Documents considered by the Committee on 15 July 2009 - European Scrutiny Committee Contents


2 Rights of passengers

(30255)

16933/08

+ ADDs 1-2

COM(08) 817

Draft Regulation on the rights of passengers in bus and coach transport and amending Regulation (EC) No. 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws
Legal base Article 71(1) EC; co-decision; QMV
Department Transport
Basis of consideration Minister's letter of 8 July 2009
Previous Committee Report HC 19-v (2008-09), chapter 4 (28 January 2009)
To be discussed in Council Possibly 18-19 December 2009
Committee's assessment Politically important
Committee's decision Not cleared; further information awaited

Background

2.1 In its 2001 White Paper "European transport policy for 2010: time to decide" the Commission listed one of its objectives as establishing passenger rights in all modes of transport.[5] Legislation has already been enacted for the aviation sector, covering passenger rights generally and the rights of passengers with reduced mobility in two separate Regulations.[6] In December 2008 the Commission presented a draft Regulation, which is still under scrutiny, intended to establish a set of rights for passengers travelling by sea and inland waterways.[7]

2.2 In December 2008 the Commission also presented this draft Regulation, intended to establish a set of rights for passengers using bus and coach services on both domestic and international routes. The aim of this proposal is to:

  •   make bus and coach transport more attractive;
  •   achieve a level playing field, both between operators in different Member States and between different modes of transport; and
  •   remove potential barriers to disabled people and people with reduced mobility using buses and coaches by addressing issues around accessibility and the provision of assistance.

2.3 The draft Regulation has provisions in six chapters to:

  •   prevent discrimination on grounds of nationality or place of residence with regard to conditions and prices offered to passengers by operators;
  •   establish standard rules on liability in the event of death or injury of passengers and loss of or damage to their luggage and to harmonise these with other modes of transport;
  •   prevent discrimination on the grounds of disability or reduced mobility with regard to booking a journey or boarding a vehicle (unless safety regulations or the size of the vehicle makes such access impossible);
  •   give disabled persons and persons with reduced mobility the right to assistance during their travel, free of charge;
  •   oblige companies to provide all passengers with adequate information throughout their journey, particularly where services are cancelled or subject to long delays, and with information about their rights; and
  •   ensure operators have a complaint handling mechanism, with each Member State designating a body responsible for the enforcement of the Regulation.

2.4 When we considered this proposal, in January 2009, we reported that, whilst the Government supported creating a level playing field for international bus and coach services and introducing passenger rights for all modes of transport, it was important for the proposed Regulation to reflect:

·  the differences between international and local bus services;

·  that the bus and coach industry consists of a significant number of small operators; and

·  that the bus and coach industry has much less control over the infrastructure on which its vehicles run, compared to the aviation and rail industries.

We also reported a considerable number of the Government's more detailed concerns, its preliminary views on the financial implications of the proposal and its intentions on consultation and preparing an impact assessment.

2.5 We concluded that the aim of the draft Regulation was clearly laudable, but that it was equally clear that there was much to be resolved before the proposal could be brought to a conclusion. So before considering the document further we asked to:

·  hear about significant progress in the negotiations, particularly in relation to the position of local bus services — that is limitation of the scope for exemption from the new requirements to services operated under public service contracts;

·  have an account of the outcome of the Government's consultations on the proposals; and

·  see the Government's impact assessment.

Meanwhile the document remained under scrutiny.[8]

The Minister's letter

2.6 The Minister of State, Department for Transport (Mr Sadiq Khan) writes now in response to our earlier report and to tell us also of the European Parliament's first reading of the proposal. The Minister first tells us that the Government's consultation on the proposal closed on 14 April 2009 and the responses are helping to inform its position. And he encloses the Government's initial consultation impact assessment,[9] which accompanied the consultation document, and which will be updated in light of the consultation responses and as the negotiations progress.

2.7 Of the responses to the consultation the Minister says, in summary, that:

·  most respondents felt that the proposed Regulation did not achieve a reasonable balance between the rights of passengers and the economics of service provision;

·  there was concern from operators that the proposal was impractical and disproportionate in respect of local bus services and could make insurance extremely expensive, assuming cover could be obtained at all;

·  passenger representatives gave qualified support to the concept of passenger rights, but acknowledged that, as drafted, the proposals could pose practical difficulties in the provision of some services;

·  they suggested that passenger rights could be delivered through a different mechanism; and

·  disability organisations, however, felt the draft Regulation would provide more consistent rights for disabled people across the Community.

2.8 On Council consideration of the draft Regulation the Minister tells us that:

·  in Working Group meetings the scope of the proposal has been the key issue for most Member States;

·  other issues include liability for death and injury of passengers, advanced payments in cases of death or personal injuries, possible reasons for refusal of disabled persons or persons with reduced mobility from transport services, the right to assistance, especially on board during the journey, training of all personnel, the responsibility of transport undertakings in the event of cancellations and long delays at departure and the date of entry into force of the Regulation;

·  at the Transport Council of 11 June 2009 the Czech Presidency gave a progress report and held a policy debate, during which Member States were invited to comment on options for the scope of the draft Regulation

·  the Government stressed that the proposed exemption for urban, suburban and regional transport operated under public service contracts was discriminatory in respect of those Member States, such as the UK, whose markets have moved to open competition beyond public service contracts, and that such a condition should not be attached to the exemption;

·  on that basis, the Government joined a large number of Member States in calling for the proposed Regulation's scope to be limited to long-distance and international journeys;

·  the Government also raised concerns about the liability provisions — the UK has well-established fault-based principles for determining liability for road traffic accidents, the introduction of strict liability would cut across these, effectively creating a separate system in relation to determining liability and compensation for road traffic accidents involving one particular type of road user and this would cause confusion and uncertainty in UK law;

·  progress in resolving the issues discussed at Working Group level has been relatively slow so far;

·  however, the Swedish Presidency has indicated that it hopes to make good progress, with a view to a possible political agreement at the Transport Council on 17-18 December 2009; and

·  the Government will continue to work to ensure that the final proposal is proportionate and practical in its application.

2.9 The Minister also tells us that the European Parliament adopted an opinion on the draft Regulation at a first reading on 23 April 2009. It has proposed a number of amendments, including ones on the scope, liability for death and injury of passengers, advance payments in cases of death or personal injuries, possible reasons for refusal of disabled persons or persons with reduced mobility from transport services, the right to assistance, responsibilities of undertakings in the event of cancellations and long delays and the date of entry into force of the proposed Regulation. The Minister comments that:

·  whilst the Government welcomes the intention behind some of these changes, it does not welcome the amendment to the scope, which would prevent the exemption of rural bus services and still retains the public service contract condition; and

·  it is also concerned that some of the proposed amendments, particularly in respect of the responsibilities of undertakings in the event of cancellations and long delays, do not take into account the specific characteristics of the bus and coach sector, which consists largely of small and medium enterprises.

Conclusion

2.10 We are grateful for the Minister's account of where matters stand with the Council's consideration of this proposal and also of the European Parliament's first reading. However, we note that there is as yet not much significant progress in the negotiations. So before considering the document again we should like to have a further account of the discussions, once the shape of the possible political agreement becomes more certain. Additionally we would want to have a fuller account of the outcome of the Government's consultations on the draft Regulation and to see the updated impact assessment, particularly with some quantification of costs and benefits. Meanwhile the document remains under scrutiny.


5   (22660) 11932/01: see HC 152-xv (2001-02), chapter 2 (30 January 2002) and Stg Co Debs, European Standing Committee A, 13 March 2002, cols. 3-28. Back

6   Regulation (EC) No 261/2004, on "establishing common rules on compensation and assistance to passengers in the even of denied boarding and of cancellation or long delay of flights" and Regulation (EC) No 1107/2006, on "concerning the rights of disabled persons and persons with reduced mobility when travelling by air". Back

7   (30264) 11990/08 + ADDs 1-2: see HC 19-xxiii (2008-09), chapter 3 (8 July 2009).  Back

8   See headnote. Back

9   See http://www.dft.gov.uk/consultations/closed/eu-bus/impactassessment.pdf.  Back


 
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