3 Environmental performance of the freight
transport system
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11816/04
COM(04) 478
| Draft Regulation establishing the second "Marco Polo" programme for the granting of Community financial assistance to improve the environmental performance of the freight transport system ("Marco Polo II")
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| Legal base | Articles 71(1) and 80(2) EC; co-decision; QMV
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| Department | Transport |
| Basis of consideration | Minister's letter of 1 April 2005
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| Previous Committee Report | HC 42-xxxi (2003-04), para 3 (15 September 2004)
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| To be discussed in Council | 21 April 2005
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information awaited
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Background
3.1 In 1997 a five-year programme, Pilot Actions for Combined
Transport (PACT), to assist the start-up of new intermodal services
shifting freight off the road to other modes of transport, was
established. External evaluation of the programme showed that
it reduced impacts, such as pollution, accidents and congestion,
as a result of modal shift. In the light of experience gained
through PACT a broader grant programme to support modal shift,
called Marco Polo, was established in July 2003 with a budget
of €100 million (£66.26 million) to run from 2003 to
2006.
3.2 The objectives of the Marco Polo programme are
to:
- reduce road congestion;
- improve the environmental performance of the
freight transport system within the Community; and
- enhance intermodality.
It does this by facilitating the shift of transport
of international freight from road to rail or waterway. It provides
financial assistance for:
- Modal Shift Actions —
support for non-road freight services;
- Catalyst Actions — support for actions
to overcome structural (that is, non-regulatory) barriers to the
efficient functioning of non-road freight services; and
- Common Learning Actions — promoting co-operation
in the freight logistics market.
3.3 On the basis of advice from a group of independent
experts the Commission proposed, in July 2004, this draft Regulation
to establish a second, expanded, Marco Polo programme to run from
2007 to 2013, with a budget of €740 million (£490.32
million) — or about €106 million (£70.24 million)
annually. With such expenditure the Commission would expect a
shift of more than 140 billion tonne-kilometres of freight from
the road, reducing carbon dioxide emissions by 8,400 million kilogrammes.
It suggested €1 (£0.66) in subsidy would equate to more
than €6 (£3.98) of social and environmental benefit.
3.4 The draft Regulation would retain the three original
categories of action eligible for financial assistance and add:
- schemes linked with use of
so-called "Motorways of the Sea" — that is, intra-Community
sea routes promoted as alternatives to land routes; and
- Traffic Avoidance Actions — innovative
projects that reduce the need for transport through design of
the supply chain.
There would be also a wider geographic scope for
financial assistances. In addition to companies from Member States
and Candidate States, the proposal allows for participation of
companies from other European countries if that country has concluded
a specific agreement with the Union.
3.5 When we considered this proposal in September
2004 we stated that, like the Government, we saw no problem with
its general principle. But we noted that the Government had reserved
its position on the financial aspects until there was a Financial
Perspective settlement for the period 2007-2013. We said we wanted
to consider the financial aspects further once the implications
of the Financial Perspective settlement were known and we kept
the document under scrutiny.[5]
The Minister's letter
3.6 The Minister of State, Department of Transport
(Mr Tony McNulty) now tells us that the text of the draft Regulation
has been the subject of detailed negotiation in the Council working
group. Apart from budget issues, broad agreement is now within
reach on all elements. Despite detailed changes, the broad thrust
remains as proposed by the Commission. The Government is satisfied
that the current text is consistent with its objectives. In particular,
there is textual recognition of the need for Community wide value
and a more stringent text concerning evaluation of the Programme
in order to assess its contribution to the objectives of Community
transport policy and the effective use made of funding.
3.7 The Minister says that although the Presidency
recognises that the budgetary issue will not be settled yet —
a number of Member States, in addition to the UK, refuse to agree
on this until the negotiations on the Financial Perspective are
concluded — it would like to reach a partial general approach
on the remainder of the text of the draft Regulation at the Transport
Council on 21 April 2005. He adds that the Government, supported
by other Member States, has registered a formal reservation on
the text of the article on the scope of the measure, which can
be interpreted as implying a certain level of funding.
3.8 The Minister also tells us that the European
Parliament's first reading of the proposal is not expected to
take place before May 2005.
Conclusion
3.9 We are grateful to the Minister for his account
of where matters stand on this document. We note that the financial
aspects remain unclear whilst negotiations on the Financial Perspective
continue. We will keep the document under scrutiny pending clarification
of its financial implications.
5 See headnote. Back
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