Ports - European Scrutiny Committee Contents


1 Ports


Committee's assessment Politically important
Committee's decisionNot cleared, recommended for debate on the floor of the House; drawn to the attention of the Transport Select Committee

Document detailsDraft Regulation about a framework on market access to port services and financial transparency of ports: (34955), 10154/13 + ADDs 1-5, COM (13) 296
Legal baseArticle 100(2) TFEU; co-decision; QMV
DepartmentTransport

1.1 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. The draft Regulation would apply to 'core' and 'comprehensive' ports within the TEN-T. It appears that some 47 UK ports would be in scope of the Commission's present proposal.

1.2 Our first reaction to this proposal, in June 2013, based on comments to us by the Government, was that there was a considerable question mark over the utility of the draft Regulation. In July, given that the Italian Presidency hopes to reach a general approach on the dossier at the Transport Council on 8 October and the impending periods of recess, we recommended that the document be debated on the floor of the House. But, the Government refused our request for a floor debate and the draft Regulation was scheduled for debate in European Committee A on 3 September. However, that debate was adjourned, following criticism of the failure of the Government to include the latest Council working group version of the draft Regulation in the debate pack. There was also much strongly voiced criticism of the failure by the Government to schedule the debate on the floor of the House rather than in European Committee.[1]

1.3 The Minister writes, before the adjourned debate, about the Government's decision to reject our request for a floor debate.

1.4 We find the Government's explanation for its decision to refuse our request for a floor debate on this important matter unconvincing, regret that yet again the scrutiny process has been weakened and draw the issue of principle to the attention of the House.

1.5 Moreover, given the unanimous decision to adjourn the European Committee debate we urge the Government to now accede to our renewed recommendation that the issue be debated on the floor of the House, and to ensure that this debate takes place before the House rises on 12 September for the Conference recess. Additionally, we emphasise to the Government that it would be wholly inappropriate to override the Scrutiny Reserve Resolution on this draft legislation so very important to UK interests. We are drawing this report to the attention of the Transport Select Committee.

Full details of the documents: Draft Regulation establishing a framework on the market access to port services and the financial transparency of ports: (34955), 10154/13 + ADDs 1-5, COM (13) 296.

Background

1.6 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[2] and 2006.[3]

1.7 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.

1.8 The draft Regulation would apply to 'core' and 'comprehensive' ports within the TEN-T, as defined in Regulation (EU) No. 1315/2013 on EU guidelines for development of the TEN-T. 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. It appears that some 47 UK ports would be in scope of the Commission's present proposal.

1.9 Our first reaction to this proposal, based on comments to us by the Government, was that there was a considerable question mark over the utility of the draft Regulation. When we considered it for a third time, in July, we heard that although important issues were still under negotiation by the Council working group the Italian Presidency hoped to reach a general approach on the dossier at the Transport Council on 8 October.

1.10 Given the impending periods of recess we recommended that the document be debated on the floor of the House and that the debate should take place in the fortnight beginning 1 September, when the Government would be able to inform Members of developments in further consideration of the proposal by the Council working group. We said that in the debate Members might wish to examine particularly the likely consequences for the UK's largely liberalised ports sector if the draft Regulation proceeded in its present form. But the Government refused our request for a floor debate and the draft Regulation was scheduled for debate in European Committee A on 3 September.

The European Committee debate

1.11 However, that Committee adjourned before any substantive discussion on the document, following criticism of the failure of the Government to include the latest Council working group version of the draft Regulation in the debate pack. There was also much strongly voiced criticism of the failure by the Government to schedule the debate on the floor rather than in European Committee.

The Minister's letter of 1 September 2014

1.12 The Minister of State, Department for Transport (Mr John Hayes), wrote before the debate about the Government's decision to refuse our request for a floor debate. He acknowledges that we gave careful consideration to whether the debate should take place on the floor or in General Committee and says that:

·  the Government also gave the matter careful consideration, but on this occasion took the view that, on balance, a General Committee debate would offer greater value;

·  the Government is working closely with the ports industry on this proposal, and the ports industry is also engaging with Members; and

·  the question and debate format of a debate in General Committee, lasting up to two and a half hours, in comparison to a debate on the floor of the House which last for 90 minutes only, allows a better opportunity for a range of Members' views to be expressed.

1.13 The Minister, reminding us that the Italian Presidency is making this dossier a priority and hopes that a general approach can be reached at the 8 October Transport Council, adds that:

·  four working group discussions were held in July and a further six are planned in September;

·  the Government has engaged vigorously in this process and the progress of negotiations so far has been, on the whole, towards diluting unwelcome administrative burdens;

·  nonetheless, the Presidency's objective is peculiarly ambitious and, in his judgement, is premature;

·  he would be informing Members of developments during the debate and looked forward to hearing their views on the proposal; and

·  he would continue to keep us informed of developments in negotiations following the debate.

The UK Major Ports Group

1.14 We have also received a letter of 19 August from the Chairman of the UK Major Ports Group about their concern with both the draft Regulation itself and what they perceived as the apparent weakening of the Government's position.[4] The letter was made available to Members of the General Committee debating the document.

Previous Committee Reports

Sixth Report HC 83-vi (2013-14), chapter 2 (19 June 2013), Twenty-third Report HC 83-xxi (2013-14), chapter 9 (20 November 2013) and Fifth Report HC 219-v (2014-15), chapter 2 (2 July 2014).





1   See Gen Co Debs, 3 September 2014, cols 3-xx. Back

2   See (22185), 6375/01; (22187), 6390/01 and (23326) 6593/02: Seventh Report HC 152-vii (2001-02), chapter 7 (21 November 2001), Twenty-eighth HC 152-xxviii (2001-02), chapter 2 (8 May 2002) and Thirty-second Report HC 152-xxxii (2001-2), chapter 14 (12 June 2002).  Back

3   See (26039), 13681/04: First Report HC 38-i (2004-05), chapter 10 (1 December 2004), Ninth Report HC 34-ix (2005-06), chapter 4 (9 November 2005) and Twentieth Report HC 34-xx (2005-06), chapter 6 (1 March 2006). Back

4   See Background Papers. Back


 
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Prepared 4 September 2014