WRITTEN QUESTION P-0385/04 by Theresa Villiers (PPE-DE) to the Commission. Commercial activities of Ordnance Survey.
Date: 2004-02-06
Institutions: European Parliament, Provisional data
Subjects: State aid, United Kingdom, competition law, control of State aid, public sector, restriction on competition, services of general interest

3.4.2004

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Official Journal of the European Union

C 84 E/383

(2004/C 84 E/0445)

WRITTEN QUESTION E-0380/04

by Alexandros Alavanos (GUE/NGL) to the Commission

(12 February 2004)

Subject: Contract-holders at the Fire Service

Every year the Fire Service takes on approximately 5 500 fire-fighting/rescue workers on contracts; it states
that this is because of a lack of staff (3 500 vacant posts). These workers, who have been the same for
decades, are taken on every year on a fixed-term contract, usually for five months, based on a five-year list.
The basic qualification for being on the list was the fact that the workers in question had served as
volunteer forest fire-fighters. These workers, however, are called upon to intervene in events (road
accidents, floods, earthquakes, etc.) throughout the duration of the year and after their contracts have
ended, unpaid, on the grounds that they are volunteer fire-fighters. Under the Fire Service’s regulations, any
refusal by them to work on a volunteer basis may have a consequence on the renewal of their contracts.

In view of Directive 2000/78 (1), do the above facts not constitute victimisation under the terms of

1.
Article 11?

2.
Can those of the workers who, despite this, yield to pressure and agree to carry out duties whenever
they are called on and not only in exceptional circumstances (at least four times per month) (cid:1) thus
making it impossible for them to be employed by another employer (cid:1) argue that they are meeting fixed
and constant needs of the Fire Service?

(1) OJ L 303, 2.12.2000, p. 16.

Answer given by Mr Dimas on behalf of the Commission

(22 March 2004)

1.
Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal
treatment in employment and occupation puts in place such a framework, and prohibits discrimination on
grounds of age, disability, religion or belief or sexual orientation. The Directive covers access to
employment, pay, working conditions, dismissal, training etc, and both direct and indirect discrimination
are covered.

From the information provided, the Commission does not believe that the treatment of the workers in
question is based on any of the grounds of discrimination covered by the Directive, and that therefore the
issue raised does not fall within the material scope of Directive 2000/78/EC.

2.
There is no Community legislation establishing the criteria for when a fixed-term contract rather than
an open-ended contract can be concluded. Whether the work carried out meets fixed and constant needs
of the Fire Service is an issue to be addressed by the competent national authorities.

(2004/C 84 E/0446)

WRITTEN QUESTION P-0385/04

by Theresa Villiers (PPE-DE) to the Commission

(6 February 2004)

Subject: Commercial activities of Ordnance Survey

Ordnance Survey, the UK’s national mapping agency, receives significant funds from UK Government
grants and in closed tender government mapping contracts. Since 1999,
it has undertaken its own
commercial aerial survey business. Before this date, aerial surveys had been an exclusively private sector
business, and there was a well-established division of interest between Ordnance Survey (maps) and the
private sector (aerial surveys). However, it has been alleged that OS is now using the money it receives

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from public funds in part to support its own commercial aerial survey business. The competitors of
Ordnance Survey claim that their business has been severely damaged by this unfair and subsidised
competition with the private sector.

Does any of the government funding of Ordnance Survey amount to improper state aid? Do the
1.
commercial activities undertaken by Ordnance Survey since 1999 contravene any EU laws on competition?
If so, what action is the Commission able to take to ensure fair competition between Ordnance Survey and
its private sector competitors in the future?

2.
Does Ordnance survey fall within the scope of the EU rules which require accounting transparency
for entities which mix state-funded and private sector activities? In particular, does EU law require OS to
account for its commercial and state-funded activities separately? If yes, is the Commission satisfied that
OS is complying fully with these rules?

Answer given by Mr Monti on behalf of the Commission

(9 March 2004)

The Commission has not been informed that Ordnance Survey receives funding from the UK authorities.
It is therefore not in a position to state whether the funding to which the Honourable Member refers
constitutes state aid within the meaning of the EC Treaty and, if so, whether it is compatible with the
common market. Such funding could be regarded as compensation for services provided and not state aid.

If Ordnance Survey’s work is regarded as a service of general economic interest, the funding would be
regarded as compensation if:

(cid:1) Ordnance Survey undertakes public service obligations and these obligations are clearly defined,

(cid:1) the parameters on the basis of which the compensation is calculated are established in advance in an

objective and transparent manner,

(cid:1) the compensation does not exceed what is necessary to cover all or part of the costs incurred in the

discharge of public service obligations,

(cid:1) and Ordnance Survey was chosen to discharge the public service obligations pursuant to a public
procurement procedure which allows for the selection of the tenderer capable of providing those
services at the least cost to the community or, if not, the level of compensation was determined on the
basis of an analysis of the costs which a typical undertaking, well-run and adequately equipped so as
to be able to meet the necessary public service requirements, would have incurred in discharging those
obligations (see judgment of 24 July 2003 in Altmark Trans and Regierungspräsidium Magdeburg,
C-280/00).

The fact that Ordnance Survey has discharged public service obligations since 1999 is not in itself a breach
of the competition rules. However, it may not use funding received as compensation for any public service
work to subsidise purely commercial activities. Such overcompensation could, if it affected competition
and trade between Member States, constitute state aid incompatible with the common market.

Commission Directive 80/723/EEC on the transparency of financial relations between Member States and
public undertakings (1) requires separate accounts to be kept:

(cid:1) by ‘any undertaking that enjoys a special or exclusive right granted by a Member State pursuant to
Article 86(1) of the Treaty, or that is entrusted with the operation of a service of general economic
interest pursuant to Article 86(2) of the Treaty and receives state aid in any form whatsoever,
including any grant, support or compensation, in relation to such service and which carries on other
activities’;

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(cid:1) if its total annual net turnover was not less than EUR 40 million over the period of the two financial
years preceding that in which it enjoyed a special or exclusive right or was entrusted with the
operation of a service of general economic interest;

(cid:1) and if it receives aid which was not fixed for an appropriate period following an open, transparent

and non-discriminatory procedure.

Ordnance Survey could therefore be subject to an obligation to keep separate accounts if it is entrusted
with the operation of a service of general economic interest.

The UK authorities have told the Commission that
they have introduced the necessary legislative,
regulatory and administrative measures to comply with the transparency obligations imposed by the
Community directives.

(1) Commission Directive 80/723/EEC of 25 June 1980, OJ L 195, 29.7.1980, as amended by Directives 85/413/EEC
of 24 July 1985, OJ L 229, 28.8.1985, 93/84/EEC of 30 September 1993, OJ L 254, 12.10.1993 and 2000/52/EC
of 26 July 2000, OJ L 193, 29.7.2000.

(2004/C 84 E/0447)

WRITTEN QUESTION P-0386/04

by Jean Saint-Josse (EDD) to the Commission

(6 February 2004)

Subject: Wind turbines

The construction of a large number of wind turbines is planned in France.

Has the European Commission studied the total financial cost for public authorities (Europe, national and
others) of developing this type of energy in comparison with the cost of other forms of energy
production?

Moreover, given the serious consequences of the building of wind turbines, in particular for migratory
birds and the safety of goods and people, does the Commission still consider it appropriate to encourage
this type of energy production?

Has the Commission assessed the benefits and drawbacks of wind turbines, with reference to the latest
research?

Answer given by Mrs Wallström on behalf of the Commission

(12 March 2004)

The total financial cost for public authorities has not been studied as such by the Community but the
Commission supports, under its programmes, studies which aim at updating data regarding the following
aspects of wind energy: technology, costs, prices and values, industry and employment, environment and
market development.

Given the important contribution that renewable energy sources, such as wind energy, are making to
tackling climate change, including EU targets to reduce carbon dioxide emissions in accordance with the
is appropriate to encourage this type of energy
it
Kyoto protocol,
production.

the Commission considers that

Nevertheless, it is important to ensure that the achievement of this target is not to the detriment of other
including nature protection. The compatibility of these policy objectives is
environmental objectives,
envisaged by the process of environmental assessment outlined in the Commission’s answer to Written
Question P-0339/04 by Mr Bernié (1).

(1) See page 365.