Annex C
Explanatory memorandum on European Community
Document
REPORT FROM THE COMMISSION ON THE IMPLEMENTATION
OF REGULATION (EEC) NO 3118/93 LAYING DOWN THE CONDITIONS UNDER
WHICH NON-RESIDENT CARRIERS MAY OPERATE NATIONAL ROAD HAULAGE
SERVICES WITHIN A MEMBER STATE
Submitted by the Department of the Environment, Transport
and the Regions—3 April 2000
SUBJECT MATTER
1. This is the second report from the Commission
on the performance of road haulage cabotage, which is the operation
of domestic haulage by non-resident carriers. Under the cabotage
Regulation the Commission are required to report to the Council
every two years. An Explanatory Memorandum in respect of the first
report was submitted on 25 February 1998 (5849/98).
2. Cabotage was introduced on a restricted
basis, under a system of permits, in July 1990. Regulation 3118/93
introduced the definitive scheme, under which permits were abolished
from 1 July 1998. The Commission's first report covered the period
up until the end of 1995. This second report extends the analysis
to cover the whole period of permit control. It also includes
preliminary comments on the pattern of cabotage following the
abolition of permits.
3. The report finds that cabotage under
permits accounted for only 0.164 per cent of total national transport
over the period, 10.5 billion tonne kilometres (tkm) out of 6,400
billion tkm (one part in 600). In terms of the activity of international
hauliers it represented on average 0.66 per cent, or one part
in 150. The average penetration rate of cabotage in national markets
increased five-fold, from 0.05 per cent, 0.25 per cent, but still
amounted to very little. Within the UK the penetration rate was
0.05 per cent, compared with 0.04 per cent in the Commission's
first report.
4. The report shows that almost 60 per cent
of cabotage was performed by Benelux hauliers and 31 per cent
by the Dutch alone. French hauliers were also active, accounting
for 12 per cent. By contrast, the report identifies hauliers from
Germany (5 per cent), Italy and the UK (3 per cent each) as being
not very active in the cabotage market. Only 2 per cent of cabotage
was carried out by hauliers from the low labour cost countries
of Spain, Portugal and Greece.
5. When it comes to cabotage location, the
report shows that over 68 per cent was carried out in Germany.
The second most popular country was France, where nearly 13 per
cent of all cabotage was performed, and then Italy, 7 per cent.
Thus Germany has a substantial negative cabotage balance, while
France is in almost zero balance. Italy, Spain, Greece and Norway
(the cabotage scheme extends to the EEA) also had negative balances.
The report shows that the UK had a slight positive cabotage balance,
with 2.9 per cent of cabotage performed here compared with the
3 per cent performed by UK hauliers.
6. The assessment of cabotage in the period
following the removal of permits and the associated journey record
books—the records provided the data for most of the report—is
restricted to a comparison of the first half of 1998, during which
permits were still required and the second half, following the
abolition of restrictions. It is based on sample surveys by Member
States of cabotage activity by their hauliers. Only four Member
States, France, Netherlands, Finland and the UK, plus Norway,
have so far provided survey data, but they accounted for 45 per
cent of cabotage carried out in the first half of 1998. The report
finds that there was progressive under-reporting of cabotage activity,
which is not unexpected as the scheme was progressively liberalised
in the run up to complete liberalisation with the abolition of
permits. But having made allowance for that, the report states
that there was no "explosion" of cabotage in the second
half of the year following the abolition of restrictions.
7. The report concludes that, after making
allowance for the under-reporting, tkm performed in national transport
by resident hauliers was 300 times larger than cabotage. Additionally,
that tkm performed in international transport was 70 times larger
than cabotage. Even in Germany, where 68 per cent of all cabotage
was carried out, national transport was still 100 times larger
than cabotage there. Finally, the Commission does not recommend,
at this stage, that any additional data collection exercises should
be carried out.
MINISTERIAL RESPONSIBILITY
8. The Secretary of State for the Environment,
Transport and the Regions, and the Secretary of State for Northern
Ireland.
LEGAL AND
PROCEDURAL ISSUES
9. This is not a proposal for legislation
and raises no legal or procedural issues.
APPLICATION TO
THE EUROPEAN
ECONOMIC AREA
10. The cabotage regime extends throughout
the EEA.
SUBSIDIARITY
11. There are no subsidiarity implications.
POLICY IMPLICATIONS
12. The clear message from the report is
that cabotage remains a marginal activity in terms of its impact
on domestic haulage markets. The view that there was progressive
under-reporting is not unexpected, as is the finding that there
was no explosion of cabotage following the abolition of restrictions
in the middle of 1998. The Commission's conclusion that efficient
hauliers can still find opportunities to carry out cabotage underlines
the rational for the scheme, which is to increase efficiency by
better logistics and reduced empty running.
CONSULTATION
13. The report will be discussed with the
haulage industry in the context of the Road Haulage Forum.
FINANCIAL IMPLICATIONS
14. There are no financial implications.
Lord Whitty
Parliamentary Under Secretary of State,
Department of the Environment, Transport and the
Regions
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