Select Committee on European Legislation Second Report


ROAD PASSENGER TRANSPORT SERVICES

(17959) 6391/97 COM(97)72 Amended proposal for a Council Regulation laying down the conditions under which non-resident carriers may operate national road passenger transport services within a Member State.
Legal base: Article 75(1); co-operation; qualified majority voting

Document originated: 26 February 1997
Original language: French
Forwarded to the Council: 28 February 1997
Circulated by the Council in the original language: 6 March 1997
Circulated by the Council in English: 7 March 1997
Deposited in Parliament: 14 March 1997
Department: Department of Transport
Basis of consideration: EM of 13 June 1997
Previous consideration: None
Committee's assessment: Politically important
Committee's decision: Cleared

Background

    61.1  This is a revised proposal on the conditions under which non-resident carriers may operate national road passenger transport services within Member States (known as cabotage). The original proposal was considered twice by the previous Committee[160]. It was judged to be of political importance because of its implications for bus and coach operators in the UK.

The revised proposal

    61.2  In her Explanatory Memorandum dated 13 June 1997, the Parliamentary Under Secretary of State at the Department of Transport (Baroness Hayman) explains that:

        "The proposed Regulation will replace and extend Regulation (EEC) 2454/92[161] which introduced limited passenger cabotage in two stages from 1 January 1993. That Regulation was subsequently annulled by the European Court[162] on procedural grounds, although it ruled that its provisions should remain in force until the Council had adopted new legislation on the matter. The proposed Regulation seeks to further liberalise the extent to which coach and bus operators from one Member States are entitled to operate domestic passengers services entirely within another Member State (passenger cabotage)."

    61.3  The existing Regulation allows cabotage in domestic bus and coach services except regular services (defined as those which carry passengers along specified routes at specified intervals, with pre-determined stops). The original Commission proposal was to extend cabotage to all regular services. The Council subsequently adopted a European Parliament amendment to exclude cabotage on local regular bus services. The Council decided that cabotage should also be excluded on long distance coach services. It should only be allowed on internal sectors of international services, and should be subject to the host country's regulations. So, for example, on a service from London to Paris a UK operator would be able to carry passengers from Calais to Paris - but he would be subject to the full legal and administrative framework which applies to domestic services in France.

The Government's view

    61.4  The Minister says:

        "While in principle the amended proposal offers further opportunities for UK companies to operate services in other Member States, and for foreign operators to do likewise in this country, they are limited to carrying passengers on the domestic leg of an international journey. Furthermore, the conditions under which this is to be allowed are so circumscribed that few, if any, operators are likely to take advantage of it in practice. In view of this dilution of the Commission's original proposal, the UK voted against the amended proposal. Common Position was, however, reached on the basis of a qualified majority."

    61.5  Dealing with the practicalities of operation, the Minister explains:

        "Controls over vehicle standards of foreign operators in this country would take place through normal road-side checks. The proposal itself provides for the host State to impose a temporary ban on cabotage operations in cases of serious or repeated infringements of national transport regulations, and to request the Member State of establishment to impose a penalty on the operator, which may extend to removal of the licence to operate."

    61.6  The Minister tells us that the Council reached a Common Position on this proposal on 14 April 1997. The European Parliament now has three months in which to express a view

Conclusion

    61.7  We consider that the proposal raises matters of political importance, but since it has been so drastically watered down from the original version we do not think that it warrants a debate.


160  (16932) 4749/96; see HC 51-xi (1995-96), paragraph 8 (28 February 1996) and HC 51-xxvi (1995-96), paragraph 12 (17 July 1996). Back

161  OJ No. L 251, 29.8.92, p.1. Back

162  ECJ 388/92. Back


 
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Prepared 7 August 1997