Documents considered by the Committee on 6 January 2010 - European Scrutiny Committee Contents


11 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 baseArticle 71(1) EC; co-decision; QMV
DepartmentTransport
Basis of consideration Minister's letters of 15 and 22 December 2009
Previous Committee Report HC 19-v (2008-09), chapter 4 (28 January 2009), HC 19-xxiv (2008-09), chapter 2 (15 July 2009) and HC 5-iii (2009-10), chapter 4 (9 December 2009)
Discussed in Council 17 December 2009
Committee's assessment Politically important
Committee's decision Cleared

Background

11.1 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.[37] 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.[38] In December 2008 the Commission presented a draft Regulation intended to establish a set of rights for passengers travelling by sea and inland waterways.[39]

11.2 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.

11.3 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.

11.4 When we last considered this proposal, in December 2009, we heard that negotiations were nearing conclusion on a text which, except in relation to two issues, was meeting the Government's objectives. The two problem issues were about the scope of the draft Regulation and provisions on liability. On the first of these we heard that:

  • although the Government had been successful in securing removal of the public service contract condition from the exemption from the proposal for urban, suburban and regional transport, the Presidency was currently proposing that, whilst Member States would be able to exempt urban, suburban and regional transport from the majority of the provisions, a limited number would apply;
  • a number of Member States, including the UK, were still calling for the proposed Regulation to only apply to long-distance bus services, but some Member States had indicated that they could support the Presidency's proposal; and
  • the Government was still hoping to secure the ability for Member States to exempt local bus services from all of the provisions of the proposal, but given some Member States' changing position this might not be achievable.

11.5 On the second issue we heard of significant progress in respect of the chapter in the draft Regulation containing provisions on liability:

  • the chapter had been completely re-written and the provision introducing strict liability removed;
  • instead passengers would be entitled to compensation in the event of an accident in accordance with national law of the state of the carrier;
  • however, any limit in national law on compensation would not be less than €220,000 (about £200,000) per passenger and €1,200 (about £1,090) per item of luggage; and
  • carriers would also be required to provide assistance with regard to the passengers' immediate practical needs following an accident.

We were told, first, that prior to, and if necessary during, the Transport Council of 17-18 December 2009 the Government would be seeking further changes, in particular to clarify that any assistance would not constitute a recognition of liability and, secondly, that compared to the original proposal, however, the burden placed on operators should be reduced.

11.6 We were also told about how the Government now saw this matter developing:

  • it was likely that the scope of the proposal would only be resolved at the forthcoming Transport Council itself;
  • if, as was expected, a political agreement was reached at that Council, the Government would continue to lobby to ensure that the gains it had secured in the first reading of the proposal would be reflected in the final version of the proposed Regulation; and
  • the European Parliament's second reading of the proposal had been provisionally scheduled for May 2010.

11.7 We commented that as the important issue of the scope of the proposal was not wholly resolved and that the, perhaps lesser, matter of assistance after an accident not constituting a recognition of liability was also outstanding, we would not wish the Government to acquiesce in a political agreement on the present basis. Rather we were keeping the document under scrutiny pending a further account of an acceptable resolution to these matters. However, we added that, if such a resolution were to emerge at the Transport Council of 17 December 2009 the Government could, in accordance with paragraph (3)(b) of the Scrutiny Reserve Resolution of 17 November 1998, support a political agreement at that Council.[40]

The Minister's letters

11.8 The Minister of State, Department for Transport (Mr Sadiq Khan) in his letter of 15 December 2009 says that since his last report to us the Government had managed to secure a change to the requirement for provision of assistance with regard to passengers' immediate practical needs following an accident, to make it clear that any assistance would not constitute recognition of liability. He says this is a significant improvement and the Government was keen to secure the changes that have been made.

11.9 Turning to the scope of the draft Regulation, the Minister first reminds us that the Presidency was currently proposing that, whilst Member States would be able to exempt urban, suburban and regional transport from the majority of the provisions, a limited number of them would still apply. He then sets out those provisions which would apply:

  • ticket prices and conditions to be offered without any discrimination based on nationality of the customer or the place of establishment of the carrier;
  • no discrimination on the grounds of disability or reduced mobility with regard to booking a journey or boarding a vehicle — this would not require any adaptations to vehicles or infrastructure;
  • compensation in the event of accidents to be determined in accordance with national law, but if it is capped certain minimum limits apply; and
  • the provision by carriers of reasonable assistance to meet passengers' immediate practical needs following an accident.

The Minister comments that:

  • industry should already be complying with the requirements preventing discrimination in terms of ticket prices and conditions and on the grounds of disability and reduced mobility;
  • the provision on compensation should not have any immediate impact on the UK as there is currently no national law specifying a limit on liability for death or personal injury or damage to luggage; and
  • the assistance-following-an-accident provision would have a cost implication for the industry, however, the Government has managed to get the text qualified to say "reasonable assistance", which should make it proportionate in terms of its application to local bus services.

11.10 The Minister then tells us that:

  • he understood that a number of Member States were still calling for the draft Regulation to apply to long-distance bus services and that the Government would continue to seek improvements to the scope;
  • however some Member States have indicated that they could accept the Presidency proposal and there was a risk that the UK could become isolated, if there were not a sufficient number of Member States maintaining their position to achieve a blocking minority;
  • whilst the Government was mindful of the need not to place disproportionate burdens on operators and this had been one of its key objectives, it also needed to balance the needs of passengers, particularly in regard to disabled people and people with reduced mobility;
  • bearing in mind the possibility of a lack of support from other Member States, if a position were to arise at the Transport Council which the Government felt would bring benefits for UK passengers without placing a disproportionate burden on industry it might have no alternative other than to support an acceptable compromise, if it ensures UK interests are better served; and
  • the Government was taking our position seriously and would be reluctant to give agreement ahead of scrutiny clearance, so he wished to write to us to make us aware, ahead of the Council, of the reasons why the Government might support political agreement.

11.11 In his second letter, of 22 December 2009, the Minister reports the outcome of negotiations at the Transport Council. He says that:

  • during the debate on the proposed Regulation, the Government and several other Member States maintained reservations on the scope, asking for it only to apply to long-distance national and international services and this meant that at the outset of the meeting the blocking minority was maintained;
  • some other Member States, however, argued strongly for widening the scope, although they were prepared to accept the existing text;
  • in an attempt to resolve this impasse the Presidency offered a compromise text, which set out that the only provisions that Member States would not be able to exempt urban, suburban and regional services from would be the ones which would provide that ticket prices and conditions must be offered without any discrimination based on nationality or the place of establishment of the carrier and that there must be no discrimination on the grounds of disability or reduced mobility with regard to booking a journey or boarding a vehicle (unless safety requirements or vehicle design make access impossible); and
  • the Presidency compromise removed two provisions from the list of those from which Member States could not exempt urban, suburban and regional services, being those for compensation in the event of accidents to be determined in accordance with national law (but with certain minimum limits if capped) and to require carriers to provide assistance to meet passengers' immediate practical needs following an accident.

11.12 The Minister comments that the remaining provisions that would apply to urban, suburban and regional services would not need to be tailored to the specific nature of the UK bus market:

  • the provision in respect of non-discrimination against disabled people is already provided for in domestic legislation (although this right would be extended to people with temporary mobility difficulties);
  • the provision preventing discriminatory ticket prices and conditions has been clarified to make it clear that it would not prevent concessionary travel schemes being provided to local residents; and
  • the Presidency's compromise therefore met the substance of UK concerns about the scope of the proposal.

The Minister continues that the other Member States that had formed the blocking minority also found this text a satisfactory compromise and on this basis they and the Government accepted the text of the political agreement.

11.13 The Minister comments further that:

  • it is unfortunate that, as this compromise only emerged at the Council itself, it was not possible to inform us of it in advance and complete the scrutiny process;
  • the Government remained mindful of our position on the draft Regulation and would not have supported a political agreement if it did not feel assured that it had secured the best deal that could be achieved given Member States' different positions on the proposal;
  • as the application of these provisions fits, however, with wider Government policy on supporting equitable treatment for disabled people and people with reduced mobility and given the significant improvements that had been secured in respect of what were the liability provisions, in particular the removal of strict liability, the Government felt that the compromise proposal represented a much better balance between the economics of service provision and the rights of passengers than the original proposal and was an acceptable resolution that best served UK interests; and
  • the Government felt, in particular, that opposing or abstaining on this issue would have sent the wrong message to disabled passengers and their representative groups.

Conclusion

11.14 We are grateful to the Minister for this account of the outcome of the December 2009 Transport Council consideration of this draft Regulation. We note the extent to which the Government was able to secure improved text in relation to the scope and liability provisions of the measure. We have no more questions to raise on the substance of the proposal and now clear the document.

11.15 As for the Government's use of the conditional permission we had given it, in accordance with paragraph (3)(b) of the Scrutiny Reserve Resolution of 17 November 1998, to support a political agreement at that Council, we accept the Minister's justification for the decision to support the compromise text.


37   (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

38   Regulation (EC) No 261/2004, on "establishing common rules on compensation and assistance to passengers in the event 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

39   (30264) 11990/08 + ADDs 1-2: see HC 19-v (2008-09), chapter 4 (28 January 2009), HC 19-xxiii (2008-09), chapter 3 (8 July 2009), HC 19-xxvi (2008-09), chapter 2 (10 September 2009) and HC 19-xxvii (2008-09), chapter 21 (14 October 2009).  Back

40   See headnote. Back


 
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