1989R1101 — EN — 23.12.1996 — 003.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EEC)No 1101/89
of 27 April 1989
on structural improvements in inland waterway transport
(OJ L 116, 28.4.1989, p. 25)
Amended by:
Official Journal
No page date
►M1Council Regulation (EEC) No 3572/90 of 4 December 1990 L353 12 17.12.1990
►M2Council Regulation (EC) No 844/94 of 12 April 1994 L98 1 16.4.1994
►M3Commission Regulation (EC) No 2812/94 of 18 November 1994 L298 22 19.11.1994
►M4Council Regulation (EC) No 3314/94 of 22 December 1994 L350 8 31.12.1994
►M5Council Regulation (EC) No 2819/95 of 5 December 1995 L292 7 7.12.1995
►M6Council Regulation (EC) No 2254/96 of 19 November 1996 L304 1 27.11.1996
►M7Commission Regulation (EC) No 2310/96 of 2 December 1996 L313 8 3.12.1996
1989R1101 — EN — 23.12.1996 — 003.001 — 2
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COUNCIL REGULATION (EEC)No 1101/89
of 27 April 1989
on structural improvements in inland waterway transport
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 75 thereof,
Having regard to the proposal from the Commission(1),
Having regard to the opinion of the European Parliament(2),
HavingregardtotheopinionoftheEconomicandSocialCommittee(3),
Whereasthestructuralovercapacitymanifestforsometimeinthefleets
operating on the linked inland waterway networks of Belgium, France,Germany, Luxembourg and the Netherlands appreciably affects, inthose countries, the economics of transport services, particularly of thecarriage of goods by inland waterway;
Whereasforecastsshownosignofsufficientincreaseindemandinthis
sectortoabsorbthisovercapacityinthenextfewyears;whereasinfactthe share of the total transport market taken by inland waterway trans-port is continuing to decline as a result of progressive changes in thebasic industries supplied mainly by inland waterway;
Whereas a scrapping scheme coordinated at Community level is the
only way to bring about a substantial reduction in overcapacity in thenear future and thus improve the structures of inland waterway trans-port;
Whereastheresultsofthenationalvessel-scrappingschemesorganized
by certain Member States, while positive, have been insufficient, inparticular, for want of international coordination of these schemes;
Whereas a common approach, allowing Member States to take joint
measurestoattainthesameobjective,isa sine qua non foreffectively
reducing overcapacity; whereas, to this end, scrapping funds should beintroduced in the Member States particularly concerned by inlandwaterway transport and those Member States should administer thefunds; whereas undertakings established in other Member States butproviding transport services on the linked inland waterways of theMember States concerned must contribute to one of these funds;
Whereas overcapacity generally affects every sector of the inland
waterway transport market; whereas the measures to be adopted must,therefore,begenerallyapplicableandcoverallcargovesselsandpushercraft; whereas, however, vessel which in non way contribute to theovercapacity on the abovementioned network of linked inland water-wayseitherbecauseoftheirsizeorbecausetheyareoperatedsolelyonclosed national markets, could be exempted from these measures;whereas,bycontrast,privatefleetsperformingcarriageonownaccountmust be included in the system because of their impact on transportmarkets;
Whereas, in view of the worrying economic and social situation of the
sectorinvolvingvesselswithadeadweightoflessthan450tonnesandin particular the boat owners’ financial situation and limited scope forconversion,specificmeasuresarecalledfor,suchasspecialadjustmentcoefficientsforinlandwaterwayvesselsorspecificimprovementmeas-ures for the networks most affected; whereas, in the latter case, it isnecessary to enable Member States to exclude these vessels from thescope of the Regulation provided that they are made subject to a
(1) OJ No C 297, 22. 11. 1988, p. 13 and
OJ No 31, 7. 2. 1989, p. 14.
(2) OJ No C 326, 19. 12. 1988, p. 54.
(3) OJ No C 318, 12. 12. 1988, p. 58.
1989R1101 — EN — 23.12.1996 — 003.001 — 3
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national improvement plan which does not create distortions ofcompetition and is consistent with the Treaty provisions on aid;
Whereas,inviewofthefundamentaldifferencesbetweenthedrycargo
and liquid cargo markets, it is advisable to keep separate accounts ineach fund for dry cargo carriers and tanker vessels;
Whereas, in the context of an economic policy compatible with the
Treaty, responsibility for structural improvements in a given sector oftheeconomyliesprimarilywithoperatorsinthesector;whereas,there-fore, the cost of any system introduced must be borne by the inlandwaterwaytransportundertakings;whereas,inordertolaunchthesystemon a fully operational basis from the outset, arrangements should bemade,however,fortheMemberStatesconcernedtopayanadvanceintheformofrepayableloans;whereas,inviewofthedifficulteconomicsituation of the said undertakings, these loans should be interest-free;
Whereas,inaccordancewithArticle74oftheTreaty,theobjectivesof
theTreatyaretobepursuedasregardstransportwithintheframeworkof a common policy; whereas, as Article 77 makes clear, this policymayincludethegrantingofaids,inparticulariftheymeettheneedsofcoordinationoftransport;whereastheCommunity’sactioninthisarea,including aids, must however take into account the various generalobjectives of Article 3 of the Treaty and in particular that of Article 3(f),concerningcompetition;whereas,aswithallaidssubjecttotherulesof Article 92 et seqof the Treaty, it is desirable to ensure that the
measures provided for in this Regulation and their implementation donotdistort,orthreatentodistort,competition,inparticularbyfavouringcertain undertakings to an extent which is contrary to the commoninterest;whereas,inordertoplacetheenterprisesconcernedinsimilarconditionsofcompetition,thecontributionstobepaidtothescrappingfunds and the scrapping premiums should be set at uniform rates;whereas, likewise, the scrapping programme should be started at thesame time, be of the same duration and subject to the same conditionsin all the Member States concerned;
Whereas steps should be taken to prevent the gains from the coordi-
nated scrapping scheme being cancelled out by extra capacity cominginto service at the same time; whereas temporary measures have to betaken to curb investment without, however, totally blocking access totheinlandwaterwaymarketorimposingaquotaonthenationalfleets;
Whereas, as part of the proposed system, social measures should be
taken to help workers who wish to leave the inland waterway industryor to retrain for jobs in another sector;
Whereas,sincethesystemisaCommunityone,decisionsonitsopera-
tion must be taken at Community level after consultation with theMember States and the organizations representing the inland waterwaytransportindustry;whereastherequisitepowerfortheadoptionofthosedecisions,aswellasforensuringtheirimplementationandthemainte-nance of the conditions of competition laid down in this Regulation,must be conferred on the Commission;
Whereas,inordertopreventdistortionofcompetitiononthemarketsin
question and to render the proposed system more effective, it is desir-ableforSwitzerlandtoadoptsimilarmeasuresforitsfleetonthelinkedinland waterway network of the Member States concerned; whereasSwitzerland has shown itself to be willing to adopt such measures,
HAS ADOPTED THIS REGULATION:
Article 1
1. Inlandwaterwayvesselsusedtocarrygoodsbetweentwoormore
points by inland waterway in the Member States shall be subject tomeasures for structural improvements in inland waterway transportunder the conditions laid down in this Regulation.
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2. The measures referred to in paragraph 1 shall comprise:
— the reduction of structural overcapacity by means of scrapping
schemes coordinated at Community level,
— supporting measures to avoid aggravation of existing overcapacity
or the emergence of further overcapacity.
Article 2
1. This Regulation shall apply to cargo-carrying vessels and pusher
craftprovidingtransportservicesonownaccountorforhireorrewardand registered in a Member State or, if not registered, operated by anundertaking established in a Member State.
For the purposes of this Regulation, ‘undertaking' shall mean any
naturalorlegalpersonexercisinganeconomicactivityonanon-indus-trial or industrial scale.
2. The following shall be exempt from this Regulation:
(a) vessels operating exclusively on national waterways not linked to
other waterways in the Community;
(b) vesselswhich,owingtotheirdimensions,cannotleavethenational
waterwaysonwhichtheyoperateandcannotentertheotherwater-ways of the Community (‘prisoner vessels'), provided that suchvessels are not likely to compete with vessels covered by thisRegulation;
(c) — pusher craft with a motive power not exceeding 300 kilowatts,
— sea-going inland waterway vessels and ship-borne barges used
exclusively for international or national transport operationsduring voyages which include a sea crossing,
— ferries,— vessels providing a non-profit-making public service.
3. EachMemberStatemayexcludeitsvesselswithadeadweightof
lessthan450 tonnesfromthescopeofthisRegulationiftheeconomicand social situation in the sector of those vessels so requires.
In such cases, the Member State concerned shall communicate to the
Commission a national improvement plan under the aid scheme in thesix months following the adoption of this Regulation. If the Commis-sion considers the improvement plan incompatible with the commonmarket, paragraph 1 shall apply to the vessels in question.
Article 3
1. EachoftheMemberStateswhoseinlandwaterwaysarelinkedto
thoseofanotherMemberStateandthetonnageofwhosefleetisabove100000 tonnes, hereinafter referred to as ‘the Member States concer-ned', shall set up, under its national legislation and with its ownadministrative resources, a Scrapping Fund, hereinafter referred to as‘the Fund'.
2. The competent authorities in the Member State concerned shall
administer the Fund. Each Member State shall involve its nationalorganizations representing inland waterway carriers in this administra-tion.
3. Each Fund shall consist of two separate accounts, one for dry
cargo carriers and pusher craft, the other for tanker vessels.
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4. Each fund shall be financed by:
— the contribution referred to in Article 4;— the special contributions referred to in Article 8;— the financial resources which might be made available by the
Member States concerned as part of a scrapping scheme organizedat Community level on the basis of harmonized procedures to befixed;
1989R1101 — EN — 23.12.1996 — 003.001 — 5
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— the Community contributions referred to in Article 4a.
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Article 4
1. For each vessel covered by this Regulation the owner shall pay
into one of the Funds set up under Article 3 a contribution fixed inaccordance with Article 6.
2. ForvesselsregisteredinoneoftheMemberStatesconcerned,the
contributionshallbepaidintotheFundoftheMemberStatewherethevessel is registered. For non-registered vessels operated by an under-taking established in one of these States, the contribution shall be paidinto the Fund of the Member State in which the undertaking is estab-lished.
3. ThecontributionforvesselsregisteredinanotherMemberStateor
for non-registered vessels operated by an undertaking established inanotherMemberStateshallbepaidintooneoftheFundssetupintheMember States concerned, at the choice of the vessel owner.
This choice shall be made once only and shall apply to all vessels
belonging to the same owner or operated by the same undertaking.
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Article 4a
1. Fortheyear1995 ►M6andtheyear1996, ◄thefundsreferred
toinArticle3maybefinancedbycontributionsfromtheCommunity.
2. For 1995 ►M6and 1996 ◄the appropriations entered in the
general budget of the European Communities shall be allocated by theCommission, on the basis of the objectives to be achieved and inaccordance with the different types and categories of vessels, to thefundsaccordingtotherequestsforscrappingpremiumsdulyenteredonthe common waiting list.
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3. The Member States in question shall jointly make available fromtheir funds sufficient amounts to achieve, along with the Communitycontribution fixed for the year 1996 only, the structural improvementobjectives for the years 1996, 1997 and 1998. The proportionate shareofeachMemberStateconcernedshallbecalculatedagainstthesizeofitsactivefleetascomparedwiththatoftheMemberStates’totalfleet.These amounts shall be determined by the Commission in conjunctionwith the authorities of the various scrapping funds.
4. Atthebeginningofeachyearduringthescrappingoperationsfor
1996, 1997 and 1998, the Commission shall lay down, as part of thisRegulation, the procedures for scrapping for the year in progress as afunction of available finances, market developments and liberalizationmeasures taken.
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Article 5
1. Any owner scrapping a vessel referred to in Article 2 (1) shall
receiveascrappingpremiumfromtheFundtowhichhisvesselbelongsin so far as the financial means are available, subject to the conditionsset out in Article 6. This premium shall be granted only in respect ofvessels which the owner proves form part of his active fleet.
Scrapping means the total breaking up of the hull of the vessel.
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The active fleet shall include vessels in good working order in respectofwhichatleastthreetimestheannualcontributionpursuanttoArticle4 (1) has been paid and;
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— which hold:
— either a certificate of waterworthiness issued by the competent
national authority or in agreement with the latter, or
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— an authorization to engage in national transport issued by the
authority of one of the Member States concerned,
andwhichhavemadeatleastonevoyageduringtheyearpreceding
application for the scrapping premium;
— or which have made at least 10 voyages during the year preceding
application for the scrapping premium.
▼M4
The conditions of payment set out in Article 5 (1), third indent, intro-ductorysection,shallnotapply,duringaperiodofthreeyearsfollowingtheaccessionofanewMemberState,tovesselsbelongingtotheactivefleetofthatStatewhich,on28April1994,wereregisteredandusedbyacompanyestablishedthere.ThecontributionspecifiedinArticle4(1)must, however, be paid for these vessels as from accession.
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Nopremiumshallbegrantedinrespectofvesselswhich,asaresultofawreck or other damage suffered, are no longer repairable and arescrapped.
2. There shall be mutual financial support between the Funds with
regardtotheseparateaccountsmentionedinArticle3(3). ►
M5This
shallcomeintoplayforalltheexpenditureandalltheresourcesofthefunds referred to in Article 3 (4) so as to guarantee equal treatment inthe scrapping operations for all carriers subject to this Regulation,independently of the fund to which the vessel belongs. ◄
Article 6
1. TheCommissionshalllaydownseparatelyfordrycargocarriers,
for tankers and for pusher craft:
— the rate of the annual contributions to the Fund for each vessel,— the rate of the scrapping premiums,— the period covered by the scrapping schemes, during which scrap-
ping premiums will be paid, and the conditions under which thepremiums may be obtained,
— the adjustment coefficients for each type and category of inland
waterwayvessel.Thesecoefficientsshalltakeaccountofthepartic-ular socio-economic situation regarding vessels with a dead weightof less than 450 tonnes.
2. The contributions and scrapping premiums shall be expressed in
ecus; the rates applying shall be the same for each Fund.
3. Contributions and premiums shall be calculated on the basis of
either of deadweight tonnage for cargo-carrying vessels or the motivepower of the vessel for pusher craft.
4. Contribution rates shall be fixed at a level allowing the Funds
sufficient financial resources to make an effective contribution toreducing the structural imbalance between supply and demand in theinland waterway transport sector, taking into account the difficulteconomic position of this sector.
Contributionsshallbepaidannuallyatthestartoftheyearinreturnfor
a certificate of payment. The period for which they are paid shall notexceed 10 years.
From 1 March of the year concerned this certificate must be on board
the vessel or, in the case of unmanned vessels, on board the pushercraft.Forthefirstyearofoperationofthesystem,thedatefromwhichthe certificate must be on board shall be set by the Commission.
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For German vessels registered in the territory of the former GermanDemocraticRepublicatthedateofGermanunificationthecontributionshall be obligatory as from 1 January 1991.
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5. The Commission shall lay down the period during which scrap-ping premiums may be obtained and the conditions for granting these
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premiumsonthebasisoftheobjectivestobeattained,thevesseltypes
or categories and the financial resources of the Funds.
6. The Commission shall lay down detailed rules for the mutual
financial support referred to in Article 5 (2).
7. After consulting the Member States and the organizations repre-
sentinginlandwaterwayscarriersatCommunitylevel,theCommissionshall set a target date for achieving a substantial reduction in overca-pacity and shall take the decisions referred to in paragraphs 1 to 6.
ThedecisionsreachedbytheCommissionshallalsotakeaccountofthe
resultsofobservationofthetransportmarketsintheCommunityandofany foreseeable changes therein, as well as of the need to avoid anydistortionofcompetitiontoanextentwhichiscontrarytothecommoninterest.
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8. If within six months of German unification the German Govern-ment proposes that a scrapping action be organized for vessels in itsfleet that were, prior to unification, registered in the former GermanDemocraticRepublic,itshallcommunicatethisrequesttotheCommis-sion.TheCommissionshalllaydowntherulesforthescrappingactioninaccordancewithparagraph7andonthebasisofthesameprinciplesas those set out in Commission Regulation (EEC) No 1102/89.(
1)
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Article 7
1. Without prejudice to the provisions of the Treaty on aids and to
the rules adopted in implementation thereof, the Member Statesconcerned shall make advance payments, in the form of loans, to theFundsetupintheirterritorysothatacoordinatedscrappingschemecanstart operating immediately. The sums granted in this way shall berepaid, free of interest, by the Fund, according to a predeterminedschedule.
The Funds may also be prefinanced by loans guaranteed by the State,
contracted on the capital market, provided that interest on the loan isborne by the State concerned.
2. Obligations borne by a national Fund existing when this Regula-
tion comes into force shall be assumed by the Fund of the MemberState concerned.
OwnersofvesselswhoarenotsubjecttothisRegulationandwhohave
rights resulting from existing national scrapping schemes may assertthoserights vis-à-vistheFundsreferredtoinArticle3(1)foraperiod
ofsixmonthsfromtheendofthescrappingperiodreferredtoinArticle6 (5).
Article 8
1. (a) Foraperiodof ►
M2tenyears ◄fromtheentryintoforceof
this Regulation, vessels covered by this Regulation which arenewlyconstructed,importedfromathirdcountryorwhichleavethe national waterways mentioned in Article 2 (2) (a) and (b)may be brought into service on inland waterways as referred toin Article 3 only where:
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— the owner of the vessel to be brought into service scraps a
tonnage of carrying capacity equivalent to one and a halftimes that of the new vessel, or
— where the owner scraps no vessel, he pays into the Fund
covering his new vessel or into the Fund chosen by him inaccordancewithArticle4aspecialcontributionequaltothe
(1) OJ No L 116, 28. 4. 1989, p. 30.
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scrapping premium fixed for a tonnage equal to one and ahalf times that of the new vessel, or
— wheretheownerscrapsatonnagesmallerthanoneandahalf
times that of the new vessel to be brought into service, hepays into the Fund in question a special contibution equiva-lent to the scrapping premium corresponding at the time tothe difference between one and a half times the tonnage ofthe new vessel and the tonnage scrapped.
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Inthecaseofpushercraftthetermtonnageshallbereplacedby
thatofmotivepower.Forthistypeofvesseltheratiobetweenthemotive power of a pusher craft that has recently been placed inserviceandthatofapreviouspushercraftthathasbeenscrappedshall,bywayofanexceptionfromthefirstindent,beequivalent(1: 1).
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Vesselsofthirdcountrieswhichhaveadopted,onthebasisofan
internationalinstrument,measuressimilartothoseinthisRegu-lation shall be regarded as vessels of the Member States.
(b) In the case of the vessels referred to in (a) which are put into
serviceontheinlandwaterwaysreferredtoinArticle3betweenthe entry into force of this Regulation and the setting up of thecorresponding national Fund, the special contribution to be paidbytheownerinaccordancewith(a)shallbepaidintoaspecialaccount to be designated by the national authorities of theMemberStateconcerned.Thecontributionshallbetransferredtothe Fund as soon as it has been set up.
(c) ThreeyearsafterthisRegulationcomesintoforce,theCommis-
sion may, if transport markets trends so require, and afterconsultingtheMemberStatesandtheorganizationsrepresentinginland waterway transport at Community level, adjust the ratiobetween the new tonnage and the old tonnage as referred to in(a).
2. The conditions laid down in paragraph 1 shall also apply to
increases in capacity resulting from the lengthening of a vessel or thereplacement of pusher-craft engines.
3. (a) The conditions set out in paragraphs 1 and 2 shall not apply to
vessels in respect of which the owner proves that:
— constructionwasunderwayonthedateofentryintoforceof
this Regulation, and that
— workalreadycarriedoutrepresentsatleast20 % ofthesteel
weight or 50 tonnes, and that
— delivery and commissioning is to take place within the six
months following entry into force of this Regulation.
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Theconditionssetoutinparagraphs1and2shallalsonotapply
to vessels which were under construction in the former GermanDemocratic Republic before 1 September 1990, if the date oftheir delivery and commissioning is no later than 31 January1991.
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(b) The conditions set out in paragraphs 1 and 2 shall not apply to
vesselswhich,atthetimeofentryintoforceofthisRegulation,were exempt from this Regulation pursuant to Article 2 (2) (a)and which by reason of a newly-opened navigable link are ableto use the other inland waterways of the Community.
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The conditions set out in paragraphs 1 and 2 shall apply to
vessels which became part of the German fleet upon Germanunification but which were not registered in the former GermanDemocratic Republic on 1 September 1990.
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(c) The Commission may, after consulting the Member States and
the organizations representing inland waterway transport atCommunity level, exempt specialized vessels from the scope ofparagraph 1
4. A vessel referred to in paragraphs 1 and 2 may not be put into
service until the owner has fulfilled the requirements set out in para-graph 1. Where this prohibition is infringed, the national authoritiesmaytakestepstopreventthevesselconcernedfromparticipatinginthetrade.
5. On the basis of a Commission proposal accompanied by a well-
founded report, the Council may take a decision to extend the periodreferred to in paragraph 1 by a maximum of five years.
TheCouncilshallactonthisproposalinaccordancewiththeconditions
laid down in the Treaty.
Article 9
The Member States concerned may take measures:
— tomakeiteasierforinlandwaterwaycarriersleavingtheindustryto
obtainanearlyretirementpensionortotransfertoanothereconomicactivity,
— to grant early retirement pensions to workers leaving the inland
waterways as a result of scrapping schemes and to organize voca-tional training courses or retraining courses.
Article 10
1. Member States shall adopt the measures necessary to implement
thisRegulationbefore1January1990andshallnotifytheCommissionthereof.
These measures shall provide, inter alia, for permanent and effective
verificationofcompliancewiththeobligationsimposedonundertakingsby this Regulation and the national provisions adopted in implementa-tionthereof,andforappropriatepenaltiesintheeventofinfringement.
2. Throughoutthedurationofthescrappingscheme,MemberStates
shall communicate to the Commission every six months all relevantinformation on progress with the current scheme and, in particular, onthe financial position of the Fund, the number of applications to scrapvessels and the tonnage actually scrapped.
3.
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TheCommissionshallensurethatthescrappingfundsapplythisRegu-lation uniformly and it shall provide coordination thereof.
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4. TwoyearsafterthisRegulationentersintoforce,theCommissionshalldrawupareportevaluatingtheeffectofthemeasuresreferredtoin paragraph 1 and submit it to the European Parliament and theCouncil.
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5. The Member States shall adopt the measures necessary to ensurecompliancewiththeprovisionsofthefourthsubparagraphofArticle6(4), and the second paragraphs of Article 8 (3) (a) and (b) before 1January 1991 and notify the Commission thereof.
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5. TheCommissionshallsubmitareporttotheEuropeanParliamentand the Council by 31 December 1996 evaluating the overall effect ofthemeasuresprovidedforbythisRegulation,togetherwithproposalsifappropriate.
1989R1101 — EN — 23.12.1996 — 003.001 — 10
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Article 11
ThisRegulationshallenterintoforceonthedayofitspublicationinthe
Official Journal of the European Communities .
It shall apply with effect from 1 May 1989.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
all Member States.