Committee Reports > List of Committees > Joint > 1976 > Committee on the Secondary Legislation of the European Communities > Report No. 29 - Goods, Surface Transport: Bus and Coach Services

REPORT

1. Introduction

On 24th October, 1973, the Commission submitted to the Council a memorandum on the development of the Common Transport Policy. The Commission’s memorandum was intended to stimulate the work of the Community in the field of transport. The memorandum proposed the gradual introduction of a Community transport system capable of contributing to the attainment of the objectives of the EEC Treaty, particularly the improvement of the quality and standard of living and working conditions, as well as permitting the smooth operation of transport at the least cost to society.

During 1975, the Commission prepared and discussed preliminary proposals in regard to the organisation of the freight transport market within the Community with Governmental, professional and socio-economic interests. In the light of these discussions the Commission prepared a set of eight concrete proposals on the operation of the markets in surface goods transport within the Community. On 1st October, 1975, the Commission submitted its proposals to the Council. The proposals relate mainly to the international transport of goods.

These proposals have been examined by the Joint Committee and are dealt with in this Report.

The Council of Ministers (Transport) at its meeting on 10th/11th December, 1975, adopted one of the proposals—that relating to the prolongation of the bracket tariffs system for the international carriage of goods by road—and, having considered the Commission’s proposals in relation to the Community Quota, adopted a new Regulation (No. 3331/75 of 18th December, 1975), which merely prolonged for twelve months the existing Community Quota Regulation (No. 2829/72 of 28th December, 1972).

In this Report the Joint Committee also proposes to refer to a proposal concerned with bus and coach services between Member States.

All the proposals dealt with are listed in the Appendix to this Report.

2. Carriage of Goods by Road

The First Council Directive of 23rd July, 1962, as amended by Council Directives of 19th December, 1972 (No. 72/426), and 4th March, 1974 (No. 74/149), on the establishment of common rules for certain types of carriage of goods by road between Member States, freed twelve categories of international goods transport from both licensing and quota restrictions. The Directive, as amended, freed an additional seven categories of international transport from quota restrictions but not from licensing restrictions.

The Commission’s proposal is for a new Directive replacing the existing Directive and containing new elements. The Commission has proposed that frontier zones covered by the First Council Directive should be extended from 25 kilometres to 50 kilometres on either side of the frontier and that the carriage of perishable goods in controlled-temperature vehicles and carriage on own account should be exempted from both licensing and quota restrictions. The Commission has also proposed that the carriage of cattle for slaughter and thoroughbred horses as well as goods traffic in transit in vehicles of up to ten tonnes total laden weight with a payload not exceeding six tonnes, shall be exempt from quota restrictions but not from licensing restrictions.

In relation to this country and the United Kingdom the frontier traffic provisions apply only in respect of the Border between the State and Northern Ireland. As far as licensed hauliers in Northern Ireland are concerned licences have been freely granted to them to operate to and from the State since 1966. The new frontier zones proposed will, therefore, affect cross-border traffic only insofar as hauliers from Britain or other Member States entering the State from Northern Ireland are concerned.

The Joint Committee recognises that the proposals now under consideration are logically directed towards the ultimate achievement of the Common Transport Policy envisaged by the EEC Treaty. Nevertheless, it is concerned that the uniform application of the proposed provisions throughout the Community may have the effect of requiring a relatively larger contribution to the process of liberalisation from a small country like Ireland than is asked for from the larger States. An area of 50 kilometres in depth takes in a relatively large part of the State. Moreover, CIE has pointed out to the Joint Committee that the possibility at some time in the future of additional ferry services being developed at such ports as Sligo, Galway, Limerick, Waterford and Arklow might have the effect of making most of the State a free zone.

There may be an added difficulty in ensuring that foreign hauliers stay within the law under the proposed liberalised conditions. The proposed new frontier zone between the State and Northern Ireland will extend to a point within a few miles of the Dublin exempted area, i.e. an area which extends within a radius of 15 miles of the GPO in Dublin and which is already exempt from all licensing provisions by virtue of sections 8 and 9 of the Road Transport Act, 1933. Obviously the difficulty of enforcing the law in such circumstances will be considerable.

CIE is of the opinion that in the absence of harmonisation of the conditions of competition, particularly fiscal harmonisation, the exemption of carriage of perishable goods in controlled-temperature vehicles would place Irish operators at a severe competitive disadvantage and probably adversely affect its own rail traffic in such goods. In particular, it fears a “dumping of transport services” in this country when seasonal surplus capacity arises in the United Kingdom and other Member States. For more or less similar reasons the Board does not favour the liberalisation proposed in the case of the carriage of thoroughbred horses. It seems to the Joint Committee that these are aspects of the proposals that merit earnest consideration.

3. Community Quota for the Carriage of Goods by Road

The Community quota system, which was introduced in 1968, was intended as a step towards the final stage of freeing the carriage of goods by road from all quantitative restrictions. Under the system Community authorisations are issued which allow a holder to use a vehicle for the carriage of goods, for hire or reward or unladen, throughout the Community on a multilateral basis but does not cover internal transport operations within a Member State. The quota fixes the total number of authorisations which may be issued and each Member State is allocated a specified number by the Council of Ministers.

The Community quota system accounts for only about 6% of international road transport operations. It is felt by the Commission that the expansion which has occurred in own account transport operations springs from over-rigid restrictions placed on operations for hire or reward and that the time has come, therefore, to change the Community quota system from an experimental to a permanent system and to double the size of the global quota. It has proposed that 50% of the increase should be allocated among Member States according to the rate of usage of the Community Authorisations issued in respect of 1973, the balance being distributed among Member States on an across the board basis.

Implementation of the Commission’s proposal would have involved the adoption of a new Community Quota Regulation by the end of December, 1975. In the absence of agreement, the Council, as already indicated, adopted a new Regulation (No. 3331/75 of 18th December, 1975) which merely prolonged for twelve months the existing Community Quota Regulation (No. 2829/72 of 28th December, 1972).

The Commission’s proposal would have involved increasing Ireland’s share of authorisations from 50 to 79 for 1976. The total number of authorisations proposed was 4,726.

The Commission’s proposal envisaged that in 1977 and each subsequent year the quota and number of authorisations for each Member State would be fixed by the Council on a proposal from the Commission, or failing a decision by the Council, would remain the same for 1977 as for 1976 and in each subsequent year be increased by 20%. CIE, which does not favour complete liberalisation, would prefer if this decision were always left to the Council.

The Joint Committee is disappointed at the failure of the Council to agree to an increase in the number of authorisations for 1976. It understands that the matter will come up for consideration again this year and it trusts that it will be possible to secure a substantial increase in Ireland’s allocation.

4. Access to Occupation of Carrier of Goods or of Passengers by Waterway

This proposal is directed towards facilitating “healthy competition” and achieving the right of establishment. It is designed to require Member States to authorise the pursuit of the occupation of carrier of goods or passengers by waterway in national or international transport only by natural persons or undertakings which are of good repute, have suitable financial standing and are professionally competent. However, goods vessels not exceeding 400 tonnes with engines not exceeding 140 h.p. and passenger vehicles fitted to carry less than 20 persons are excluded from the provisions altogether. Moreover, Member States, after consultation with the Commission, may exempt from all or some of the provisions, concerns engaged in national transport operations having only a minor impact on the transport market. Accordingly it is not thought that the adoption of the provision will have any significance for this country.

5. Mutual Recognition of Qualifications for Road or Waterway Passenger Transport and Goods Haulage Operators

Article 57 of the Treaty which deals with the right of establishment provides that, in order to make it easier for persons to take up and pursue activities as self-employed persons, Directives for the mutual recognition of diplomas, certificates and other evidence of formal qualifications as well as for the co-ordination of the provisions laid down by law, regulation or administrative action in the Member States shall be issued.

The present proposal specifies the evidence a host Member State must accept of (a) good repute, (b) financial standing and (c) professional competence of persons or undertakings of another Member State who wish to establish themselves as transport operators in its territory.

As a transitional measure pending the adoption of uniform Community criteria, the proposal provides for acknowledgement of documents issued by a competent authority in the Member State of origin as sufficient proof of fulfilment of conditions of good repute and financial standing.

The matter of professional competence of road haulage operators and road passenger operators is dealt with in Directives 74/561/EEC and 74/562/EEC respectively and Article 5 of the present proposal provides for acknowledgement of the certificates relating to professional competence provided for therein. Article 6 deals with other transport operators including inland waterways carriers and operators exempted from the provisions of Directives 74/561/EEC and 74/562/EEC, and provides that proof of exercise of the activity over a certain period in the country of origin will suffice as proof of professional competence.

The proposal also applies to persons who take up these activities as employees in host Member States having requirements of good repute, financial standing and professional competence.

The Joint Committee welcomes and supports this proposal.

6. Rates for International Goods Transport by Rail

This proposal is based on the proposition that ultimately the Common Transport Policy requires freeing transport rates from State control.

The proposal would allow railway undertakings themselves to fix international freight transport rates. Through tariffs would be fixed by agreement between undertakings, or failing agreement, by the Commission after consultation with an advisory committee subject to an overriding decision taken by the Council at the instance of a Member State. The only limitation on a railway undertaking would be its obligations under the Treaties and a requirement that it balance costs and receipts. However, a Member State would be entitled to impose compulsory tariffs for “public service obligations”, i.e. services which the undertaking would not undertake if considering merely its own commercial interests.

Apart from transport to and from Northern Ireland, CIE has no direct through link by rail with any other Member State and in the case of Northern Ireland, the actual service is operated by CIE. If the proposal is to be confined to direct rail links, there is a strong case for exempting Ireland from the proposal as CIE wants, because no other railway company is involved. Even if the proposal involves transport by rail and sea, the cost of negotiating reference tariffs, which would be merely indicative and not compulsory, would not be justified having regard to ClE’s small volume of such traffic.

7. Bracket Tariffs for the Carriage of Goods by Road between Member States

This proposal has already been adopted by means of Council Regulation No. 3330/75 of 18th December, 1975. The Regulation continues the system of compulsory bracket tariffs until the end of 1976, when it is intended that they be replaced by the system of reference tariffs which is the subject of the next proposal considered in this report. Bracket tariffs lay down maximum and minimum rates and are fixed by agreement between the Member States concerned.

8. Reference Tariffs for the Carriage of Goods by Road between Member States

The EEC Commission has accepted that the compulsory system of bracket tariffs has failed to achieve its expected results and considers that a system of free formation of tariffs should be introduced. It feels, however, that in order to achieve a smooth transition from a compulsory to a free system of tariff formation, there should be an interim system of reference tariffs.

The proposed reference tariffs would be purely indicative and would not restrict the freedom of transport undertakings to agree rates with users in the light of the market situation. The reference tariffs would be fixed by agreement between Road Haulage Associations (designated by Member States), but organisations representing users and providers of services ancillary to transport, as well as Trade Unions, would be associated with the negotiations. The reference tariffs would be subject to confirmation by the Commission, after consultation with an advisory committee, but the Commission’s decision could be overruled by the Council at the instance of a Member State.

The proposed Regulation would apply to the carriage of goods for hire or reward by road between Member States whether or not for part of the journey the carriage involved a transit journey through a non-member country or the vehicle is carried without break of load by sea, rail or waterway. It would not apply to certain categories of transport listed in Article 13 of the proposed Regulation.

The Joint Committee considers that the adoption of this system may well be a costly operation and it trusts that this aspect of the proposal will receive careful consideration.

CIE has suggested some amendments which the Joint Committee trusts will be carefully examined. These are as follows:—

(a) Article 9 should be amended to provide that notice be given of any rates which differ by an agreed margin (say 10%) from the recommended tariff. This would facilitate short-term appraisal of rates against the criteria provided for in Article 4,

(b) Article 10 should provide for the publication of trends by the Commission at six monthly rather than annual intervals,

(c) It would be desirable that reference tariffs should be introduced simultaneously throughout the Community and consequently the time allowed by Article 11 may not be sufficient,

(d) As CIE is not acceptable as a full member of the Irish Road Haulage Association, it would be precluded from participating in the development of reference tariffs. Article 5 should be amended to allow it to participate.

9. Monitoring the Markets for the Carriage of Goods by Rail, Road and Inland Waterways

To assist in the full development of the Common Transport Policy, this proposal would establish a system for observing transport markets which would involve both analysis and forecasting and which would be managed by the Commission assisted by two advisory committees. One committee would consist of representatives of carriers, users, trade unions and providers of ancillary services and the other of Government representatives. Annual reports would be made showing the result of analyses and giving five-year forecasts of trends. Member States would be obliged to take the necessary measures to ensure implementation of the proposed Regulation.

The Joint Committee considers that a system of monitoring the transport market is desirable but feels that, in line with the recommendation on Transport Statistics in its Twenty-First Report, the cost of this operation should be borne by the budget of the Communities. It might, however, be profitable to review the system say after two years to ensure that it is producing the desired result. The Joint Committee is of opinion that CIE should be represented on the advisory committee provided for in Article 6.

10. Common Rules for Regular and Special Regular Services by Coach and Bus between Member States

Regulation (EEC) No. 517/72 comprising the common rules, in effect the licensing rules, for international bus services provides inter alia that in the case of bus services operated in the territory of only two Member States over a route of less than 100 kms as the crow flies within a zone extending to a depth not exceeding 50 kms as the crow flies on each side of the frontier, Member States may agree to waive certain, mainly procedural, requirements of the Regulation. The present proposal would amend that provision to deal with the position of the new Member States on the same lines as the amendment of the First Directive on freight haulage. In measuring cross-frontier distances for the purpose of applying the modified procedure, sea distance travelled by coach or bus on a vehicle ferry is not counted except where there is a land frontier between the two States. The sea distances on vehicle ferry routes between the State and Britain are, therefore, counted and the modified procedure is not applicable because there is a land frontier between Ireland and the United Kingdom at the Border with Northern Ireland. The proposed amendment will not in any way affect the operation of bus services between the State and other Member States. The Joint Committee is advised that the change proposed will amount merely to clarifying the cases where the procedures involved in licensing may be modified.

11. Acknowledgement

The Joint Committee wishes to acknowledge with thanks the considerable assistance it received from CIE in considering the first eight proposals dealt with in this report.

(Signed) CHARLES J. HAUGHEY,

Chairman of the Joint Committee.

24th March, 1976.