Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to the Parliamentary Under-Secretary of State’s letter to the Chair of the House of Commons Defence Committee, on the procurement of Fleet Solid Support ships, dated 29 May 2018, what assessment has he made of the compatibility of the Korean Development Bank’s Ocean Value-Up Fund with EU state aid rules.

State aid is generally prohibited under the Treaty on the Functioning of the European Union, apart from under a small number of specific exemptions stipulated by legislation. For state aid to be deemed illegal it must meet clearly defined criteria.

The Korean Development Bank's Ocean Value-Up Fund is designed to assist small and medium sized shipping companies in placing orders for new vessels and the purchase of used ones. It is not available to ship construction yards and does not provide support for the construction in South Korean shipyards of vessels procured by third parties.