WRITTEN QUESTION E-2290/99

by Carlos Carnero González (PSE) to the Council

(13 December 1999)

Subject: Future of shipbuilding in Europe

On 5 November 1999, the European Trade Union called a four hour strike in the shipbuilding industry, on behalf of the sector's viability, under the slogan WORK FOR SHIPYARDS: A FUTURE FOR EUROPE, and on 9 November, the Council of Industry Ministers assessed the situation of European shipbuilding. A two-hour strike had taken place on 27 October in Spain, a country with a long history of major commitment to shipbuilding, in all the yards belonging to the Spanish Shipbuilders' Group, (Grupo Astilleros Españoles) to draw attention to their viability, and to protest against the privatisation of Astander by the Sociedad Español de Participaciones Industriales. At the same time, it was announced that the Commission was demanding that the Spanish Government return over 18 billion pesetas granted to the shipbuilding sector as tax credits, claiming that they were state aids.

The need to guarantee a future for the shipbuilding industry should be an absolute priority of the European Union, for economic, social and employment reasons. This needs to be achieved by mutual agreement with the trade union leadership, and guarantee, above all, employment in a competitive public sector.

Can the Council answer the following questions:

1. What measures can it put forward to guarantee the viability of shipbuilding, following the November Council meeting?

2. Is it aware of the privatisation of Astander, and does it seriously believe that dismantling the public sector is the right way to guarantee production and employment?

3. What is its opinion of the dumping practised by countries like Korea and Japan in this area?

Joint answer to Written Questions E-2290/99, E-2311/99 and E-2351/99

(13 March 2000)

1. In response to the questions and legitimate concerns expressed by the Honourable Members, the Council would first point out that:

- in general the system of aid to shipbuilding is governed by the provisions of Council Regulation (EC) No 1540/98 of 29 June 1998(1);

- more specifically, the Commission, pursuant to Council Regulation (EC) No 1013/97 of 2 June 1997(2), approved aid to certain shipyards under restructuring in Germany and Spain.

2. At its meeting on 9 November 1999, the Council, in its Industry meeting, was presented with two separate reports from the Commission, relating to:

- the situation in world shipbuilding (report drawn up in accordance with Article 12 of Regulation (EC) No 1540/98),

- the monitoring of the restructuring programmes for shipyards in Germany and Spain (fourth report drawn up in accordance with Article 2 of Regulation (EC) No 1013/97).

3. Following the discussion on this item, the Council adopted the conclusions on the situation in world shipbuilding, of which the following key aspects should be noted, in summary:

- the concern expressed by the Council over the critical situation the sector is facing as a result of overcapacity and very low price practices attributable to the Republic of Korea, and its request to the Commission to resume talks with that country with a view to halting such unfair competition,

- the request to industry, the Member States and the Commission to gather as much evidence as possible of such anti-competitive behaviour, in order to take appropriate action within the WTO,

- the urgent appeal to the IMF and the World Bank to monitor compliance with the conditions under which aid was given to the Republic of Korea following the economic crisis,

- the request to the Commission and the Member States to make renewed efforts in the appropriate international fora, including the OECD, in order to ensure the application forthwith of rules guaranteeing fair competition.

Finally, at the close of those conclusions, the Council welcomed the determination of the Commission to fulfil its obligations under Article 12 of the abovementioned Regulation No 1540/98 (3) and to report on developments as soon as necessary.

The Council intends to include the item on the agenda for its Industry meeting on 18 May 2000.

(1) OJ L 202, 18.7.1998, pp. 1 to 10.

(2) OJ L 148, 6.6.1997, pp. 1 to 3.

(3) Article 12: The Commission shall present to the Council a regular report on the market situation and appraise whether European yards are affected by anti-competitive practices. If it is established that industry is being caused injury by anti-competitive practices of any kind, the Commission shall, where appropriate, propose to the Council measures to address the problem.The first report shall be presented to the Council no later than 31 December 1999.