WRITTEN QUESTION E-3134/00

by Rosa Miguélez Ramos (PSE) to the Commission

(6 October 2000)

Subject: Rules for single-hull oil tankers

Within the framework of the legislative package on maritime safety, the Commission has submitted a proposal for the rapid introduction of rules for oil tankers which need to be converted from being single-hulled to a double hull or equivalent design.

In the section on the impact of the proposal on companies, particular SMEs, the Commission says that it expects this to benefit employment, by increasing demand in shipyards. However, it notes the aggressive competition represented by Far Eastern shipyards, which might well receive the bulk of orders placed as a result of the proposal.

Could the Commission give specific figures as to how many contracts are envisaged, and how many jobs this represents? Can it provide a breakdown showing how many of these jobs would be in European shipyards?

With regard to the capacity of the Asian shipyards, can the Commission state whether they meet the minimum requisite standards for social and labour conditions, non-pollutant processes and technological capacity?

If the major advantage of the Asian shipyards with regard to contracts of this kind is based on social, environmental and technological dumping, what measures does the Commission intend to take to ensure fair competition and equal opportunities for European shipyards?

Answer given by Mrs de Palacio on behalf of the Commission

(16 November 2000)

The aim of the proposal for a regulation of the Parliament and of the Council on the accelerated phasing-in of double hull or equivalent design requirements for single hull oil tankers(1) is to ensure that the transport of oil and oil products by sea is carried out in safe and acceptable conditions, with a minimum risk of oil pollution in case of accidents. Harmonised action is necessary to avoid re-occurrence of oil pollution of European coasts, fauna and flora and harm to the marine environment.

The means to achieve this improvement is by accelerating the phasing-in of double hull tankers i.e. replacing single hull tankers with double hull tankers. It is not possible to give concrete numbers on the impact of this measure upon employment of seafarers as it is not possible to establish how operators will use their vessels in the coming 15 years, nor to establish under what flag operators will be sailing.

The Commission proposal, if adopted by the Parliament and the Council, will increase the demand for new building, which is expected to have a positive effect for the shipbuilding industry. However, it can be expected that due to the excess shipbuilding capacity available in the Far East and the fierce and aggressive pricing policy of that industry, European shipyards will have to compete with Asian shipyards as regards the major part of new shipbuilding orders arising from the accelerated phasing-in scheme, in particular in the segment of the large tankers. The positive impact on employment for the European shipbuilding industry may therefore be mitigated, although it can be expected that European shipyards will secure a share in this replacement scheme, particularly for smaller oil tankers. In addition, European yards' main benefit from the increased demand for tankers will be indirect, since this could reduce the pressure from Far East competition in other market segments.

The Commission has no evidence that the competitive advantage of the Asian shipbuilding industry is based upon cutting corners on social and labour conditions or on technological or environmental dumping. Detailed price monitoring commissioned by the Commission has revealed that market distortions have to a large extent originated from systematic price undercuttings by South Korean yards. Their prices often do not cover all financial costs and therefore do not represent the ship's normal value as defined in the World Trade Organisation (WTO) anti dumping agreement. In view of these findings, the Commission is of the opinion that measures aimed at ensuring a level playing field for the European shipbuilding industry should not be based on alleged social, technological or environmental dumping, but rather should focus on the termination of Korea's non-market oriented pricing practices. The Commission is currently engaged in bilateral consultations with Korea, and has not ruled out the possibility to raise the issue in a WTO context.

(1) OJ C 212 E, 25.7.2000.