WRITTEN QUESTION E-2747/96 by Amedeo Amadeo (NI) to the Commission (21 October 1996)

Subject: Unfair competition in shipbuilding

The protectionist measures being carried out by Korea (injurious pricing, the non-convertibility of the won, the doubling of production capacity and the closure of the national market to ships built abroad) call for a decisive and firm response, not least in order to discourage similar attempts in former Communist countries and in China.

This would make it possible to tackle the damaging practices which are influencing the international market and jeopardizing European ship-yards, which are obliged to respect higher standards as regards environmental protection, working conditions and working hours, safety and social costs.

Can the Commission, in extending the validity of the VIIth Directive on shipbuilding ensure:

1. that absolute priority is given to measures in the R & D sector designed to draw up innovative projects such as the 'ship of the future',

2. that cooperation is stepped up between the main protagonists in the shipbuilding industry, in particular between ship-yards, derivative industries, ship owners and research centres,

3. the speeding up of efforts to develop sea cabotage and the creation of a new Community transport system as an alternative to land transport,

4. that the Port State Control programme and hence measures to combat substandard ships are stepped up,

5. the intensive use of computer technologies in all fields of shipping activities,

6. the creation of the right conditions to allow European shipowners to register their ships under a European flag?

Answer given by Mr Bangemann on behalf of the Commission (21 November 1996)

The Commission attaches great importance to the competitiveness of the Community shipbuilding industry and in particular the safeguarding of fair competition in the sector on a global level. A key element in achieving this is the Organization for economic cooperation and development (OECD) agreement concerning normal competitive conditions in commercial shipbuilding and repair. The Commission will continue to encourage early American ratification so that the agreement can enter into force.

In addition the Commission intends to promote the competitiveness of the maritime industries in general, and the Community shipping industry in particular. This policy is set out in the Commission's two communications to the Council earlier this year: 'Shaping Europe's Maritime Future' ((COM(96) 84 final.)) and 'Towards a new Maritime Strategy' ((COM(96) 81 final.)). The approach being followed takes account of the Honourable Member's concerns as follows:

1. In 1995, the Commission set up a task force 'maritime systems of the future' in order to co-ordinate the Community research and development efforts. One of the priorities identified by the task force is the safe and environmentally friendly ship.

2. The Commission has been encouraging close co-operation between all in the maritime industry (shipowners, shipbuilders, equipment suppliers, ports and also research institutions) within the maritime industries forum which was established in 1992. The forum has now achieved an intensive, constructive and valuable dialogue between all parties concerned.

3. Better use of the potential of short sea shipping to transfer transport volume from congested land based transport systems is a declared aim of the Commission's policy.

4. The Directive on port state control ((OJ L 157, 7.7.1995.)) became fully operational from 1 July 1996. It aims to reduce substandard shipping in Community waters. It is now mandatory for each Member State annually to inspect 25% of the ships which enter its ports. Port state control is therefore likely to have a considerable impact on the application of international safety standards. The Commission is also developing in co-operation with Member States appropriate initiatives to improve the training and efficiency of port inspectors.

5. In the view of the Commission the maritime industries, which are systems orientated, are an ideal field for the application of information technology. The Commission therefore supports projects in areas like ship production planning and control, telematics applications, marine science and technologies and vessel traffic management and information systems. Within the G-7 initiative Maris (maritime information society) the Commission promotes the implementation of information technology in the areas of sea transport, shipbuilding and fishing.

6. The Commission's approach towards increasing the attractiveness for shipowners to register ships in Member States is thoroughly described its communication 'Towards a new maritime strategy'. It proposes to build a strategy to improve the competitiveness of the Community fleet on three main pillars namely safety, external relations, and the improvement of competitiveness through measures to promote employment, training and research and development.