CELEX: 31964D0160
Language: en
Date: 1964-02-26 00:00:00
Title: 64/160/EEC: Commission Decision of 26 February 1964 authorizing the maintenance of Annex B ter to the 'Conditions générales d'application des tarifs pour le transport des marchandises'(CGATM) of the Société nationale des chemins de fer français (SNCF) (Only the French text is authentic)

14                                  Official Journal of the European Communities
 710/64                    OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES                                          13.3.64
                                              COMMISSION DECISION
                                                  of 26 February 1964
               authorizing the maintenance of Annex B ter to the 'Conditions générales d'application
               des tarifs pour le transport des marchandises* (CGATM) of the Société nationale des
                                            chemins de fer français (SNCF)
                                            (Only the French text is authentic)
                                                     (64/ 160/EEC)
 THE COMMISSION OF THE EUROPEAN                                 Whereas Annex B ter is for the benefit of all con­
 ECONOMIC COMMUNITY,                                             signors or consignees in areas served by SNCF sta­
                                                                 tions situated in the regions set out in that Annex;
 Having regard to the Treaty establishing the Euro­
 pean Economic Community, and in particular Article              Whereas at present reductions apply in respect of the
 80 thereof;                                                    following departments ; Aveyron, Cantal, Charente­
                                                                Maritime, Corrèze, Côtes-du-Nord, Creuse, Deux­
 Having regard to Annex B ter to the 'Conditions                 Sèvres, Finistère, Haute-Loire, Hautes-Alpes, Ile-et­
generates d 'application des tarifs pour le transport           Viliane, Lot, Lozère, Morbihan, Puy-de-Dôme, Tarn
des marchandises' (CGATM) of the SNCF, in its                   and Vendée, and also in respect ôf certain specified
present form as published in the rates and conditions           stations in the departments of Allier, Ardèche, the
of 10 June 1963 (Journal Official de la Republique              Dordogne, Haute-Vienne and the Loire Atlantique;
frangaise No 131 of 6 June 1963 ) ;
                                                                Whereas that tariff applies in respect of goods traffic
                                                                between the regions concerned and other countries;
Having regard to the opinions expressed by the Gov­
ernments of the Member States concerned during the              Whereas the reductions applied in accordance with
consultation undertaken by the Commission pursuant              Annex B ter, depending on the transport link, the
to Article 80 (2) of the Treaty on 29 October and 5             product transported and the method of dispatch,
December 1963 ;
                                                                amount to 5, 10, or 15 % of the standard rates ap­
                                                                plicable since 1 October 1962;
                             I                                  Whereas the effect of such reduction is that rates for
Whereas Annex B ter to the CGATM is included in                 the transport concerned, on certain transport links,
the SNCF's goods tariff reform of 1 October 1962,               are lower than those in force before 1 October 1962,
which was the subject of an Opinion delivered on                and whereas this is also generally true for the whole
24 September 1962 by the Commission pursuant to                 of Brittany;
Article 2 of the Council Decision of 21 March 1962 .
In that Opinion of 24 September 1962 the Commis­                Whereas, as regards the economic effects on the
sion reserved to itself the detailed examination of the         SNCF of the maintenance of Annex B ter, carriage
                                                                under the terms of Annex B ter rose in 1961 to
different tariff rates and in particular of the correc­
tives, in the light of Articles 79 and 80 of the Treaty;        5 778 000 metric tons, and whereas the SNCF re­
                                                                ceives no direct compensation from public funds for
                                                            -   loss of revenue resulting from application of those
Whereas Annex B ter to the . CGATM lays down                    terms ;
special provisions to be applied to certain goods dis­
patched or received at stations situated in given               Whereas in 1962 the tonnage carried under the terms
regions;                                                        of Annex B ter rose to 1-2 % of the total goods traf­
                                                                fic of . the SNCF, and whereas the resultant revenue
Whereas special provisions are applied to certain               represented 3-2 % of the total revenue of the SNCF;
goods mainly important to the rural economy, such
as live animals, agricultural products, building ma­            Whereas Annex B ter was introduced on 1 October
terials, etc.;                                                  1962, at the same time as the tariff reform, and was
 ---pagebreak---                                     Official Journal of the European Communities                                     15
extended on 25 October 1962 to apply to Brittany                 - a system of weighting of tariff rates by distance,
and on 10 June 1963 to apply to the eight depart­                   related to the technical characteristics of the
ments of Aveyron, Cantal, Creuse, Haute-Loire,                      routes used;
Hautes-Alpes, Lozere, Puy-de-Dome and Tarn, in                   - the elimination from the network, as regards
which, until that date, the previous tariff rates had               calculation of distances, of sections either dis­
continued to apply;                                                 used or closed to goods traffic;
                                                                 - the abolition of the system of indexing stations;
                             II                                - the tariff reform must be studied as a whole, in
                                                                 conjunction with the correctives which formed an
Whereas the French Government has recognized that
the provisions of Annex B ter which, from 1 October              integral part thereof;
 1962 and 10 June 1963 respectively, involved a reduc­         - distance-related weighting, which forms part of the
tion of tariff rates to a level lower than that in force         new rates and conditions, made a positive contribu­
before those dates, may constitute measures falling              tion to French regional development, since most
within the scope of Article 80 ( 1 ) of the Treaty;              regions possess one or more well equipped local
whereas it has therefore requested the Commission to             lines on which goods trains could circulate at
authorize the maintenance of Annex B ter, in accord­             modest cost; in other ways also the new rates and
ance with Article 80 (2) ;                                       conditions served the same end, namely, by mak­
                                                                 ing the scale of charges more markedly degressive
Whereas the tariff rates in question apply to carriage           as regards long-distance traffic which is distinctly
within the Community, including domestic traffic of              advantageous for peripheral regions such as the
a Member State;                                                  Midi mediterraneen and Aquitaine, and by abolish­
                                                                 ing the indexing of stations which improves the
Whereas Annex B ter to the CGATM, since it was                   situation of secondary localities on major lines;
introduced by regulation, must be considered as a              - it has emerged from a public inquiry that outright
measure imposed by the State within the meaning of             , application of the new rates and conditions might
Article 80 ( 1 ) of the Treaty;                                  entail an excessive additional burden on isolated
                                                                 regions or regions situated in compact mountain
Whereas Annex B ter to the CGATM constitutes a                   masses, where it is often very costly for the rail­
support for the economy of the regions concerned                 way to give adequate service or even to penetrate
which corresponds to the measurable difference bet­              at all; such regions are low productivity areas
ween the previous tariff rates and those of the An­              whose industries, far from progressing at the same
nex ;                                                            rate as the rest of the country, often find it diffi­
                                                                 cult to remain in business ; the most vulnerable
Whereas this support operates in favour of particular            industries, and in particular those spread over a
undertakings or industries, that is to say undertakings          wide area (large scale cultivation, stock farming
or industries determined on the basis of their geo­              and light industry that is the greater part of the
graphical situation;                                             output of such regions), would therefore have
                                                                 been seriously affected by increased tariff rates
Whereas on the other hand it is not claimed that                 resulting from increases in short distance rates and
Annex B ter contains tariffs fixed to meet competi­              from the extension of tariff distances imposed on
tion as referred to in Article 80 (3) ;                          lines operating in mountainous areas;
Whereas, consequently, the provisions of Annex B              - to apply the reform without correctives should
ter to the CGATM come within the scope of Article                therefore have been prejudicial to lines where run­
80 ( 1 ); whereas the Commisison must therefore                  ning costs are increased owing to the physical
make a decision in accordance with Article 80 (2),               characteristics of the region, and in particular lines
on the request by the French Government for author­
                                                                 serving mountainous areas, short distance (less
                                                                 than 200 km) traffic, and small consignments as
ization to continue to apply Annex B ter to the
CGATM ;
                                                                 compared with complete wagon-loads ;
                                                              - unless regional correctives were applied, the eco­
                                                                 nomy of the less developed regions could be en­
                            III                                  dangered by the reform, since the regions involved
                                                                 are in many cases mountainous districts with a
Whereas the arguments put forward by the French
                                                                 generally inadequate road network and therefore
Government in support of its request are basically
                                                                 dependent on the railway even for short-distance
the following :
                                                                 traffic, and in which production is organized in
- the recasting of 1 October 1962 by the SNCF of                 such a way that a substantial part of the traffic
   the goods rates was designed to relate the price of           consists of small consignments; there was a risk
   each transport operation to its actual cost by                that regional imbalance would be dangerously in­
   means of:                                                     creased by the tariff reform;
 ---pagebreak---  16                                   Official Journal of the European Communities
- the regional correctives therefore represented the                      agriculture. Except for the central western
    countcr-balance to a basic reform which ran the                       area, the population in all the areas chosen
    risk of having undesirable economic effects on cer­                   had decreased between 1936 and 1963 while
    tain types of traffic or certain areas;                               the French population as a whole had in­
- the reform as a whole was discusssed with re­                           creased by 10 % . Furthermore, whereas real
    presentatives of the other modes of transport who                     income in France increased by 10 % between
    had raised no objection;                                              1955/ 56 and 1958, Alsace, Brittany, Limousin,
                                                                          Auvergne, and Poitou-Charentes showed a
- in the long term, the economic development ap­                          rate of increase of less than 8 % :
    propriate to the physical characteristics of these
    areas could be promoted by the establishment of
    more extensive goods transport served ' by road                                           IV
    without measures of support being required; in               Whereas in making its examination, pursuant to Ar­
    the meantime, the areas concerned should not be              ticle 80 (2) of the Treaty, of Annex B ter to the
    allowed to suffer too great a loss; such a danger is         'Conditions generates d'application des tarifs pour le
    the more real in that the tariff reform occurred             transport des marchandises' (CGATM) of the SNCF
    precisely at a time when the economies of the                the Commission must take into account both the pre­
    Member States of the common market were coming               amble thereof and the general objectives defined in
    into contact, involving , the risk of encouraging the        Articles 2 and 3 of the Treaty, and further clarified
    concentration of activities in an industrial centre          in the preamble to the Treaty; whereas it emerges
    enjoying obvious geographical, technical and human           from those provisions that a harmonious develop­
    advantages;                                                  ment of economic activities must be promoted
- the French Government had consequently intro­                  throughout the Community by reducing the differ­
    duced reductions of 10 or 15 % , called 'regional            ences existing between the various regions and the
    correctives', in favour of certain categories of con­        backwardness of the less favoured regions, of which
    signments dispatched from or received in various             the areas concerned form part ; whereas under Ar­
    carefully defined areas;                                     ticle 80 (2) , it is the duty of the Commission to take
- goods to which such correctives apply are defined              account in particular of the requirements of an ap­
                                                                 propriate regional economic policy and of the needs
    in relation to the problems of each of the areas
                                                                 of underdeveloped areas;
    concerned; the products involved were primarily
    derived from or intended for agriculture and the
    food industry;                                               Whereas it emerged from the inquiry that the pro­
                                                                 visions of Annex B ter to the CGATM are for the
- the choice of areas to which such tariff support               benefit of those underdeveloped areas of the Com­
' was granted was based on a detailed examination                munity whose activity French regional policy is de­
    of the effects of the reform on the different lines or
                                                                 signed to stimulate;
    regions concerned, with reference to the general
    criteria of French regional policy; the general tariff       Whereas the need to develop those regions is indi­
    reductions were reserved to areas prejudiced by              cated;
    the introduction of the reform in a way which
    could not be made good by other means;                       - as regards Brittany, by the fact of its outlying loca­
- the areas chosen were those which combined the
                                                                    tiori, under-industrialization and rural over-popu­
                                                                    lation;
    three following characteristics :
     ( 1 ) Unfavourable geographical conditions by rea­          - more than half the rural population is engaged in
           son either of the outlying location of those             agriculture and although in Brittany rich alluvial
           areas in relation to the dynamic centres of the          soil is lacking population density is 10 % higher
           national economy and to the poles of develop­            than that of the rich land of Picardy. Industrially
           ment in the Community (Brittany and the                  the region is markedly backward; in 1959 indus­
           southern side of the Massif Central), or of              trial electricity consumption per capita was less
           their marked isolation, where such areas are             than one-fifth of the national average. From 1946
           cut off from the richer areas by inadequately            to 1952, total emigration rose to more than 220 000
           developed compact mountain masses (Au­                   persons, and still reaches 10 000 departures per
           vergne, Limousin, and certain Alpine valleys) ;          year;
     (2) Inadequate communication routes (the inte­              - as regards the 'central-western coast (the depart­
           rior of Brittany, the Massif Central, and cer­           ments of Vendue, Deux-Sevres and Charente-Mari­
           tain central western rural areas ;                       time) its economic characteristics, closely related
     (3) Widely scattered economic activities, which                to those of Brittany, with a high rural population
           are generaly the rule in predominently agri­             density and practically no modern industry.
           cultural areas. In thirteen of the departments           The non-agricultural labour available, as estimated
           to which regional correctives apply, over 50 %           by the Planning Commission between 1961 and
           of the active population were employed in                 1966, reaches the same critical level in Vendue and
 ---pagebreak---                                    Official Journal of the European Communities                                    17
   Deux-Sevres as in Brittany, hardly exceeding 14 %          having the effect of applying to certain transport re­
   of the active population. This is the least urbanized      ductions of up to 15 % (Brittany, Hautes-Alpes, At­
   part of France; the geography of the region, of            lantic seaboard, Centre and Midi-Pyrenees) seem to
   which 10 % is marshland, creates difficulties for          be measures which are now both necessary and ap­
   land use planning in areas which can be developed          propriate under the regional policy for development
   and for transport links with other provinces be­           in Brittany, the Massif Central, the central-western
   cause of distance, poor communications to the              seaboard, and certain valleys in the Alps and in the
   East, and the need to skirt the Massif Central in          Jura; whereas goods which may be carried under the
   order to reach the dynamic centres of the South­           terms of Annex B ter to the CGATM are essential
   East;                                                      materials, widely used in all branches of industry
- as regards the Massif Central, the region along its         and agriculture in those regions;
   southern edge, and some districts of Dordogne and
   Ardfcche, by under-population resulting from heavy         Whereas it has not been proved that Annex B ter to
   and continuing emigration.                                 the CGATM affects the competitive position of the
                                                              products to which it applies to an extent not justified
   Some departments have lost half their population           by the needs of the underdeveloped areas concerned;
   since 1851 . In the South and West, the rural den­         whereas the examination carried out has not revealed
   sity is often less than 20 inhabitants to the square       that these rates and conditions have unfavourable
   kilometre. Industrial expansion is slow, and tra­          effects on competition between the different modes of
   ditional agricultural methods are employed on              transport;
   mainly acid soil, whose full potential is however
   still far from being exploited. The agricultural per       Whereas, for these reasons, the continued application
   capita income of farmers is one of the lowest in           of Annex B ter to the CGATM may be authorized;
   France, because of the obsolete agrarian structures        whereas the Commission while granting authorization
   and agricultural techniques.                               for an indeterminate period, retains the power to
   La Causse and the plateau of Millevaches are the           amend or revoke this authorization if it finds, of its
   most underprivileged areas. Although 50 % of the           own accord or at the request of a Member State, that
   active population of Limousin is still engaged in          such authorization is no longer justified,
   agriculture, Auvergne and the southern side of the
   Massif Central contain a number of small scattered         HAS ADOPTED THIS DECISION :
   pockets of industry.
                                                                                     Article 1
   The decline of coal-mining has created a difficult
   situation for the small industrial districts of De­        The application of the provisions of Annex B ter to
   cazeville, Carmaux, Brassac, and Saint-Eloy. There         the 'Conditions generates d'application des tarifs pour
   are few large undertakings. Specialized industries         le transport des marchandises' of the SNCF as ap­
   must sell in far-distant markets; hence the need           plied on 5 December 1963, and taking into account
   to solve quickly the communication problem;                any amendments made thereto since they came into
- as regards the valleys of the Alps, by the fact that        force, is hereby authorized with effect from 1 Octo­
                                                               ber 1962 .
   there remain some areas which are poorly served
   for communications, and in which the railway still                                Article 2
   has a decisive role, and that agriculture in the
   isolated valleys of the Hautes-Alpes is not parti­          This Decision may be amended or repealed if the
   cularly productive;                                         Commission is satisfied, of its own accord or at the
                                                               request of a Member State, that it is no longer justi­
Whereas, having regard to the particular circum­               fied .
stances of those regions, a specific development po­
licy would appear to be in accordance with the ob­                                   Article 3
jectives of the Treaty; whereas it is also in the in­          This Decision is addressed to the French Republic.
terest of the Community to reduce percetibly, by
measures of support taken by the French Govern­
ment, the economic and social disparity between                Done at Brussels, 26 February 1964.
highly developed and underdeveloped regions of
France;                                                                        For the Commission
                                                                                    The President
Whereas, in those circumstances, the provisions of
Annex B ter to the CGATM and in particular those                                Walter HALLSTEIN