G/SCM/N/95/EEC/Add.3
Page 117
Organization
G/SCM/N/95/EEC/Add.3
15 December 2003
(03-6586)
Committee on Subsidies
and Countervailing Measures / Original: English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of the European Community relates to subsidy programmes of Denmark.
DENMARK
TABLE OF CONTENTS
Page
I. Ministry of Food, Agriculture and Fisheries 7
1. Subsidies and State Aid to Danish Agriculture and Fisheries - 2001 7
1.1 Income support programmes 8
1.1.1 Refinancing of mortgage loans etc. in agricultural holdings 8
1.1.2 Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage loans 9
1.1.3 Subsidy to payment of agricultural indexed loans 9
1.1.4 Debt rescheduling scheme for farmers 10
1.1.5 Debt reorganisation for farmers 10
1.1.6 Aid scheme to benefit less-favoured agricultural areas 11
1.2 Structual programmes 12
1.2.1 Young Farmers’ Scheme 12
1.2.2 Land consolidation programme 13
1.3 Environmental programmes 14
1.3.1 Agricultural investments with the aim of protecting and improving the environment 14
1.3.2 Guarantee for loans for agricultural investments with the aim of protecting and improving the environment 15
1.4 Measures to compensate for losses due to damage to agricultural production or means of production 16
1.4.1 Guaranteed “drought-loans” with repayment subsidy (1992) 16
1.4.2 Control of animal diseases, Compensation for animals, feed etc. destroyed as part of the control programmes for animal diseases 17
1.4.3 Control of Salmonella in poultry. Reimbursement of expenses for analyzing eggs for Salmonella for small producers 18
1.4.4 Control of Salmonella in poultry 19
1.4.5 Storm damage aid scheme 20
1.5 Research 21
1.5.1 Public Agricultural and Fishery Research Institution 21
1.6 General measures 22
1.6.1 Promille Levy funds and Production levy Funds 22
1.6.2 Aid to promote development of agricultural and fishery products 23
1.6.3 Advisory services in agriculture 24
1.7 Community-related programmes 25
1.7.1 Aid for investments in animal welfare 25
1.7.2 Vocational training in agriculture 26
1.7.3 Environmentally friendly farming 27
1.7.4 Early retirement from farming 28
1.7.5 Establishment of shelter belts 29
1.7.6 Organic farming 30
1.7.7 Investments for improving the processing and marketing conditions for agricultural and forestry products 31
1.7.8 Development of specific rural areas 32
1.8 Other programmes 33
1.8.1 Farm Relief Services 33
1.8.2 Analyzing for aflatoksin in milk 34
1.8.3 Expenses to veterinaries in special cases 35
1.8.4 Measures to improve the production of honey 36
1.8.5 Subsidy to certified lots of cereal seeds and seeds of beet, fodderplants, oil and fibre plants 37
1.9 Fisheries 38
1.9.1 Fishing vessels – permanent cessation 38
1.9.2 Fishing from the coast (hauling up vessels) 39
1.9.3 Processing 39
1.9.4 Advisors for Fishery and Aquaculture 40
1.9.5 Constructions of vessels 40
1.9.6 Aquaculture 41
1.9.7 Modernisation of fishing port facilities 41
1.9.8 Market promotion for fishery and aquaculture products 42
1.9.9 Aid for young fishermen 42
1.9.10 Preretirment of fishermen 43
1.9.11 PESCA 43
1.9.12 Modernisation of fishing vessels 44
1.9.13 Pound net fishermen 44
1.9.14 Experimental fishing and fish processing development 45
1.9.15 FØTEK 45
1.9.16 Innovative actions etc. 46
1.9.17 The Fishery Fund 46
2. Subsidies and State Aid to Danish Agriculture and Fisheries - 2002 47
2.1 Income support programmes 48
2.1.1 Refinancing of mortgage loans etc. in agricultural holdings 48
2.1.2 Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage loans 49
2.1.3 Subsidy to payment of agricultural indexed loans 50
2.1.4 Debt rescheduling scheme for farmers 50
2.1.5 Debt reorganisation for farmers 51
2.1.6 Aid scheme to benefit less-favoured agricultural areas 52
2.2 Structural programmes 53
2.2.1 Young Farmers’ Scheme 53
2.3 Environmental programmes 54
2.3.1 Agricultural investments with the aim of protecting and improving the environment 54
2.3.2 Guarantee for loans for agricultural investments with the aim of protecting and improving the environment 55
2.4 Measures to compensate for losses due to damage to agricultural production or means of production 56
2.4.1 Guaranteed “drought-loans” with repayment subsidy (1992) 56
2.4.2 Control of animal diseases, Compensation for animals, feed etc. destroyed as part of the control programmes for animal diseases 57
2.4.3 Control of Salmonella in poultry. Reimbursement of expences for analyzing eggs for Salmonella for small producers 58
2.4.4 Control of Salmonella in poultry 59
2.4.5 Surveillance of TSE in cattle, sheep and goats 60
2.5 Research 61
2.5.1 Public Agricultural and Fishery Research Institution 61
2.6 General measures 62
2.6.1 Per mille tax funds and Production tax funds for the sectors of agriculture and gardening 62
2.6.2 Aid to promote development of agricultural and fishery products 64
2.6.3 Advisory services in agriculture 65
2.7 Community-related programmes 66
2.7.1 Aid for investments in animal welfare 66
2.7.2 Vocational training in agriculture 67
2.7.3 Environmentally friendly farming 68
2.7.4 Early retirement from farming 69
2.7.5 Establishment of shelter belts 70
2.7.6 Organic farming 71
2.7.7 Improving processing and marketing of agricultural products 72
2.7.8 Community Initiative LEADER+ 73
2.7.9 Rural adaptation and development 74
2.8 Other programmes 75
2.8.1 Farm Relief Services 75
2.8.2 Analyzing for aflatoksin in milk 76
2.8.3 Expenses to veterinaries in special cases 77
2.8.4 Measures to improve the production of honey 78
2.8.5 Subsidy to certified lots of cereal seeds and seeds of beet, fodderplants, oil and fibre plants 79
2.9 Fisheries 80
2.9.1 Permanent withdrawal 80
2.9.2 Hauling up vessels 81
2.9.3 Investments in the processing for fish products 81
2.9.4 Advisors for Fishery and Aquaculture 82
2.9.5 Construction of vessel 82
2.9.6 Investments in Aquaculture 83
2.9.7 Fishing ports facilities 84
2.9.8 Market promotion for fishery and aquaculture products 85
2.9.9 Aid for young fishermen 86
2.9.10 Modernisation of fishing vessels 87
2.9.11 Experimental fishing and fish processing development 88
2.9.12 FØTEK 88
2.9.13 Innovative measures and operations by members of the trade 89
2.9.14 Innovative actions etc. 90
2.9.15 Production tax funds for the sector of fishery 91
II. The Danish Ministry of Economic and Business Affairs 92
1. Centre contracts for tourism 92
III. The Danish Ministry of Economic and Business Affairs, Danish Maritime Authority 94
1. Subsidies to the education of seafarers 94
2. Subsidies in the form of reduction/cancellation of stamp duty. 94
3. Rentestøtteordningen (Interest-subsidy scheme). 95
4. Garantifonden for skibsbygning (The guarantee scheme). 96
5. Fragtskibsordningen (Guarantee Scheme for Small Cargo Ships). 96
6. Driftsstøtteordningen (Contract-subsidy scheme). 96
IV. The Danish Ministry of economic and business affairs, national agency for enterprise and housing 98
V. The Danish Ministry of Economic and Business Affairs, Danish Energy Authority 99
1. Development Programme for Renewable Energy (N 42/98) 99
2. Act on CO2 Quota for Electricity Production 100
3. Act no 375 of 2 June 1999 on the Electricity Supply Bill 101
4. Act no 375 of 2. June 1999 on the Electricity Supply Bill 101
5. Act no 375 of 2 June 1999 on the Electricity Supply Bill 102
6. rescuing and restructuring of distressed enterprises (N 666/94) 102
7. Governmental subsidy to promote the connection to combined power and heat distribution systems based on coal 103
8. governmental subsidy for product oriented saving programme. 103
9. Electricity Saving Trust No. 1209 104
10. Subsidies for energy savings etc. in private companies 105
11. Grant scheme for reimbursement of CO2-tax expenses to enterprises with a high energy consumption. 105
12. Subsidies for Electricity Production. 106
13. Grant scheme for investments in converting or expanding district heating plants to use of biomass fuels for heat or combined heat and power generation. 107
VI. The Danish Ministry of Employment 107
1. Job training and individual job training under the Act on an active labour market policy 107
2. Job training and individual job training under the Act on active social policy 108
3. Flex-jobs and sheltered jobs 109
VII. The Danish Ministry of Science, Technology and Innovation 110
1. Technology Transfer Institutes (TTI’s) 110
2. The Industrial PhD Fellowship Programme 111
VIII. The Danish Ministry of Environment, The Agency for Environment 112
1. Subsidy scheme for Cleaner Products 112
IX. The Danish Ministry of Environment, Forest and Nature Agency 113
1. Product Development Scheme for Forestry and Wood Working Industry 113
X. The Danish Ministry for Transport 114
1. Accounting regulations for Post Denmark 114
2. Environmental grants to freight transport by rail 116
I. Ministry of Food, Agriculture and Fisheries
1. Subsidies and State Aid to Danish Agriculture and Fisheries - 2001
Introduction
This notification covers in principle all national aid to the Danish agricultural and fisheries sectors in the fiscal years 2000 (1. January – 31. December) and 2001 and the budgeted amounts for the fiscal year 2002. Consequently, the measures and programmes included are notified irrespective of whether they themselves warrant a notification under article 25 of the SCM-Agreement. The fact that they are notified does not imply that they are “specific” or that they have any effect on trade.
The notification follows the outline suggested by the WTO and uses the following format:
1. Title of programme in English
Title of programme in Danish
2. Article in The Finance Act
3. Form of subsidy:
(a) Grants
(b) Tax relief
(c) Subsidies financed by recycled revenues from taxes and duties
(d) Subsidised rents
(e) Loans at a lower rent
(f) Guaranties
(g) Other forms of subsidies and financing of working capital for public service companies
4. Amount used on the programme in 2000 (F: Final), 2001 (E: Estimated), 2002 (B: Budget)
5. Policy objective of the programme
6. Duration
7. Statistical data (estimate of trade effects)
8. Legal basis (Act or Order)
9. Rules and conditions (for obtaining aid under the programme)
10. The number of new receivers of subsidy and new subsidy arrangements plus an estimate of the number of new or preserved places of work
A number of the programmes included are the national implementation of Community programmes (e.g. the accompanying measures), and are partly financed by the Community, partly by Denmark. In order to make them easily distinguishable from the purely nationally financed programmes, they are listed under a separate heading.
1.1 Income support programmes
1.1.1 Refinancing of mortgage loans etc. in agricultural holdings
1. Refinancing of mortgage loans etc. in agricultural holdingsRefinansieringsordningen for landbruget
2. FFL§ 24.24.44 / Form no.: (SG(88) D/14509)
2000 (F) / 2001 (E) / 2002 (B)
Mio. DKK
EU-refunds / 4 / 4. / 4.
National financed / 3.
e / 4.
49.7 / 4.
37.4 / 4.
39.2
5. . To ease the financing costs for farmers by rescheduling existing loans to new long-term low interest loans.
6. Last date for application: 15 December 1989. Term of loans: 10 or 30 years.
7. The programme has no effects on trade.
8. Act No. 372 of 11 July 1988
9. To be eligible for refinancing the applicant had to have agriculture as main occupation, have a dept percentage of more than 30 and have economic survival capability. The government took over the debt commitments for the loans in question, and in return the farmers undertook commitments for new low-interest mortage loans (approximately 2/3 of the interest of ordinary mortage loans) or indexed loans.
10. Estimates are not available.
Other: Aid is no longer available.
1.1.2 Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage loans
1. Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage loansStatsligt afdragsbidrag til jordbrugslån i forbindelse med refinansieringsordningen for landbruget
2. FFL§ 24.24.45 / Form no.: SG(88) D/14509
2000 (F) / 2001 (E) / 2002 (B)
Mio. DKK
EU-refunds / 4 / 4. / 4.
National financed / 3.
d / 4.
4.7 / 4.
1.0 / 4.
0.6
5. To ease the financing cost for farmers by reducing the payment on certain indexed loans.
6. Last date for application: 15 December 1989. Financial commitments for 10 or 15 years depending on term of loan.
7. The programme has no effects on trade.
8. Act No. 372 of 11 July 1988
9. The subsidy corresponds to 15 pct., 25 pct. or 30 pct. of the annual indexation of the loan, depending on the applicant´s debt percentage at the time of application.
10. Estimates are not available.
Other: Aid is no longer available.
1.1.3 Subsidy to payment of agricultural indexed loans
1. Subsidy to payment of agricultural indexed loansJordbrugslån med afdragsbidrag
2. FFL§ 24.24.53 / Form no.: SG(86) D/4116
2000 (F) / 2001 (E) / 2002 (B)
Mio. DKK
EU-refunds / 4 / 4. / 4.
National financed / 3.
d / 4.
5.3 / 4.
4.6 / 4.
2.4
5. To reduce the financing costs in agriculture by subsidising the payment on certain indexed loans.
6. Last application year: 1990. Financial commitments for 15 years.
7. The programme has no effects on trade.
8. Legal basis: Acts No. 841 and No. 850 of 20 December 1989; Act No 417 of 13 June 1990
9. Aid is no longer available. The subsidy corresponds to 30 pct. of the indexation of the loan.
10. Estimates are not available.
1.1.4 Debt rescheduling scheme for farmers
1. Debt rescheduling scheme for farmersGældssaneringsordningen
2. FFL§ 24.24.41.20 / Form no.: SG(93) D/7970
2000 (F) / 2001 (E) / 2002 (B)
Mio. DKK
EU-refunds / 4 / 4. / 4.
National financed / 3.
d + f / 4.
0 / 4.
0 / 4.
0.2
5. To assist farmers in need of debt rescheduling due to financial crisis.
6. Last application year: 1983. Term of loans: 13-23 years.
7. The programme has no effects on trade.
8. Legal basis: Act No. 131 of 9 April 1980
9. Aid is no longer available.
For a loan with a maximum size of DKK 0.7 mill. per applicant, a guarantee of 80 pct. is granted with an interest subsidy for the first 3 or 5 years.
10. Estimates are not available.
1.1.5 Debt reorganisation for farmers
1. Debt reorganisation for farmersGældssaneringsordning
2. FFL§ 24.24.41.30 / Form no.: SG(93) D/7970
2000 (F) / 2001 (E) / 2002 (B)
Mio. DKK
EU-refunds / 4 / 4. / 4.
National financed / 3.
f / 4.
24.9 / 4.
11.0 / 4.
8.9
5. To ease the future interest burden and improve the availability of funds through rescheduling of short-term high interest loans.