Norway has been given the go-ahead to expand an aid scheme to encourage the use of local seafarers.
The programme provides tax and social security contribution refunds to shipping companies.
Approval today by the European Free Trade Association Surveillance Authority (ESA) means Norway can press ahead with plans to include also passenger ferries registered in the Norwegian International Ship Register (NIS) and which offer overnight accommodation on routes exceeding 300 nautical miles between Norwegian and foreign ports.
Annual budget allocation for the extension is NOK 100m ($12.8m) which will be used to reimburse shipping companies in relation to European Economic Area (EEA) seafarers on NIS registered ships.
“EEA rules do not require any changes to the seafarer scheme,” said ESA president Bente Angell-Hansen.“However, the Norwegian government wishes to expand the scheme and may choose to do so.”
She says maritime transport services are of “vital importance to the EEA” and are marked by “fierce international competition.”
Norway’s aim was to maintain EEA employment and EEA maritime know-how, adds Angell-Hansen. The current aid scheme came into force in 2016 and runs until 2026.
Norway first proposed its extension in its Maritime Strategy in May 2015.
However, the government awaited the outcome of an ESA internal market investigation of the NIS.
ESA found there was no breach of internal market rules and closed its investigation in November 2017.
The amended measure is planned to enter into force 1 July 2018.
