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Europe Daily Bulletin No. 8934
Contents Publication in full By article 19 / 47
GENERAL NEWS / (eu) ep/transport

MEPs reject compensation system under third railway package and vote for increased liberalisation of rail passenger transport

Brussels, 22/04/2005 (Agence Europe) - During its vote on the third railway package (first hearing, co-decision) on Tuesday, the committee on transports of the European Parliament rejected the proposed regulation obliging rail companies to pay financial compensation to their clients in case of failure to observe their contractual obligations. The MEPs took position in favour of accelerated liberalisation of international passenger transport services and a liberalisation of national passenger transport services. The MEPs also repeated their opposition to the “chopping up” of this third railway package by opposing it in a plenary vote “until there is a guarantee in place that the Council will look at all four proposals as a whole” and presents its common position on the revision of regulation 1191/69 on public service obligations.

The proposed regulation on compensation in case of non-respect of contractual quality obligations for rail freight services aims to step up the quality of these services, nationally and internationally, within the Community. It provides obligatory minimum clauses in transport contracts, compensation levels in case these clauses are not respected and a control system. In the view of the MEPs, who took position on the report by Roberts Zile (UEN, Latvia), this regulation would lead to increased costs for rail freight services and a distortion in competition compared to road transport. The MEPs also state that the existing international legislation “imposes very strict rules on rail transport, which are twice as strict as parallel rules for road transport: there is no call, therefore, to bring in even stricter rules”. Some of them also feel that it would be better to wait for the second railway package to be implemented before going any further. For all of these reasons, the parliamentary committee ended up rejecting the proposal by 31 votes to 12 and no abstentions. The MEPs feel that in order to improve the competitiveness of the railways, it would be better to make market access easier for new rail companies and to put in place better infrastructure, rather than imposing fines.

In its proposal modifying the directive 91/440/EEC on the development of community railways, the Commission is proposing to open international rail passenger transport to competition as of 1 January 2010, including cabotage. However, it excludes from the scope of its proposals national passenger transport services. With its vote on the report by German Christian Democrat Georg Jarzembowski (34 in favour, 8 against and 2 abstentions), the MEPs adopted a package of amendments calling for international passenger rail transport to be opened up to competition as of 1 January 2008 and for the liberalisation of national passenger rail transport as of 1 January 2012. The Member States will also have the option of liberalising before these dates. The Commission is to present two reports to assess the implementation of the directive: the first no later than 31 December 2009, on international passenger services, and the second no later than 31 December 2013, on national passenger services. These reports will include “an analysis of the allocation of train paths and the impacts on public service contract”. The MEPs also adopted an amendment allowing rail companies to conclude framework agreements of a duration of ten years to achieve major investments in infrastructure in the long term, such as high-speed links.

Adopting all the compromise amendments of the report by Belgian Liberal Dirk Sterk (39 in favour, 3 against and 1 abstention), the MEPs extended the scope of the proposed regulation on the rights and obligations of international rail passengers, to include national rail passengers. However, they provided the possibility for the Member States to ask the Commission for a derogation, so as not to apply the provisions of the directive to public service contracts for a period of five years. The MEPs simplified the minimum compensation rates in case of delays: 25% of the ticket price for delays of 60 minutes or more, 50% in delays of 120 minutes or more and 75% in delays of 180 minutes or more. These compensations will also apply to all passengers, not just international ones, and have to be paid in the month following the request. Passengers with a season ticket who are affected by recurrent delays will also be compensated in the form of free tickets, reduced tariffs or an extension of their season ticket. Lastly, the committee on transports adopted an amendment for situations in which the railway companies cannot be held responsible: delays due to exceptional meteorological conditions, terrorist acts or third-party liability.

By 43 votes in favour and 3 abstentions, the parliamentary committee also adopted the report by French Socialist Gilles Savary on the proposed directive to establish a train driving licence valid throughout the EU.

The Commission proposed that the directive should be gradually brought into effect. From 2008-2010, it would apply solely to cross-border drivers and, from 2010-2015, it would be extended to all drivers as well as on-board personnel. MEPs have amended this timetable, saying that the proposal should apply to train drivers on international and crossborder routes from 1 January 2007, to on-board personnel as of 1 January 2009 and to all drivers as of 1 January 2010. A Member State, however, could call on the Commission to ask the European Rail Agency to conduct a study analysing the cost/benefit ratio for application of the directive to drivers and on-board personnel operating exclusively on that State's territory. If the study reveals that this measure entails a cost that is too high, the Commission may authorise the State in question to exclude its drivers from the directive for ten years.

Community of European Railways gives mitigated opinion

The Community of European Railways (CER) gave a very mitigated reception to the vote by the transport committee. Although, in a press release, it welcomes rejection of the proposal concerning the quality of rail freight services, it regrets: 1) accelerated liberalisation in international passenger transport services and the opening up to competition of rail transport services for national passengers; 2) extension of the scope of the proposal on passengers' rights and obligations to national travellers; 3) extension of the scope of the proposal on certification to all train drivers and on-board personnel.

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