WRITTEN QUESTION E-3656/01

by Erik Meijer (GUE/NGL) to the Commission

(14 January 2002)

Subject: Government grants for the redevelopment of the Scottish North Sea port of Rosyth which benefit a single company

1. Is the Commission aware that the Greek ferry company Superfast Ferries has been selected as the preferred operator for the provision of freight and passenger transport services between Rosyth, a former naval port which is to be redeveloped on the northern shore of the Firth of Forth in Scotland, and Zeebrugge in Belgium and that it has received an undertaking from the Scottish Executive that the port at Rosyth will be adapted to its requirements?

2. Is it also aware that the adaptations at Rosyth mean making a 60 % government grant towards a total investment worth £ 20 million, including provision for the construction of a linkspan (vehicle embarkation and disembarkation bridge), whose dimensions are apparently suitable for use only by Superfast Ferries vessels, so that it will not be a port facility for general use?

3. Does the Commission consider it proper for ScotLine Shipping VOF/ScotLine Ferries (Scot) Ltd, which was planning to operate a two-vessel roll-on, roll-off freight service between Leith, close to Edinburgh on the southern shore of the Firth of Forth, and Vlissingen in the Netherlands from spring 2002, to have been invited on 12 November 2001 by Forth Ports plc to opt for Rosyth rather than Leith, despite the lack of suitable facilities there for vessels other than those used by Superfast Ferries?

4. To what extent does the Commission consider this to be a case of seeking justification for a government grant by urging a second company to use the facilities concerned so as to create the impression that they are for general use, when in reality this appears to be nothing more than doing a favour for one company?

5. Does modernisation of the port at Rosyth using EU funds stand in the way of similar funding also being used later to modernise the port at Leith, which also belongs to Forth Ports Plc?

6. How does the Commission propose to ensure that freight traffic between Scotland and the Dutch and Belgian coasts, the volume of which is expected to be greater than the combined transport capacity of the two companies currently involved, can move without being restricted unnecessarily as a result of facilities being of the wrong dimensions or of preferential treatment being given to one specific company?

Answer given by Mrs de Palacio on behalf of the Commission

(21 February 2002)

1. As the Honourable Member knows a PACT grant (Pilot Actions for Combined Transport) has been accorded to Superfast Ferries, amounting to EUR 500 000, in connection with starting a

new service between Rosyth and Zeebrugge. The Commission has knowledge that this company was chosen by an open and non-discriminatory tender procedure organised by the competent authorities. According to the information of the Commission, Superfast Ferries has not received any State aid.

2. Concerning the aid given by the British Government under the Freight Facilities Grant Scheme, the adaptation of the Port of Rosyth constitutes a public policy action in line with the common transport policy and intends to facilitate the development of the maritime infrastructure within the United Kingdom. This project includes handling freight facilities, which will be open to any interested operators on non-discriminatory conditions and its capital grant amounts to £ 10,96 million, and not to £ 20 million, while the environmental benefit is calculated at £ 35 million. Therefore, this action is in the wider public interest.

3. and 4. Regarding the selection of the Port of Rosyth, the Commission verified the studies showing that it was the most suitable location from an environmental and economic point of view. As mentioned before, these facilities will be suitable and open to all potential operators.

5. In relation with a possible Community grant for the adaptation of the Port of Leith, there will be no obstacle for this in the context of the European programmes, but it must be clear that the updating of the Port of Rosyth will be mainly done with governmental money. It is up to the UK authorities to decide its infrastructure priorities.

6. The current Scottish trailer traffic amounts to only a small percentage of the total United Kingdom's international trailer traffic and according to some studies there will be an increase in demand for shipping services to and from the United Kingdom within the next few years. Therefore and considering the open and non discriminatory nature of the facilities the inclusion of new operators in the market may be expected. Consequently, the Commission judges that the competitive impact is acceptable in the light of the very significant environmental benefit and that the grant for the Port of Rosyth does not affect Community trade to such an extent as would be contrary to the interest of the Community. Finally, the Commission would like to stress that no preferential treatment has been agreed and that the Commission's assessment on State aids takes always into account all relevant information available.