Opinion of the Committee of the Regions on the 'White Paper "A strategy for revitalizing the Community's railways"` (97/C 379/02)

THE COMMITTEE OF THE REGIONS,

having regard to the 'White Paper on "A strategy for revitalizing the Community's railways"` (COM(96) 421 final);

having regard to its decision of 15 January 1997, under the fourth paragraph of Article 198c of the Treaty establishing the European Community, to issue an opinion on this subject and entrust Commission 3 (Transport and Communications Networks) with the task of preparing it;

having regard to the draft opinion (CdR 143/97 rev.) adopted by Commission 3 on 19 June 1997, (rapporteurs: Mr Dousset and Mr Ricca);

having regard to the report of the railway advisory group to Mr Neil Kinnock, European Commissioner responsible for transport, on 'The future of rail transport in Europe`, submitted on 19 June 1996;

having regard to its previous opinions adopted in the field of transport (),

adopted the following opinion at its 19th plenary session on 17 and 18 September 1997 (meeting of 17 September).

1. Introduction

1.1. The Committee, which feels sympathy for the general objectives of sustainable mobility and Community land-use planning, regards railways as one of the main policy instruments in these areas. It is therefore very keen to see the Community pursue a modern, efficient rail policy geared more closely to the needs of users and a rapidly changing market.

The Committee is accordingly delighted with the determination shown by the Commission in its white paper of 30 July 1996 to promote the revitalization of the Community's railways and hopes that the Commission's good intentions will become full reality, thereby regenerating a mode of transport that is otherwise destined for rapid decline.

1.2. Rail transport in fact is in danger of entering a vicious circle, and the end result could mean serious problems for local communities, with damaging effects in terms of:

a) employment: over ten years 500 000 jobs have already been affected by cut-backs in the European railway industry and downsizing is set to continue;

b) the environment: the future shift of some custom from rail to road, combined with the already disturbing increases in road traffic, conjures up an alarming scenario of congestion, pollution and reduced safety.

c) growth and the public economy: an inefficient railway system impedes economic growth which in turn damages the public economy.

1.3. The Committee agrees with the need to develop a new type of railway, which will first and foremost be run as a business expected to meet economic criteria.

All countries therefore will be obliged to make profound, general changes to railway systems (see paragraph 99 of the white paper), not merely involving staff cutbacks but extending to all aspects and with a profound effect even on finance and organization.

It is not enough (see paragraph 100 of the white paper) to state that the railways will only have independent and dynamic management if their finances are sound - a precondition for successful reorganization. It is also necessary to make it as clear as possible that this is a minimum condition for an efficient service-providing enterprise, although that enterprise might be structurally in deficit if it had to shoulder the burden of infrastructure management.

If 'real` public limited liability companies are to be set up, the social purpose of the enterprise must permit non-deficit management, or at least the clear and transparent separation of the two activities.

Separating the two activities clearly means that the separate entity responsible for managing the tracks will always be loss-making.

1.4. The various questions tackled by this opinion touch upon issues of major importance for the regions of Europe:

- the development of public service functions, particularly in the fields of regional and local transport;

- the creation of trans-European links, for both freight traffic and high-speed passenger trains, particularly between 'central` and 'peripheral` regions.

2. The role of services of general interest

2.1. The Committee is pleased to note the Commission's reaffirmation that services of general interest are a key element in the European economic and social model. It shares the Commission's view that it is necessary to develop the use of public service contracts to replace public service obligations as far as possible. This will improve management, make service providers more answerable, give a better return on public investment, and improve the quality of the service.

2.2. The Committee fully agrees with the Commission's comments on public services (paragraph 103 of the white paper) and in particular the proposed generalization of public service contracts between the state, the regional authorities and the transport undertakings.

2.3. Experiments have been carried out in a number of European regions to bring decision-making centres closer to the citizen. This involves the conclusion of public service contracts between rail companies and regions with a view to ensuring an optimum return on investments.

2.4. On the regional routes the results are tangible: a rise in traffic; the development of new multiple-units; investments to save branch lines; the electrification and renovation of lines; the modernization of stations. By taking such action the regions are investing in their own development, are striving to open up rural areas, and are helping to improve the quality of life. It is the regions, with their contacts among elected representatives, rail users' associations and railway workers' organizations, which are in the best position to optimize this public service.

2.5. Bearing in mind the above, it is important that the decisions on regional public services are tailored as closely as possible to the needs of consumers/users/citizens, and are arrived at through genuine negotiations between railway companies and the public authorities concerned (including the regional authorities).

2.6. Similarly, the Committee would point out that public service contracts must be drawn up and implemented in accordance with national legal traditions as well as the subsidiarity principle. The Commission, in its Communication on services of general interest in Europe (), also stressed the need in this context to respect Member States' socio-cultural characteristics and the general policy line taken by Member States.

3. Creation of rail freight freeways

3.1. The Committee endorses and looks forward to the establishment of trans-European rail freight freeways, the creation of a one-stop-shop for the issue of transit authorizations, and the establishment of a European railway agency to improve the institutional framework for the development of the financial sector.

3.2. Similarly, it is clear that the development of the railways must play a greater role in solving transport problems. Roads can no longer be the sole response to the problem of reducing traffic congestion. On the contrary, 'roads spawn more roads`, causing even more environmental problems. However, both environmental and physical planning considerations restrict road expansion in large areas of Europe.

3.3. It is necessary to develop goods transport by rail, thereby taking some traffic off the roads and reducing the problems linked with environmental pollution, ready accessibility and efficiency.

3.4. The Committee points out that the Commission proposal should encourage cooperation between railway infrastructure operators to facilitate access to a number of economic zones: such improved conditions for rail services should primarily benefit the hinterland of ports and peripheral regions.

3.5. The Committee calls upon the high-level group set up under the Commission's auspices, as well as the Community's European railway working groups responsible for studying the 'freeways` concept, to commit themselves to giving tangible expression to this concept as soon as possible and to seek to achieve the objectives mentioned above.

4. The importance of the trans-European transport networks

4.1. Welcoming the importance attached to freight transport, the Committee reaffirms its support for the policy of trans-European networks and insists on the need for an appropriate solution to the problem of funding these types of projects, and particularly priority projects for high-speed links.

4.2. These objectives are undoubtedly ambitious, but it is essential to achieve them if the European Union and its regions are to develop harmoniously.

5. Funding the social aspect

5.1. Whilst regretting the weaknesses of the mechanism for mobilizing the resources of the European Social Fund to help restructure railway companies, the Committee agrees with the Commission's objectives regarding the restoration of the financial health of the railways in that these objectives constitute a sine qua non for the revitalization of the railways to the benefit of the regions which the Committee represents.

5.2. To this end it would be useful and interesting (see paragraph 105 of the white paper) to start with the railways sector - which will be subject to major restructuring in the coming years - and seek to devise innovative forms of support for the mobility and retraining of workers (not simply manual workers but network specialists as well). This can be done through structures designed to 'finance the social aspect` (global subsidies or other formulae involving contributions from the EU, the Member States and the railways).

5.3. This could mean a more sophisticated approach to vocational guidance, training, teleworking and remote assistance to mobility (which in turn might serve as a benchmark for forms of 'social interoperability`) given that staff problems are common to all major network systems engaged in large-scale slimming down operations.

6. Conclusions

6.1. The Committee recognizes that it is vitally important:

- to deregulate railways and dismantle monopolies

- to clarify the relations between national authorities, regional authorities and railway companies;

- to clear the old, inherited debts of railway companies;

- to compensate for exceptional social costs;

- to ensure that state aid for restructuring operations is transparent;

- to mobilize the European Social Fund to encourage the restructuring of railway companies;

- to distinguish between rail infrastructure managers and railway operators;

- to assign rail infrastructure to all Member State railway operators on equal terms;

- to carry through the scheme to establish freight freeways;

- to frame uniform principles for pricing rail infrastructure.

6.2. The Committee stresses the need for the Commission to devote more direct attention to the role of local and regional communities in defining transport policies and in meeting the challenge of revitalizing railways at local level, above all in the more peripheral areas and in organizing a policy of intermodality.

To this end the Committee expresses its willingness to carry out a study to find out what contribution local communities can make and to determine the costs and benefits entailed in the regionalization of rail transport.

6.3. It is of great interest to the Committee that the changes envisaged in the Commission's white paper are achieved, thereby bringing about a fully-fledged 'cultural revolution` in the sector, involving not only technical reorganization but the need for far-reaching restructuring which would entail more responsible company relations, a clear definition of the objectives of the political authorities, an end to political interference in management, and a precise definition of responsibilities in the fields of management, investment and the funding of investment.

Brussels, 17 September 1997.

The Chairman of the Committee of the Regions

Pasqual MARAGALL i MIRA

() OJ C 210, 14. 8. 1995, p. 34; OJ C 210, 14. 8. 1995, p. 38; OJ C 337, 11. 11. 1996, p. 13; OJ C 337, 11. 11. 1996, p. 20; OJ C 116, 14. 4. 1997, p. 58.

() COM(96) 443 final.