COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the operation and prospects of the Community framework for passenger transport by coach and bus: access to international transport and cabotage markets, safety and rights of passengers [SEC(2004) 1020] (Text with EEA relevance)

A. INTRODUCTION

The communication analyses the operation of Community regulations on access to international and cabotage markets for passenger transport. It meets a requirement laid down by Regulation No 684/92 [1], as amended by Regulation No 11/98 [2] on international passenger transport and by Regulation No 12/98 [3] on passenger cabotage operations. These require the Commission to report on the application of Community rules on access to passenger transport markets and on the impact of cabotage transport operations on national transport markets.

[1] OJ L 74, 20.3.1992, p.1.

[2] OJ L 4, 8.1.1998, p. 1.

[3] OJ L 4, 8.1.1998, p. 10.

A working paper of the Commission's departments is attached to the communication. Apart from the elements of the communication to the European Parliament and the Council, this document outlines those questions of interpretation or cases of application of Community legislation which have been submitted in recent years to the Commission by the Member States, transport operators or associations representing carriers. It also presents certain economic aspects of the market for road passenger services. This document from the Commission's departments is intended in particular for the economic operators concerned and the national authorities. It will help to ensure uniform application of the Community rules on market access.

Although outside the scope of Regulations Nos 684/92 and 12/98, the Commission working paper also covers two other important subjects relating to the development of road passenger transport: safety of vehicles and passenger rights. Although Community rules on market access are vital, the development of the road passenger transport sector also depends on the level of safety offered to customers. The document therefore highlights the technological progress which has led to safer vehicles but also shortcomings in this area which should where necessary be the subject of new initiatives by the Commission. As regards passenger rights, a guarantee of efficient, high quality transport services is essential to facilitate the integration and improve the well being of European citizens and help them to make genuine use of their rights. A detailed examination of these questions is therefore required. Passenger rights will certainly be one of the priorities for Community action over the next few years.

B. REPORT ON THE OPERATION OF THE COMMUNITY FRAMEWORK

1. International passenger transport

The Community licence

Generally speaking, according to the information at the Commission's disposal, Regulation No 684/92, as amended by Regulation No 11/98, has not given rise to any major problems of application or interpretation for passenger transport operators and the competent national authorities. The objective of Regulation No 11/98 was precisely to adapt and simplify Regulation No 684/92 which was the first Community legislative initiative to open up the international passenger transport market. The experience of the last few years shows that Regulation No 11/98 may be considered to have achieved these objectives.

More specifically, the Community licence has facilitated checks carried out outside the Member State of establishment of the carrier and therefore improved the conditions of access to the international transport market. A number of complaints concerning the imposition of penalties by the national authorities when checking documents carried on board the vehicle have been received by the Commission. The position adopted by the Commission in these cases, the substance of which is set out in the attached document, should help to ensure that the relevant legislation is applied properly. Given the vital role of this Community licence in the operation of the passenger transport market and therefore the importance of proper use of this document in accordance with Community regulations, the Commission invites all interested parties to submit their observations on the following question:

Question No 1

Are the clarifications made by the Commission (in the working paper of the Commission's departments) regarding the interpretation and application of the provisions on the Community licence adequate? Do they meet the concerns of the authorities issuing Community licences and certified true copies, authorised inspecting officers and carriers?

Authorisation of regular services

The authorisation procedure laid down for regular international services and certain special regular services constitutes an important exception to the general principle of opening up the transport market. In all passenger or goods transport sectors, whether by road, rail, sea or air, the European Community has endeavoured to develop an increasingly liberalised market, while also maintaining high standards of services and safety. Consideration should therefore be given to a new step--intermediate or final - towards a more open market for international regular services. Three scenarios have to be examined:

- 1st scenario: Limiting cases where authorisation is refused

Regulation No 11/98 had already reduced the scope for refusing authorisations for international regular services. Now, authorisation has to be granted if none of the reasons for refusing authorisation laid down in the Regulation can be invoked. A further step should be taken by reducing to a minimum the cases of refusal currently provided for in Article 7(4) of Regulation No 684/92. The Commission had already proposed in 1996 [4] the abolition of the reason for refusal that a regular bus or coach service would seriously affect the viability of a comparable rail service. Although this proposal was not retained when Regulation No 11/98 was adopted, removal of this reason for refusal remains fully justified from the point of view of the principle of free competition between the various modes of transport. It should moreover be noted that, according to the information obtained by the Commission, no authorisation has ever been refused for this reason.

[4] COM (96) 190 final.

A relaxation of the rules provided for in Article 7(4)(d) and (e) should also be considered in order to encourage the development of new regular transport services on certain international routes. The present rules can result in a complete lock-out from certain markets by preventing the entry of new transport operators.

- 2nd scenario: Limiting cases of refusal and tacit authorisation

Article 7(3) lays down that the authorising authority shall take a decision on the application within four months of the date of submission of the application by the carrier. In practice, it appears that this time limit is often exceeded, which is not acceptable for the transport undertakings which have submitted the application for authorisation.

Therefore, apart from limiting the number of cases of refusal of an application (see 1st scenario), provision should also be made for a tacit authorisation procedure. Thus, if the authorising authority has not taken a decision within the time limit laid down in Article 7(c), it would be deemed to have granted the authorisation; the undertaking could therefore start operating its planned service on the day after the expiry of the abovementioned time limit.

- 3rd scenario: Abolition of the authorisation procedure

In this last scenario, regular international services would be fully liberalised on the same lines as occasional services. Any undertaking established in a European Community country would be free to operate a new regular international service whether or not it is already operated by one or more other transport undertakings. The principle of free competition would apply.

This complete liberalisation of regular international services would not however preclude a procedure for informing the national authorities in question, which could then check whether the undertaking planning a new regular service complies with Community regulations on access to the profession of passenger carrier or the rules on road safety. The Member State in which the carrier is established would have a vital supervisory role in this new liberalised market. Withdrawal or non-renewal of the Community licence (or the withdrawal of certified true copies of the Community licence) will have to be used more than at present as penalties to encourage carriers to comply strictly with the regulations. Proper supervision of the obligations of carriers with possible penalties involving the Community licence will replace the current checks carried out in the authorisation procedure for regular services.

Provision should moreover be made for a control document which would replace the authorisation laid down by Regulation No 684/92. Finally, it will be necessary to ensure that this liberalisation does not affect any public services and concessions resulting from cross-border links.

The Commission invites all parties concerned - carriers, carriers' associations, national authorities - to submit their comments on the following three scenarios:

Question No 2

Is the procedure for applying for and granting authorisations for regular international services and certain special services, provided for in Regulation No 684/92, as amended by Regulation No 11/98, justified and balanced from the standpoint of the general objective of the liberalisation of transport services in the internal market?

What should be the degree of liberalisation of these services?

a. 1st scenario: Limit the cases of refusal to grant authorisation provided for in Article 7(4) of Regulation No 684/92 as amended by Regulation No 11/98. Which cases of refusal should be amended or even abolished?

b. 2nd scenario: Restrict cases of refusal to grant authorisation and provide for tacit authorisation by the authorising authority in the absence of a decision within the period of four months following the date of submission of the application by the carrier.

c. 3rd scenario: Introduce complete liberalisation of international regular services and special regular services still subject to authorisation, on the same lines as occasional services. In such a case, which formalities and documents would have to replace those under the current authorisation procedure?

On the basis of the remarks and suggestions made on this subject, the Commission is planning to adopt a proposal - by the end of 2004 or the beginning of 2005 - aimed at changing the conditions for operating regular international services laid down in Regulations No 684/92 and 11/98.

2. Cabotage passenger transport

Regulation No 12/98 on cabotage passenger transport has not given rise to any problems of interpretation or application. More specifically, no infringement has been reported by the Member State concerning the essential feature of cabotage, namely that services can be provided in the host Member State only on a temporary basis. The average duration of occasional services is very short, between one and five days in the host Member State. The number of regular cabotage passenger services is extremely low. As for special regular cabotage services, these are practically non-existent.

In terms of the impact of cabotage transport operations on national transport markets, the analysis shows that:

- The impact of cabotage on national markets of the Member States is insignificant and constitutes a residual category. The operators are therefore concentrating their activities on their national market.

- Cabotage operations are carried out mainly in the adjacent Member States.

- One of the main reasons why non-resident carriers occupy such a small share in the occasional services market in other Member States is that cabotage has to remain a service provided on a temporary basis. If a passenger transport undertaking wishes to establish a genuine foothold on another market, it must ideally be able to provide continuous services with a degree of permanence. The best way to do this therefore is to establish itself in the Member State or to take over a company in that Member State.

There is no need to consider amending the provisions of Regulation No 12/98.

3. Road safety and passenger rights

In terms of road safety, it must be acknowledged that Community legislation, together with technological advances, has resulted in ever safer vehicles. This trend is vital for transport by coach and bus. Although Community rules on access to the market are of fundamental importance, the development of the road passenger transport sector also depends on the quality of the service available to customers, with coach safety being an increasingly important criterion in their eyes. To this end, it will be necessary to examine whether it is expedient and feasible to introduce a system of certification for carriers which, going beyond the minimum safety measures laid down by Community and national legislation, observe particularly high standards in terms of road safety.

Finally, the coach and bus transport sector must guarantee efficient, high quality services: greater passenger comfort, right to information on fares, contractual terms, treatment of complaints, mechanisms for resolving disputes, vehicles which are better adapted to the needs of persons with reduced mobility, etc. Consideration will therefore have to be given to all questions associated with passenger rights in the coach and bus transport sector. The Commission invites all interested parties, particularly carriers and consumer associations, to submit any comments or suggestions on this matter.

Interested parties may submit their comments or suggestions on this report to the following address by 15 October 2004:

Postal address: European Commission

Directorate-General for Energy and Transport

For the attention of Mrs Isabelle Kardacz

B-1049 Brussels

Fax: Mrs Isabelle Kardacz

+ 32 (2) 295.21.65

E-mail isabelle.kardacz@cec.eu.int