DG State Aid – Control and Regeneraton of Deprived Urban ... - REVIT

NN11/2002
Individual cases of application based on the
National Heritage Memorial Fund
The National Heritage Memorial Fund scheme provides financial assistance to projects of
importance to National Heritage within the UK. These could be things of any kind which are
of scenic, historic, archaeological, aesthetic, architectural, engineering, artistic or scientific
interest. The aim of the scheme is to safeguard and enhance the heritage of buildings, objects
and the environment so that they can be enjoyed by the general public and handed on to future
generations.
Any type of project is eligible for support under this scheme as long as it is important
for the national heritage and there is a benefit for the public. Examples include
buildings, historic townscapes, historic parks, monuments, projects based on language
heritage, archives and exhibitions.
In the majority of cases support will be in the form of a grant, however, loans or other
methods such as a voucher system are also available. Given the variety of projects funded
under this scheme, the support may be granted for a number of reasons. The construction of
buildings, conservation, repair and restoration, improving the housing and storing of
collections, education, exhibiting and maintaining archives are some examples.
As this scheme involves a large variety of projects that can be supported, the Commission
had difficulty analysing its compatibility with the state aid rules. The Commission agreed
with the UK authorities that a number of the projects did not meet all of the conditions under
Article 87(1) EC Treaty, hence state aid was not involved. However, the Commission stated
that it could not exclude the fact that these funds may advantage undertakings active in sectors
where there was trade and competition between Member States. Therefore, the Commission
examined this scheme under Article 87(3)(d) of the EC Treaty.
Given the various types of projects supported, the Commission split the eligible projects into
two categories, the renovation of buildings and other physically built heritage objects and the
conservation of intangible heritage assets, intangible conservation for heritage assets and
tangible objects other than physically built. For the renovation of buildings and other
physically built heritage objects, the Commission found that as the costs were limited to the
additional heritage related costs for retention or appropriate repair, this aid promoted heritage
conservation without affecting trade and competition to an extent contrary to the common
interest in the meaning of Article 87(3)(d) of the EC Treaty. Concerning the second category,
the Commission decided that there was a strong beneficial aspect for various areas of life and
these benefits for the public could not be measured in financial terms. Additionally, the
Commission stated that the conservation of cultural heritage is a recognised mutual benefit for
all European citizens. Therefore, the Commission decided it was appropriate to fund up to the
entire project costs, if the project provides free access for the public. Where the project leads
to a cost for the public, funding may be justified in order to cover those project costs that can
not reasonably be expected to be covered by other incoming finances. To conclude, the
Commission found this National Heritage Memorial Fund scheme to be compatible with
Article 87(3)(d) of the EC Treaty given that it promotes culture and preserves heritage.
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