++++

OPINION ON THE PROPOSAL FOR A COUNCIL REGULATION SETTING THE TIME LIMIT AND CONDITIONS FOR THE ACHIEVEMENT OF FINANCIAL BALANCE BY RAILWAY UNDERTAKINGS ; THE PROPOSAL FOR A COUNCIL REGULATION AMENDING DECISION 75/327/EEC ON THE IMPROVEMENT OF THE SITUATION OF RAILWAY UNDERTAKINGS AND THE HARMONIZATION OF RULES GOVERNING FINANCIAL RELATIONS BETWEEN SUCH UNDERTAKINGS AND STATES AND THE PROPOSAL FOR A COUNCIL REGULATION AMENDING REGULATION ( EEC ) NO 1191/69 ON ACTION BY MEMBER STATES CONCERNING THE OBLIGATIONS INHERENT IN THE CONCEPT OF A PUBLIC SERVICE IN TRANSPORT BY RAIL , ROAD AND INLAND WATERWAY

THE TEXTS REFERRED TO THE COMMITTEE HAVE BEEN PUBLISHED IN OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES NOS C 37 OF 28 FEBRUARY 1981 , PAGE 7 ET SEQ . AND C 268 OF 20 OCTOBER 1981 , PAGE 11 .

A . LEGAL BASIS FOR THE OPINION

ON 6 AND 13 FEBRUARY 1981 , THE COUNCIL REFERRED THE ABOVEMENTIONED PROPOSALS TO THE ECONOMIC AND SOCIAL COMMITTEE IN ACCORDANCE WITH ARTICLE 198 OF THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY .

B . OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE

THE ECONOMIC AND SOCIAL COMMITTEE PREPARED ITS OPINION ON THE ABOVE MATTER AT ITS 191ST PLENARY SESSION HELD IN BRUSSELS ON 28 AND 29 OCTOBER 1981 .

THE FULL TEXT OF THE OPINION IS AS FOLLOWS :

THE ECONOMIC AND SOCIAL COMMITTEE ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARTICLES 75 AND 94 THEREOF ,

HAVING REGARD TO THE REQUESTS MADE BY THE COUNCIL ON 6 AND 13 FEBRUARY 1981 FOR AN OPINION ON THE AFOREMENTIONED PROPOSALS ( 1 ) ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 1191/69 OF 26 JUNE 1969 ON ACTION BY MEMBER STATES CONCERNING THE OBLIGATIONS INHERENT IN THE CONCEPT OF A PUBLIC SERVICE IN TRANSPORT BY RAIL , ROAD AND INLAND WATERWAY ( 2 ) ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 1192/69 OF 26 JUNE 1969 ON COMMON RULES FOR THE NORMALIZATION OF THE ACCOUNTS OF RAILWAY UNDERTAKINGS ( 3 ) ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 1107/70 OF 4 JUNE 1970 ON THE GRANTING OF AIDS FOR TRANSPORT BY ROAD , RAIL AND INLAND WATERWAY ( 4 ) , AS AMENDED BY REGULATION ( EEC ) NO 1473/75 ( 5 ) ,

HAVING REGARD TO COUNCIL DECISION 75/327/EEC OF 20 MAY 1975 ON THE IMPROVEMENT OF THE SITUATION OF RAILWAY UNDERTAKINGS AND THE HARMONIZATION OF RULES GOVERNING FINANCIAL RELATIONS BETWEEN SUCH UNDERTAKINGS AND STATES ( 6 ) , AND IN PARTICULAR ARTICLE 15 ( 1 ) AND ( 2 ) THEREOF ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 2830/77 OF 12 DECEMBER 1977 ON THE MEASURES NECESSARY TO ACHIEVE COMPARABILITY BETWEEN THE ACCOUNTING SYSTEMS AND ANNUAL ACCOUNTS OF RAILWAY UNDERTAKINGS ( 7 ) ,

HAVING REGARD TO THE DECISION TAKEN BY ITS CHAIRMAN ON 13 FEBRUARY AND 25 MARCH 1981 , INSTRUCTING THE SECTION FOR TRANSPORT AND COMMUNICATIONS TO DRAW UP A REPORT AND AN OPINION ON THESE SUBJECTS ( ARTICLE 22 OF THE RULES OF PROCEDURE ) ,

HAVING REGARD TO THE OPINION ADOPTED BY THAT SECTION AT ITS 140TH MEETING ON 14 OCTOBER 1981 ,

HAVING REGARD TO THE REPORT OF THE RAPPORTEUR , MR HENNING ,

HAVING REGARD TO THE DISCUSSION AT ITS MEETING ON 28 OCTOBER 1981 ( 191ST PLENARY SESSION OF 28 AND 29 OCTOBER 1981 ) ,

WHEREAS AN URGENT SOLUTION MUST BE FOUND TO THE RAILWAYS' FINANCIAL PROBLEMS , WHICH HAVE GROWN CONSIDERABLY WORSE IN 1981 SINCE THE ECONOMIC AND SOCIAL COMMITTEE STARTED ITS DELIBERATIONS ; WHEREAS IN THE PRESENT ECONOMIC PLIGHT FINANCIAL PROBLEMS ARE WIDESPREAD AND ARE NOT CONFINED TO THE RAILWAYS ; WHEREAS THE RAILWAYS ARE PARTICULARLY BADLY HIT BECAUSE THE PRESENT DETERIORATION IN THEIR SITUATION HAS BEEN EXACERBATED BY THE FACT THAT THEY WERE ALREADY IN A SORRY FINANCIAL STATE ;

WHEREAS CONDITIONS AND DEADLINES FOR THE ACHIEVEMENT OF FINANCIAL BALANCE MUST BE LAID DOWN ; WHEREAS THIS MUST BE DONE BY THE MEMBER STATES AND THE RAILWAYS THEMSELVES , ACTING IN GOOD TIME ; WHEREAS , SINCE IT MAY NOT BE POSSIBLE TO BREAK EVEN IN ONE GO BY 1 JANUARY 1990 , IT WILL BE NECESSARY TO REDUCE THE RAILWAYS' DEFICITS GRADUALLY BY FIXED PERCENTAGES ;

WHEREAS THE RAILWAYS' FINANCIAL PROBLEMS MUST BE VIEWED IN THE CONTEXT OF GOVERNMENT POLICY AND THE TASKS INCUMBENT UPON THE RAILWAYS ; WHEREAS THE OPINION IS CONFINED TO THE PROPOSALS' FINANCIAL REHABILITATION PLAN , ESPECIALLY AS A MORE THOROUGH LOOK WILL BE TAKEN AT THE RAILWAYS LATER ON IN CONNECTION WITH THE COMMISSION'S MEMORANDUM OF 19 DECEMBER 1980 ON " COMMUNITY RAILWAY POLICY : REVIEW AND OUTLOOK FOR THE 1980S " ,

HAS ADOPTED THE FOLLOWING OPINION

WITH ONE VOTE AGAINST :

THE COMMITTEE APPROVES THE AFOREMENTIONED DRAFT REGULATIONS SUBJECT TO THE FOLLOWING COMMENTS AND PROPOSED AMENDMENTS .

1 . PROPOSAL FOR A COUNCIL REGULATION SETTING THE TIME LIMIT AND CONDITIONS FOR THE ACHIEVEMENT OF FINANCIAL BALANCE BY RAILWAY UNDERTAKINGS

( A ) SUITABILITY OF THE PROPOSED GUIDELINES FOR CALCULATING FUTURE INFRASTRUCTURE AID ( ARTICLE 4 OF THE COMMISSION PROPOSAL )

THE COMMITTEE WELCOMES THE COMMISSION'S ENDEAVOURS TO LAY DOWN CLEARLY DEFINED CRITERIA IN THE FIELD OF INFRASTRUCTURE AID . HOWEVER , IT FEARS THAT THE FORMULAE PROPOSED FOR THIS PURPOSE MIGHT BE DIFFICULT TO APPLY . THE PROCESSING OF THE STATISTICS WILL ALSO COME UP AGAINST A NUMBER OF DIFFICULTIES IN ALL THE MEMBER STATES . FURTHERMORE , THE COMMITTEE NOTES THAT NO ALLOWANCE IS MADE FOR INTERNAL OR EXTERNAL SOCIAL COSTS .

( B ) RULES FOR STATE FINANCIAL INTERVENTION TO COVER THE DEFICITS OF RAILWAY UNDERTAKINGS ( ARTICLE 5 OF THE COMMISSION PROPOSAL )

THE COMMITTEE THINKS IT IS RIGHT FOR THE COMPLETE NORMALIZATION OF THE ACCOUNTS OF RAILWAY UNDERTAKINGS TO BE STIPULATED IN ARTICLE 5 OF THE COMMISSION DRAFT . HOWEVER , THIS WILL PROBABLY NOT BE POSSIBLE BY THE PROPOSED DEADLINE , I.E . THE END OF 1982 . THE COMMITTEE THEREFORE CONSIDERS THAT THIS DEADLINE MUST BE EXTENDED , ESPECIALLY AS THE COMMISSION PROPOSAL STIPULATES THAT ANY REMAINING DEFICIT CAN ONLY BE MADE UP AFTER THIS DATE IF THE NORMALIZATION OF ACCOUNTS HAS BEEN COMPLETED .

THE COMMITTEE THINKS THAT THE PROPOSED NORMALIZATION OF ACCOUNTS SHOULD BE CLOSELY LINKED TO A PROGRAMME FOR MAKING UP DEBTS AND INTEREST CHARGES , WHICH ARE A CONSTANT DRAIN ON THE RESOURCES OF THE RAILWAYS .

( C ) ACHIEVEMENT OF FINANCIAL BALANCE BY RAILWAY UNDERTAKINGS ( ARTICLE 6 OF THE COMMISSION PROPOSAL )

THE COMMITTEE CONCEDES THAT IT IS NECESSARY AND SENSIBLE TO SET A DEADLINE FOR THE ACHIEVEMENT OF FINANCIAL BALANCE BY THE RAILWAYS OF THE INDIVIDUAL MEMBER STATES . BEARING IN MIND , HOWEVER , THAT CONDITIONS IN SOME MEMBER STATES DIFFER VERY CONSIDERABLY FROM THOSE IN OTHERS , IT IS RATHER DOUBTFUL WHETHER THE COMMISSION'S FINAL DEADLINE FOR ATTAINING THIS OBJECTIVE , I.E . 1 JANUARY 1990 , CAN BE MET .

NEVERTHELESS , THE COMMITTEE ENDORSES THE SETTING OF THIS DEADLINE FOR THE RAILWAYS' FINANCIAL REHABILITATION BECAUSE IT FEARS THAT THERE WOULD BE A FURTHER WORSENING OF THE ALREADY EXTREMELY UNFAVOURABLE FINANCIAL SITUATION IF A PESSIMISTIC LINE WERE ADOPTED AND NO DEADLINE WHATSOEVER SET .

THE COMMITTEE CONSIDERS THAT ONLY A STEP-BY-STEP APPROACH TO REHABILITATION IS LIKELY TO SUCCEED . IT CALLS FOR THE PREPARATION OF REGULAR REHABILITATION PLANS WHICH ARE DRAWN UP IN CONSULTATION WITH THE STATE AUTHORITIES AND ARE UPDATED AND ADAPTED AT LEAST EVERY TWO YEARS . THE REHABILITATION PLANS SHOULD FORM A SELF-CONTAINED PART OF THE MORE EXTENSIVE BUSINESS PROGRAMMES .

2 . PROPOSAL FOR A COUNCIL REGULATION AMENDING THE DECISION 73/327/EEC ON THE IMPROVEMENT OF THE SITUATION OF RAILWAY UNDERTAKINGS AND THE HARMONIZATION OF RULES GOVERNING FINANCIAL RELATIONS BETWEEN SUCH UNDERTAKINGS AND STATES

BASICALLY THE COMMITTEE AGREES WITH THE COMMISSION'S IDEAS REGARDING THE RAILWAYS' BUSINESS PROGRAMMES ( ARTICLES 3 AND 4 OF THE DECISION OF 20 MAY 1975 ) AND FINANCIAL PROGRAMME ( ARTICLE 13 OF THE DECISION ) . IT CONSIDERS , HOWEVER , THAT THE MULTIANNUAL FINANCIAL PROGRAMME - I.E . THE ACTUAL REHABILITATION PLAN - SHOULD BE UPDATED REGULARLY ( I.E . AT LEAST EVERY TWO YEARS ) AND ITS SUCCESS SHOULD ALSO BE MONITORED IN ORDER TO ENSURE THAT FINANCIAL BALANCE IS GRADUALLY ACHIEVED .

3 . PROPOSAL FOR A COUNCIL REGULATION AMENDING REGULATION ( EEC ) NO 1191/69 ON ACTION BY MEMBER STATES CONCERNING THE OBLIGATIONS INHERENT IN THE CONCEPT OF A PUBLIC SERVICE IN TRANSPORT BY RAIL , ROAD AND INLAND WATERWAY

THE COMMITTEE WELCOMES THE COMMISSION'S ATTEMPT TO LAY DOWN CRITERIA FOR A PRECISE DEFINITION OF THE CONCEPT OF PUBLIC SERVICE OBLIGATIONS AND THE ALLIED CONCEPT OF " ADEQUATE TRANSPORT SERVICES INVOLVING THE LEAST COST TO THE GENERAL PUBLIC " .

ALL THE EFFORTS MADE IN THE PAST TO COME UP WITH AN ALL-EMBRACING DEFINITION OF A PUBLIC SERVICE HAVE , HOWEVER , BEEN A FAILURE . NEVERTHELESS , IT MUST POINT OUT THAT STRUCTURAL DIFFERENCES BETWEEN THE MEMBER STATES MEAN THAT THE TERM " PUBLIC SERVICES " MAY BE INTERPRETED COMPLETELY DIFFERENTLY FROM ONE MEMBER STATE TO ANOTHER . THE COMMITTEE THEREFORE EMPHASIZES THE NEED FROM CASE TO CASE TO VARY OR ADD TO THE CRITERIA WHICH THE COMMISSION ( CF . THE ANNEX TO THE DRAFT REGULATION ) PROPOSES USING TO DEFINE " ADEQUATE TRANSPORT SERVICES " AND " LEAST COST TO THE GENERAL PUBLIC " .

DONE AT BRUSSELS , 28 OCTOBER 1981 .

THE CHAIRMAN OF THE ECONOMIC AND SOCIAL COMMITTEE

TOMAS ROSEINGRAVE

( 1 ) OJ NO C 37 , 20 . 2 . 1981 , P . 7 ET SEQ . AND OJ NO C 268 , 20 . 10 . 1981 , P . 11 .

( 2 ) OJ NO L 156 , 28 . 6 . 1969 , P . 1 .

( 3 ) OJ NO L 156 , 28 . 6 . 1969 , P . 8 .

( 4 ) OJ NO L 130 , 15 . 6 . 1970 , P . 1 .

( 5 ) OJ NO L 152 , 12 . 6 . 1975 , P . 1 .

( 6 ) OJ NO L 152 , 12 . 6 . 1975 , P . 3 .

( 7 ) OJ NO L 334 , 24 . 12 . 1977 , P . 13 .