Staying afloat
Last week the government accepted a draft bill, which would, if passed, allow shipyards in Poland to receive the same level of subsidies as other EU states.
According to EU regulations, the government can return up to six percent of the value of the shipyards' contracts in the form of subsidies, but must pass the bill by March 31. They will be able to make use of the support until the end of the first quarter of 2008.
Shipyards in the Netherlands, Italy, France, Denmark, Spain and Germany all make use of government subsidies. To even out the playing field, the Ministry of Economy argues that it's necessary to give Polish shipbuilders access to the same kind of aid.
Over the last three years, Polish shipbuilders have received nearly zł.1 billion. The draft bill envisages spending another zł.376 million over the next three years in order to ensure 125,000 jobs in shipyards and related sectors. This year will see zł.110 million paid out in aid, the lion's share going to the Sczeczin shipyard.
According to the Finance Ministry, the three main domestic shipyards pay nearly zł.256 million into the state budget every year, while another zł.120 million comes from related businesses. The subsidies should thus pay off, since the total inflows to the budget over the next three years should reach zł.890 million, more than twice the amount planned in subsidy expenses. Costs associated with the liquidation of Poland's three main shipyards (Szczecin, Gdynia and Gdańsk), were they not to survive, are estimated at zł.1.2 billion.
According to EU regulations, the government can return up to six percent of the value of the shipyards' contracts in the form of subsidies, but must pass the bill by March 31. They will be able to make use of the support until the end of the first quarter of 2008.
Shipyards in the Netherlands, Italy, France, Denmark, Spain and Germany all make use of government subsidies. To even out the playing field, the Ministry of Economy argues that it's necessary to give Polish shipbuilders access to the same kind of aid.
Over the last three years, Polish shipbuilders have received nearly zł.1 billion. The draft bill envisages spending another zł.376 million over the next three years in order to ensure 125,000 jobs in shipyards and related sectors. This year will see zł.110 million paid out in aid, the lion's share going to the Sczeczin shipyard.
According to the Finance Ministry, the three main domestic shipyards pay nearly zł.256 million into the state budget every year, while another zł.120 million comes from related businesses. The subsidies should thus pay off, since the total inflows to the budget over the next three years should reach zł.890 million, more than twice the amount planned in subsidy expenses. Costs associated with the liquidation of Poland's three main shipyards (Szczecin, Gdynia and Gdańsk), were they not to survive, are estimated at zł.1.2 billion.
