9 Ports
| (34955)
10154/13
COM(13) 296
+ ADDs 1-5
| Draft Regulation establishing a framework on the market access to port services and the financial transparency of ports
|
| Legal base | Article 100(2) TFEU; co-decision; QMV
|
| Department | Transport
|
| Basis of consideration | Minister's letter of 12 November 2013
|
| Previous Committee Report | HC 83-vi (2013-14), chapter 2 (19 June 2013)
|
| Discussion in Council | Not known
|
| Committee's assessment | Politically important
|
| Committee's decision | Not cleared; further information requested
|
Background
9.1 Transport is a competence shared between the EU and Member
States. Two sets of proposals by the Commission related to access
to ports and transparency of port charges were both rejected by
the European Parliament, in 2003[44]
and 2006.[45]
9.2 With this draft Regulation the Commission
seeks to establish a regulatory framework to improve the efficiency
and competitiveness of all EU ports and to contribute towards
their ability to cope with increased demand in the transport and
logistics sector. It wishes to ensure that EU ports can become
competitive in the context of the Trans-European Transport Network
(TEN-T) strategy up to 2030 and beyond and seeks to achieve this
by:
- strengthening market access
for port services, specifically identifying as key aspects pilotage,
towage, mooring, dredging, bunkering and waste disposal;
- ensuring financial transparency, including for
port charges; and
- improving port coordination and consultation.
9.3 The draft Regulation would apply to 'core'
and 'comprehensive' ports within the TEN-T, as defined in the
draft Regulation on EU guidelines for development of the TEN-T.[46]
The comprehensive network is defined in that draft Regulation
as consisting of all existing and planned infrastructure meeting
the requirements of the guidelines and is to be in place by 31
December 2050 at the latest, whereas the core network overlays
the comprehensive network and consists of its strategically most
important parts and is to be implemented as a priority by 31 December
2030. The proposal is now close to its final form, although there
is some remaining uncertainty as to the precise network coverage.
Nevertheless, based on the current available information, some
47 UK ports would be in scope of the Commission's present proposal.
9.4 The draft Regulation is accompanied by the
Commission's impact assessment, which indicates that by adopting
its preferred policy option (regulated market access, price supervision
of monopolies, confinement of in-house operators, port user committee,
separation of accounts and autonomy in setting transparent infrastructure
charges) there would be a potential to save €1 billion (£836
million) per year in port costs, to lead to increased port activity
and to create more than 2000 jobs within the whole of the EU.
9.5 When we considered this proposal, in June,
we commented that clearly there was a considerable question mark
over the utility of this draft Regulation. We noted also Government
hints at subsidiarity concerns, which it had not, however, substantiated.
We said that before considering the draft Regulation further we
would await a more detailed commentary from the Government, based
on its consultation and its impact assessment checklist. Meanwhile
the document remained under scrutiny, but we advised the Government
that we would be recommending the proposal for debate in due course.[47]
The Minister's letter of 12 November 2013
9.6 The Parliamentary Under-Secretary of State,
Department for Transport (Stephen Hammond), tells us that:
- a targeted consultation on
the draft Regulation took place between 12 July and 2 August and
over 30 organisations and businesses were invited to comment;
- they were asked, where possible, to provide any
additional information or evidence to better inform the Government's
position, in particular relating to financial costs or regulatory
burdens that might arise as a result of adopting the Commission's
proposal, as currently drafted;
- as a result of the consultation the Government
has completed an impact checklist (which he encloses),[48]
which provides an initial industry assessment of the likely impacts
on the UK ports sector; and
- the assessment reflects the Government's initial
view that the introduction of heavy EU regulation (at least in
its present form) would not address the perceived problems in
the EU ports industry.
9.7 On the consultation the Minister reports
that:
- the UK ports industry, and
those who provide the kinds of service likely to be caught by
the current proposed Regulation, largely support the Government's
position that the best way to address the perceived problems within
the industry (as identified by the Commission) is through the
fostering of fairer and stronger competition between ports, which
would lead to the desired efficiencies and benefits;
- the ports industry shares the Government's view
that a truly liberalised and competitive market would promote
better and more transparent procurement of port services which
would not impede or discriminate against UK ports, as the current
proposal threatens to do; and
- the major UK port operators have made it clear
that they are investing heavily and vigorously in port development
and do not expect any shortage of capacity, even against a backdrop
of increased demand as envisaged by the Commission up to 2030
and beyond.
9.8 The Minister also tells us that:
- although working group negotiations
have not yet started, there was a Shipping Working Group on 3
October which used the Commission's impact assessment on this
draft Regulation to consider the wider approach and methodology
of the Commission in preparing such assessments;
- some Member States expressed the view that the
impact assessment relating to this proposal was one of the better
examples of Commission work;
- not all Member States agreed, however, and some
felt that much more work needed to be done by the Commission so
as to more effectively capture the wide diversity that exists
within the EU ports sector;
- in another Shipping Working Group meeting on
31 October discussions focused on the Commission's impact assessment
for the draft Regulation, which is expected to be a greater priority
for the forthcoming Greek Presidency, particularly in the second
half of its term;
- the European Parliament is beginning its consideration
of the proposal during the autumn and its first reading plenary
is scheduled for March 2014; and
- the European Parliament's Transport and Tourism
Committee is holding a public hearing on 5 November and a representative
from the UK ports sector has been invited to speak.
Conclusion
9.9 We are grateful to the Minister for this
account of developments on the draft Regulation. However, we do
not wish to recommend a European Committee debate yet. Rather,
we will await an account of the European Parliament's consideration
of the matter in March (or of substantial progress by the Greek
Presidency, if earlier), before settling on timing for a debate.
Meanwhile the document remains under scrutiny.
44 See (22185) 6375/01: HC 152-vii (2001-02), chapter
7 (21 November 2001), HC 152-xxviii (2001-02), chapter 2 (8 May
2002) and HC 152-xxxii (2001-2), chapter 14 (12 June 2002); (22187)
6390/01: see HC 152-vii (2001-02), chapter 7 (21 November 2001)
and HC 152-xxviii (2001-02), chapter 2 (8 May 2002); (23326) 6593/02:
see HC 152-xxviii (2001-02), chapter 2 (8 May 2002) and HC 152-xxxii
(2001-02), chapter 14 (12 June 2002). Back
45
See (26039) 13681/04: HC 38-i (2004-05), chapter 10 (1 December
2004), HC 34-ix (2005-06), chapter 4 (9 November 2005) and HC
34-xx (2005-06), chapter 6 (1 March 2006). Back
46
See (33275) 15629/11 + ADDs 1-35: HC 428-xliii (2010-12), chapter
2 (7 December 2011) and HC Debs, 19 January 2012, cols
909-938. Back
47
See headnote. Back
48
See http://europeanmemorandum.cabinetoffice.gov.uk/ Back
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