92003E0298

WRITTEN QUESTION E-0298/03

by Wilhelm Piecyk (PSE)and Helle Thorning-Schmidt (PSE) to the Commission

(7 February 2003)

Subject: State aid and EU employment in maritime transport

One of the main objectives of the guidelines for State aid to maritime transport(1) is to support and safeguard EC employment. This objective was fixed against a background of a number of years with decreasing employment of EC seafarers as opposed to a substantial increase in the employment of low-wage third-country seafarers.

Prior to the adoption of the guidelines, the European institutions had on several occasions highlighted the need to support the employment of EC seafarers, for example, the Commission's communication Towards a new maritime strategy(2), and the Council resolution of 24 March 1997 on a new strategy to increase the competitiveness of Community shipping(3).

The response to this in the guidelines was therefore to enable the Member States to grant tax exemption to EC seafarers in order to reduce the competitive gap between EC seafarers and cheaper labour from third countries.

In April 2001, the Commission published a Communication on the training and recruitment of seafarers(4). The Commission mentioned the cheaper labour from third countries as a reason for the ever-decreasing employment of EC seafarers and announced, The Commission services will continue to monitor the results of the application of the guidelines and will take those results into account when drafting the next revision of the guidelines, particularly in respect of measures to encourage employment (see page 10 of the Communication).

On the basis of the above, does the Commission agree that State aid supporting the employment of third-country low-wage labour is contrary to the objective of supporting EC employment? How does the Commission intend to encourage EC employment in the maritime sector with respect to the on-going revision of the guidelines?

(1) OJ C 205, 5.7.1997, p. 5.

(2) COM(96) 81.

(3) OJ C 109, 8.4.1997, p. 1.

(4) COM(2001) 188.

Answer given by Mrs de Palacio on behalf of the Commission

(2 May 2003)

The 1997 Community guidelines on State aid to maritime transport indicate that Member States may help shipowning companies become more competitive by reducing their operating costs, inter alia by granting reductions or exemptions in respect of fiscal and social security burdens for seafarers.

A further aim of aid to maritime transport is to promote employment and maritime know-how in the Community, both on board and on shore.

The Commission is currently preparing a communication on the review of the 1997 guidelines which will confirm the objectives set previously and improve the instruments for achieving them.