Opinion on the proposal for a Council Regulation (EC) modifying Regulation (EEC) No 1101/89 on structural improvements in inland waterway transport (1) (94/C 127/06)

On 6 December 1993 the Council decided to consult the Economic and Social Committee, under Article 75 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Transport and Communications was responsible for preparing the Committee's work on the subject. At a later stage the Committee appointed Mr von Haus as Rapporteur-General.

At its 312th Plenary Session (meeting of 26 January 1994), the Economic and Social Committee adopted the following Opinion, with no votes cast against and 11 abstentions.

1. Introduction

1.1. The Economic and Social Committee welcomes the Commission proposal to extend the 'old-for-new' system for a further five years by amending Article 8(1)(a) of Regulation (EEC) No 1101/89.

1.2. Alongside the scrapping programme, the 'old-for-new' system is the second pillar of the structural improvements in inland waterway transport, covered by Regulations (EEC) Nos. 1101/89, 1102/89 and 3690/92. The aim of the structural improvements is to remove the structural overcapacity on the western European inland waterway market (Belgium, Germany, France, Luxembourg, the Netherlands and Switzerland).

1.3. In the context of the structural improvements, the old-for-new system is intended to prevent an increase in tonnage capacity by granting authorizations for the bringing into service of new vessels or vessels imported from outside the EU only if the owner scraps a vessel of the same tonnage at the same time. To avoid excluding newcomers completely from the inland waterway market of the European Union, newly built tonnage can alternatively be put into service if a special contribution (penalty) equal to the scrapping premium per tonne is paid into the national scrapping fund.

1.4. The old-for-new rule applies for five years, expiring on 28 April 1994. An extension for a new period of five years at most may be granted by the Council of Ministers of the European Union.

2. General comments

2.1. The structural improvement measures have indeed led to a reduction of tonnage capacity and almost achieved the desired goal of scrapping 10 % of dry cargo vessels and 15 % of tankers; however, they have not removed the structural overcapacity. The reasons for this are to be found not only in the Commission's report, according to which the economic recession has led to a fall in demand for inland waterway services and hence to a renewed over capacity on that market, but above all in the 'opening to the east', which created the possibility of importing cheap new vessels from central and eastern European states, at 30 % to 50 % below the prices charged by western European shipyards.

2.2. Because of the low level of the special contribution, the old-for-new system proved in this respect to be ineffective. In addition, the payment of about ECU 100 million in the form of scrapping premiums has stimulated construction of new vessels. Various effects of the taxation systems in individual countries have contributed to this process. For example, there are tax concessions in the Netherlands for the reinvestment in shipbuilding of annual surpluses and book profits.

2.3. It should also be noted that the scrapping scheme mainly removed smaller vessels from the market, and that these were partly replaced by larger, technically more advanced and more productive ships. The insufficient differentiation of the scrapping premium/special contribution for larger vessels thus had unfortunate effects.

2.4. In principle, the Committee agrees with the view expressed in the Commission report that the old-for-new rule is part of an effective set of instruments. The proposal to extend the old-for-new rule is a logical consequence of this.

2.5. The two international associations of western European inland waterway operators - the International Union for Inland Navigation (IBU) and the European Skippers Organization (ESO) - have therefore also come out strongly in favour of an extension of the old-for-new rule, so as to make possible a reduction of the structural overcapacity (estimated at 20 % to 25 %) and contribute to a lasting restriction of the planned overall capacity.

2.6. The existing overcapacity has led to a catastrophic decline in freight traffic. Apart from a few special cargoes, it is no longer possible to cover costs in inland waterway transport. A reduction of structural overcapacity, and disincentives to new tonnage coming on the market, constitute the only effective chance of restoring the economic operation of western European inland waterway transport and maintaining it in the longer term.

3. Specific comments

3.1. The Committee regards the proposed extension of Article 10 - providing for the Commission to draw up a report evaluating the overall effect of the measures contained in this Regulation, together with proposals if appropriate, and submit them to the European Parliament and the Council by 31 December 1996 - as a helpful step towards improving the economic situation in European inland waterway transport.

3.1.1. In view of the need to improve the framework conditions contained in Regulation (EEC) No 1101/89, the Committee suggests that the abovementioned report should be submitted by an earlier date.

3.2. It also recommends that the implementing provisions of Regulations (EEC) Nos 1102/89 and 3690/92 be included in the review. The overall aim should be a uniform market system on the western European inland waterway market, involving a harmonization of conditions of competition and the abolition of 'tour-de-rôle' schemes.

Done at Brussels, 26 January 1994.

The Chairman

of the Economic and Social Committee

Susanne TIEMANN

(1) OJ No C 341, 18. 12. 1993, p. 17.