OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE on the proposal for a Council Regulation (EC) amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway
Date: 1995-11-23
Institutions: European Economic and Social Committee
Subjects: State aid, combined transport, common transport policy, intra-EU transport, investment aid













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51995AC1316

OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE on the proposal for a Council Regulation (EC) amending Regulation (EEC) No 1107/70 on the granting of aids for transport by rail, road and inland waterway  


Official Journal C 039 , 12/02/1996 P. 0100 





Opinion on the proposal for a Council Regulation (EC) amending Regulation (EEC) No  1107/70  on the granting of aids for transport by rail, road and inland waterway ()(96/C 39/19)On  15  September 1995 the Council decided to consult the Economic and Social Committee, under Article   75 of the Treaty establishing the European Community, on the above-mentioned proposal. The Section for Transport and Communications, which was responsible for preparing the Committee's  work on the subject, adopted its Opinion on 8  November 1995. The Rapporteur was Mr Kielman. At its 330th Plenary Session (meeting of 23  November 1995), the Economic and Social Committee  adopted the following Opinion by a majority vote, with one vote against and two abstentions. 1. Introduction1.1. Despite the fact that subsidies may in principle impede the  liberalization of the European transport market, it may be necessary in certain circumstances and  under certain conditions to deviate from this principle. 1.2. Council Regulation (EEC) No  1107/70 of 4  June 1970 on the granting of aids for transport by  rail, road and inland waterway noted even that long ago that the elimination of disparities liable  to distort the conditions of competition in the transport market is an essential objective of the  common transport policy. However, under Article  77 of the Treaty establishing the EEC, aids are compatible with the Treaty  if they meet the needs of coordination of transport or if they represent reimbursement for the  discharge of certain obligations inherent in the concept of a public service. 1.3. In this specific case the aids relate to Article  3(1)(c) of Regulation (EEC) No  1107/70,  which states that their purpose is to promote either: - research into transport systems and technologies more economic for the community in general; or-  the development of transport systems and technologies more economic for the community in general. 1.4. Council Regulation (EEC) No  1107/70 has been amended and supplemented by Council Regulation  (EEC) No  1658/82 of 10  June 1982, Council Regulation (EEC) No  1100/89 of 27  April 1989 and  Council Regulation No  3578/92 of 7  December 1992. The latter Regulation expires on 31  December  1995. 1.5. The aim of this proposal for amending the basic Regulation No  1107/70 is to extend its  validity up to 31  December 1997 and to lay down more detailed rules for certain procedural  aspects. 1.6. In its Opinions the Committee has constantly mentioned the importance it attaches to  intermodal transport, and called for the improvement and extension of this form of transport. The  two most recent Committee Opinions on the matter are dated 28  September 1988 (Rapporteur: Mr De  Haas) and 24  November 1992 (Rapporteur: Mr Tukker). 1.7. In its Information Report of  July 1986 on stocktaking and prospects for a Community rail  policy (Rapporteur: Mr Querleux), the Committee referred to the great importance which it attaches  to intermodal transport and pointed, inter alia, to the huge amounts involved in investing in  terminals, the cost of which should be borne by regional bodies as a part of infrastructure  spending. 1.8. In its Own-initiative Opinion of 23  March 1988 on Community traffic in transit through non-EC  countries (Switzerland, Austria, Yugoslavia), the Committee referred to the numerous possibilities  available for increasing the role played by intermodal transport in transit traffic. 1.9. In its Opinion on 24  November 1992 the Committee referred to the following factors which make  it necessary to improve intermodal transport: - roads in the Community are congested or becoming so; - the expected increase in traffic cannot be absorbed by road transport alone; - railways can carry a larger proportion if international cooperation between them is improved; - the inland waterways still have enough capacity to expand; - sea transport (especially coastal shipping) could also play a major role in combined transport; - transport by rail or water is less harmful to the environment than road transport. 1.10. The Regulation under consideration should not be restricted to the road/rail and road/inland  shipping combinations, but should be extended to include sea transport (coastal shipping). 1.11. The shipper/customer must be able to freely choose the type of transport. 2. General comments2.1. The increasing density of traffic and growing concern for the  environment have now made the objectives of the Regulation even more pertinent than they were  hitherto. The Committee therefore supports the further development of intermodal transport and  calls for the Regulation to be extended now to include sea transport (coastal shipping). 2.2. Regulation (EEC) No  1107/70 stipulates in Article  3(1)(b) that aid can be granted as long as  road costs are not fully allocated to road transport. The explanatory memorandum accompanying the Commission proposal for extending the period of  validity of the Regulation justifies the aid scheme for intermodal transport, stating that 'the  inequality of distribution, by mode and type of use, of infrastructure charges as well as the  insufficient allocation of social costs in the transport prices operates against non-road modes of  transport and therefore against combined transport'. The reference to 'social costs' and hence to  external costs is new. The Committee's views on the allocation of transport costs have been made  known in its Own-initiative Opinion on infrastructure costs in the road freight transport sector as  a basis for comparison with other transport modes. 2.3. In order to prevent competition from being distorted, each transport mode should have to bear  not only its infrastructure costs but also its external costs. 3. Specific comments3.1. The Committee agrees with the simplified a posteriori control in the  cases referred to in Article  3(1)(e) now that the forms of aid seem to operate satisfactorily. It  also agrees with the deletion of Article  4 of Regulation 1107/70, since it became of no further  use on 1  January 1993. 3.2. Because of the rather low growth in intermodal transport so far and the points listed in 1.4,  the Committee endorses the need to extend the period of validity of the aid scheme. 3.3. Under the proposal it will be possible to continue to subsidize running costs on transit  routes, albeit only outside the Union in Switzerland and ex-Yugoslavia. The Committee wonders whether it will be feasible to subsidize running costs on transit routes in  ex-Yugoslavia up to 1997 considering the damage that has been done there to lines and material. It is important for traffic transiting Switzerland that the Loetschberg rail tunnel is modernized so  that trailers and semitrailers can be carried through it (single track). The construction of the  new Gotthard tunnel is also important. The Committee calls on the Commission to urge the Swiss  authorities to put both plans into effect. 3.4. So as not to cause confusion, the term 'intermodal transport' should be used instead of  'combined transport' or 'mixed transport'. 4. ConclusionThe Committee endorses the Commission proposal COM(95) 377 final for extending the  validity of Regulation 1107/70 until 31  December 1997 and simplifying the procedures used. Done at Brussels, 23  November 1995. The Presidentof the Economic and Social CommitteeCarlos FERRER() OJ No C  253, 29. 9. 1995, p. 22.