Committee Reports::Interim and Final Report - Appropriation Accounts 1969 - 1970::28 June, 1973::Appendix



Cléireach an Choiste

um Chuntais Phoiblí,

Dáil Éireann.

With regard to Subhead P2—Interest Subsidy to Shipping Finance Corporation Ltd.—(Paragraph 77 of the Comptroller and Auditor General’s Report) I feel that I should clarify the position as regards EEC policy on subsidy financing.

My understanding at the time was that the members of the Committee wished to know whether a system of interest subsidies for ship building would, in general, be compatible with EEC requirements but I feel, on reading the text of the evidence, that my reply could give rise to misunderstanding.

The EEC Directive on aids for ship-building which I mentioned in reply to questions by the Committee on Subhead P.1. (Paragraph 76 of the C. & A. G.’s Report) permits credit aids provided they meet the conditions laid down by the OECD. These conditions permit a minimum lending rate of 7.5% net, limited to an 80% advance and an 8 year repayment period. The derogation which I referred to as having been secured in respect of the EEC Directive in its application to construction subsidies does not apply to the interest subsidy.

I should be glad if you would be so good as to bring this to the notice of the Committee so as to remove the possibility of any misunderstanding arising from the record of evidence.

Mise, le meas,


Accounting Officer,


Department of Industry and Commerce.

28 Samhain, 1972.