Opinion of the Economic and Social Committee on the 'Commission proposal for a Council Regulation (EC) concerning the granting of financial assistance for actions to promote combined goods transport` () (97/C 89/08)

On 27 January 1997 the Council of the European Union decided to consult the Economic and Social Committee, under Article 75(1) of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Transport and Communications, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 14 January 1997. The rapporteur was Mr Bo Green.

At its 342nd Plenary Session on 29 and 30 January 1997 (meeting of 29 January), the Economic and Social Committee adopted the following opinion by 94 votes to one with seven abstentions.

1. The Commission's communication and proposal

1.1. Commission Decision 93/45/EC of 22 December 1992 launched the PACT programme (pilot actions for combined transport) which is based on, and forms part of, the work programme to promote combined transport set out in the Commission's 1992 Communication (COM(92) 230). The ESC delivered an opinion on this communication on 24 November 1992 (Rapporteur: Mr Tukker).

1.2. The first PACT programme, with a small budget, was planned to last five years and aimed to explore the need for such actions to promote combined goods transport by road/rail/inland waterways/short-sea traffic. However, maritime transport per sea is not covered. It is now drawing to a close.

1.3. Though assistance generally can impede liberalization of the European transport market, and may provisionally distort the relative competitiveness of modes of transport, it may be necessary under specific circumstances and on specific conditions, provided that appropriate monitoring arrangements are introduced.

1.4. On the other hand, the PACT programme has been exceptional, especially as the initiative for the individual projects has come solely from the market.

1.5. The current evaluation of the PACT programme appears to have produced encouraging results in the shape of awakening increased interest in combined transport among decisionmakers.

1.6. The Commission points out that a number of difficulties were encountered in the evaluation of the first PACT programme; the proposed new PACT programme will take these into consideration, viz.:

- more clearly defined objectives, and

- an improved framework for monitoring and evaluation.

In addition, results show that the greatest obstacle to the development of combined transport continues to be the relatively lower cost of carriage of goods by road. The technical and planning aspects are a lesser problem.

1.7. To counter the disadvantages of the current PACT programme the specific objectives for the proposed programme are as follows:

- to increase the competitiveness of combined transport both in terms of price and quality vis-à-vis other uni-modal transport;

- to promote the use of advanced technology in combined transport;

- to improve access to combined transport for enterprises, regardless of their size; this will increase competition in the supply of combined transport services and thereby give a boost to its competitiveness;

- to expand the programme's scope to encompass combined transport comprising an actual maritime transport component;

- to shift the emphasis of financial assistance slightly by discontinuing the possibility of 100 % subsidies for preliminary studies, funding concrete feasibility studies at 50 % and defining the basis for innovative measures more clearly at 30 %. The procedures for selecting and monitoring projects and the framework for evaluation are improved.

2. General comments

2.1. The ESC feels that it is vital for the PACT programme also to be open to small enterprises. However, it would point out that the new PACT programme's provision for 30 % financial assistance for certain types of action could generate unfair competition. In evaluating projects, the Commission should therefore pay particular attention to this point.

2.2. However, for the purpose of promoting combined transport, it is even more essential to make the rail component of the combined transport market much more accessible to new as well as smaller (especially private) suppliers. In this connection, there is particular need to harmonize rolling stock (interoperability), signaling and safety equipment and the training of railway staff (in particular traindrivers) throughout the Community in order to ensure the required safety level.

2.3. It is therefore essential to continue and develop further the far-reaching organizational and structural reform of Community railways set in motion under Council Directive 91/440 (EC) of 29 July 1991 and the two implementing texts 95/18 and 95/19, which include making access to European railways easier for private operators.

2.4. The ESC observes that the EU must now concentrate its efforts to promote intermodal goods transport where it is conducive to achieving a comprehensive effective transport system guaranteeing long-term mobility. Where combined transport comprising rail or sea (including internal waterways) components is sufficiently commercially attractive to both users and third parties, it will benefit the environment and, in the case of long-distance transport, take the strain off the road network and, to some extent, densely populated urban areas. As supplementary modes of transport, rail and ship services can reduce road traffic on a sustainable basis.

The ESC is pleased to see that the new PACT programme includes combined transport comprising an actual maritime transport component. Here efficient ports are of major importance in facilitating development of this mode of combined transport.

2.5. Users will still be free to opt for the mode of transport they prefer. It is therefore essential to listen to them as well as to operators and other suppliers so as to remove both financial and legal barriers and further promote combined transport.

3. Specific comments

3.1. The ESC would make the following specific comments on the proposed Council Regulation:

3.1.1. Article 2(1), first indent

The definition of 'platform` should specify that the reference is to a transport module.

3.1.2. Article 4(1)

The ESC would point out that financial assistance should not be provided if there is a risk of generating unfair competition.

3.1.3. Article 4(2)(a)

The ESC observes that the Commission can instigate legal proceedings in the event of failure to comply with the five-year timelimit.

3.1.4. Article 5(2)(b)

The type of 'co-operation` envisaged should be clarified.

3.1.5. Article 5(4)(a)

The ESC observes that the Commission can instigate legal proceedings in the event of failure to comply with this requirement.

3.1.6. Article 6(3)(e)

Here it should be spelt out that projects must not in the long term run at a loss.

3.1.7. Article 6(4)(a)

It should be specified that the reference is to a shift from purely road transport.

4. Conclusion

The ESC endorses the Commission's proposal (COM(96)335 final) for a Council Regulation (EC) concerning the granting of Community financial assistance for actions to promote combined goods transport but calls on the Commission to amend the proposed regulation so as to:

- clarify unsatisfactory and incomplete definitions;

- specify which activities are/are not eligible for the proposed subsidies;

- ensure effective arrangements for monitoring the implementation and management of the approved projects.

Brussels, 29 January 1997.

The President of the Economic and Social Committee

Tom JENKINS

() OJ No C 343, 15. 11. 1996, p. 4.