WRITTEN QUESTION E-3041/02

by Paulo Casaca (PSE) to the Commission

(24 October 2002)

Subject: Proceedings taken out by the Commission at the Court of Justice concerning conditions of public service in the Azores

On 12 October 2002, the newspaper Correio dos Açores reported that the Commission had decided to take Portugal to the Court of Justice on the grounds, inter alia, that it does not accept the obligation to provide public services for at least five islands in the Azores, at identical prices, placed on the cabotage enterprises operating between the Azores and the mainland.

Despite repeated telephone calls on 14 October, DG Transport has so far proved incapable of either confirming or denying this information.

Given these circumstances, can the Commission state whether:

- it has drawn up any kind of study of the consequences, in terms of prices, regularity and reliability, of market liberalisation for the transport of goods to the smaller and more remote islands of the Azores?

- it has obtained proof, from such studies or by any other means, that it will be fulfilling its obligations regarding territorial cohesion under Article 16 of the Treaty should it demand an end to public service obligations for the smaller and more remote islands of the Azores?

- it can explain on what grounds, having, in its answer of 8 June 2001 to question E-1196/01 by the author of the present question(1), refused to take a position on the subject of compliance with public service legislation in the case of the Portuguese islands, arguing that this is a matter for the national authorities, it now appears to be acting in the opposite sense?

(1) OJ C 318 E, 13.11.2001, p. 222.

Answer given by Mrs de Palacio on behalf of the Commission

(11 December 2002)

The information published in the Correio dos Açores is incorrect.

An infringement procedure has indeed been started against Portuguese decree-law No 194/98 of 10 July 1998 on maritime cabotage. On 26 July 2001, the Commission sent a reasoned opinion to the Portuguese authorities inviting them to amend the text to bring it into line with Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage)(1).

However, as the Portuguese authorities have committed themselves to revising the text in question, the Commission has not as yet decided to submit the matter to the Court of Justice.

The Commission would like to emphasise the importance it attaches to maritime public service.

Under the maritime cabotage Regulation, Member States may impose public service obligations to ensure sufficient regular transport services to and from islands. However, the Regulation requires Member States to do so on a non-discriminatory basis in respect of all Community shipowners.

The difference of opinion between the Commission and the Portuguese authorities is not about the principle of public service (the Commission recognises the need to ensure adequate services to the islands in the Azores Archipelago) but about the method of its application. There was therefore no need for a Community study.

The Commission's answer to Written Question E-1196/01 of 8 June 2001 by the Honourable Member, on the subject of the application of

Decree-Law 194/98 to maritime tariffs, indicated that the national authorities and not the Commission are responsible for ensuring conformity with national law. The question of the incorrect application of the decree-law is a separate matter from its conformity or lack of it with Community law which is the subject of the infringement procedure.

(1) OJ L 364, 12.12.1992.