Innova funds for Chinese shipyards | FinanceAffairs.com

Innova funds for Chinese shipyards |  FinanceAffairs.com

Discussion posts: Asli Stronen

On May 24, Finansavisen reported that Enova is supporting Berge Rederi with 150 million tax kroner for the new bulk carrier. The ship was built in China. On the same day, the newspaper wrote that Enova was supporting Hunter Group with about $100 million to build two offshore wind energy vessels.

Companies that are both attractive and dynamic. But is it the state's task to help build a shipbuilding industry abroad? Throwing the baby out with the bathwater?

The state has many tasks. There is no doubt that sustainability and the environment are the two fundamental approaches of the public policy apparatus. Reducing global emissions from shipping is a global challenge.

What about the tiered model of government support?

The Norwegian policy apparatus contributes to the creation of jobs, expertise and productive capacity beyond Norway's borders. I'm thinking of Enova, Eksfin and Innovation Norway, all under the government umbrella of “All Norway Exports” and “Norway Climate Commitments”.

Does the end justify the means, is a timely question. Perhaps China alone will have to make itself attractive to Norwegian shipping companies, without the full support of the Norwegian tax krone. Ships have also been built for Norwegian companies in India and Sri Lanka, where shipping companies enjoy freedom of movement across national borders with large grants from our treasury. And these days, Innovation Norway is promoting a tour where Indian offshore companies can introduce themselves – in Norway!

What about the tiered model of government support? Can a shipping company obtain 100 percent of the support amount through contracting within the European Economic Area, and then the support is gradually reduced according to a model based on a national approach to sustainability, environment and transparency in the contracting state?

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Is it the Norwegian community's money that will really build industrial competence abroad, which competes with our national shipbuilding industry? I think this is a problem, so what do our elected officials think? Start the discussion!

Asli Stronen

Strønen is the general manager of the Norske Skipsverft branch organisation. He is writing this post as a private person.

Dalila Awolowo

Dalila Awolowo

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