Brussels, 26/07/2001 (Agence Europe) - The European Commission has banned "development aid" granted in 1996 by France to investors financing the construction of the cruise ship "Le Levant", managed by Compagnie des Îles du Levant (CIL) in Saint-Pierre-et-Miquelon. It called on France to recover the aid from investors, since the CIL is not yet owner of the ship according to the leasing procedure.
France had granted tax relief to shipbuilders under the "Loi Pons", the aim of which is to promote investment in the overseas departments and territories. The tax deductions, which represent 34% of investment according to the Commission's calculations, allow the Compagnie des Îles du Levant to acquire the ship at a lower price.
European legislation on aid to shipbuilding allows some subsidies to shipbuilding as development aid for third countries or for overseas countries and territories, but the Commission considers that, in this case, it is not development aid. Since "Le Levant" will only call into port at Saint-Pierre-et-Miquelon ten days a year, the ship "will not contribute in any significant way to the development of Saint-Pierre-et-Miquelon", it comments in a press release. "Aid appears to be almost 7 times higher than the economic benefits to the islands", it states. After having accepted aid in 1995 under the "Loi Pons" for vessels navigating in Polynesia, the Commission considers abuse should be avoided.