Nearly PLN 5 bln of state aid was provided to entrepreneurs last year. A report prepared by the Office of Competition and Consumer Protection, approved by the Council of Ministers on 12 December, reveals that it is over three times less than in 2004

According to the “Report on state aid granted to the entrepreneurs in Poland in 2005”, total state aid last year amounted to PLN 4.79 bln, i.e. 0.5% of the Polish GDP. In comparison, in 2004 total state aid amounted to PLN 16.4 bln (1.9% GDP). The aid most often consisted in grants and tax relief - nearly 95% of the aid granted, where grants constituted the straight majority (81.2%).

The institutions which granted largest aid include: the President of the State Fund for Rehabilitation of the Disabled (PLN 1.07 bln), Minister of Economy (PLN 1 bln), tax and customs offices (PLN 472 mln) and the Polish Agency for Enterprise Development (PLN 270.6 mln).

PLN 1.82 bln was granted as assistance to specific objectives (horizontal assistance), out of which the majority of the resources was allocated to employment (PLN 1.23 bln) and development of small and medium-sized enterprises (PLN 304.5 mln). The amount was half of the amount granted in 2004, mostly due to the total reduction of aid to restructuring thereunder.

The value of sectoral aid amounted to PLN 1.04 bln (in 2004: PLN 2.8 bln), out of which over 80% was allocated to mining restructuring. 17.6% was allocated to shipbuilding, including restructuring.

The majority of the amount of PLN 764.6 mln granted in 2005 under regional aid was allocated to supporting new investment (over PLN 665 mln). Nearly the whole of this aid took the form of income tax relief for entrepreneurs operating within special economic areas.

 
PKP Group, similarly to 2004, was the greatest beneficiary of sate aid receiving PLN 877.5 mln. Second in line were the companies of the coal sector, inter alia: Kompania Węglowa - PLN 435 mln, Spółka Restrukturyzacji Kopalń - PLN 230.9 mln and Bytomska Spółka Restrukturyzacji Kopalń - PLN 91.3 mln. The coal sector was followed by the shipbuilding sector, including Stocznia Gdynia - PLN 114.7 mln and Stocznia Szczecińska Nowa - PLN 69.9 mln of aid. Significant aid was also granted to entrepreneurs operating in special economic areas, especially in the automotive sector: Isuzu Motor Polska - PLN 69 mln, Volkswagen Motor Polska - PLN 19.6 mln, Fiat-GM Powertrain - PLN 14.9 mln. Considerable aid was also granted to entrepreneurs from the paper and cardboard production sector, most of all to International-Paper Kwidzyn - PLN 48.2 mln and Arctic Paper Kostrzyn - PLN 20.7 mln.

Over 35% of the total amount of aid in 2005 was granted to entrepreneurs operating within Śląskie Voivodship (32.9% in 2004). In comparison, economic entities from the Pomorskie Voivodship received 8.4% of the aid, and Mazowieckie - 8.1%. High share of last year’s aid for the Pomorskie Voivodship results from the significant support to Stocznia Gdynia and entities operating in special economic areas.

Since 2003 the value of state aid in Poland has been gradually decreasing. Such tendency should be considered absolutely positive. Especially on account of the recommendations included in the Lisbon Strategy concerning the phasing out and more intensive control of state aid to entrepreneurs. The increasing share of grants in the overall value of aid granted is positive because it is the clearest form of state aid possible. In comparison, the average share of this form of assistance in the overall value of aid in the EU-25 in the 2002-2004 period was 47.9%.

Additional information:
Małgorzata Cieloch, Spokesperson of UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. 22 827 28 92, 55 60 106, 55 60 314
faks 22 826 11 86

E-mail mcieloch@uokik.gov.pl