WRITTEN QUESTION P-3624/01

by Karin Riis-Jørgensen (ELDR) to the Commission

(8 January 2002)

Subject: Subsidies for the Rosyth-Zeebrugge ferry route

In its answer to Question H-0757/01(1), the Commission gave an assurance that it would ensure that selection of, and support for projects under the PACT and Marco Polo programmes would be subject to the most stringent assessment as regards any distortion of competition such projects might cause.

According to the Commission website, EUR 500 000 of aid has been granted under the PACT programme for a new roll-on/roll-off service between Scotland (Rosyth) and the European mainland (Zeebrugge, Belgium). The UK authorities have also announced that they intend to support the same ferry route by granting a further £12 million under the Freight Facilities Grant Scheme, which has apparently not been approved yet.

However, there are already ferry routes across the North Sea, starting from places as close as Newcastle and Hull, which are not subsidised.

Will the Commission therefore state how it will ensure that the European and UK subsidies for the planned route between Rosyth and Zeebrugge do not distort competition with the nearby, non-subsidised routes across the North Sea?

If this cannot be ensured, will the Commission see to it that the subsidies are not paid?

(1) Written answer of 2.10.2001.

Answer given by Mrs de Palacio on behalf of the Commission

(7 February 2002)

The Honourable Member is rightly pointing out that a PACT grant has been accorded to Superfast Ferries, amounting to 500 000, in connection with starting a new service between Rosyth and Zeebrugge. According to the subvention contract between the Commission and Superfast, this money will be used for adaptation of the ships and terminal facilities to the requirements of providing an efficient intermodal service. In view of the innovative nature and quality of the service, its fast transit time and the high standard of the ships employed, an important modal shift from congested roads to maritime traffic is expected. The Commission would like to point out the modal shift towards environment-friendly transport was identified as an EU priority by the Göteborg European Council.

The issue of potential competition between services from the other British ports and the new service has been scrutinised during the evaluation of the project. Possible unacceptable distortions of competition resulting from the grant could not be detected. In the unlikely circumstance that such distortions of competition would nevertheless arise from the PACT grant, in the future, the contract gives the Commission the necessary monitoring and intervention powers to redress the situation.

Concerning the aid given by the British Government under the Freight Facilities Grant (FFG) Scheme, the Commission would like to inform the Honourable Member that it has taken the decision, on 19 December 2001, not to raise objections against this State aid measure. However, it has to be clarified that Superfast Ferries is not a recipient of aid under the scheme, as cleared by the Commission. The extension of the FFG scheme will allow aid to operators of port freight handling facilities for coastal/short sea shipping for reasons of modal shift. In addition, the notified Port of Rosyth project will only include aid to freight facilities, which will be open to any interested operator on non-discriminatory basis. The fees to be charged for the use of this infrastructure will be based on commercial terms.

At the same time, the FFG scheme provides for several measures, which prevent potential distortion of intra-community competition between ports. There must be a traffic shift from road to maritime transport, in order to achieve road mileage savings with corresponding environmental benefits. A mere shift of traffic between two ports without corresponding road mileage savings would thus not be allowed under the FFG scheme. A market analysis has to be carried out when a project submitted for aid is evaluated. Finally, the Commission will be kept informed of the implementation of the scheme through annual reports provided by the British authorities.