COUNCIL RESOLUTION of 19 September 1978 on the reorganization of the shipbuilding industry

THE COUNCIL OF THE EUROPEAN COMMUNITIES, - convinced of the need to maintain within the Community a healthy and competitive shipbuilding industry whose scale of activity should be consistent with the size of the Community's maritime trade and respect its economic, social and strategic importance;

- whereas the level of demand for new vessels from Community shipyards in the early 1980s is likely to be considerably lower than the level reached in 1974 and 1975;

- whereas, while the efforts necessary to adjust the quality and quantity of production capacity are first and foremost the responsibility of the industry itself, it is for public authorities in the Community to provide guidance and stimulus;

1. is of the opinion that the necessary structural adjustments should be made which will lead to the maintenance within the Community of a healthy, competitive industry on a scale of activity consistent with the size of the Community's maritime trade and respecting other essential interests of the Community and its Member States, in particular from a social and strategic point of view ; such adjustments must take into account medium- and long-term market prospects;

2. urges the industry to continue and suitably intensify its efforts to adapt and restructure production capacity and to diversify its activities;

3. urges the industry to increase its competitiveness by improving management, research and production facilities;

4.1. requests the public authorities responsible at local, national and Community level to support and even, if necessary, to guide the industry's efforts referred to above;

4.2. requests these public authorities to lay particular stress on the creation of new jobs in conjunction with those progressively lost in the shipbuilding industry and urges them to limit the social consequences for those workers affected by a reduction in the industry's activity;

4.3. requests the authorities of the Member States and the Community to take account of all these objectives in their industrial, regional, social and general economic policies and to make available adequate funds for this purpose in so far as budgetary requirements or other financial constraints permit;

5. considers that the Community must continue its efforts to obtain, through international cooperation, adequate solutions which will ensure that the inevitable reduction in world shipbuilding capacity may be achieved in the least damaging and most equitable way possible;

6.1. notes that the Commission will have medium- and long-term market surveys carried out by suitable organizations and will report to the Council on the outcome of these surveys, at the same time giving its opinion on the necessary structural adaptation of production;

6.2. notes that the Commission will submit proposals for the accompanying social measures at the earliest opportunity;

6.3. notes that certain measures in the field of shipping policy could be of some importance for the shipbuilding industry ; therefore requests the Commission to communicate its opinion as to whether and to what extent certain measures might be likely to improve demand for new ships from Community shipyards so that this aspect may be taken into consideration during the preparation of the shipping policies of the Community and of the Member States;

7. notes that the Commission will prepare half-yearly reports on the state of the shipbuilding industry and on the progress made with its reorganization and will submit appropriate proposals as soon as possible.