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PRIORITIES FOR THE IRISH PRESIDENCY
MINISTERS' EU POLICY PRIORITIES FOR THE IRISH PRESIDENCY
STATEMENT BY THE MINISTER FOR TRANSPORT
MINISTERIAL PRIORITIES FOR THE IRISH PRESIDENCY OF THE EUROPEAN UNION
Prospects for Transport Policy
The Presidency's particular priorities are agreement on the revision of the 'Eurovignette' Directive, GALILEO, the 2 nd Rail Package, and Criminal Sanctions for Ship-source Pollution. The Executive's priorities will be the revision of the ' Eurovignette' Directive and discussion on a proposed Regulation on Public Service Requirements in land transport.
Eurovignette Directive
This Directive would revise the 1999 regulation which currently permits only either a time based or distance based charge for lorries on the motorway network of any Member State. Agreement on the interoperability of Member State systems is important for implementation of the UK's plans to introduce Lorry Road User Charging (LRUC) effectively and within a realistic timescale (currently targeted to be introduced in 2006). LRUC is, in fact, a tax and its implementation is reserved for Westminster. However, the haulage industry in Scotland is keenly interested in LRUC and its possible effects here. We are therefore keeping in touch with HM Customs and Excise (who have the implementation lead in the UK). In terms of developing LRUC technology there may also be an overlap with the Executive's policies on road user charging. The UK Government supports the principle of amending the Directive to become consistent with an EC White Paper issued in 2001 and with Department for Transport (DfT) plans. At this stage, we see no reason why the Executive's view should vary from that of the DfT.
GALILEO (the satellite navigation system) is a reserved matter on which the DfT lead.
Second Rail Package
Interoperability is intended to harmonise technical and other processes governing the supply of equipment and the through running of trains on Trans European Networks (TENS) (between and within Member States). A large proportion of Scotland's rail network is part of TENS. The Government has already implemented the first Interoperability Directive which covered new or upgraded infrastructure and rolling stock on High Speed Lines (East Coast Main Line and West Coast Main Line).
The Government have recently issued a consultation document seeking stakeholder's views on extending the Interoperability to many conventional lines. This could impact on development proposals currently being supported by the Executive and any future rolling stock deals we may wish to support. The closing date for responses is 16 April. The Executive will contribute. This is a reserved issue.
Prospects for Public Service Requirements for Rail Policy
An issue for possible policy debate is the Proposal for a Regulation of the European Parliament and of the Council on action by Member States concerning public service requirements and the award of public service contracts in passenger transport.
This issue is reserved, but could have implications for Glasgow Underground. The Executive made representations to the UK Government which led to Glasgow Underground being exempt from having to comply with the proposed public sector requirements which aimed at introducing the re-tendering of contracts on a regular basis. Its exception was based on its unique infrastructure and effectively brought Glasgow Underground into line with London Underground.
However, a case was brought by a German company, Altmark, which complained about the distortion of competition in the award of bus service contracts in Germany. This case was considered by the European Court of Justice, whose judgement could have serious implications for the way public transport is run. The Council has still to set out their view of the main implications of the judgement.
Criminal Sanctions for Ship Source Pollution
The proposed Directive is designed to strengthen the criminal law framework for enforcement of the law against ship-source pollution as a consequence of grossly negligent behaviour. This follows the sinking of the oil tanker ' Prestige' off the north-west coast of Spain in November 2002. The issue is reserved, with DfT having the lead interest. The UK Government position is that it cannot support the Directive in its current form as it takes the view that matters relating to criminal law, including the imposition of criminal sanctions, fall to member states, and not the Community.
Specific concerns include the possibility that the Directive could result in some lawful discharges being treated as criminal. The UK Government doubts the necessity of including imprisonment among the penalties for offences of the sort envisaged, and the Directive fails to distinguish clearly between criminal liability and compensation.
The DfT approach is very much in line with our wishes - we are not aware of any major issues from a justice or environmental perspective - and argues that the Directive should not impose a regime which conflicts with or is more stringent than MARPOL (International Maritime Organisation convention for the prevention of pollution from ships).
European Maritime Safety Agency (EMSA)
This agency provides technical and scientific assistance in the field of maritime safety and prevention of pollution by ships. Glasgow was the UK bid for the permanent location of the agency HQ. It was recognised that Glasgow was up against stiff competition, particularly from Mediterranean states. At the December meeting of the EU Heads of State and Government in Brussels, the decision was taken to award the agency HQ to Lisbon.
EC Access to Port Services Directive
The proposal for a Directive on market access to port services sought to establish more comprehensive rules through competition. The main impact of the Directive would have been to allow competition for the provision of services such as cargo handling, pilotage and passenger services in ports which handle a certain level of freight and passengers a year. In November 2003, the European Parliament rejected the proposed Directive. No significant impact on the ports industry in Scotland is expected as a result. While there is little immediate prospect of the Directive measures being revived, measures based on competition within and between ports are likely to emerge in the medium term.
Maritime Cabotage Regulations
The European Commission has now completed its review of the regulations on maritime cabotage and the related guidelines on maritime state aids. This is a subject of great importance to Scotland. The Executive's main interest is in relation to the provision of Scottish Lifeline Ferry Services and the rules relating to Public Service Obligations and Contracts.
The Executive broadly welcomes the thrust of the Commission's thinking which introduces greater flexibility. It is also helpful that the rules now recognise mainland-to-mainland routes, tendering the routes as a single bundle and the need to ensure the availability of vessels where these are unique. This represents significant progress and recognises representations we have made to the Commission. The proposals for small islands are interesting. However, given the requirement to aggregate carryings where several small islands are served by a single operator, most of Scotland's routes are unlikely to benefit from the flexibility proposed.
The consequences for ferry services of the decision, last year, by the European Court of Justice in the Altmark case are far from clear. Altmark deals with the interaction between the Treaty and the relevant state aid regulations for bus services. Subsidies relating to ferry services are covered by separate but similar EC maritime regulations and guidelines. The Executive has examined the implications of the Altmark decision and the potential impact for tendering the Caledonian MacBrayne (CalMac) services. Following these considerations, we have now raised the issue with the European Commission. In the meantime we will continue to prepare for tendering.
Aviation
The Irish Presidency would like to reach agreement on a Recommendation setting out the basis for the mandate for the negotiation of air service agreements between the EU and third countries. It awaits a Commission proposal which is expected soon. The Presidency also hopes to reach agreement on the EU-US air service agreement at the March Transport Council.
The Presidency would also like to reach agreement on the long-blocked proposal on harmonisation of technical requirements and administrative procedures (JAR-OPS). The purpose of this is to adopt harmonised operational standards for crews. The Presidency accepts, however, that it does not appear to have a particular solution.
The Presidency also intends to reach agreement on the way forward for an increased EU role in the International Civil Aviation Organisation (ICAO), essentially giving the Commission a permanent observer role at ICAO's Headquarters in Montreal.
Of particular interest to Scotland is the proposed revision of the Air Slots Regulation. Political agreement was reached at the December 2003 Transport Council on a proposal for a Regulation amending common rules for the allocation of slots at Community airports. However, this concerned technical amendments to the existing rules on the allocation of airport slots, with market measures left to a later phase ( see following paragraph). The protection of regional access to the major London hubs is a big issue for Scotland. The Executive welcomes the Air Transport White Paper's recognition of the importance of regional access to London hubs. The Executive will respond to any further Department for Transport (DfT) consultation about the definition of what constitutes an "adequate" service. The Executive has made it clear the criteria by which regional access should be assessed i.e. peripherality (the absence of any fast alternative link to London); the necessity of a minimum 3 rotations a day service; and access to London hub without financial penalty.
Of great interest to Scotland is market mechanisms in slot allocation/review of the "Third Aviation Package" i.e. inclusion in the 3 rd Aviation Package of EC Regulation 2408/92 on PSOs. The Executive wants to see a mechanism in place which would protect regional access to London hub airports but without financially penalising the regions. It is not satisfactory to have a voluntary mechanism for slots/access. There would be no guarantee that it would be adhered to or applied consistently. The south east hubs are a UK asset and it would be wrong to require financial intervention from the regions to secure access.
The Executive is in regular contact with the UK Government about a wide range of aviation matters. DfT is fully aware of our particular interest in the Slots Regulation and our interest in the PSO aspect of the Third Package Regulations. If is unlikely that a new Regulation on PSOs will be in place for some considerable time.
NICOL STEPHEN
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