Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation establishing new rules on aid to shipbuilding (COM(97)0469 C4-0527/97 97/ 0249 (CNS))
Date: 1998-04-01
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: aid for restructuring, building subsidy, cessation of trading, investment aid, regional aid, shipbuilding













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51998AP0101

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation establishing new rules on aid to shipbuilding (COM(97)0469 C4-0527/97 97/ 0249 (CNS))  


Official Journal C 138 , 04/05/1998 P. 0100 





A4-0101/98Proposal for a Council Regulation establishing new rules on aid to shipbuilding (COM(97)0469 - C4-0527/97 - 97/0249(CNS))The proposal was approved with the following amendments:(Amendment 25)Recital 2a (new)>Original text>>Text following EP vote>Whereas concerns have been expressed by the European Parliament, which considers that a study should be undertaken into the effects of the economic crisis in Asia and the potential consequences of any discriminatory measures to assist Asian shipyards and whereas in the light of the evidence of any such discriminatory measures from a study presented to the European Parliament and the Council, the Commission and the Council should take the necessary steps to defend the interests of the European shipbuilding industry;(Amendment 21)Recital 9>Original text>Whereas, in particular operating aid is not the most cost-effective way of encouraging the European shipbuilding industry to improve its competitiveness; whereas, accordingly operating aid should be phased out and the focus shifted more towards other forms of support to promote the necessary improvements in competitiveness, such as investment aids for innovation;>Text following EP vote>Whereas,in view of existing subsidy practices on the world market, contract-related operating aid is a justified way of preserving the European shipbuilding industry; whereas it may be supplemented with investment aids for innovation to improve its competitiveness, provided that this form of aid does not distort competition on the Community market;(Amendment 16)Recital 11>Original text>Whereas, one year before that date the Community will monitor the market situation and appraise whether European yards are affected by anti-competitive practices. If it is established at that or a later stage that industry is being caused injury by anti-competitive practices including injurious pricing, the Community will consider introducing appropriate measures;>Text following EP vote>Whereas, one year before31 December 2000 the Commission will monitor the market situation and appraise whether European yards are affected by anti-competitive practices, and whereas, if it is established that industry is not being caused injury by anti-competitive practices including injurious pricing, operating aid will cease on 31 December 2000;(Amendment 17)Recital 11a (new)>Original text>>Text following EP vote>Whereas, to be able to make a correct calculation of the disparity between the cost of building vessels in Community yards and the prices being charged by their external competitors, the Commission must take all the measures required, under current agreements, to ascertain the correctness of charges in the accounts of the major conglomerates or holding companies in non-Community countries;(Amendment 18)Recital 16>Original text>Whereas, close and transparent monitoring is necessary if the aid policy is to be effective;>Text following EP vote>Whereas close and transparent monitoring is necessary if the aid policy is to be effectiveand is not to cause distortions of competition within the European Community;(Amendment 2)Article 1(a), 2nd point>Original text>f vessels of not less than 100 gt for the performance of a specialized service (for example dredgers and ice breakers);>Text following EP vote>fvessels of not less than 100 gt for the performance of a specialized service (for example dredgers, ice breakers and floating production storage and offloading vessels (FPSOs));(Amendment 3)Article 1(d)>Original text>(d) 'ship conversion' shall mean the conversion, in the Community, of self-propelled seagoing commercial vessels, as defined in (a), of not less than 1000 gt, on condition that conversion operations entail radical alterations to the cargo plan, the shell, the propulsion system or the passenger accommodation;>Text following EP vote>(d)'ship conversion' shall mean the conversion, in the Community, of self-propelled seagoing commercial vessels, as defined in (a), of not less than 1000 gt, on condition that conversion operations entail radical alterations to the cargo plan, the shell, the propulsion system, the passenger accommodation or the specialized services a vessel also provides;(Amendment 4)Article 1(f)>Original text>(f) 'contract value before aid' shall mean the price laid down in the contract plus any aid granted directly to the yard;>Text following EP vote>(f)'contract value before aid' shall mean the price laid down in the contract and settled at the time of delivery plus any aid granted directly to the yard;(Amendment 5)Article 3(3), 2nd subparagraph>Original text>However, where there is competition between different Member States for a particular contract, the Commission shall require prior notification of the relevant aid proposals at the request of any Member State. In such cases, the Commission shall adopt a position within 30 days of notification; such proposals may not be implemented before the Commission has given its authorisation. By its decision in such cases the Commission shall ensure that the planned aid does not affect trading conditions to an extent contrary to the common interest.>Text following EP vote>However, where there is competition between different Member States for a particular contract, the Commission shall require prior notification of the relevant aid proposals at the request of any Member State. In such cases, the Commission shall adopt a position within 30 days of notification; such proposals may not be implemented before the Commission has given its authorization. By its decision in such cases the Commission shall ensure that the planned aid does notdistort competition between shipyards in different Member States or affect trading conditions to an extent contrary to the common interest as a result of its being granted subject to different conditions.(Amendment 20)Article 3(5a) (new)>Original text>>Text following EP vote>5a. One year before 31 December 2000, the Commission shall monitor the market situation and ascertain whether European yards are being affected by anti-competitive practices. If it is established that the industry is not being harmed by anti-competitive practices, including injurious pricing, operating aid shall cease on 31 December 2000.(Amendment 6)Article 4(1)>Original text>1. Aid to defray the normal costs resulting from the total or partial closure of shipbuilding, conversion or repair yards may be considered compatible with the common market provided that the resulting capacity reduction is of a genuine and irreversible nature.>Text following EP vote>1.Aid to defray the normal costs resulting from the total closure of shipbuilding, conversion or repair yards may be considered compatible with the common market provided that the resulting capacity reduction is of a genuine and irreversible nature.(Amendment 26)Article 4(2), 2nd indent>Original text>- the costs of counselling services to workers made or to be made redundant or retired before legal retirement age, including payments made by shipyards to facilitate the creation of small enterprises which are independent of the shipyards in question and whose activities are not principally shipbuilding, conversion or repair;>Text following EP vote>-the costs of counselling services to workers made or to be made redundant or retired before legal retirement age, including payments made by shipyards to facilitate the creation of small enterprises which are independent of the shipyards in question and whose activities are not shipbuilding, conversion or repair;(Amendment 23)Article 5(1), introduction>Original text>1. Aid for rescue and restructuring of undertakings in difficulties, including capital injections, debt write-offs, subsidised loans, loss compensation and guarantees, may exceptionally be considered compatible with the common market provided that it complies with the general Community guidelines on state aid for rescuing and restructuring firms in difficulty, as currently set out in Official Journal of the European Communities No C 368 of 23 December 1994, and any amendments thereto, and in particular in relation to restructuring it fulfils the following specific conditions:>Text following EP vote>1.Aid for rescue and restructuring of undertakings in difficulties, including capital injections, debt write-offs, subsidised loans, loss compensation and guarantees, may exceptionally, and once only, be considered compatible with the common market provided that it complies with the general Community guidelines on state aid for rescuing and restructuring firms in difficulty, as currently set out in Official Journal of the European Communities No C 368 of 23 December 1994, and any amendments thereto, and in particular in relation to restructuring it fulfils the following specific conditions:(Amendment 9)Article 5(1), 3rd indent>Original text>- there is a viable restructuring plan that will restore the long-term viability of the undertaking within a reasonable time scale;>Text following EP vote>-a restructuring plan based on realistic assumptions is implemented that will restore the viability of the undertaking, as measured against criteria which are laid down in advance, within a specified time scale ;(Amendment 10)Article 5(1), 9th indent>Original text>- the closed capacity must remain closed for not less than 10 years as from the Commission's approval of the aid;>Text following EP vote>-the closed capacity must be closed permanently. If it is nevertheless reopened for the building of ships or parts thereof, the Commission shall ensure that the aid is paid back;(Amendment 27)Article 5(3)>Original text>3. The Commission shall seek the views of Member States on all such cases where the aid is in excess of 10 mecus before adopting a position on them.>Text following EP vote>3.The Commission shall seek the views of Member States on all such cases where the aid is in excess of 10 mecus before adopting a position on them. The Commission shall inform Member States of all requests made to it for authorization of aid covered by this Regulation.(Amendment 12)Article 6, 2nd indent a (new)>Original text>>Text following EP vote>- the result of an aided innovation project is exploited commercially and it pays its way, and repayment is made over a period not exceeding five years.(Amendment 13)Article 9, 2nd subparagraph (new)>Original text>>Text following EP vote>Aid for environmental protection may be granted only if it does not result in increased capacity.(Amendment 14)Article 10(2a) (new)>Original text>>Text following EP vote>2a. The Commission shall be required to obtain information which is as reliable as possible concerning compliance by aid recipients with the conditions governing eligibility for aid covered by this Regulation. In so doing, it may use external consultants, ask to see all documentation and carry out inspections at undertakings which have received aid.Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation establishing new rules on aid to shipbuilding (COM(97)0469 - C4-0527/97 - 97/0249 (CNS)) (Consultation procedure)The European Parliament,- having regard to the Commission proposal to the Council, COM(97)0469 - 97/0249(CNS),- having been consulted by the Council pursuant to Articles 92(3)(e), 94 and 113 of the EC Treaty (C4-0527/97),- having regard to Rule 58 of its Rules of Procedure,- having regard to the Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions entitled: 'Towards a new shipbuilding policy' (COM(97)0470 - C4-0548/97),- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Research, Technological Development and Energy, the Committee on External Economic Relations and the Committee on Transport and Tourism (A4-0101/98),1. Approves the Commission proposal, subject to Parliament's amendments;2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;3. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;4. Calls for the conciliation procedure to be opened should the Council intend to depart from the text approved by Parliament;5. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;6. Instructs its President to forward this opinion to the Council and Commission.