WRITTEN QUESTION E-0079/00 by Margrietus van den Berg (PSE) and Dorette Corbey (PSE) to the Commission. Privatisation of public services in the Netherlands.
Date: 2000-01-24
Institutions: European Parliament, Provisional data
Subjects: EU policy, Netherlands, economic consequence, electrical industry, energy policy, privatisation

24.10.2000

EN

Official Journal of the European Communities

C 303 E/139

(2000/C 303 E/150)

WRITTEN QUESTION E-0079/00

by Margrietus van den Berg (PSE) and Dorette Corbey (PSE) to the Commission

Subject: Privatisation of public services in the Netherlands

(24 January 2000)

Is the Commission aware of the speech by Commissioner Bolkestein to the South Holland electricity
1.
utility (an edited version of which appeared in NRC Handelsblad of 7 January 2000) on the timidity
towards the privatisation of public services which has apparently manifest itself in the Netherlands?

2.

Does the Commission share his (very one-sided) view of Dutch politics?

3.
Does the Commission subscribe to the desire expressed by the Socialist Group that the privatisation
of public services should be accompanied by prior guarantees of fair competition and protection of the
interests of consumers with regard to prices, quality and transparency, and does the Commission
acknowledge that privatisation only makes sense if it really does result in more consumer options? Does
the Commission share the view that if there are no such guarantees privatisation should not go ahead?

4.
The price level of units of electricity and water consumed is an important instrument for encouraging
the sustainable and efficient use of such products. Does the Commission share the view that with
privatisation there is a risk of governments relinquishing control of this instrument for encouraging more
environmentally-friendly consumer behaviour?

Answer given by Mrs de Palacio on behalf of the Commission

(29 February 2000)

The Commission has taken note of the speech mentioned by the Honourable Members. It has done

1.
so through the edited version of this speech that appeared in NRC Handelsblad of 7 January 2000.

The EC Treaty in its Article 295 (ex Article 222) stipulates the following: (cid:145)This Treaty shall in
2. and 3.
no way prejudice the rules in Member States governing the system of property ownership(cid:146). The
Commission is, therefore, neutral as regards ownership of companies. The Commission does monitor the
behaviour of companies and applies the same test to them all disregarding ownership, in virtue of the
relevant competition and state aid rules.

However, this neutral position does not apply to liberalisation, which is very much the central plank of the
policy the Community is pursuing in the energy area. The Commission sees liberalisation as the best way
forward in the energy field, since it leads to an improvement of the competitiveness of European industry.
This effect is already very evident in the electricity sector in the Community, where electricity prices are
coming down significantly from the pre-liberalisation levels. The Commission also notes that prices are
coming down fastest in Member States that have chosen the most liberal approach towards the opening of
their electricity markets.

However, as regards public service levels, the Commission is confident that these will not be lowered due
to liberalisation in the energy sector. In fact, experience shows that the level of public service delivered in a
liberalised market may even be higher than the public service rendered in a monopoly market. When
customers are faced with the choice that liberalisation brings, public service levels are an important factor
in determining their choice.

Furthermore, the Commission regards it as vital that public service standards in the widest sense constantly
improve in the single market. The Commission will take an active policy of benchmarking public service
standards in the energy sector at national level in 2000 and may, as appropriate, propose codes of best
practice to ensure increasing standards throughout the Community.

4.
The Commission does not believe that governments can only encourage environmentally friendly
consumption patterns for energy and water through pricing policy and via state ownership of these

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Official Journal of the European Communities

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24.10.2000

utilities. In fact, the Commission is of the opinion that in a liberalising market, environmentally friendly
consumption patterns can be just as well encouraged by governments through other instruments. A good
example of this concerns the consumption of renewable generated electricity. The Commission envisages
proposing appropriate measures in this sense, notably in the field of the access of electricity from
renewable energy sources to the single electricity market.

(2000/C 303 E/151)

WRITTEN QUESTION E-0084/00

by Carles-Alfred Gas(cid:242)liba i B(cid:246)hm (ELDR) to the Commission

(24 January 2000)

Subject: Four-wheel mopeds

In adopting Directive 92/61/EEC (1), as of 1992 the European Union established a uniform definition of
mopeds as wheeled vehicles with a cylinder capacity of no more than 50 cubic centimetres for petrol-
powered spark-ignition engines and a maximum speed of 45 km/h. In the specific case of four-wheel
mopeds (light quadricycles) an additional requirement, namely a maximum unladen mass of 350 kg,
applies.

The transposition of Directive 92/61/EEC into Spanish law has resulted in a number of regulations on the
type-approval, circulation and registration of vehicles. Under one of the most recent (cid:129) the new General
Regulation on Vehicles, approved through Royal Decree RD 2822/1998 of 23 December (cid:129) those two-,
three- or four-wheel vehicles which comply with the technical characteristics in Directive 92/61 are
deemed to be mopeds.

Light quadricycles, first marketed in Spain in late 1997, were made subject to a lower rate of VAT of 7 %,
in late 1998, having been asked to give its view, considered
given their status as mopeds. However,
binding in nature, Spain(cid:146)s Inland Revenue Service revised its opinion and decided that the standard rate of
16 % should apply to light quadricycles because they have four wheels, despite fully acknowledging them
to be mopeds.

Is the Commission aware of the situation created by this decision? Does it not take the view that, besides
discriminating against other mopeds, the rate of VAT currently applied to sales of light quadricycles
represents a breach of the EC Treaty (cid:129) insofar as it distorts the market and hinders the free movement of
goods (cid:129) and of existing Community legislation?

(1) OJ L 225, 10.8.1992, p. 72.

Answer given by Mr Bolkestein on behalf of the Commission

(16 March 2000)

The Commission is aware of the different rates of VAT on the sale of mopeds in Spain.

Article 12 of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of
the Member States relating to turnover taxes (cid:129) Common system of value-added tax: uniform basis of
assessment (as amended by Directive 92/77/EC) (1) provides for the application of a standard rate of VAT
but allows Member States the option of applying one or two lower rates for certain goods or services listed
in Annex H to the Directive. Article 28 of the Directive provides for transitional provisions as regards
rates. Mopeds, whether they are two-, three- or four-wheeled, are not listed in these provisions as goods to
which a lower rate may be applied. This matter is currently being considered by the Commission, which
will also check other Member States(cid:146) laws on the subject.

(1) OJ L 145, 13.6.1977, amendment OJ L 316, 31.10.1992.