WRITTEN QUESTION E-1582/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(8 May 2003)

Subject: State of the shipbuilding industry in the European Union

A recent visit to the shipyard in Viana do Castelo, in northern Portugal, revealed the concern felt at the problems which continue to affect the shipbuilding industry in the European Union and which may have serious consequences in Portugal unless action is taken to safeguard this key strategic sector.

Furthermore, the recent ecological disasters caused by the wrecks of the ERIKA and Prestige make it imperative to act on the calls for a zero tolerance approach to the transport of heavy hydrocarbons by sea to or from European Union countries. The Commission should not only ensure the swift and flexible application of the temporary protection mechanism for the shipbuilding industry currently in force, but should also provide new forms of support, particularly in the areas of R & D and innovation, with regard to both the drawing-up of plans and prototypes. The new Leadership 2015 initiative is an innovation deserving of support.

Can the Commission provide the following information:

1. What stage has been reached in the proceedings brought against the Republic of Korea in the WTO?

2. What steps will the Commission take, particularly as regards amending the current Regulation (EC) No 1540/98(1) and the new Leadership 2015 initiative, with the aim of supporting the shipbuilding industry, a strategic sector in the European Union, and promoting the rapid renewal of fleets by Community shipowners in order to help improve safety in maritime transport?

(1) OJ L 202, 18.7.1998, p. 1.

Answer given by Mr Liikanen on behalf of the Commission

(17 June 2003)

The Commission is aware of the difficult situation in the shipbuilding market, as evidenced by the information provided in the Commission's 7th shipbuilding report which has been submitted to the Council on 13 May 2003(1) and is now publicly available.

The Commission has responded to this continued crisis in several ways. In 2002, it adopted a two pronged strategy consisting of a World Trade Organisation (WTO) action against Korea and the possibility to authorise direct aid to shipyards for the construction of certain shiptypes under Council Regulation (EC) No 1177/2002 of 27 June 2002 concerning a temporary defensive mechanism (TDM) to shipbuilding(2). The TDM is an exceptional measure and is applicable as of 24 October 2002. It is now up to Member States to implement the Regulation and notify any aid measure to the Commission, if they have not yet done so.

Concerning the WTO dispute, the Commission held various rounds of consultations with the Korean Government since the initiation of the dispute in October 2002 which have, however, failed to resolve the issue. The Commission is, therefore, currently preparing its next step i.e. the request of a WTO Panel.

With regard to Council Regulation (EC) No 1540/1998 of 29 June 1998 establishing new rules on aid to shipbuilding, the Commission is actively engaged in the preparation of new appropriate rules for State aid to shipbuilding, as the Regulation will expire by the end of 2003.

The Commission is also strongly supporting the work in LeaderSHIP 2015, which is an initiative of the Union's shipbuilding industry, in co-operation with the Commission, designed to develop new working structures and technology priorities and so to sustain the competitiveness of the Community's shipbuilding industry. The initiative will, among other issues, look into new possible ways to support Research and Technological Development (R & D) and innovation in the sector. First results will be presented before the end of 2003.

As to the question of fleet renewal, this is already being promoted by the recent Union maritime safety legislation. Any other specific measures would have to comply with the state aid rules for the shipping and shipbuilding industry.

(1) COM(2003) 232 final.

(2) OJ L 172, 2.7.2002.