Finland puts use of EU support for shipyards on hold
Investigation into Italian shipyard practices failed to provide further clarification
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Finland will only consider EU innovation support for its shipbuilding industry once it has reviewed other EU countries' examples in the matter.
So far Germany is the only country that has introduced the so-called innovation support, even though the scheme has existed since 2002. Reportedly France and Spain are also considering the use of innovation support for their shipyard industries.
Finland's Minister of Trade and Industry Mauri Pekkarinen (Centre Party) considers the innovation support a mere substitute for the former shipyard support which was abolished within the European Union in March. In reality, claiming innovation support does not call for the use of new innovations in the industry.
"In recent years Finland has forcefully tried to minimise elements in the international scene that might distort competition", Pekkarinen told reporters on Wednesday.
According to Pekkarinen, it would be inconsistent of Finland to be among the first EU nations to introduce the use of innovation support to bolster its shipyard industry.
However, Finland may consider creating a support regime at some point if it becomes a common practice elsewhere in the Union.
In the middle of April, Aker Finnyards' letter of intent to build a luxury cruise liner for the Norwegian Cruise Line was annulled. When this happened, suspicions arose that the lack of an innovation support system in Finland may have contributed to the client's change of heart. Pekkarinen categorically denies this rumour.
The innovation support can only cover up to two percent of the price of the ship. In Germany the system has been introduced in a form of a loan: if the used innovation takes off the shipyard has to repay the support.
The Ministry of Trade and Industry recently probed into practices in Italy to find out if the government there supported the local shipbuilding industry with illegal subsidies.
The decision to look into the matter was made last year, when Finnish shipyards - which are owned by the Norwegian Aker Yards Group - repeatedly lost bidding contests to the Italian state-run Fincantieri shipyard.
The finding of the investigation was that Italy does not underwrite its shipyards with any illegal support systems.
Still, the Italian Navy is a significant client of Fincantieri, and the prices of the military vessel deals are kept secret.
"If the Italian government pays large sums of money for the military ships, this may well explain why the shipyard is able to offer such affordable prices to other clients", comments special researcher Mauno Harmo from the Ministry of Trade and Industry.
So far Germany is the only country that has introduced the so-called innovation support, even though the scheme has existed since 2002. Reportedly France and Spain are also considering the use of innovation support for their shipyard industries.
Finland's Minister of Trade and Industry Mauri Pekkarinen (Centre Party) considers the innovation support a mere substitute for the former shipyard support which was abolished within the European Union in March. In reality, claiming innovation support does not call for the use of new innovations in the industry.
"In recent years Finland has forcefully tried to minimise elements in the international scene that might distort competition", Pekkarinen told reporters on Wednesday.
According to Pekkarinen, it would be inconsistent of Finland to be among the first EU nations to introduce the use of innovation support to bolster its shipyard industry.
However, Finland may consider creating a support regime at some point if it becomes a common practice elsewhere in the Union.
In the middle of April, Aker Finnyards' letter of intent to build a luxury cruise liner for the Norwegian Cruise Line was annulled. When this happened, suspicions arose that the lack of an innovation support system in Finland may have contributed to the client's change of heart. Pekkarinen categorically denies this rumour.
The innovation support can only cover up to two percent of the price of the ship. In Germany the system has been introduced in a form of a loan: if the used innovation takes off the shipyard has to repay the support.
The Ministry of Trade and Industry recently probed into practices in Italy to find out if the government there supported the local shipbuilding industry with illegal subsidies.
The decision to look into the matter was made last year, when Finnish shipyards - which are owned by the Norwegian Aker Yards Group - repeatedly lost bidding contests to the Italian state-run Fincantieri shipyard.
The finding of the investigation was that Italy does not underwrite its shipyards with any illegal support systems.
Still, the Italian Navy is a significant client of Fincantieri, and the prices of the military vessel deals are kept secret.
"If the Italian government pays large sums of money for the military ships, this may well explain why the shipyard is able to offer such affordable prices to other clients", comments special researcher Mauno Harmo from the Ministry of Trade and Industry.
Helsingin Sanomat