WRITTEN QUESTION P-1873/98

by Paul Rübig (PPE) to the Commission

(9 June 1998)

Subject: State aid in the transport sector

In the past the Commission has approved state aid in the transport sector on a number of occasions. It would be particularly interesting in this context to have an accurate list showing the total amount approved of aid to transport by air, ship, road and rail.

In view of the Commission's proposal for improving the current monitoring procedures, it must also be ensured that these allocations are not used for purposes that distort competition.

A question that also arises is whether the Commission will continue to apply the "first-time, last-time" principle in the future.

What is the Commission's position on these issues?

Answer given by Mr Kinnock on behalf of the Commission

(31 July 1998)

The Commission can give the following information concerning the amount of aid approved since 1 January 1995 in the transport sector. The Honourable Member's attention is drawn to the fact that, with regard to aid schemes covering several years, the amounts referred to below represent maximum ceilings of aid authorised for the entire period concerned. The Honourable Member will be aware that all of the sums relate to payments by Member State Governments and not the Community. This comprehension is not always shown in press reports.

In the air transport sector, the total amount of aid authorised by the Commission since the beginning of 1995 is estimated to be 1 410 MECU. This amount concerns the restructuring of Alitalia. Most of the Commission's decisions approving the restructuring of airlines were taken before 1995 and concerned a total amount of 7 310 MECU. These decisions contained strict provisions specifically to avoid distorting competition within the Community. Aid was also granted under the condition that it would facilitate recovery of the airline and that no further aid would be given. The Commission's policy on this matter is set out in the Guidelines to State Aids in the Aviation Sector, to which the Honourable Member is referred.

In the road transport sector, the Commission authorised aid measures amounting to 79 293 MECU. These measures were aimed at promoting mergers or cooperation between small companies, facilitating training or supporting technical adaptations to improve environmental or safety standards. Some of the aid schemes approved by the Commission also contained early retirement aid measures. It is relevant to note that, during the same period, the Commission refused aid measures that would have amounted to 845,5 MECU.

In the rail transport sector, the Commission authorised aid amounting to a total sum of 526,54 MECU. Although many measures were notified to the Commission in this sector, most of these did not involve any state aid element.

In the combined transport sector, the Commission authorised aid measures estimated at 39,2 MECU.

In the maritime transport sector, the Commission authorised various aid measures of a total amount of 1 340 MECU and refused other measures estimated at 6,35 MECU. On the basis of the new Guidelines on State Aid to Maritime Transport, the Commission is conducting an examination of the way in which each Member State aids its shipping sector through tax relief, exemptions or tax reimbursements. This examination will serve to establish quantitative limits to the global amount of aid which Member States may grant and to verify to what extent Member States' aid schemes are successful in bringing about a return to Community flags and boosting the employment of Community seafarers.

The Commission applies the "one time last time" principle referred to by the Honourable Member in the case of aid measures for the restructuring of airlines on the basis of its guidelines governing aids to air transport. In considering restructuring aid for companies operating in maritime, combined and road transport sectors, the Commission will, in principle, apply the guidelines on restructuring and rescuing firms in difficulty, which stipulate that aid for restructuring should normally only be granted once.

However, given the limited degree of liberalisation achieved in the railway sector and the economic particularities of the undertakings concerned, the "one time, last time" principle is currently not applicable as such to the restructuring of companies operating in this sector.