COMMON POSITION (EC) No 10/1999 adopted by the Council on 21 December 1998 with a view to adopting Council Regulation (EC) No .../1999 of ... on a Community-fleet capacity policy to promote inland waterway transport
Date: 1998-12-21
Institutions: Council of the European Union
Subjects: inland waterway fleet, inland waterway shipping, inland waterway transport, intra-EU transport

25.2.1999

EN

Official  Journal  of  the  European  Communities

C 55/25

COMMON  POSITION  (EC)  No  10/1999

adopted  by  the  Council  on  21  December  1998

with  a  view  to  adopting  Council  Regulation  (EC)  No  . . ./1999  of  . . .  on  a  Community-fleet
capacity  policy  to  promote  inland  waterway  transport

(1999/C 55/03)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community,  and  in  particular  Article  75  thereof,

Having  regard  to  the  proposal  from  the  Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Acting  in  accordance  with  the  procedure  laid  down  in
Article  189c  of  the  Treaty (3),

into  service  as  soon  as 

in  the  event  of  a  serious  disturbance  on  the  same
market,  as  defined 
in  Article  1  of  Directive
96/75/EC (5);  whereas  steps  should  be  taken  to
prevent  the  benefits  from  the  scrapping  schemes
conducted  since  1990  being  wiped  out  by  new
capacity  coming 
the
abovementioned  rule  ends;  whereas  it  is  therefore
necessary  to  retain  the  ‘old-for-new’  rule  for  a
limited  period  of  not  more  than  four  years  while
gradually reducing the ratios to zero to safeguard the
transition 
the  Community-market
intervention  stage;  whereas  it  is  also  important  to
maintain  the  ‘old-for-new’  instrument  for  regulating
the  capacity  of  the  Community  fleets  beyond  these
four  years,  but  as  a  standby  mechanism  set  at  zero
which  could  be  reactivated  only  in  the  event  of
serious market disturbance of the kind referred to in
Article  7  of  Directive  96/75/EC;

and 

end 

(1) Whereas  Regulation 

of 

arrangements 

(EEC)  No 
for 

1101/89 (4)
introduced 
structural
improvements  in  the  inland  waterway  sector  for  the
fleets  operating  on  the  linked  inland  waterway
networks 
France,
Luxembourg,  the  Netherlands  and  Austria;  whereas
the  objective  of  that  Regulation  was  to  reduce
overcapacity  in  the  inland  waterway  fleets  by  means
of 
at
Community  level;  whereas  that  Regulation  expires
on  28  April  1999;

Belgium,  Germany, 

vessel-scrapping 

coordinated 

schemes 

(2) Whereas  of  the  measures  to  support  these  structural
improvement arrangements with the aim of avoiding
aggravation  of 
the
emergence  of  further  overcapacity,  the  ‘old-for-new’
rule  has  proved  indispensable  to  balanced  operation
of  the  inland  waterway  market;  whereas  this  rule
also  remains  an  essential  instrument  for  intervention

existing  overcapacity  or 

(1) OJ  C  320,  17.10.1998,  p.  4.
(2) Opinion delivered on 2 December 1998 (not yet published in

the  Official  Journal).

(3) Opinion  of  the  European  Parliament  of  3  December  1998
(OJ C 398, 21.12.1998), common position of the Council of
21 December 1998 and Decision of the European Parliament
of  . . .  (not  yet  published  in  the  Official  Journal).

(4) OJ  L  116,  28.4.1989,  p.  25.  Regulation  last  amended  by
Commission Regulation (EC) No 742/98 of 2 April 1998 (OJ
L  103,  3.4.1998,  p.  3).

(3) Whereas the emergence of new overcapacity must be
kept  in  check  effectively  in  every  branch  of  the
inland  waterway  transport  market;  whereas  it  is
therefore important that the measures to be adopted
should  be  generally  applicable  and  cover  all  cargo
vessels  and  pusher  craft;  whereas  there  should  be
exemption  from  such  measures  for  vessels  which,
because  they  operate  solely  on  closed  national  or
international  markets,  in  no  way  contribute  to  the
overcapacity  on  the  network  of 
inland
waterways  and  provision  should  be  made  for  the
possibility  of  exempting  vessels  which,  because  their
deadweight  tonnage  is  less  than  450  tonnes,  also  do
not  contribute  to  such  overcapacity;  whereas,  by
fleets  performing  own-account
contrast,  private 
operations  cannot  be  excluded  because  of  their
impact  on  transport  markets;

linked 

(4) Whereas  a  common  approach  allowing  Member
States  to  take  joint  measures  to  attain  the  same
objective  is  a  sine  qua  non  for  regulating  capacity;
whereas  to  this  end  the  scrapping  funds  introduced
by  Regulation  (EEC)  No  1101/89  in  the  Member
States  with  inland  waterways  should  be  maintained,

(5) Council  Directive  96/75/EC  of  19  November  1996  on  the
system of chartering and pricing in national and international
inland  waterway  transport  in  the  Community  (OJ  L  304,
27.11.1996,  p.  12).

C 55/26

EN

Official  Journal  of  the  European  Communities

25.2.1999

the 

but  under  a  new  designation,  and  should  administer
this  ‘old-for-new’  rule;  whereas  the  surplus  funds
from 
to  structural
improvement  schemes  conducted  up  until  28  April
1999  should  be  placed  in  a  reserve  fund  attached  to
the  abovementioned  funds;

industry’s  contributions 

should  be  conferred  on 

safeguard the conditions of competition laid down in
this  Regulation 
the
Commission;  whereas 
important  that  the
it 
Commission  take  such  decisions  after  consulting  the
Member  States  and  the  organisations  representing
inland  waterway  transport  at  Community  level;

is 

(5) Whereas,  in  view  of  the  fundamental  differences
between the dry cargo, liquid cargo and pusher craft
markets,  it  is  advisable  to  keep  separate  accounts  in
each  fund  for  dry  cargo  carriers,  tanker  vessels  and
pusher  craft;

therefore  be  borne  by 

the  Treaty,  responsibility 

(6) Whereas,  in  the  context  of  an  economic  policy
compatible  with 
for
capacity  regulation  lies  primarily  with  operators  in
the  sector;  whereas  the  cost  of  the  measures
introduced  should 
the
undertakings in the inland waterway sector; whereas
this  capacity  regulation  consists  of  laying  down  the
conditions  to  apply  for  bringing  into  service  certain
new capacity without going so far as totally blocking
access  to  the  market;  whereas  it  is  possible  to  limit
the  duration  and  impact  of  these  conditions  and  to
adjust  them  flexibly  to  market  trends  but  the  ratios
must  gradually  be  reduced  to  zero  within  four  years
starting  on  29  April  1999;  whereas  this  regulatory
mechanism  designated  the  ‘old-for-new’  rule  should
be  maintained  as  a  standby  mechanism  once  the
ratio  reaches  zero;  whereas  the  special  contributions
paid under the ‘old-for-new’ rule should be placed in
the  reserve  fund  and  may  be  used  for  granting
scrapping  premiums,  if  intervention  in  the  market
proves necessary;

(7) Whereas  it  is  desirable  to  ensure  that  the  measures
provided  for  in  this  Regulation  and  implementation
thereof  do  not  distort,  or  threaten  to  distort,
competition, 
in  particular  by  favouring  certain
undertakings  to  an  extent  which  is  contrary  to  the
common  interest;  whereas,  in  order  to  place  the
in  similar  conditions  of
enterprises  concerned 
competition,  the  special  contributions  to  be  paid  to
the funds covering the building of new craft and the
scrapping  premiums, 
if  such  premiums  prove
necessary in the event of a serious disturbance of the
market  and 
in  accordance  with  the  procedure
provided  for  in  Article  8  of  Directive  96/75/EC,
should  be  set  at  uniform  rates  and  on  uniform
terms;

(9) Whereas,  in  connection  with  the  modernisation  and
restructuring  of  the  Community  fleets  to  create  a
context  favourable  to  the  environment  and  safety,
social measures should be envisaged to help workers
who  wish  to  leave  the  inland  waterway  industry  or
to  retrain  for  jobs  in  another  sector,  together  with
establishment  of
measures 
groupings  of  undertakings,  to  improve  operators’
skills  and  to  promote  adaptation  of  the  vessels  to
technical  progress,

encourage 

the 

to 

HAS  ADOPTED  THIS  REGULATION:

Article  1

Inland waterway vessels used to carry goods between two
or more points by inland waterway in the Member States
shall  be  subject  to  the  Community-fleet  capacity  policy
laid  down  in  this  Regulation.

For a period of not more than four years with effect from
29  April  1999  this  capacity  policy  shall  include  the
conditions  for  bringing  into  service  new  capacities,  in
accordance  with  this  Regulation.

Article  2

1.
This Regulation shall apply to cargo-carrying vessels
and  pusher  craft  providing  transport  services  on  own
account or for hire or reward and registered in a Member
State  or,  if  not  registered,  operated  by  an  undertaking
established  in  a  Member  State.

(8) Whereas,  since  the 

inland  waterway  fleets  are
Community  fleets,  decisions  on  operation  of  this
capacity-regulation  mechanism  should  be  taken  at
Community  level;  whereas  the  power  to  adopt  such
decisions,  to  see  to  implementation  thereof  and  to

For  the  purposes  of  this  Regulation,  ‘undertaking’  shall
mean any natural or legal person exercising an economic
activity  on  a  non-industrial  or  industrial  scale.

25.2.1999

EN

Official  Journal  of  the  European  Communities

C 55/27

The 

2.
Regulation:

following 

shall  be 

exempt 

from 

this

(a) vessels  operating  exclusively  on  national  waterways
not  linked  to  other  waterways  in  the  Community;

(b) vessels  which,  owing  to  their  dimensions,  cannot
leave  the  national  waterways  on  which  they  operate
and  cannot  enter  the  other  waterways  of  the
Community  (captive  vessels),  provided  that  such
vessels are not likely to compete with vessels covered
by  this  Regulation;

(c) vessels  operating  exclusively  on  the  Danube  (and  its

tributaries)  up  to  Kelheim  without  leaving  it;

(d) pusher craft with a motive power not exceeding 300

kilowatts;

(e)

sea-going  inland  waterways  vessels  and  ship-borne
barges  used  exclusively  for  international  or  national
transport  operations  during  voyages  which  include  a
sea crossing;

(f) vessels  used  exclusively  for  storage  of  goods,  i.e.
vessels  used  for  loading  and  subsequently  unloading
goods  at  the  same  place;

(g) dredging  equipment,  such  as  hopper  vessels  and
pontoons  and  floating  construction  plant,  provided
that  such  equipment  is  not  used  for  the  carriage  of
goods  within  the  meaning  of  Article  1;

(h)

ferries;

(i)

vessels  providing  a  non-profit-making  public  service.

3.
Each  Member  State  concerned  within  the  meaning
of Article 3(1) may exclude its vessels with a deadweight
tonnage  of  less  than  450  tonnes  from  the  scope  of  this
Regulation.  Where  a  Member  State  avails  itself  of  this
option, it shall notify the Commission accordingly within
six  months;  the  Commission  shall  inform  the  other
Member  States.

Article  3

1.
Each  Member  State  whose  inland  waterways  are
linked to those of another Member State and the tonnage
of  whose  fleet  is  above  100 000  tonnes,  hereinafter
referred to as ‘the Member State concerned’, shall set up,
under 
its  own
administrative  resources,  an  inland  waterways  fund,
hereinafter  referred  to  as  ‘the  Fund’.

legislation  and  with 

its  national 

The  competent  authorities  in  the  Member  State
2.
concerned shall administer the Fund. Each Member State
shall 
its  national  organisations  representing
inland  waterway  carriers  in  this  administration.

involve 

3.
Each  Fund  shall  have  a  reserve  fund  consisting  of
three  separate  accounts:  one  for  dry  cargo  carriers,  one
for  tanker  vessels  and  one  for  pusher  craft.

This  reserve  fund  shall  be  financed  by:

— the  surplus  funding  from  the  structural  improvement
schemes conducted up until 28 April 1999, consisting
solely  of  financial  contributions  from  the  industry,

— the  special  contributions  referred  to  in  Article  4,

— the financial resources which could be made available
in  the  event  of  serious  disturbance  of  the  market,  as
referred  to  in  Article  7  of  Directive  96/75/EC.

4.
The  reserve  fund  may  be  used  in  connection  with
the suitable measures referred to in Article 7 of Directive
96/75/EC  and, 
in  the  course  of  the
improvement  measures  organised  at  Community  level  in
accordance  with  the  procedure  defined  in  paragraph  6
and  Article  6  of  this  Regulation.

in  particular, 

The  reserve  fund  may  be  used  in  the  course  of
5.
if  unanimously
in  Article  8 
measures  referred  to 
requested  by 
inland
the  organisations  representing 
waterway  transport.  In  this  case,  the  measures  must  be
the  subject  of  an  action  at  Community  level.

6.
There shall be mutual financial support between the
Funds with regard to the separate accounts mentioned in
the  first  subparagraph  of  paragraph  3.  This  shall  come
into  play  for  all  the  expenditure  and  all  the  funding
mentioned in the second subparagraph of paragraph 3, so
as to guarantee equal treatment for all carriers subject to
this  Regulation,  independently  of  the  Fund  to  which  the
vessel belongs.

The  Member  States  concerned  shall  continue  to
7.
administer the Fund referred to in Article 3 of Regulation
(EEC)  No  1101/89  until  the  new  Fund  referred  to  in
paragraph  1  is  set  up.

C 55/28

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Official  Journal  of  the  European  Communities

25.2.1999

Article  4

1.
Vessels  covered  by  this  Regulation,  whether  newly
constructed,  imported  from  a  third  country  or  due  to
leave  the  waterways  mentioned  in  Article  2(2)(a),  (b)  or
(c),  may  be  brought  into  service  subject  to  the  condition
(the  old-for-new  rule)  that  the  owner  of  the  vessel  to  be
brought  into  service:

Any  Member  State  concerned  may  permit  vessels
definitively  withdrawn  from  the  market  for  use  for
purposes other than the carriage of goods, such as vessels
for  humanitarian  purposes,  museum  ships,  vessels  for
developing  countries  outside  Europe  or  vessels  placed  at
the  disposal  of  non-profit-making  bodies,  to  be  counted
as compensatory tonnage, i.e. treated as if they had been
scrapped.  It  shall  communicate  such  permission  to  the
Commission, which shall inform the other Member States
concerned.

— either  scraps,  without  receiving  a  scrapping  premium,
tonnage  in  line  with  the  ratio  between  old  and  new
tonnage  set  by  the  Commission,

In the case of pusher craft, the concept of ‘tonnage’

4.
shall  be  replaced  by  that  of  ‘motive  power’.

— or pays into the Fund covering the new vessel, or into
the  Fund  chosen  by  the  vessel-owner  in  accordance
with  Article  5(2),  a  special  contribution  based  on  the
abovementioned  ratio  or,  if  the  owner  scraps  a
tonnage smaller than required by the abovementioned
ratio,  pays  the  difference  between  the  tonnage  of  the
new  vessel  and  the  tonnage  scrapped.

2.
The ratio may be set at different levels for different
sectors  of  the  market,  i.e.  dry  cargo  carriers,  tanker
vessels  and  pusher  craft.

The  ratio  shall  be  constantly  reduced  to  bring  it  as
quickly  as  possible  and  in  regular  stages  to  zero  no  later
than  29  April  2003.  Once  the  ratio  has  been  set  at  zero,
the arrangements shall become a standby mechanism and
may  be  reactivated  only  in  the  event  of  a  serious
disturbance  of  the  market,  as  provided  for  by  Article  6.

The  owner  of  the  vessel  must  have  the  choice
3.
between  paying  the  special  contribution  or  scrapping  old
tonnage:

— either at the time that the firm order for construction
of  the  new  vessel  is  placed  or  at  the  time  that  the
application for import is lodged, provided the vessel is
brought  into  service  within  twelve  months  thereafter,

— or  at  the  time  that  the  new  or  imported  vessel  is

brought  into  service.

The  choice  of  time  must  be  stated  when  ordering  or
applying  to  import  the  vessel.

The  conditions  laid  down  in  paragraph  1  shall  also
5.
apply  to 
in  capacity  resulting  from  the
lengthening of a vessel or the replacement of pusher-craft
engines.

increases 

After  consulting 

6.
the
organisations  representing  inland  waterway  transport  at
Community 
exempt
specialised  vessels  from  the  scope  of  paragraph  1.

the  Member  States  and 

the  Commission  may 

level, 

The  specialised  vessels  must  be  specially  and  technically
designed  to  carry  a  single  type  of  goods  and  technically
unsuitable for carrying other goods, it must be impossible
to  carry  this  single  type  of  goods  in  vessels  without
special  technical  installations  and  the  owners  of  the
vessels  must  give  a  written  undertaking  that  no  other
goods  will  be  carried  in  their  vessels  as  long  as  the
‘old-for-new’  rule  applies.

Article  5

1.
For  vessels  registered  in  one  of  the  Member  States
concerned,  the  special  contribution  shall  be  paid  into  the
Fund  of  the  Member  State  where  the  vessel  is  registered.
For  non-registered  vessels  operated  by  an  undertaking
established  in  one  of  the  Member  States  concerned,  the
special  contribution  shall  be  paid  into  the  Fund  of  the
Member  State  in  which  the  undertaking  is  established.

2.
The  special  contribution  for  vessels  registered  in  a
Member  State  other  than  a  Member  State  concerned  or
for  non-registered  vessels  operated  by  an  undertaking
established in a Member State other than a Member State
concerned  shall  be  paid  into  one  of  the  Funds  set  up  in
the  Member  States  concerned,  at  the  choice  of  the
vessel-owner.

The vessel offered for scrapping as compensatory tonnage
must have been scrapped before the new vessel is brought
into service.

Article  6

Owners  of  vessels  to  be  brought  into  service  who  have  a
higher  tonnage  than  necessary  scrapped  shall  receive  no
financial  compensation  for  this  surplus.

In  the  event  of  serious  disturbance  on  the  market,  as
defined  in  Article  7  of  Directive  96/75/EC  and,  at  the
request  of  a  Member  State,  after  the  committee  referred
to  in  Article  8  of  the  said  Directive  has  given  its  opinion

25.2.1999

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C 55/29

and  following  the  procedure  laid  down  in  the  same
Article,  the  Commission  may  reactivate  the  ‘old-for-new’
rule  for  a  limited  period,  in  accordance  with  Article  7  of
the  said  Directive,  accompanied  or  not  by  structural
improvement measures.

Under  such  structural  improvement  measures  owners  of
vessels  referred  to  in  Article  2(1)  who  scrap  a  vessel,  i.e.
who  have  the  hull  of  the  vessel  broken  up  totally  or,  in
the  case  of  pusher  craft,  destroy  the  hull  and  the  engine,
may  receive  a  scrapping  premium  at  the  rate  set  by  the
Commission  under  the  conditions  laid  down  in  Article  7
from the Fund covering the vessel insofar as the financial
resources are available.

However, this premium may be granted only in respect of
vessels  which  the  owner  proves  form  part  of  his  active
fleet, i.e.:

— vessels  which  are  in  good  working  order  and

— vessels  for  which  the  owner  can  produce  valid
certificates  of  water  worthiness  and  tonnage  or  an
authorisation  to  engage  in  national  transport  issued
by  the  competent  authority  of  one  of  the  Member
States  concerned  and

— vessels  which  have  made  at  least  10  voyages  during
the 24 months preceding application for the scrapping
premium. ‘Voyage’ shall mean a commercial transport
operation  over  a  distance  normal  for  the  carriage  of
goods  of  the  same  type  (over  50  km)  and  carrying  a
volume of cargo in reasonable proportion to the cargo
capacity  of  the  vessel  (at  least  70 %).

No premium shall be granted in respect of vessels which,
as  a  result  of  a  wreck  or  other  damage  suffered,  are  no
longer repairable or for which the repair costs are higher
than  the  amount  of  the  scrapping  premium.

Where  the  competent  authorities  have  well-founded
reasons  to  doubt  that  the  vessel  covered  by  the
application  for  the  scrapping  premium 
in  good
working  order,  they  may  request  a  surveyor  to  certify
that  the  vessel  concerned  is  in  a  technical  condition  to
carry  goods.  The  scrapping  premium  shall  be  refused  if
the  vessel  fails  to  meet  this  requirement.

is 

Article  7

After  consulting 

the  Member  States  and 

the
1.
organisations  representing  inland  waterway  transport  at
Community 
lay  down
level,  the  Commission  shall 
separately  for  dry  cargo  carriers,  for  tankers  and  for
pusher  craft:

— the  rate  of  the  special  contributions,

— the  period  during  which  scrapping  premiums  referred
to  in  Article  6  will  be  paid,  the  conditions  for
granting  them  and  the  rates,

— the  adjustment  coefficients  (equivalent  tonnage)  for
each  type  and  category  of  inland  waterway  vessel.

2.
The  special  contributions  and  scrapping  premiums
shall  be  expressed  in  euros.  The  rates  applying  shall  be
the  same  for  each  Fund.

3.
The  special  contributions  and  scrapping  premiums
shall be calculated for cargo-carrying vessels on the basis
of  the  deadweight  tonnage  and  for  pusher  craft  on  the
basis  of  the  motive  power  of  the  vessel.

After  consulting 

the  Member  States  and 

4.
the
organisations  representing  inland  waterway  transport  at
Community 
lay  down
level,  the  Commission  shall 
detailed rules for the mutual financial support referred to
in  Article  3(6).

5.
The decisions reached by the Commission shall also
take account of the results of observation of the transport
markets  in  the  Community  and  of  any  foreseeable
changes  therein,  as  well  as  of  the  need  to  avoid  any
distortion  of  competition  to  an  extent  which  is  contrary
to  the  common  interest.  In  order  to  contribute  to
observation  of  the  market,  owners  of  vessels  built  or
imported must inform the Funds six months before these
vessels  are  brought  into  service.

Article  8

Without prejudice to Article 3(5), any Member State may
take  measures  in  particular  to:

— make it easier for inland waterway carriers leaving the
industry  to  obtain  an  early  retirement  pension  or  to
transfer  to  another  economic  activity,

— organise vocational training or re-training schemes for

workers  leaving  the  industry,

— encourage  private  owner-operators  to 

join  trade

associations,

— the  ratios  for  the  ‘old-for-new’  rule  for  the  vessels

referred  to  in  Article  2,

— encourage  adaptation  of  vessels  to  technical  progress
in  order  to  improve  working  conditions  and  promote
technical  safety  requirements,

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— improve  operators’  skills  in  order  to  safeguard  the

development  and  future  of  the  trade.

Article  9

1. Member  States  shall  adopt  the  measures  necessary
to 
implement  this  Regulation  and  shall  notify  the
Commission  thereof.

These  measures  shall  provide,  inter  alia,  for  permanent
and  effective  verification  of  compliance  with 
the
obligations  imposed  on  undertakings  by  this  Regulation
and  the  national  provisions  adopted  in  implementation
thereof,  and  for  appropriate  penalties  in  the  event  of
infringement.

shall 

States 

the
2. Member 
Commission  annually  all 
information  on
progress  with  the  ‘old-for-new’  scheme  and  on  the
financial  position  of  the  Funds  and  of  their  reserve
fund.

communicate 

relevant 

to 

The  Commission  shall  adopt  the  decisions  which  it

3.
is  required  to  take  under  Article  7.

4.
The  Commission  shall  ensure  that  the  Funds  apply
this  Regulation  uniformly  and  shall  ensure  coordination
thereof.

Article  10

This  Regulation  shall  enter  into  force  on  29  April  1999.

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member  States.

Done  at  . . .

For  the  Council

The  President

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STATEMENT  OF  THE  COUNCIL’S  REASONS

I.

INTRODUCTION

On 28 September 1998 the Commission submitted to the Council a proposal for a Council
Regulation  on  a  Community-fleet  capacity  policy 
inland  waterway
transport (1).

to  promote 

The  proposal  is  based  on  Article  75  of  the  EC  Treaty.

The European Parliament delivered its opinion on the Commission proposal on 3 December
1998 (2)  and  the  Economic  and  Social  Committee  delivered  its  opinion  on  2  December
1998 (3).

On  11  December  1998  the  Commission  submitted  an  amended  proposal  to  the  Council  in
the  light  of  the  European  Parliament’s  opinion.

The Council adopted a common position on 21 December 1998 pursuant to Article 189c of
the  EC  Treaty.

II. OBJECTIVES  OF  THE  PROPOSAL

The  amended  Commission  proposal  is  intended  to  replace  Council  Regulation  (EEC)
No 1101/89 of 27 April 1989 on structural improvements in inland waterway transport (4),
which  expires  on  28  April  1999.  The  Regulation  provides  for  the  reduction  of  fleet
overcapacity  in  inland  waterway  transport  through  vessel  scrapping  measures  coordinated
at  Community  level.

The  Commission  proposal  seeks  to  maintain  the  market-regulation  mechanism  currently  in
force (old-for-new rule) for a maximum period of five years, in order to prevent the effects
of the scrapping measures carried out since 1990 being nullified by the bringing into service
of new capacity just after the expiry of Regulation (EEC) No 1101/89. During this period,
the  owner  of  a  vessel  to  be  brought  into  service  must:

— either  scrap,  without  receiving  a  scrapping  premium,  tonnage  in  line  with  the  ratio

between  old  and  new  tonnage  set  by  the  Commission,

— pay  a  special  contribution  into  the  inland  waterways  fund.

The  Commission  proposes  that  the  ratio  be  gradually  reduced  to  zero  over  the
aforementioned  five-year  period.

As  soon  as  the  ratio  has  been  fixed  at  zero  or  at  the  end  of  the  above  period  at  the  latest,
the market-regulation mechanism would be turned into a standby mechanism which, solely
in  the  event  of  a  serious  market  crisis  and  for  a  limited  period  of  time,  would  allow  the
‘old-for-new’ rule to be reactivated, whether or not accompanied by structural improvement
measures.

(1) OJ  C  320,  17.10.1998,  p.  4.
(2) OJ  C  398,  23.12.1998.
(3) CES  1449/98.
(4) OJ  L  116,  28.4.1989,  p.  25.  Regulation  last  amended  by  Commission  Regulation  (EC)  No  742/98  of

2  April  1998  (OJ  L  103,  3.4.1998,  p.  3).

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III. ANALYSIS  OF  THE  COUNCIL’S  COMMON  POSITION

The  Council’s  common  position  basically  corresponds  to  the  amended  Commission
proposal.  There  are  however  a  number  of  changes,  the  main  ones  being  as  follows:

— the maximum period of application of the ‘old-for-new’ rule is reduced from five to four
years  starting  from  29  April  1999  (recitals  (2)  and  (6),  Article  1  and  Article  4(2)),

— the  ratio  must  be  continually  reduced  to  bring  it  as  quickly  as  possible  and  in  regular
stages  to  zero,  within  four  years  at  the  latest  from  29  April  1999  (recital  (6)  and
Article  4(2)),

— Member States have the option of excluding vessels under 450 tonnes from the scope of
the  Regulation  (as  stipulated  in  Regulation  No  1101/89  currently  in  force)  (recital  (3)
and  Article  2(3)),

— the  surplus  funds  from  structural  improvement  schemes  intended  for  the  reserve  fund
will  be  derived  solely  from  financial  contributions  from  the  industry  (recital  (4)  and
Article  3(3)),

— the  decisions  to  be  taken  by  the  Commission  on  the  operation  of  the  ‘old-for-new’  rule
will  be  subject  to  prior  consultation  of  the  Member  States  and  the  organisations
representing inland waterway transport at Community level (recital (8) and Articles 7(1)
and  (4)),

— deletion  of  Article  9  and  the  corresponding  recital,  as  proposed  by  the  Commission,
dealing with the negotiations which the Community should initiate with Switzerland and
other  third  countries  for  the  implementation  of  the  Regulation.  The  Council  thought
that  such  a  measure  did  not  constitute  a  mandate  given  by  the  Council  to  the
Commission  but  was  rather  an  indication  of  a  political  nature.  The  Council  and  the
Commission,  however,  consider  it  desirable  that  Switzerland  adopt  measures  similar  to
those  in  this  Regulation  for  its  fleet  sailing  on  interconnected  inland  waterways  of  the
Member  States  concerned  in  order  to  prevent  distortion  of  competition  on  the  inland
waterway  market  and  to  increase  the  efficiency  of  Community  measures  dealing  with
that  market.

IV. EUROPEAN  PARLIAMENT  AMENDMENTS

1. European  Parliament  amendments  adopted  by  the  Council

(a) T a k e n   u p   b y   t h e   C o m m i s s i o n

The  Council  followed  the  Commission’s  amended  proposal  and  adopted  the
following  European  Parliament  amendments:

— Article  4(2)  of  the  common  position  takes  over  amendment  4  which  provides
that  the  ‘old-for-new’  rule  can  be  reactivated  only  in  the  event  of  a  serious
disturbance of the market, which is to be understood not within the meaning of
Article  7  of  Directive  96/75/EC  but  within  the  meaning  of  Article  6  of  the
common  position.

The common position does not, however, take up amendment 6 providing for a
change  to  Article  6(1)  (Article  6  of  the  common  position,  see  IV.2  below),

— Article  4(3)  of  the  common  position  takes  over  amendment  5  which  reduces  to
12  months  the  18-month  period  proposed  by  the  Commission  for  bringing  a
vessel  into  service.

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(b) N o t   t a k e n   u p   b y   t h e   C o m m i s s i o n

Article  1  of  the  common  position  incorporates  the  substance  of  the  first  part  of
amendment  2  which  includes  the  idea  of  bringing  into  service  not  new  vessels,  but
new  capacity.

2. European Parliament amendments not adopted by the Council and not taken up by the

Commission

The  Council,  following  the  amended  Commission  proposal,  did  not  adopt:

— amendments  1,  2  and  7  on  the  reintroduction  of  the  scrapping  scheme:

— amendment  1,  designed  to  incorporate  into  the  Regulation  a  new  recital  to  the
effect  that  it  was  necessary  to  ensure  that  the  scrapping  scheme  did  not  lead  to
the  disappearance  of  all  low-tonnage  vessels,

— the  second  part  of  amendment  2,  designed  to  modify  Article  1  to  restore  the
scrapping  scheme,  which  would  be  phased  out  over  the  transitional  period,  in
conjunction  with  the  gradual  elimination  of  the  ‘old-for-new’  rule,

— amendment  7,  intended  to  incorporate  into  the  Regulation  a  new  Article  6a
taking  over  Article  1  from  Regulation  no  1101/89  to  clarify  the  structural
improvement  measures  to  which  inland  waterway  vessels  would  be  subject.

The Council considers that the aim of the common position is to maintain what has
been  achieved  by  the  scrapping  measures  since  1989,  rather  than  instituting  new
structural  improvement  measures,  with  new  capacity  brought  into  service  being
offset  by  old  capacity  scrapped.

In  the  Council’s  view,  Community  intervention  must  be  phased  out  to  achieve  a
policy of free capacity on a market which will be fully liberalised as from 1 January
2000.

The  Council  considers  that  vessels  must  not  be  subject  to  scrapping  measures  after
29  April  1999  and  that  only  the  capacity-regulating  mechanism  constituted  by  the
‘old-for-new’  rule  should  be  kept  for  a  four-year  transitional  period,  on  the
understanding  that  it  could  be  brought  into  play  only  in  the  event  of  serious
disruption  of  the  market.  The  Council  stresses  moreover  that  vessels  of  under  450
tonnes  may  be  excluded  from  the  scope  of  the  future  Regulation,

— amendment 3, designed to amend Article 3(6) (Article 3(5) of the common position),
providing  that,  where  the  reserve  fund  is  used,  at  the  unanimous  request  of  the
sector,  for  the  measures  referred  to  in  Article  8  (e.g.  encouragement  from  the
Member States concerned for workers wishing to leave the sector, etc.), the Member
States  concerned  are  also  consulted.  The  Council  notes  that  the  Article  3(5)  of  the
common position provides that the requisite measures must be taken at Community
level.  The  decisions  would  thus  be  taken  by  the  Commission,  after  consulting  not
just  the  industry  but  also  the  Member  States  concerned,

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— amendment  6,  designed  to  amend  Article  6(1)  (Article  6  of  the  common  position),
which  provides  that  the  Commission  may  reactivate  the  ‘old-for-new’  rule,  with  or
without  structural  improvement  measures  as  well,  in  the  event  of  serious  disruption
of  the  market,  in  order  to  add  to  it  that  the  Commission  may  take  the  measures  in
question only after expiry of the transitional period and thus once the ‘old-for-new’
rule  and  the  scrapping  scheme  have  been  abolished.

The Council considers that, even though the aim of the common position is to bring
the  ratios  applied  under  the  ‘old-for-new’  scheme  to  zero  as  quickly  as  possible  in
the  four  years  after  29  April  1999,  the  Commission  needs  nonetheless  to  be  given
the latitude to act on the ratios, pursuant to Article 6, during the transitional period
as well if a serious disruption of the market were to occur during that period which
justified  keeping,  or  even  hardening,  the  ratios  then  in  force.