Documents considered by the Committee on 23 October 2013 - European Scrutiny Committee Contents


14 Inland waterway transport

(a)

(35310)

13721/13

+ ADD 1

COM(13) 623

(b)

(35311)

13716/13

COM(13) 621


Commission Communication: Towards quality inland waterway transport: NAIADES II



Draft Regulation amending Council Regulation (EC) No. 718/1999 on a Community-fleet capacity policy to promote inland waterway transport

Legal base(a) ¯

(b) Article 91(1) TFEU; co-decision; QMV

Documents originated10 September 2013
Deposited in Parliament18 September 2013
DepartmentTransport
Basis of considerationEM of 3 October 2012
Previous Committee ReportNone
Discussion in CouncilNot known
Committee's assessmentPolitically important
Committee's decisionCleared

Background

14.1 The Commission's first NAIADES programme, which was adopted in 2006 and has now come to an end, was developed to encourage modal shift of freight from road to inland waterways in five areas for action:

·  markets — action to help inland waterways to expand beyond traditional markets such as bulk cargoes to areas such as containers, waste and even vehicles;

·  fleet — action to encourage investment and innovation in vessels and technology;

·  jobs and skills — action to address skills shortages and encourage recruitment;

·  image — action to promote the sector; and

·  infrastructure — action towards improvement of the network.

14.2 Council Regulation (EC) No. 718/1999 on a Community fleet capacity policy to promote inland waterway transport required Member States with waterways interlinking with other Member States and a total fleet tonnage of over 100,000 tonnes to contribute to an Inland Waterway Fund (the 'Capital Reserve Fund'). This fund was only to be used in cases of 'serious market disturbance' in the inland waterway market and to ensure a more favourable and safe environment and working conditions for those working in the industry.

The documents

14.3 In introducing its Communication, document (a), the Commission claims that the first NAIADES programme has had a significant mobilising effect in the Member States and amongst stakeholders. It adds however that the economic and environmental prospects for inland navigation have continued to worsen and progress in overcoming key infrastructure bottlenecks has been limited. It says that in view of the economic and other difficulties that the inland waterway sector in the EU is facing, it is publishing a second NAIADES programme, which will follow on from the first NAIADES action plan.

14.4 The Commission sets out in the main section of the Communication a second action plan, for the period 2014-20, essentially aimed at moving more freight transport onto EU waterways, as well as reducing carbon emissions. For NAIADES II it proposes continuity with the first programme, while aligning it with the 2011 Transport White Paper and the EU's long-term vision and targets in transport. It would seek to create the conditions for inland navigation to become a quality transport mode.

14.5 The main actions to be undertaken by the Commission in the following main areas of intervention are:

·  quality infrastructure, which includes a set of planned actions with technical and financial assistance to address infrastructure issues, such as bottlenecks and to improve interconnection and integration with other modes of transport with particular attention being paid to sea and inland ports — for example, implementing 'multimodal corridor work plans' with a range of stakeholders from river commissions to sea and inland ports;

·  quality through innovation, in which NAIADES II calls upon the industry to take more ownership around research, development and innovation initiatives with a set of specific actions — for example, preparing a roadmap for research, development and innovation in the inland waterway transport sector with key stakeholders, such as ship operators and data services providers;

·  smooth functioning of the market — whilst the inland waterway sector is fully liberalised, the Commission believes that the lack of harmonisation in areas such as manning of ships and working time needs to be addressed with a set of actions, which include reviewing and continuing analysis of market developments and assessing barriers for the further development of inland ports;

·  environmental quality through low emissions — to progress the reduction of carbon emissions in the sector, addressed in the accompanying Commission Staff Working Document "Greening the fleet: reducing pollutant emissions in waterway transport";

·  skilled workforce and quality jobs, aimed at removing barriers for access to the profession and for the recognition of qualifications for those in the industry, by means of a set of actions — for example, reviewing the framework on the harmonisation and modernisation of professional qualifications in the sector; and

·  integration of inland navigation into the multimodal logistics chain, which includes a set of actions that will better integrate this transport mode into the multimodal logistics chain — for example, the Commission will encourage the sector to share best practice, with possible EU financial support.

14.6 The Staff Working Document accompanying the Communication compares the performance of inland waterway transport regarding emissions to those of land-based modes of transport. It also provides a comprehensive analysis of options and identifies further steps for reducing emissions of air pollutants from the inland water fleet.

14.7 Also accompanying the Commission's Communication is the draft Regulation, document (b), which would, given that the Inland Waterway Fund has not been used to date, amend Council Regulation (EC) No. 718/1999 to allow the fund to be used more widely than originally foreseen, to facilitate development of the industry through measures such as vocational training for crew, improvement of navigation skills and encouraging vessel innovation as regards the environment.

14.8 The Communication is accompanied by a third document, a draft Directive laying down technical requirements for inland waterway vessels and repealing Directive 2006/87/EC, which is the subject of a separate chapter in this Report.[66]

The Government's view

14.9 The former Minister of State, Department for Transport (Mr Simon Burns), says that while the Government thinks that the Commission's proposals meet subsidiarity requirements, it recognises that, for reasons of both history of construction of UK canals and the short lengths of UK waterways, the UK inland waterway industry is very different from that of Europe and it is important to maintain the option of derogating from EU technical regulations that, while appropriate on a EU level, would not add value to either safety or business on UK waters.

14.10 On the Commission Communication the Minister says that:

·  the Government welcomes it, since the UK supports initiatives to take freight off roads and on to either rail or water;

·  the NAIADES II programme does not appear to force Member States to do any more than encourage freight off the roads and onto inland waterways where opportunities exist;

·  NAIADES II is mainly designed for the intensively used northern European waterways of Germany, Netherlands, France and Belgium, such as the Rhine, Scheldt, Meuse and Seine;

·  the Government anticipates that the programme would have only minor implications for UK freight overall;

·  this is because the amount of freight transported on the UK's inland waterways is lower in relation to Germany, Netherlands, France and Belgium, amounting to 44 million tonnes in 2011, as compared with about 500 million tonnes annually there;

·  of that volume, only 8% is in non sea-going vessels, to which much of the EU policy initiatives are directed — non sea-going vessel tonnages fell from 5.4 million tonnes in 1991 to 2.6 million tonnes in 2004 and have since grown back to 3.5 million tonnes;

·  commercial waterway activity is mainly concentrated on the major estuaries (Mersey, Thames and Humber etc.), the Manchester Ship Canal and the commercial waterways that radiate from the Humber; and

·  these constitute only a small proportion of the overall inland waterway network in the UK, most of which was built over a short period in the late 1700s and early 1800s (the narrow canal network of the industrial revolution period) which is now used for leisure activities.

14.11 The Minister, whilst saying that the Government also welcomes the draft Regulation to make minor amendments to Regulation (EC) No. 718/1999, notes that the Inland Waterway Fund does not apply to the UK, since it is exempted by virtue of not having waterways linked to those of other Member States and is, therefore, is not required to contribute to the fund.

14.12 The Minister tells us that the Government broadly welcomes the Commission Staff Working Document that accompanies the Communication. But he comments that:

·  the document does appear to be written around an assumption that the air quality emissions performance of the inland waterway fleet can best be improved by setting emission standards that will effectively force the use of liquefied natural gas for new engines in the future and by requiring existing engines to be retrofitted with equipment to meet these standards;

·  many parts of UK industry have not yet made a decision on the technology solution they will adopt to comply with the standards;

·  inland water cargo vessels in the UK are all low powered, so forcing retrospective improvements to emissions on existing engines would be very costly with very little benefit to the environment;

·  both barges and engines tend to be very long lived by the virtue of the nature of the work that they do, so it would take a long time for these vessels to phase out of the fleet under normal circumstances;

·  the document does not seem to properly address all of the implications of the assumption, either from the point of view of the operators of vessels or in terms of its possible impact upon engine supply;

·  a rather over-simplified assumption, that technological solutions developed for lorry engines can be easily transferred to much larger engines working under very different conditions, underpins much of the argument;

·  there are studies currently being undertaken in the UK to consider whether technology solutions can be applied from one transport sector to another;

·  early indications are that each sector has its own characteristics and can learn from the experience of others, but the solutions will be unique to that sector;

·  although the UK inland waterway sector is relatively small, the UK does have development and manufacturing interests in the form of at least one producer of engines for inland waterway vessels and of producers of exhaust after treatment devices;

·  the Government is committed to meeting the UK's air quality obligations and supports the efforts of other Member States in meeting theirs;

·  it needs to ensure a proper balance is struck between achieving the overall aim of the Commission Staff Working Document and the aim of improving the air quality emissions of inland waterway vessels and it is not clear that the analysis in the current document is quite adequate to informing that process; and

·  whilst there is no obligation imposed on Member States by the Staff Working Document itself, the Commission indicates that it will be undertaking further work to refine the analysis for greening inland waterway vessels and we will consider how to positively engage with them on this.

Conclusion

14.13 Given the negligible impact of these documents for the UK we clear them from scrutiny. But we observe that, if the Commission turns the ideas about emission standards in the Staff Working Document into a legislative proposal, we will be scrutinising it closely, given the caveats the Government expresses now.





66   (35318) 13717/13 + ADDs 1-2: on which we shall be reporting shortly. Back


 
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