Opinion of the Economic and Social Committee on the 'Proposal for a Council Regulation (EC) establishing new rules on aid to shipbuilding'
Date: 1998-02-25
Institutions: European Economic and Social Committee
Subjects: OECD, State aid, competition policy, control of State aid, shipbuilding

27.4.98

EN

Official Journal of the European Communities

C 129/19

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
(EC) establishing new rules on aid to shipbuilding’

(98/C 129/05)

On 20 October 1997 the European Council decided to consult the Economic and Social
Committee, under Article 198 of the Treaty establishing the European Community, on the
above-mentioned proposal.

The Section for Industry, Commerce, Crafts and Services, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 6 February 1998. The rapporteur
was Mr Simpson.

At its 352nd plenary session (meeting of 25 February 1998) the Economic and Social Committee
adopted the following opinion by 110 votes to three with seven abstentions.

Since the proposals for a new aid regime should be seen
within the context of wider shipbuilding policy and, in
particular,
the Commission’s parallel Communi-
cation (1) final outlining new orientations aimed at
improving the competitiveness of the sector (point 1.5
of the Regulation Explanatory Memorandum), the
Committee refers itself to the opinion it has given on
that Communication.

As a reminder, the main conclusions of said opinion are:

— The ESC has, in its earlier opinion (2), endorsed the
objectives which were agreed in the proposed OECD
Agreement on shipbuilding. The failure by the United
States to ratify that Agreement is regretted. Whilst
the Committee would still wish to see the OECD
Agreement ratified, the proposed new regulation
has, in principle, the support of the ESC as it seeks
to encourage the development of a stronger and
competitive EU shipbuilding industry.

— The ESC commends the efforts of the Commission
to create a consistent and mutually reinforcing set
of maritime policies ranging from the promotion of
research and innovation, encouraging industry-wide
cooperation and, more recently, encouraging the
development of short sea shipping as a contribution
to wider problems of freight movement around the
Community and in a wider context.

— Recent events in financial markets and exchange
rates in the Far East have created an uncertain
environment for a number of industries, including
shipbuilding. The Committee recognizes that the
Commission will need to monitor events and, if
necessary, take appropriate action if there is a
prospect that the shipbuilding industry will be
adversely affected.

— Whilst the removal of operating aid, and its replace-
ment by more selective measures lie at the core of

(1) COM(97) 470.
(2) OJ C 30, 30.1.1997.

the proposed regulation, the ESC would be reluctant
to support the removal of operating aid if the
prospects for competitive success were considered
too low and if the alternative measures do not offer
an equivalent effect.

— The Committee suggests that a further comparison
to establish the relative competitive position of the
main producers should be undertaken before a final
date for the removal of operating aid is decided.

— The Committee welcomes the assurance that at the
end of 1999 (one year before the deadline) the
Commission will monitor the market situation and,
if anti-competitive practices are established, will
consider introducing appropriate measures.

— Difficulties might occur if the scope of the new
regulation was not broadened to cover critical
aspects of ship repair activities and the Committee
welcomes this more logical approach to the range
of shipbuilding, ship conversion and ship repair
activities.

— The proposals relating to export credits, contract
aid, closure aid, restructuring aid and investment
aid are supported. However, the ESC would be
concerned if the consequence of the changes was
to increase the level of official expenditure on
shipbuilding whereas the effect is supposed to be the
opposite; i.e. the reduction and removal of aid.

— The Commission should monitor the impact of the
arrangements and, in particular, the impact of the
different types of support.

— The Commission should avoid any measures which
could result in an international ‘subsidy race’ and
should continue its endeavours to control, and
ultimately phase out, subsidies to shipbuilding
through an overall agreement within the philosophy
of the OECD Agreement. This should be established
as a basic principle in order to avoid the building of

C 129/20

EN

Official Journal of the European Communities

27.4.98

vessels for which there is no economic justification
and where the consequences may be to unfairly

distort activity in the shipbuilding sector and serious-
ly damage the economics of the shipping industry.

Brussels, 25 February 1998.

The President

of the Economic and Social Committee

Tom JENKINS

Opinion of the Economic and Social Committee on the ‘Communication from the Commission
on the social and labour market dimension of the information society “People First — The
Next Steps”’

(98/C 129/06)

On 29 July 1997 the Council decided to consult the Economic and Social Committee, under
Article 198 of the Treaty establishing the European Community, on the above-mentioned
communication.

The Section for Social, Family, Educational and Cultural Affairs, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 12 February 1998. The
rapporteur was Mr Pellarini.

At its 352nd plenary session (meeting of 26 February 1998), the Economic and Social Committee
adopted the following opinion by 97 votes to 9.

1.

Introduction

1.1.
Further to its task of monitoring, analysing and
providing guidance on the impact and problems of the
information society, the Commission has published
a new document focusing principally on its social
dimension and effects on the labour market.

The starting points are the 1994 Action Plan on
1.2.
Europe’s way to the information society and the 1996
Green Paper on Living and working in the information
society: People first.

Following the path set out in this basic document the
Communication sets the following main purposes:

— to increase awareness of the implications of the

information society;

— to build an information society dimension into social

policies and actions;

— to identify specific actions to maximize the contri-
bution of the information society to promoting
employment and social inclusion.

In an initial section, the Commission emphasizes
1.3.
the need to facilitate access to the information society,
which ‘must be based on the principles of equal
opportunities, participation and integration of all’.

Infrastructures and services ‘should be available at
affordable prices’; the concepts of ‘universal service’ and
‘public access’ need to be examined in greater detail and
looked at dynamically; software and hardware must
be increasingly user-friendly; social groups which are
largely uninvolved and uninformed must be made aware
of the opportunities offered by the new technologies,
bringing them into an on-going learning process.

Implementing the information society in public
1.4.
services can sustain and develop democratic life by
encouraging participation and open government. In this
regard, the Commission announces that it is preparing
a Green Paper on Access to and exploitation of public
sector information.

1.5.
Significant results may be achieved even in purely
social areas such as policies for equal opportunities or
enhancing the quality of life and employment oppor-
tunities for people with disabilities.