7 EU shipbuilding initiative (LeaderSHIP
2015)
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9130/07
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COM()7) 220
| Commission working document: LeaderSHIP 2015 Progress Report
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| Legal base | — |
| Department | Trade and Industry
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| Basis of consideration | EM of 11 June 2007
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| Previous Committee Report | None; but see (25094) HC 42-xxix (2003-04), para 8 (21 July 2004); HC 42-ix (2003-04), para 13 (4 February 2004)
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
7.1 We considered the Commission Communication on the EU shipbuilding
initiative (LeaderSHIP 2015) on 4 February and 21 July 2004, when
we cleared it from scrutiny. We noted that the initiative sought
to ensure the long-term prosperity of the European shipbuilding
and repair industry and to make EU shipbuilders (naval and commercial)
and marine equipment suppliers world leaders in their field by
2015.
7.2 In that context, we noted that the Commission, with the full
support of the LeaderSHIP 2015 Advisory Group, was seeking the
enforcement of the World Trade Organisation (WTO) rules in shipbuilding,
notably in tackling the unfair trading practices of the Republic
of Korea. We noted that a WTO Dispute Settlement Panel had been
set up in August 2003 and was expected to complete its proceedings
in early 2005.
7.3 The present document is a report by the Commission on progress
to date since 2002-03.
The Commission working document
7.4 The paper first notes that there have been generally positive
results on new shipbuilding orders over the past few years. European
yards have seen the value of orders more than triple between 2002
and 2005, growing at a faster rate in 2004 -05 than in any other
region of the world. The paper considers that Europe's highly-specialised
shipbuilding industry is competitive, flexible and well-equipped
to face the future, although recent large increases in capacity,
mainly in Asia, are likely to make the trading environment more
challenging. An annex to the paper notes that Europe retains a
share of around 20% of the global market for merchant shipbuilding.
7.5 The paper goes on to review progress on the eight themes of
the LeaderSHIP initiative, namely;
i) establishing a level playing field in world shipbuilding,
ii) improving research development and innovation investment,
iii) developing advanced financing and guarantee schemes,
iv) promoting safer and more environmentally-friendly ships,
v) a European approach to naval shipbuilding needs,
vi) protection of intellectual property rights,
vii) securing access to a skilled workforce,
viii) building a sustainable industry structure.
7.6 The salient points identified in the paper may be summarised
as follows. The paper notes that the WTO ruling in the case against
the Republic of Korea "offered little help to European shipbuilding"
and that the OECD negotiations on a shipbuilding agreement to
address the problems of subsidies and unsustainably low prices
have been "paused" with no expectation that they will
be restarted soon. The paper notes progress in negotiations with
China and the possible opening of negotiations with Korea on a
Free Trade Agreement.
7.7 In relation to research and development, the paper notes that
Europe "accounts for almost all ship innovations" and
that updated provisions on innovation aid to shipyards have been
in force since 2004. On financing and guarantee schemes, the paper
refers to a workshop convened by the Commission in 2006 involving
the Member States, the industry and the European Investment Bank
to consider a scheme for pre-delivery financing for shipyards.
The Commission is also considering the possibility of a Community
budget allocation of funds to back a guarantee fund for shipyards.
In relation to promoting safer and more environmentally-friendly
ships, the paper notes that the Commission intends to produce
a Green Paper on ship dismantling and refers to work within the
International Maritime Organization and the International Association
of Classification Societies on ship construction standards.
7.8 In relation to the skills of the workforce, the paper notes
that the Community of European Shipyards Associations (CESA) and
the European Metalworkers Federation (EMF) have been made European
social partners, and are consulted on Commission social policy
proposals. CESA and EMF set up an event, "Shipyard Week",
in March 2006 to improve the attractiveness of shipyards as a
workplace for young graduates and professionals, and a similar
exercise is planned for 2008.
The Government's view
7.9 In her Explanatory Memorandum of 11 June the Minister for
Industry and the Regions at the Department of Trade and Industry
(Margaret Hodge), acknowledges the progress made to date under
the LeaderSHIP 2015 initiative and broadly supports the recommendation
in the paper for continued activity.
7.10 The Minister reviews each of the themes identified in the
paper, but notes that the Government is not persuaded by the Commission's
arguments for pan-EU guarantee arrangements for shipbuilding.
The Minister adds that the Government supports the promotion of
safe and environmentally-friendly shipping, but believes that
the most appropriate forum is the International Maritime Organization,
notable on the question of devising an international solution
for ship recycling.
7.11 In relation to workforce skills, the Minister states that
the Government accepts the need actively to address skills issues
through a wide range of activities, and notes the launch on 10
July 2006 of a Marine Sector Skills Agreement involving employers,
unions, Government and delivery agents and the inclusion of activities
aimed at the marine sector in the National Skills Academy for
Manufacturing.
Conclusion
7.12 The Commission's working paper presents an encouraging
picture of the state of the European shipbuilding industry, and
provides a helpful overview of the factors accounting for its
success.
7.13 We have no questions to put to the Minister and we are
content to clear the document.
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