ofNOK 40million in1991.
3.9.7 Duration ofthesubsidy
Starting date: 01.12.91. Expiry date: 01.12.96.
3.9.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
4. Assistance tosmall andmedium sized companies
4.1 Development Grants
4.1.1 Theauthority responsible forthesubsidy
TheMinistryofIndustryandEnergythroughtheNorwegianIndustrialandRegionalDevelopment
Fund (SND).
4.1.2 Thelegislation under which itisgranted
Act3July1992 onSND nr97.
"Retningslinjer forStatens noerings- ogdistriktsutbiklingsfonds landsdekkende virkemidler".
Letter from theMinistry ofIndustry andEnergy totheSND of21.02.95.
Theyearly State Budget.
4.1.3 Policy objective ofthesubsidy
Assistance toSMEs. Improve theefficiency ofindustry.
4.1.4 Form ofthesubsidy
Grant.
4.1.5 Towhom andhowthesubsidy isgranted
Scheme isprimarily intended forSME. Thescheme isavailable forallsectors except insurance,
banking andfinance, shipping, oilandgasexploration, public administration andpublic sector
commercial enterprises, butprimarily.
Conditions applying from 01.04.95.G/SCM/N/3/NOR
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Subsidy allowed toSMEs (max. 250employees isoneoutofthree criteria):
- maximum 50percentofcostseligible under thenotion of"softaid"(costs mustmeet
one-off requirements forup-to-date knowledge invarious fields orberelated to
establishing ofnetwork cooperation etc,nophysical investment, nooperating aid),
- maximum 35percentofcostseligible forapplied research anddevelopment projects
and
- maximum 7.5percenttophysical investment (maximum 15percenttosmall
enterprises).
Larger companies areonlyallowed amaximum aidintensity of25percenttoR&D projects
orsubsidy upto50,000 ECU inrespect ofonedefined category overathree yearperiod.
4.1.6 Theamount ofthesubsidy
Total payment inNOK million in1994; 807.
(Grants toservices sector areincluded inthefigures).
Average subsidy perproject in1994 wasNOK 0.272 million.
4.1.7 Theduration ofthesubsidy
Starting: 01.01.93. Duration hasnotbeenspecified.
4.1.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
4.2 ThePublic Advisory System
4.2.1 Authority responsible forthesubsidy
TheNorwegian Ministry ofIndustry andEnergy.
TheSubsidy inadministered bythefollowing institutions:
- TheNational Institute ofTechnology (TI)
- TheNorth Norwegian Institute ofTechnology andInnovation (VINN) and
- TheRegional consulting services (BRT) (anation-wide network)
4.2.2 Legislation under which itisgranted
Proposition totheStorting No.86(1986-87).
Royal Decree of19.02.88.
Royal Decree of22.04.88.
Theyearly State Budget.G/SCM/N/3/NOR
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4.2.3. Policy objective ofthesubsidy
Transfer ofcompetence andknowledge toSMEs.
4.2.4 Form ofthesubsidy
Services free/partly freeofcharge.
4.2.5 Towhom andhowthesubsidy ispaid
TIandVINN provide SMEs withtechnical competence andknowledge, BRTgives general
assistance.
Theinstitutions onlysubsidy services directed towards SMEs withlessthan100employees
andmainly companies withlessthan20employees. Thelegalmaximum aidlevel toanenterprise
is50,000 ECU overa3-year period. Theaverage levelhowever isonlyNOK 10,000.
4.2.6 Amount ofsubsidy
Thegrants given totheinstitutions inorder toprovide theservices (allsectors) in1994:
TI : NOK 77,500,000
VINN : NOK 26,000,000
BRT : NOK 55,350,000
4.2.7 Duration ofthesubsidy
Thepublic advisory system wasreorganised in1988. Duration hasnotbeenspecified.
4.2.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
5. Assistance toEnvironmental improvement
5.1 AidforDevelopment andDiffusion ofCleaner Technologies :
5.1.1 Theauthority responsible forthesubsidy
Ministry ofEnvironment through Norwegian Pollution Control Authority.
5.1.2 Thelegislation under which itisgranted
Theyearly State Budget.
Letter from Ministry ofEnvironment of30March 1995 totheNorwegian Pollution Control
Authority.G/SCM/N/3/NOR
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5.1.3 Policy objective ofthesubsidy
Promote development anddiffusion ofcleaner technologies.
5.1.4 Form ofthesubsidy
One-off investment grant toprojects.
5.1.5 Towhom andhowthesubsidy ispaid
Available toallenterprises.
Conditions applying from 01.04.95.
Specialized investment andresearch anddevelopment canbesupported upto25percent.
SMEs (max. 250employees isoneoutofthreecriteria) mayobtain anadditional 10percentage points.
Enterprises inassisted areas mayobtain anadditional 5-10percentage points.
SMEs mayreceive support totechnical environmental studies upto50percent.
Support isconfined toprojects exceeding requirements imposed bylaworregulations.
Thisscheme maybeusedincombination withtheguarantee forloanscheme. (cf.below)
Iftheschemes arecombined thetotalsubsidy must notexceed theabove-mentioned ceilings.
5.1.6 Theamount ofthesubsidy
Total payment inNOK million in1994: 46.9(Service sector included).
5.1.7 Theduration ofthesubsidy
Starting date: 1January 1990. Duration hasnotbeenspecified.
5.1.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
5.2 Grants forWaste Reduction andRecycling
5.2.1 Theauthority responsible forthesubsidy
Ministry ofEnvironment.
5.2.2 Thelegislation under which itisgranted
Theyearly State Budget.
Letter fromMinistry ofEnvironment, of30March 1995, totheNorwegian Pollution Control
Authority.G/SCM/N/3/NOR
L/7611/Add.14
Page19
5.2.3 Policy objective ofthesubsidy
Promote waste reduction andrecycling.
5.2.4 Form ofthesubsidy
One-off investment grant toprojects.
5.2.5 Towhom andhowthesubsidy ispaid
Available toallenterprises. Supported projects should reduce waste orimprove systems for
recycling ofwaste.
Conditions applying from 01.04.95.
Supportisconfinedtoprojectsexceedingrequirementsimposedbylaworregulations.Maximum
aidceiling is30percentofeligible costs. SMEs (max. 250employees isoneoutofthree criteria)
mayobtain anadditional 10percentage points. Enterprises located inassisted area,zoneA,mayobtain
anadditional 5-10percentage points.
Thisscheme maybeusedincombination withtheguarantee forloanfacility (cf.below). If
theschemes arecombined thetotalsubsidy must notexceed theabove-mentioned ceilings.
5.2.6 Amount ofthesubsidy
Total payment inNOK million in1994: 71.3.
5.2.7 Duration ofthesubsidy
Starting date: 1January 1990. Duration hasnotbeenspecified.
5.2.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
5.3 Loan Guarantees forInvestment inCleaner Technologies, Waste Reduction and
Recycling
5.3.1 Theauthority responsible forthesubsidy
Thescheme isadministered bytheNorwegian Industrial andRegional Development Fund on
behalf oftheMinistry ofEnvironment.
5.3.2 Thelegislation under which itisgranted
Loanguarantees areawarded pursuant totheParliament 'sbudget decisions (cf.theStateBudget
chapter 1442, post73). Inaddition specific rules forawarding aidarelaiddown inaletter, of
30March 1995, totheNorwegian Industrial andRegional Development Fund.G/SCM/N/3/NOR
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5.3.3 Policy objective ofthesubsidy
Promote development anddiffusion ofcleaner technologies, waste reduction andrecycling.
5.3.4 Form ofthesubsidy
One-off investment guarantee toprojects.
5.3.5 Towhom andhowthesubsidy ispaid
Available toallenterprises.
Guarantees forloantoinvestments incleaner technologies, waste reduction andrecycling.
Conversion toanordinary mortgage loantakes place aftertheproject isinoperation.
Conditions applying from 01.04.95.
Upto75percentpro-rata guarantee forpossible losses.
Maximum aidceiling forthesubsidy contained asfortheabove-mentioned scheme "Grants
forwaste reduction andrecycling".
Thescheme maybeusedtogether withtheabove-mentioned grant schemes.
5.3.6 Amount ofthesubsidy
Payment duetodefaulted loans inNOK million in1994: 8.6.
5.3.7 Duration ofthesubsidy
Starting date: 1January 1992. Duration hasnotbeenspecified.
5.3.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
5.4 Guarantee forLoan Facility andLoan Facility totheCompany responsible for
treatment ofHazardous Waste
5.4.1 Theauthority responsible forthesubsidy
Ministry ofEnvironment through theNorwegian Industrial andRegional Development Fund
(SND).
5.4.2 Thelegislation under which itisgranted
Proposition totheStorting No.103(1990-91).G/SCM/N/3/NOR
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5.4.3 Policy objective ofthesubsidy
Toreduce theriskrelated tobuilding andoperating aplant fortreating hazardous waste.
5.4.4 Form ofthesubsidy
Loan andloanguarantee.
5.4.5 Towhom andhowthesubsidy ispaid
These financial facilities canonlybeutilized bythecompany inquestion, namely, Norsk
Avfallshandtering A/S.
Thecompany isgiven aloanuptoNOK 100million andguarantee forupto55percent, or
maximum NOK 250million oftheexternal loans, tothecompany. Theloanisgranted oncommercial
terms. Theguarantee isfreeofcharge.
5.4.6 Amount ofsubsidy
See5.3.5 above.
5.4.7 Duration ofthesubsidy
Starting date: 1991.
Theduration oftheloanfacility andguarantee forloanfacility are20years.
5.4.8 Trade effects ofthesubsidy
Statistical datashowing thetrade effects ofthesubsidy arenotavailable.
5.5 Grant Programme forintroduction ofnewEnergy Technology
5.5.1 Authority responsible forthesubsidy
MinistryofIndustryandEnergythroughNorwegianWaterResourcesandEnergyAdministration
(NWREA).
5.5.2 Legislation under which itisgranted
Parliamentary document 1979-93.
TheGovernment white paper No.61(1988-89).
Regulations byNWREA.
Theyearly State Budget.G/SCM/N/3/NOR
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5.5.3 Policy objective ofthesubsidy
Energy saving.
5.5.4 Form ofthesubsidy
Grants.
5.5.5 Towhom andhowthesubsidy ispaid
Available tobusiness sector inbroad sense.
Support tointroduction anddemonstration ofnewenergy efficient andrenewable energy
technology; equipment, training andconsultant feesinconnection withintroduction anddemonstration
ofnewtechnology. Upto50percentofeligible costs.
5.5.6 Amount ofsubsidy
Thebudget forthesubsidy wasNOK 20million in1994.
5.5.7 Duration ofthesubsidy
Starting date: 1979. Duration hasnotbeenspecified.
5.5.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
6. Export promotion
6.1 TheExport Campaign, theStrategy Programme andtheProgramme forExport
Development inSME
6.1.1 Authority responsible forthesubsidy
Ministry ofForeign Affairs through theNorwegian Trade Council.
6.1.2 Legislation under which itisgranted
Government Decree ontheStatutes fortheNorwegian Trade Council.
Guidelines adopted bytheMinistry ofForeign Affairs March 1995.
Theyearly State Budget.
6.1.3 Policy objective ofthesubsidy
Business development andexport promotion.G/SCM/N/3/NOR
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6.1.4 Form ofthesubsidy
Grants.
6.1.5 Towhom andhowthesubsidy ispaid
Conditions applying from 01.04.95.
Available toSMEs (max. 250employees isoneoutofthree criteria).
Costs covered; expenditures when attending trade fairs, expenditures formarket
research/surveys, seminars, training, consultancy fees. Maximum aidintensity 50percent. Average
intensity is25percent.
6.1.6 Amount ofsubsidy
Amount ofsubsidy in1994.
TheExport Campaign: NOK 36.3million
TheProgramme forExport Development inSME: NOK 14.0million.
TheStrategy Programme: NOK 26.4million.
6.1.7 Duration ofthesubsidy
Starting date: 1969, 1986 and1989 fortheExport Campaign, theProgramme forExport
Development inSME andtheStrategy Programme respectively. Duration hasnotbeenspecified.
6.1.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
6.2 Export Credit Financing Scheme
6.2.1 Theauthority responsible forthesubsidy
TheMinistry ofFinance.
6.2.2 Thelegislation under which itisgranted
Theyearly State Budget.
6.2.3 Policy objective and/or purpose ofthesubsidy
Matching officially supported export credits offered byother exporting nations inaccordance
withtheOECD "Arrangement onGuidelines forOfficially Supported Export Credits" (hereinafter
called "theOECD Arrangement").G/SCM/N/3/NOR
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6.2.4 Form ofthesubsidy
Interest ratesupport andcurrency riskalleviation.
6.2.5 Towhom andhowthesubsidy ispaid
Thereceivers oftheofficially supported export credits aretheforeign purchasers ofNorwegian
capital goods. Export credits atinterest ratesaccording totheOECD-Arrangement.
6.2.6 Theamount ofsubsidy
Thenet,accumulated amount ofsubsidy fortheyear1994isNOK 119million. Service sector
isincluded. Thisamount represents thenetsubsidies required fortheportfolios ofcredits andfunding
resulting from alltransactions forthescheme uptoandincluding 1994.
6.2.7 Duration ofthesubsidy
Stating date: 1978. Duration hasnotbeenspecified.
6.2.8 Trade effects ofthesubsidy
ThetradeeffectsfortheNorwegianexporterswillbetoenablethemtocompeteonprice,quality,
technical solutions etc,asthecredit parts oftheoffers willbeequal tothatoftheircompetitors.
6.3 Export Credit Guarantees
6.3.1 Authority responsible forthesubsidy
Ministry ofForeign Affairs through Guarantee Institute forExport Credits (GIEK). GIEK
hashowever ahighdegree ofindependency. Short termguarantees aredealtwithbytheCommercial
Section ofGIEK. Long termguarantee commitments areorganized inthePublic section ofGIEK.
6.3.2 Legislation under which itisgranted
Parliament resolution of25.05.93.
Regulations of14.02.94 adopted bytheMinistry ofForeign Affairs.
Theyearly State Budget.
6.3.3 Policy objective ofthesubsidy
Topromote Norwegian exports ofgoods andservices primarily bycovering theexporter 's
commercial andpolitical credit risk.
6.3.4 Form ofthesubsidy
Guarantees.G/SCM/N/3/NOR
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6.3.5 Towhom andhowthesubsidy ispaid
Available primarily toSME.
Theconditions areinaccordance withtherulesoftheOECD "Arrangement ofGuidelines for
Officially Supported Export Credits" andthe"Berne Union Understanding".
Thefinancial aimofthesection ofGIEK dealing withtheshort termguarantees isabalance
intheaccounts intheshortrun.Thesection ofGIEK dealing withthelongtermguarantee commitments
scheme hasabalance intheaccounts inthelongtermasitsfinancial objective.
6.3.6 Amount ofsubsidy
Netcosts in1994 were inNOK -186.2 million (negative amount ofsubsidy).
(Netcosts arecalculated ascosts ofguarantees metin1994, minus thefeesreceived inthat
yearandminus recoveries).
6.3.7 Duration ofthesubsidy
GIEK wasestablished in1960. In1994GIEK wasreorganized. Thenewframework ofGIEK
willbeevaluated bytheendof1996.
6.3.8 Trade effects ofthesubsidy
Support isgranted toavariety ofprojects andsectors. Statistical datashowing thetradeeffects
ofthesubsidy arenotavailable.
7. Assistance tospecific industry sectors
7.1 Interest RateSubsidies fortheShipbuilding Industry -Long Term Financing and
Construction Loans
7.1.1 Theauthority responsible forthesubsidy
TheMinistry ofFinance andCustoms through "A/S Eksportfinans" and"Laneinstituttet".
7.1.2 Thelegislation under which itisgranted
Proposition totheStorting No.97(1981-82).
7.1.3 Policy objective and/or purpose ofthesubsidy
Thepurpose ofthescheme wastosupport theshipbuilding industry inNorway.
7.1.4 Form ofthesubsidy
Interest ratesubsidy totheshipowner andaconstruction loansubsidy.G/SCM/N/3/NOR
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7.1.5 Towhom andhowthesubsidy ispaid
Fortheshipowners: Aninterest ratesubsidy wascalculated onthebasis ofahypothetical
loanof5years, orarealloanof5to12years, repaid byevenhalf-yearly instalments.
Fortheyards: Aconstruction loansubsidy wascalculated asapercentage ofthecontract price
oftheship. Thescheme comprised bothnewbuildings andconversions ofships greater than100gt.
(support forconversions offoreign ships, however, wasonlyavailable forshipsgreater than1,000 gt).
7.1.6 Theamount ofsubsidy
Total amount ofsubsidies inNOK million in1994:
Interest ratesubsidies: 643.2.
Construction loansubsidies: 17.6.
7.1.7 Theduration ofthesubsidy
Staring date: 1982. Expiry date: 1989.
Subsidies under thescheme arepaidoutina5to12yearperiod afterthedelivery oftheship,
andpayments aretherefore stilltaking place.
7.1.8 Trade effects ofthesubsidy
Itisassumed thatthesubsidy scheme hascorrected forthecompetitive distortions Norwegian
yards havefaced compared toforeign yards -which alsohavebeenreceiving subsidies inaccordance
withnational subsidy arrangements.
7.2 Contract andConstruction Loan Subsidies totheShipbuilding
7.2.1 Authority responsible forthesubsidy
TheMinistry ofIndustry andEnergy through "A/S Eksportfinans" and"Norsk Skibs
Hypothekbank A/S".
7.2.2 Legislation under which itisgranted
Proposition totheStorting No.1,Appendix 13(1989-98).
7.2.3 Policy objective ofthesubsidy
Support theshipbuilding industry inNorway.
7.2.4 Form ofthesubsidy
Grants.G/SCM/N/3/NOR
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7.2.5 Towhom andhowthesubsidy ispaid
Subsidy ratesapplying from May1995.
Thesubsidy isbased onacontract subsidy given totheyardandiscalculated asapercentage
ofthecontract price oftheship.
Thesubsidy ratesare9percentfornewbuildings greater thanECU 10mnand4.5percent
fornewbuildings lessthanECU10mnandforconversions. Thegrants aredisbursed inoneinstalment
7-13months afterthedelivery oftheship. Thescheme comprises newbuildings greater than100gt.
andconversions greater than1,000 gt.
7.2.6 Theamount ofthesubsidy
Total payment inNOK million in1994: 478.9.
7.2.7 Theduration ofthesubsidy
Starting date: 01.01.90. Thescheme replaced thescheme "Interest RateSubsidies forthe
Shipbuilding Industry -Long Term Financing andConstruction Loans". Thescheme expires when
theOECD agreement onnormal competitive terms intheshipbuilding industry issetintoforce.
7.2.8 Trade effects ofthesubsidy
Itisassumed thatthesubsidy scheme hascorrected forthecompetitive distortions Norwegian
yards havefaced compared toforeign yards -which alsohavebeenreceiving subsidies inaccordance
withnational subsidy arrangements.
7.3 Reduced CO2TaxonMineral Oil/Coal andCoke
7.3.1 Theauthority responsible forthesubsidy
Royal Ministry ofFinance andCustoms.
7.3.2 Thelegislation under which itisgranted
TheCO2taxratesandthetaxconcessions aredecided bytheParliament during theannual
budget process.
7.3.3 Policy objective ofthesubsidy
TheCO2taxes were introduced 01.01.91 andarehighcompared tosimilar taxes thathave
beenestablished orproposed inothercountries. Theabove-mentioned taxconcessions havebeencarried
through toavoid anundesirable worsening oftheconcerned companies 'competitive power.
7.3.4 Form ofthesubsidy
Taxconcession.G/SCM/N/3/NOR
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7.3.5 Towhom andhowthesubsidy ispaid
Taxconcessions forthepaper andpulpindustry, thefishflour industry andthecement and
lecaindustry:
(a) Mineral oil
Anexcise dutyislevied onmineral oil. In1994 itconsisted ofaCO2taxof
NOK 0.41perlitreandaSO2taxofNOK 0.07per0.25percentsulphur content andperlitre.
Oilwithlower sulphur content than0.05percentisnotliable totheSO2tax.Asfrom01.01.95
therateisNOK 0.415 fortheCO2tax,theSO2taxbeing unchanged. Asfrom1993thepaper
andpulpindustry andthefishflour industry payataxonCO2reduced tothehalf,theratebeing
NOK 0.205 in1994. Sectors likeairservice, shipping andfishing arenotliable tothemineral
oiltax,withtheexception ofcoastal fishing andcoastal goods transport which paytheSO2
tax.
(b) CoalandCoke
ACO2taxoncoalandcokewasestablished 1July1992. Thetaxratein1994 was
NOK 0.41perkilo. Itwasincreased toNOK 0.415 asfrom01.01. Coalandcokeusedfor
energy purposes within production ofcement andlecaareexempted fromtheCO2tax.Industry
using coalandcokeasreducing agent orasrawmaterial inindustrial processes isnotliable
tothetax.
7.3.6 Theamount ofsubsidy
Thetaxconcessions in1994amounted toabout NOK 30million forthepaper andpulpindustry,
toabout NOK 10million forthefishflour industry andtoabout NOK 90million forthecement and
lecaindustry.
7.3.7 Duration ofthesubsidy
Starting date: Reduced CoalandCoke tax:01.07.92. Reduced mineral oiltax01.01.
Duration hasnotbeenspecified.
7.3.8 Trade effects ofthesubsidy
Thetrade effects ofthetaxconcessions havenotbeenevaluated.
7.4 Press subsidies
7.4.1 Theauthority responsible forthesubsidy
TheNorwegian Ministry ofCultural Affairs through theNorwegian Mass Media Authority.
7.4.2 Thelegislation under which itisgranted
Royal Decree of07.08.84 andamendments.G/SCM/N/3/NOR
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7.4.3 Policy objective ofthesubsidy
Topromote andmaintain adiversified press.
7.4.4 Form ofthesubsidy
Grants.
7.4.5 Towhom andhowthesubsidy ispaid
Thesizeofthegrant iscalculated onthebasis oftheindividual newspaper 'sperannum
circulation.
Newspapers withtwoormore issues perweek withanaverage circulation between 2,000 and
6,000 copies canapply forgrants. Inaddition grants aregiven tonewspapers inanunfavourable market
position andanaverage circulation upto80,000 copies. From 1989, newspapers withoneissue per
week andcirculation ofatleast1,000 copies were included inthegrants scheme.
7.4.6 Theamount ofthesubsidy
Total amount granted inNOK million in1994: 203.
7.4.7 Theduration ofthesubsidy
Starting date: 1969. Duration hasnotbeenspecified.
7.4.8 Trade effects ofthesubsidy
Assumed tohavenotrade effects.
8. Subsidies tothefishery sector
8.1 AidtoStructural Measures andRationalization intheFishProcessing Industry
8.1.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.1.2 Legislation under which itisgranted
Theaidisgiven inaccordance totheyearly agreement between theNorwegian Fishermen 's
Association andtheMinistry ofGovernment Administration.
8.1.3 Policy objective ofthesubsidy
Tostrengthen thecompetitive ability ofthefishprocessing industry.
8.1.4 Form ofthesubsidy
Grant.G/SCM/N/3/NOR
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8.1.5 Towhom andhowthesubsidy ispaid
Thesubsidy isgiven tothefishprocessing industry. Thenumber ofenterprises isvarying
from oneyeartoanother. Thesubsidy isnotincluding thefishfarming industry.
8.1.6 Amount ofsubsidy
Itisnotpossible tonotify subsidy perunit. Thetotal expenditure for1994 was
NOK 10.3million.
For1995 noaidisgranted tostructural measures andrationalization tothefishprocessing
industry.
8.1.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Thesubsidy isgranted for
oneyearatatime.
There isnospecific time-limit attached toit.
8.1.8 Trade effects ofthesubsidy
Statistical datashowing thetrade effects ofthesubsidy arenotavailable.
8.2 Transport Support
8.2.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.2.2 Legislation under which itisgranted
Thesubsidy isgiven inaccordance totheagreement between theNorwegian Fishermen 's
Association andtheMinistry ofGovernment Administration.
8.2.3 Policy objective and/or purpose ofthesubsidy
Thesupport istobeusedpartly forfinancing thedirect costsofthetransport support schemes
inorder tofacilitate implementation offisheries activities inspecific districts.
8.2.4 Form ofthesubsidy
Grant.G/SCM/N/3/NOR
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8.2.5 Towhom andhowthesubsidy ispaid
Thetransport support aredistributed tothefollowing salesorganizations:
Norway 'sRawFishAssociation
FishSales Association forWestern Norway
FishSales Association forRogaland County
FishSales Association fortheSkagerak Coast
Norway 'sHerring Sales
Thesalesorganizations areresponsible forthedistribution ofthetransport support tothefishing
industry. Each salesorganization mustsubmit aplanshowing howtheyintend toapply these funds
sothatfishing activities aresecured throughout theyear.
Thesubsidy isnotincluding thefishfarming industry.
8.2.6 Amount ofsubsidy
Total payment in1994 wasNOK 23.3million.
Itisnotpossible tonotify subsidy perunit.
8.2.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Duration hasnotbeen
specified.
8.2.8 Trade effects ofthesubsidy
Statistical datashowing thetrade effects ofthesubsidy arenotavailable.
8.3 Support forSpecific Fisheries
8.3.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.3.2 Legislation under which itisgranted
Theaidisgiven inaccordance totheyearly agreement between theNorwegian Fishermen 's
Association andtheMinistry ofGovernment Administration.
8.3.3 Policy objective ofthesubsidy
Theaidisgiven tospecific fisheries forthepurpose ofconverting tomoreprofitable operations.G/SCM/N/3/NOR
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8.3.4 Form ofthesubsidy
Grant.
8.3.5 Towhom andhowthesubsidy ispaid
Thesubsidy ispaidtotheSales Organizations. Thesales organisations areresponsible for
thedistribution ofthesupport forspecific fisheries tothefishing industry.
Thefunds aremade available astheapproved support measures areimplemented.
Thesubsidy isnotincluding thefishfarming industry.
8.3.6 Amount ofsubsidy
Total payment in1994 wasNOK 4.6million. Thepayment wasdistributed asfollows:
Crab NOK 2.6million
Coastal shrimps NOK 1.3million
Coastal sprat NOK 0.7million
8.3.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Duration hasnotbeen
specified.
8.3.8 Trade effect ofthesubsidy
Statistical datashowing thetrade effects ofthesubsidy arenotavailable.
8.4 Marketing funds
8.4.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.4.2 Legislation under which itisgranted
Theaidisgiven inaccordance totheyearly agreement between theNorwegian Fishermen 's
Association andtheMinistry ofGovernment Administration.
8.4.3 Policy objective ofthesubsidy
Themarketing funds mustbeusedformeasures thatpromote thesaleoffishandfishproducts
domestically andforexport. Emphasis isplaced onjointefforts thatwillstrengthen theidentity of
Norwegian seaproducts inthemarkets. Theprogramme isalsoviewed asatoolforstrengthening
cooperation among firms inthefishing industry.G/SCM/N/3/NOR
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8.4.4 Form ofthesubsidy
Grant.
8.4.5 Towhom andhowthesubsidy ispaid
Thesubsidy ispaidtogroups offirms thatproduce orsellNorwegian fishorfishproducts,
andorganizations within thefishing industry canapply forsubsidies.
Consultant firms andadvisors cannot apply forsupport ontheirownbehalf.
Thesubsidy isnotincluding thefishfarming.
8.4.6 Amount ofsubsidy
Thetotalexpenditure for1994 wasNOK 4.2million.
Itisnotpossible tonotify subsidy perunit.
For1995 there isnotgranted anyaidtomarketing funds.
8.4.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Thesubsidy isgranted for
oneyearatatime, andthere isnotime-limit attached toit.
8.4.8 Trade effects ofthesubsidy
Statistical datashowing thetrade effects ofthesubsidy arenotavailable.
8.5 Interest Rate Subsidies forFishing Vessels forDomestic Deliveries -Long Term
Financing andConstruction Loans
8.5.1 Authority responsible forthesubsidy
TheMinistry ofFinance andCustoms through theNational Fishery Bank ofNorway.
8.5.2 Legislation under which itisgranted
Proposition totheStorting No.73(1985-86).
8.5.3 Policy objective ofthesubsidy
Modernization ofthefishing vessels.
8.5.4 Form ofthesubsidy
Interest ratesubsidy andconstruction loansubsidy.G/SCM/N/3/NOR
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8.5.5 Towhom andhowthesubsidy ispaid
Fortheshipowners: Aninterest ratesubsidy wascalculated onthebasis ofahypothetical
loanof5years, orarealloanof5to12years, repaid byevenhalf-yearly instalments.
Fortheyards: Aconstruction loansubsidy wascalculated asapercentage ofthecontract price
oftheship.
8.5.6 Theamount ofsubsidy
Total amount ofinterest ratesubsidies inNOK million in1994: 27.6.
Nothing waspaidoutasconstruction loansubsidies.
8.5.7 Theduration ofthesubsidy
Starting date: 18.04.86. Expiry date: 31.12.89.
Subsidies under thescheme arepaidoutina5to12yearperiod afterthedelivery oftheship
andpayments aretherefore stilltaking place.
8.5.8 Trade effects ofthesubsidy
Itisassumed thatthesubsidy scheme hascorrected forthecompetitive distortions Norwegian
yards havefaced compared toforeign yards -which alsohavebeenreceiving subsidies inaccordance
withnational subsidy arrangements.
8.6 Support toFishing Vessels forDomestic Delivery, Contract Subsidies and
Construction Loan Subsidies
8.6.1 Authority responsible forthesubsidy
TheMinistry ofFisheries through theNational Fishery Bank ofNorway.
8.6.2 Legislation under which itisgranted
Proposition totheStoring No.1,Appendix 13(1989-90).
8.6.3 Policy objective ofthesubsidy
Theprimaryobjectiveoftheschemeistosupporttheshipbuildingindustry.Secondaryobjective;
modernization ofthefishing vessels.
8.6.4 Form ofthesubsidy
Grants.G/SCM/N/3/NOR
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8.6.5 Towhom andhowthesubsidy ispaid
Thesubsidy isgiven asacontract subsidy totheshipowner andiscalculated asapercentage
ofcontract price oftheship.
Thesubsidy ratesare9percentfornewbuildings andlarge conversions (conversions greater
than NOK 20million) and4.5percentforextensive conversions (conversions greater than
NOK 2million).
8.6.6 Theamount ofsubsidy
Total amount ofgrants inNOK million in1994: 23.3.
8.6.7 Theduration ofthesubsidy
Starting date: 01.01.90. Thescheme replaced thescheme "Interest Ratesubsidies forFishing
Vessels forDomestic Delivery -Long Term Financing andConstruction Loans". Duration hasnot
beenspecified.
8.6.8 Trade effects ofthesubsidy
Itisassumed thatthesubsidy scheme hascorrected forthecompetitive distortions Norwegian
yards havefaced compared toforeign yards -which alsoarereceiving subsidies inaccordance with
national subsidy arrangements.
8.7 Grant forBuilding orPurchase ofVessels totheCounty Finnmark
8.7.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.7.2 Legislation under which itisgranted
Regulation ongrant forbuilding orpurchase ofvessels totheCounty ofFinnmark of09.03.95.
Theyearly State Budget.
8.7.3 Policy objective ofthesubsidy
Regional.
8.7.4 Form ofthesubsidy
Grant.
8.7.5 Towhom andhowthesubsidy ispaid
Thesubsidy isgiven tobuyer orbuilder offishing vessels inFinnmark county. Thegrant
islimited to15percentofbuilding price foranewvessel, and15percentofpurchase price foran
oldvessel.G/SCM/N/3/NOR
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Forthebuilding ofanewvessel, orpurchase ofavessel lessthan10years old,between 15-35
metres overall length.
8.7.6 Amount ofsubsidy
Budget 1994: NOK 2.5million.
8.7.7 Duration
Starting date: 1989. Duration hasnotbeenspecified.
8.7.8 Trade effects ofthesubsidy
Thepercentlimitandthebudgeted means forthescheme, makes thetrade effects virtually
non-existent.
8.8 Support toLong-line Baiting Facilities
8.8.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.8.2 Legislation under which itisgranted
Theyearly agreement between theGovernment andtheNorwegian Fishermen 'sOrganization.
8.8.3 Policy objective ofthesubsidy
Structural support tothefisheries sector incertain regions.
8.8.4 Form ofthesubsidy
Grant.
8.8.5 Towhom andhowthesubsidy ispaid
Thesubsidy isgiven tomembers oforganized long-line baiting facilities.
In1995 thesupport islimited toNOK 6per100baited hooks.
8.8.6 Amount ofsubsidy
1994: NOK 6per100hooks, totalNOK 10million.
8.8.7 Duration
Startingdate:1964inaccordancetotheagreementbetweenNorwegianFishermen'sAssociation
andtheMinistry ofGovernment Administration. Duration hasnotbeenspecified.G/SCM/N/3/NOR
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8.8.8 Trade effects ofthesubsidy
Thesupport isaimed ataspecific regions, andwillmost likely havelimited trade effects.
8.9 Support forenergy saving devices onboard fishing vessels
8.9.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.9.2 Legislation under which itisgranted
Theyearly agreement between theGovernment andtheNorwegian Fishermen 'sOrganization.
8.9.3 Policy objective ofthesubsidy
Environmental scheme.
8.9.4 Form ofthesubsidy
Grant.
8.9.5 Towhom andhowthesubsidy ispaid
Thesubsidy isgiven toregistered fishermen.
Limited range ofenergy saving devices qualifies forthesupport.
Thegrant maycover between 25and50percentoftheinvestment cost.
Limited toamaximum ofNOK 35,000 pervessel.
8.9.6 Amount ofsubsidy
Total payments in1994: NOK 18,550.
8.9.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Thesubsidy isgranted for
oneyearatatime, butthere isnospecific time-limited attached toit.
8.9.8 Trade effects ofthesubsidy
Very small amounts havesofarbeenpaidoutunder thisscheme.G/SCM/N/3/NOR
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8.10 Support fortheformation ofmanagement groups inthecoastal fleet
8.10.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.10.2 Legislation under which itisgranted
Theyearly agreement tween theGovernment andtheNorwegian Fishermen 'sOrganization.
8.10.3 Policy objective ofthesubsidy
Structural measure toreduce costs inthefishery sector.
8.10.4 Form ofthesubsidy
Grant.
8.10.5 Towhom andhowthesubsidy ispaid
Thesubsidy isgiven toregistered fishermen.
ThegroupofFishermenbehindamanagementofficemustcontrolatleast10vessels,orrepresent
ayearly firsthand value ofatleastNOK 10million. Each management office mayreceive upto
NOK 300,000.
8.10.6 Amount ofsubsidy
In1994, 3offices received atotalofNOK 0.8million.
8.10.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Thesubsidy isgranted for
oneyearatatime, butthere isnospecific time-limit attached toit.
8.10.8 Trade effects ofthesubsidy
Statistical datashowing thetrade effects ofthesubsidy arenotavailable. Norway considers
thatthissubsidy hashadnoeffect ontrade.
8.11 Aidtodevelopment andrationalization inthefishing industry
8.11.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.G/SCM/N/3/NOR
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8.11.2 Legislation under which itisgranted
Regulation onaidtodevelopment andrationalization inthefishing industry of08.02.95.
Theyearly State Budget.
8.11.3 Policy objective ofthesubsidy
Fields: (1)Products andprocessing technology, (2)integrated sea/land production, (3)develop
thecultivation ofnewspecies.
8.11.4 Form ofthesubsidy
Grant.
8.11.5 Towhom andhowthesubsidy ispaid
Private persons, firms andresearch institutions canapply forsubsidies.
Main projects demand 50percenteconomic participation from private persons andfirms.
8.11.6 Amount ofsubsidy
Theaidgranted varies depending ontheproject.
Total budget 1994: NOK 10million.
8.11.7 Duration ofthesubsidy
Starting date: 1994. Duration hasnotbeenspecified.
8.11.8 Trade effects ofthesubsidy
Limited means, andspecial demands forprivate participation, makes thetrade effects very
small ifatallexisting.
8.12 Research fishery
8.12.1 Authority responsible forthesubsidy
TheMinistry ofFisheries.
8.12.2 Thelegislation under which itisgranted
Theyearly agreement between theGovernment andtheNorwegian Fishermen 'sOrganization.
8.12.3 Policy objective ofthesubsidy
(1)research fishery, (2)development offishing gearwithgood selective characteristics.G/SCM/N/3/NOR
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8.12.4 Form ofthesubsidy
Grant.
8.12.5 Towhom andhowthesubsidy ispaid
Thefishing fleetandresearch institutions canapply forsubsidies.
8.12.6 Amount ofsubsidy
Theaidgranted varies depending ontheprojects. For1994itwasnotgranted anyaidtothis
fund.
8.12.7 Duration
Thesubsidy isestablished inaccordance totheagreement of1964 between theNorwegian
Fishermen 'sAssociation andtheMinistry ofGovernment Administration. Duration hasnotbeen
specified.
8.12.8 Trade effects ofthesubsidy
Limited means makes thetrade effects verysmall ifatallexisting.
9. Aidtoforestry sector
9.1 TaxConcessions inForestry: TheForest Trust Fund andthe5-year Average Tax
Assessment
9.1.1 Authority responsible forthesubsidy
Ministry ofFinance/Ministry ofAgriculture through theNational Forest Service.
9.1.2 Legislation under which itisgranted
Bothtaxassessments schemes havereference totheProperty andIncome TaxAct,No.8of
18August 1911, Section 48,administered bytheMinistry ofFinance.
TheForest Trust Fund policy hasinaddition references totheForestry Actof1965 with
amendments, latest bytheActNo.96of11June1993, andthefollowing regulations:
"Regulation ontaxadvantages byusing theForest Trust Fund forcertain purposes" of
23August 1983.
"Regulation ontheuseoftheForest Trust Fund", of20April 1994.
"Regulation onpayment intotheForest Trust Fund ofscaling ofround-wood" of
28February 1994.
"Regulation ontheForest Trust Fund for1995" of23November 1994.G/SCM/N/3/NOR
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9.1.3 Policy objective ofthesubsidy
Toinfluence resource exploitations. Duetotheparticular circumstances intheforestry trade,
taxadjustments aremade fortheforest owners topromote longrange investments inforestry.
9.1.4 Form ofthesubsidy
Taxconcessions.
9.1.5 Towhom andhowthesubsidy ispaid
Forestry activities areinprinciple being taxed asothereconomical activities, either asaseparate
income source orincombination withother income activities thattheforest owner mayhave. The
Norwegian forest owners mayhowever make useofthetwospecial taxassessments:
TheForest Trust Fund isamandatory investment scheme toencourage longrange private
investments inforestry based onsustainable utilization oftheforest resources. TheForestry Actrequires
allforest owners toplace intotheFund from 5-25percentofthegross round wood salevalue. At
thetimeofsale,thebuyer automatically deducts apre-decided percentage fromthesalereceipts. This
amount isdeposited intheforest owner trustfundaccount inhislocalbank. Themoney maybeused
forspecified forestry investments.
Long range forest investments maybefullywritten offatthetimeofinvestment anddeducted
ontheincome taxreturn theyeartheinvestment ismade. Theamount isdisbursed from theFund
Account forthisinvestment isconsidered astaxable income theyearthedisbursement ismade.
However, onlyacertain percentage oftheinvestment isconsidered astaxable income, depending on
thesizeoftheinvestment made, varying from65percentforinvestments uptoNOK 50,000 to95per
centforinvestments exceeding NOK 500,000.
Larger investments mayrequire several years ofaccumulation ontheFund Account prior to
making theinvestment. Thisentails thattheforest owner receives aninterest freetaxcredit.
Theforest owner doesnotreceive anyinterest made onthetrustfund. According totheForestry
Act,theinterest willbeusedforthebenefit ofNorwegian forestry atmunicipal- county- ornational
levels.
Average 5-year taxassessment Theyearly income taxfortheforest owner isbased onthe
last5years average income. Thesystem implies thatitisnotnecessary toobtain equal yearly incomes
toeliminate theconsequences oftheprogressive taxation. Itentails thatthemarginal taxpercentage
maybereduced compared toother income groups, where thesingle lastyearincome isthebasis for
taxation. Themethod alsoimplies thattheforest owners receive atwoyeartaxcredit.
9.1.6 Amount ofsubsidy
TheForest Trust Fund In1994, theamount distributed onanational basis from theForest
Trust Fund Accounts toinvestment eligible fortheadvantages, totalled NOK 168million. Thenon-
taxable amount involved totalled NOK 53million. Thesubsidies involved willdepend ontheindividual
owners taxratesandhavenotbeencalculated.
Average 5-year taxassessment Thetotal amount ofsubsidy in1993 iscalculated to
NOK 17million. Itisassumed thatthesubsidy in1994 amounted toabout thesame level.G/SCM/N/3/NOR
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9.1.7 Duration ofthesubsidy
TheForest Trust Fund wasinitiated in1932, butestablished atitspresent system in1965.
9.1.8 Trade effects ofthesubsidy
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
9.2 Subsidies forForest Management Planning
9.2.1 Authority responsible forthesubsidy
TheMinistry ofAgriculture through theNational Forest Service.
9.2.2 Legislation under which itisgranted
"Regulation onsubsidies forforest management planning" of22April 1994.
Theyearly State Budget.
9.2.3 Policy objective ofthesubsidy
Tostimulate forest management planning asabasic measure topromote sustainable forestry
while including:
- active short andlongtermeconomic trade utilization oftheforest resources
- compliance anddevelopment ofallfunctions oftheforest related tobiological diversity,
landscape, cultural inheritance andrecreational activities
9.2.4 Form ofthesubsidy
Grants.
9.2.5 Towhom andhowthesubsidy ispaid
Thesubsidy isavailable forallowner categories andalltypes ofoperational forest land.
Provided acertain areacoverage ofpre-ordered individual forest management plans, thegrant
covers resource registration surveys oflarger designated areas andpreparation ofindividual forest
management plansontheindividual properties. Arearegistrations provide forest inventory andresource
summaries. Theprogramme alsosupports training inhowtoapply theforest management plan.
Thesubsidy rates aredecided bytheCounty Governor andarebased onthetotalresource
registration andplanpreparation cost. Theratevaries depending onregistration method andindividual
forest ownership sizes. Priorities aregiven tosmaller properties participating injointmunicipality
surveys.
Arearegistrations mayunder certain circumstances besubsidized with100percentofthecost,
while theratesforpreparing individual forest management planvaries considerably between theregions.G/SCM/N/3/NOR
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Normally, subsidies arenotgranted toproperties thathave received payments from thissubsidy
programme within thelast10yearperiod.
9.2.6 Amount ofsubsidy
Thebudget allocations for1994 were NOK 35million.
Onanaverage, thesubsidies amounted toNOK 63-perhectare fortheprepared forest
management plans, orNOK 3250 -perindividual forest property.
9.2.7 Duration ofthesubsidy
Starting date: 1971. Duration hasnotbeenspecified.
9.2.8 Trade effects ofthesubsidy
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
9.3 Subsidies forAfforestation andSilviculture
9.3.1 Authority responsible forthesubsidy
TheMinistry ofAgriculture through theNational Forest Service.
9.3.2 Legislation under which itisgranted
"Regulation onsubsidies forafforestation andsilviculture" of16May1994.
9.3.3 Policy objective ofthesubsidy
Tostimulate totheestablishment andthecomposition ofquality forests atthesame timeas
theenvironmental values related tobiological diversity, landscape, cultural inheritance andrecreational
activities areattended toandfurther developed.
9.3.4 Form ofthesubsidy
Grants.
9.3.5 Towhom andhowthesubsidy ispaid
Thegrantiseligible throughout thecountry, butpriority isgiven toNorthern Norway. Western
Norway andthemountainous regions tobuildupquality forests innon-forested areasandsecure district
employment. Allforest owner categories withtheexception oflarger forest owners withanannual
harvestable volume of3,000 m3intheforest regions ofEastern Norway areeligible. Onlyproperties
exceeding 1.0hectare ofproductive forest landareeligible. Bothnatural- andplantation forest are
included.
Thegrant isgiven either asapercentage ofthetotalverified costsorasaperhectare subsidy.
Thegrantmayinclude: afforestation andregeneration (sitepreparation, scarification, planting, seeding,
fencing, fertilization etc), supplementary work andmaintenance ofyoung forest, planning and
administration works. Thesubsidy ratesarestipulated bytheCounty Governor, based onregional,G/SCM/N/3/NOR
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advisory guidelines established bytheMinistry ofAgriculture, andvaries according totheregions
involved andtypeofwork included;
Conditional requirements; socially economically beneficial, accomplished according to
professional andenvironmental standards, minimum treatment areaof0.2hectares, follow-up offuture
maintenance workaccording togovernmental standards. Ifcontrol measures reveal thattheconditional
requirements arenotmet,thegrant including interest must berepaid.
9.3.6 Amount ofsubsidy
Thebudget allocations for1994 were NOK 121million.
Afforestation wasin1994 subsidized with0-70percentofthetotalcost,witha30percent
country average. Sitepreparation/scarification wasonanaverage subsidized withNOK 480perhectare
(total grant islimited toNOK 2.3million). Supplementary work andmaintenance ofyoung forests;
clearing andpre-commercial thinning wereontheaverage subsidized withNOK 1,920 perhectare.
9.3.7 Duration ofthesubsidy
Starting date: 1931. Duration hasnotbeenspecified.
9.3.8 Trade effects ofthesubsidy
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
9.4 Subsidies forConstruction ofForest Roads
9.4.1 Authority responsible forthesubsidy
TheMinistry ofAgriculture through theNational Forest Service.
9.4.2 Legislation under which itisgranted
"Regulation onsubsidies forconstruction offorest roads" of28June1994.
9.4.3 Policy objective ofthesubsidy
Toconstruct andreconstruct forest roads fortransport ofround wood fromtheforest, toease
theaccess andprovide possibilities forrational forest management andoperation offorest land. Priority
isgiven toregions withlowincome. Theforest roaddensity onproductive woodland inNorway is
stillinadequate andvaries considerably between theregions.
9.4.4 Form ofthesubsidy
Grants.
9.4.5 Towhom andhowthesubsidy ispaid
Allforest owners areeligible forgrants onwoodland where forestry maybeeconomically
operated. Priority isgiven totheNorthern, Western andthemountainous regions.G/SCM/N/3/NOR
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Grants maybeoffered fornewconstruction offorest truck andtractor roads andforthe
rebuilding ofexisting roads resulting inahigher roadstandard.
Thesupport iscalculated asapercentage ofthetotalverified costs.
Theapplied ratesvaryaccording totheestablished priorities. Themaximum grant ratesare;
Northern Norway: 75percent,Western Norway andmountainous districts: 60percent,typical forestry
regions 40percent.
Theforest roadmustbeplanned andbuiltaccording toroadstandards setbytheMinistry of
Agriculture.Financialprogrammeandprojectdescriptionincludingenvironmentalstandardsasoutlined
bytheMinistry mustbeincluded. Additional requirements include; approved bookkeeping procedures,
future maintenance routines, freeroadusebyofficials from theMinistries ofEnvironment and
Agriculture, sustainable harvesting andreforestation ofwoodland tributary totheroadsystem.
Ifcontrol measures reveal thattheconditional requirements arenotmet,theNational Forest
Service mayclaim grant repayment including interest.
9.4.6 Amount ofsubsidy
Thebudget allocation amounted toNOK 85.4million in1994. Theaverage annual subsidy
toeachroadproject amounts toabout NOK 15-20,000 perforest owner. Thiscorresponds toabout
NOK 10percubic metre harvested within theroadarea, orabout 3percentofthegross product sale
value.
9.4.7 Duration ofthesubsidy
Starting date: 1961. Duration hasnotbeenspecified.
9.4.8 Trade effects
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
9.5 Subsidy forHarvesting ofRound Wood inDifficult Terrain
9.5.1 Authority responsible forthesubsidy
TheMinistry ofAgriculture through theNational Forest Service atcounty.
9.5.2 Legislation under which itisgranted
"Regulation onsubsidies forharvesting ofround wood indifficult terrain", of28April 1994.
9.5.3 Policy objective ofthesubsidy
Regional assistance: Jobcreations andahigher level ofeconomic activity inrural regions
through asustainable utilization oftheforest resources indifficult andsteep terrain.G/SCM/N/3/NOR
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9.5.4 Form ofthesubsidy
Grants.
9.5.5 Towhom andhowthesubsidy ispaid
Allprivate, community orstateforests areeligible. About ¼oftheproductive forest area
inNorway isclassified assteep anddifficult terrain. About onehalfofthisareaisfurther specified
asextremely difficult, where theharvesting ofround wood depends ontheuseofcable cranes orother
work intensive methods. These areas aremainly located inruraldistricts where thepopulation and
thepossibilities foremployment maybelow.
Certain conditional requirements related toforest management- andenvironmental procedures
must bemettobeeligible forsubsidy payments.
Thesubsidies maybeallocated perhectare harvested andarebased onthesteepness ofthe
terrain andlength ofthehillside. Subsidies aregiven inharvesting areas withhillsides exceeding
75metres inlengths andterrain steepness exceeding 60percentiftractor operation ispossible and
exceeding 40percentifonlysuited forcable crane operation.
Subsidies mayalsobeallocated percubic metre iftheextraction involves exceptionally long
terrain transport oruseofmore thanonesingle harvesting system.
Foroperations interrain withsteepness exceeding 60percentandwhere theharvesting may
beaccomplishedbyusingtractor,thesubsidyrateisNOK4,000perhectarewithamaximumofNOK60
percubic metre. Forterrain withsteepness exceeding 40percent, where onlycable cranes maybe
usedandthelength ofthewinching islessthan150metres, anequal unitrateapplies. Forcable
operations exceeding 150metres, thegrant rateisNOK 6,000 perhectare. Forterrain transport
exceeding 2kmasubsidy rateofNOK 30percubic metre andkmmaybegranted.
9.5.6 Amount ofsubsidy
Theannual budget allocation amounted toNOK 13million in1994. Theaverage subsidy equals
NOK 46percubic metre, corresponding toabout 15-25 percentoftheharvesting costs. Theaverage
annual grant toeachreceiver amounts toabout NOK 10,000, withmaximums ofNOK 150,000.
9.5.7 Duration ofthesubsidy
Startingdate:1976.Theintentionhasbeentograduallyreducetheallocationsaspropermethods
areintroduced andverified.
9.5.8 Trade effects ofthesubsidy
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
9.6 Subsidies forTransport inForestry
9.6.1 Authority responsible forthesubsidy
TheMinistry ofAgriculture through theNational Forest Service.G/SCM/N/3/NOR
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9.6.2 Legislation under which itisgranted
"Regulation onsubsidies fortransport inforestry" of11November 1993.
9.6.3 Policy objective ofthesubsidy
Toincrease theforest activities primarily intheWestern andNorthern Norway bysecuring
adelivery system oftimber andround wood atacceptable prices. TheNorthern andWestern regions
arestillnotabletoprovide adequate quantities toenable theregional establishment ofmajor wood
processingindustries.Thisimpliesthatmostroundwood(especiallythepulpwood)hastobetransported
bytruck/ferry prior toshipping withocean freighters totheexisting processing industries.
9.6.4 Form ofthesubsidy
Grants.
9.6.5 Towhom andhowthesubsidy ispaid
Allwood assortments orwood products areeligible forsupport, butthemajor partofthegrant
issupporting transport ofpulpwood fromWestern Norway andhardwood totheparticle board industry
inNorthern Norway.
Thegrants maybegiven as:
- Direct unitsubsidies inNOK percubic metres where thetransport isunusually long
andexpensive
- Investment subsidies forinfrastructures which provide forcommunity improvements
ofthetransport offorest products.
Investment subsidies aregranted tocooperative community infrastructures -piers, docks, etc.,
constructed forstoring andloading ofround wood fortransport bysea.
Thetransport issubsidized onthecondition thatthegrants should onlycover partsofthecosts
exceeding the"normal" national average. Thewestern Norway wood transport isabout twice thecost
ofthenational average. Ifcontrol measures reveal thattheconditional requirements arenotmet,the
National Forest Service mayclaim thegrant payment including interest toberepaid.
9.6.6 Amount ofsubsidy
Thebudget allocations amounted toNOK 9.6million in1994.
In1994, about 400,000 cubic metres weresubsidized under thetransport grant programme,
which amounts to4percentofthenational totalofround wood volume sold.
9.6.7 Duration ofthesubsidy
Starting date: 1976. However, ithasbeenclearly stated inthenational forest policy programme
thatthegrant willbede-escalated astheconditions areimproved. Theexisting grant isconsequently
proposed tobeterminated in1996.G/SCM/N/3/NOR
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9.6.8 Trade effects ofthesubsidy
Statistical datamaking possible anassessment ofthetradeeffects ofthesubsidy isnotavailable.
10. TheAgricultural Sector
I. Introduction
Thenotification ofthesubsidies intheagricultural sector herepresented, isaiming atgiving
abriefoverview oftherelevant agricultural subsidy programmes. Thenotification isinlinewiththe
previousnotificationsbyNorwaytotheCommitteeonSubsidiesandCountervailingMeasuresasregards
extent ofinformation. Notifications willalsobepresented totheAgricultural Committee within the
timelimits laiddown intheAgricultural Agreement.
II. Information onthesubsidy programmes
Thereplies areenumerated according tothedraftquestionnaire indocument G/SCM/W/8,
page3.
1. Thevarious programmes arepresented under paragraphs 5and7below.
2. Thenotification covers theschemes which entered inforce 1July1995 andwhich willlast
until30June1996.
3. Norwegian agricultural policy isimplemented inpursuit ofobjectives concerning production,
income, productivity, regional development andtheenvironment. Important changes havetaken place
intheagricultural policy overthelastyears, andthetwolatter objectives aregiven ahigher priority.
4. Themaximum levelforfarmproduct prices andthefiscal support tobeaccorded toagriculture
arelaiddown intheannual Agricultural Agreement between thefarmers 'unions andtheGovernment.
Theannual Agricultural Agreement issubject toratification andappropriation ofbudget funds bythe
Storting. Allocations fortheAgricultural Agreement aremade under Chapter 1150 (Ministry of
Agriculture) oftheState Budget. Under Chapter 1580 (Ministry ofGovernment Administration),
item70,allocations aremade fortheregulation ofconsumer prices.
5. Support isprovided forgrains andoilseeds, fruits andvegetables, milkanddairy products,
beef, veal,sheep, pigandpoultry meat, eggsandwool. Forthevarious sectors thebelow mentioned
support schemes apply.
A. Themilksector
Milkproducers receive abasicpricesupport applicable equally toalloutput within thedomestic
production ceiling, duetothefactthatmilkproduction isofvitalimportance inseveral ruralregions.
Inthese regions alternative forms ofagricultural production arescarce. Thedairy farmers arepaid
asupport foreachlitreofmilkdelivered tothedairy. Theamount varies according towhich district
thefarmers arelocated. Thehighest support isgiven inthenorthernmost districts.
There isnoconsumer pricesubsidies onliquid milkandcheese consumed domestically. They
arepaidcompensation forthevalue added taxonthese products.G/SCM/N/3/NOR
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Ageneral structural support, alsocalled structural income support, isgiven toeachproduction
of30,000 litres ofcow'smilkandof15,000 litres ofgoat'smilk. Theoverriding object istoequalize
income between large andsmall holdings.
B. Themeatsector
Producers ofsheep meat, beefandvealreceives abasic price support applicable equally to
alloutput within thedomestic production ceilings.
Regionally differentiated price support tomeat(except forpoultry meat) isgranted atrates
varying bothbetween kinds ofmeatandregion. Aswithmilk, thehighest support isachieved inthe
northernmost county. Inorder toavoid differences infarmgatereturn, duetodifferences inthedistance
offarms from processing plants, atransport support isgranted.
They arepaidcompensation forvalue added tax.
C. Eggs
Intheeggstransport support isgranted asformeatandgrain. Asupply control programme
provides some support totheparticipating eggsproducers.
D. Wool
TheMeatMarketing Organization receives asupport tomaintain theNorwegian producer price
forwool above theworld market price level.
E. Thegrain sector
Anewmarket system wasintroduced bythe1995-96 Agricultural Agreement. Itisapolicy
objective tomaintain thecurrent production levelongrain. Tofulfilthisobjective therearemaintained
guaranteed producer prices fordomestic grain andoilseeds. There arefurthermore provided some
transport support tograin forthesame reason asgiven above formeat.
F. Potatoes andhorticultural products
Potatoes andhorticultural products receive some support under schemes aiming atregulating
themarket andimproving thequality.
G. Headage andAcreage support
There arepayments based onnumber ofanimals andcultivated areainagricultural production.
Thisincludes anacreage andcultural landscape scheme andananimal headage support. Thepresent
headage support scheme is,except fortechnical adjustments, identical totheformer man-year support
scheme.
H. Vacation andTemporary Substitute Scheme
Inorder toenable livestock producers vacation andtimeoffinlinewithother occupational
groups andwage-earners, thesefarmers arerefunded legitimized expenses connected tohiring vacation
workers onthefarms under avacation andtemporary substitute scheme. Thefarmers musthavean
approved temporary substitute scheme, andtheexpenses must bedocumented.G/SCM/N/3/NOR
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I. Market regulation
Market regulation funds areusedtoregulate themarket formeat, eggsfruits andvegetables
inorder tosecure thetarget prices forthedifferent products fixed intheAgricultural Agreement.
These prices arethemaximum level fortheaverage market price overtheyear. Tariff reductions
canbeusedtoadjust thedomestic prices. Funds necessary formarket intervention areallocated in
accordance withtheAgricultural Agreement overtheStateBudget andfromaproducer financed levy.
Thefunds granted overtheState Budget havebeensignificantly reduced overthelastyears.
6. Oftheabove-mentionedprogrammespricesupportschemes,structuralincomesupportschemes,
theacreage andheadage support schemes aswellasthevacation andtemporary substitute scheme are
granted directly tothefarmers. Therestoftheprogrammes aremarket regulation schemes andother
indirectly supported schemes.
7. Theamount ofsupport measured bytotalcostbudgeted for1994 and1995 arelisted inthe
tables 1to5below.
Table 1 Chapter 1150, Agricultural Agreement, MioNOK1
1994 1995
Agricultural Development Fund 456.8 456.8
Market Regulation 125.1 114.7
Price Support 2,887.0 2911.5
Other direct payments toproducer 7,256.0 6,823.4
Table 2 Chapter 1150, Price Support, MioNOK
1994 1995
Milk andmilkproducts 998.3 896.0
Beef, veal, sheep meat, pigmeat 902.2 874.0
Cereals 714.0 876.4
Wool 202.4 168.1
Other 70.1 97.0
Total 2,887.0 2,911.5
1Source: Proposition No.48(1993-94) andNo.61(1994-95) totheStorting from theMinistry
ofGovernment Administration. Note thatingeneral bothfigures arepreliminary.G/SCM/N/3/NOR
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Table 3 Chapter 1150, Other direct payments toproducers, MioNOK
1994 1995
Structural income support 1,716.3 1,573.6
Headage support, animals22,231.7 1,948.0
Acreage andcultural landscape scheme 2,803.2 2,874.1
Production support onmarket crops 48.6 55.0
Transport support, meatandeggs 87.2 84.7
Other 369.0 288.0
Total 7,256.0 6,823.4
Table 4 Basic price support, amount perunit3(ore4perlitre/kg):
1.7.94-30.6.95 1.7.95-30.6.96
Milk 26.5 22.2
Beefandveal 335.0 295.0
Sheep meat 490.0 450.0
Table 5 Regionally differentiated price support, amount perunit(oreperlitre/kg):
1.7.94-30.6.95 1.7.95-30.6.96
Milk50/156 0/158
Meat60/1,300 0/1,300
8. Theschemes areinprinciple oneyear lasting asthey aretheresult oftheannual
AgriculturalAgreementbetweenthefarmers'unionsandtheGovernmentwhicharesubjecttoratification
bytheStorting. Theoverall framework doesusually notchange from oneyeartoanother. There
is,however, anongoing process toreview andevaluate thevarious programmes, especially asthere
hasbeenanobjective toreach more simple andtransparent support schemes.
2Theprogrammes havebeenrevised, cf.reply toquestion 5(A).
3Source: Same as1.
4100ore=NOK 1.
510zones, varying rates, lowest andhighest cited.
65zones, varying rates, lowest andhighest cited(varies alsoforkindofmeat).G/SCM/N/3/NOR
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9. Anassessment ofthetradeeffects ofthesubsidies isnotavailable. Below thereare,however,
presented statistics ofproduction, consumption, imports andexports ofthemajor agricultural
commodities.7ForGrains, meatandeggsthe1994 dataareprovisional figures, andforallproducts
the1995 dataareforecasts.
Table 6 Cow'smilk
Year Received bydairies Consumption, million kg
Million litres Whole, lowfat and
skimmed milkCream andsourcream
1991 1,792 718.7 28.5
1992 1,784 722.8 28.5
1993 1,780 703.2 28.8
1994 1,753 694.6 29.0
1995 1,740 684.4 27.9
Table 7 Cheese (1,000 tons)
Year Production Exports Imports Consumption
1991 78.9 22.3 2.4 56.3
1992 77.8 26.8 2.4 57.5
1993 80.1 22.2 2.4 60.5
1994 79.7 21.9 2.3 59.8
1995 81.8 24.4 2.3 59.7
Table 8 Butter (1,000 tons)
Year Production Exports Imports Consumption
1991 21.4 7.4 0.0 14.2
1992 20.2 5.8 0.0 13.3
1993 19.6 7.6 0.0 13.2
1994 17.3 4.0 0.0 12.9
1995 15.6 3.5 0.0 11.6
7Source: Budget Committee onAgriculture foralldataexcept dataforgrains which areprovided
bytheNorwegian Grain Corporation.G/SCM/N/3/NOR
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Table 9 Cereals (million kg)8
Year Production Imports Exports Consumption
Wheat
1991 245.5 181.1 5.4 428.1
1992 195.1 274.5 10.7 413.7
1993 360.2 243.3 9.3 489.0
1994 253.1 301.4 7.3 539.6
1995 363.0 notavailable 0.0 notavailable
Rye
1991 5.0 28.3 3.0 38.9
1992 3.7 33.0 0.0 35.4
1993 12.4 28.4 0.0 34.1
1994 7.0 36.8 0.0 41.9
1995 14.0 notavailable 0.0 notavailable
Barley
1991 660.6 48.9 0.0 569.8
1992 485.0 0.0 0.0 635.1
1993 630.0 46.7 0.0 767.1
1994 492.8 206.0 0.0 667.1
1995 649.0 notavailable 0.0 notavailable
Oats
1991 564.8 0.1 0.0 489.1
1992 329.6 0.0 50.0 553.7
1993 379.8 0.0 0.0 390.7
1994 291.9 17.5 0.0 341.8
1995 421.0 notavailable 0.0 notavailable
8Production +Import -Export maydiffer fromconsumption figures. These differences aredue
tochanges instocks andstoring losses. Figures forimport andconsumption for1995 havenotbeen
available.G/SCM/N/3/NOR
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Table 10 Meat (1,000 tons)9
Year Production Imports Exports Consumption
Beefandveal10
1991 79.4 1.4 2.8 79.0
1992 83.8 1.3 5.9 78.6
1993 83.1 1.4 3.6 82.2
1994 86.7 2.0 1.4 86.7
1995 85.3 3.0 0.5 88.5
Mutton
1991 23.3 0.3 0.0 23.0
1992 23.9 0.2 0.0 23.7
1993 25.2 0.3 0.5 25.7
1994 26.0 0.4 0.0 25.1
1995 25.8 0.3 0.5 25.6
Pork11
1991 85.1 2.8 1.3 86.1
1992 90.8 3.5 5.6 87.3
1993 89.8 5.1 2.8 93.4
1994 91.0 5.5 0.5 96.6
1995 93.8 5.0 0.5 99.0
Poultry meat
1991 20.2 0.3 0.0 21.8
1992 22.7 0.3 0.0 21.4
1993 22.8 0.3 0.0 24.2
1994 25.5 0.4 0.1 26.9
1995 29.5 0.5 0.1 28.8
9Production +Import -Export maydiffer from consumption figures duetochanges instocks.
10Thedataforimport andexport for1991-93 differ fromthe1994notification. Thismayoriginate
fromdifferent statistical sources, therethehandling oftransit importation mayhavecaused differences.
11Cf.note8.G/SCM/N/3/NOR
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Year Production Imports Exports Consumption
Eggs
1991 50.3 0.2 1.7 47.5
1992 50.8 0.1 1.6 47.9
1993 51.3 0.1 2.6 47.5
1994 51.4 0.0 2.1 48.0
1995 50.9 0.5 0.9 48.4