Limassol, 26 September 2005 (European Commission)–It is a great pleasure and honour to have the opportunity of attending the Maritime Cyprus 2005 conference. My very sincere thanks go to the Cyprus government and the Minister of Communications and Works, Mr Harris Thrassou and the organisers, as well as all the dynamic business and shipping community of Cyprus.
The Conference is an excellent opportunity for me to learn from you. You represent a fascinating and strategic sector of activity for the economic well being of the EU countries and of the world at large.
The moment for our meeting could not be better chosen. In 2005 several important policy assessments will be carried out in the EU. By November I hope to present to the European Parliament and the Member States a new “Partnership for quality shipping”, which will consolidate and up-date existing legislation. These proposals will have a direct impact on the shipping business as a whole.
I know that industry at large sometimes reproaches the EU for generating too many laws and regulations. Like often, this is true and false at the same time.
Where one European law replaces 25 diverging national legislations there is often a very considerable benefit for companies operating in several markets. But there are other cases where uniform rules are out of tune with the very diverging economic and social realities in the different Member States. That is why in two days, the Commission will announce the withdrawal of some 75 legislative proposals.
For my part I will first and foremost focus on the proper implementation of existing legislation. I will contemplate new legislation only where such new legislation will offer “better regulation” to the benefit of our industry and our citizens alike.
The maritime sector at the heart of the European strategy for Growth and Competitiveness
The prime objective of the Commission under President Barroso is to achieve Growth and Competitiveness. In spite of the successful transition to the EURO and the successful enlargement of the EU to ten new Member States, which Cyprus is now fully experiencing, the EU is not profiting as it should from the opportunities offered by the world strong economic growth. Therefore we need a global assessment of all Community policies and their instruments, in order to evaluate their respective contributions to growth and employment.
With growth below 2%, it is clear that the EU’s productivity and competitiveness has to rise if we want to preserve and improve our living standards. Needless to say that the dramatic economic and trade growth of the Asian giant countries is putting European competitiveness and adaptability to the test. Higher economic growth has to be generated in the EU in order to ensure that our social and environmental objectives can be met.
I am therefore happy to see that there is now a general consensus in the EU on the need to:
*increase Research, Development accelerate penetration of new technologies and *innovative processes in the industry
*sustain efforts in the training and education because only qualified and skilled labour will enable efficiency to prevail; this is particularly true for the sector of shipping.
*a further liberalisation of the European economy and the promotion of free and fair competition, the so called “level playing field” in the EU and worldwide.
Efficient maritime transport services are at the core of this “Strategy for Growth and competitiveness”. The competitiveness of the EU economy, the largest trading bloc in the world, relies heavily on efficient transport. Europe can be proud of those who design and produce our high speed trains and our first class commercial jets. Even more so Europe can be proud of its European shipyards that produce highly sophisticated marine equipment and ships, in particular cruise ships that call at Limassol port. And of course we are proud of reliable maritime transport services that international shipping and its European based companies provide to world trade. In short: Europe is proud of you.
I am therefore convinced that EU regulators must offer strong support to the EU shipping sector recognising its strategic character and ensuring that its high ranking within the main shipping regions of the world be reinforced and accompanied by dynamic government flanking policies. More should indeed be done to reconcile markets and regulators.
Incentive measures are already in place. They aim at promoting EU shipping. Among these let me just mention, for instance,
*the 2004 Community guidelines on state aid to the maritime sector and the “tonnage tax“ schemes which, in the case of the strong ship management base active in Cyprus, deserve close attention;
*the multimillion Euro EU funding related to the Motorways of the sea, (Marco Polo programme and transeuropean networks),
*the support we have provided to resolve bottlenecks (administrative, customs and others) in Short Sea Shipping –bringing them down from 160 to less than 50 the last four years- and increase its share in intracommunity transport up to 40%
Challenges ahead
You will agree with me that international markets are booming and remain at historically high levels in all trades. High freight rates seem there to stay. However, time parameters and demand fluctuations will always be critical and will impact on returns on investments and import/export variations on major trade routes.
Of course, major decisions are and will have to be made by the economic operators in order to prepare for future developments. Operators will have to make strategic choices, define new alliances, and restructure the management and operational processes of companies. The shipping sector being highly competitive we will see the entry on the market of newcomers, the development of new commercial practices, and also consolidation. Major investments notably in port infrastructures will need to be pursued, by all parties concerned in Europe, with a view to improving the performance of the entire supply chain.
I am determined to promote of Short Sea Shipping and the “Motorways of the sea” and complement such initiatives with a dynamic “ Inland waterway“ policy. These initiatives will be the cornerstones of a fully integrated waterborne transport policy which the European economy and the European environment urgently require.
Governments’ and industry’s efforts will also be required to tackle serious shortage of qualified European officers. Under the British Presidency of the EU the “maritime social element” is high on the agenda. We need a partnership approach of all stakeholders concerned.
Technology and notably satellite technology (GALILEO) will be key components of tomorrow’s quality oriented transport services.
I feel very confident of the capacity of European industries to continue to be, in the future, not only leaders for technological innovation in shipbuilding and marine equipment but also for high quality maritime transport services. And let me seize this opportunity to pay tribute to the continuous reduction in the number of oil spills observed as well as to the downward trend of the number of lives lost on merchant vessels. These developments are clear signs of the industry’s proactive commitments to quality, safety and training.
These developments and progress should, I think, be more widely recognised by public opinion helping thereby improving public perception of the shipping sector. I will try to play my role as “your Commissioner”. But I also need you, the industry to play a more proactive role anticipating customers as well as societal requirements. We all have our interests to defend, but for my part I will seek a partnership with the industry for launching reforms and embracing new technological developments and applications. Conservatism is not a virtue in itself, particularly not in a rapidly changing global environment.
Europe – quo vadis
Over the past years the EU has become a major player in the shipping regulatory environment. Of course, I understand the uneasiness of some of you with regard to this “regional” new comer in the regulatory world.
But then, are there really alternatives? European policy responds to the needs of European citizens and European industry. Ignoring their needs is not an option.
Europe must promote international quality shipping along with the establishment of a level playing field on the global market. Protection of our Coastal Patrimony is a prerequisite for land based industries to thrive.
Of course, Europe cannot act in a vacuum. We must observe full compliance with the United Nations law of the sea and will fully support IMO and ILO initiatives to that avail. Respect for all relevant rules must be achieved and I think that the European Maritime Safety Agency, which we have set to guarantee fair observance and implementation of decisions made at European and international level, will be your supporter for the observance of the level playing field.
The third package for maritime safety which I will present later in November is based on this philosophy. A total of seven proposals will improve maritime safety, will consolidate the acquis (be it EU law or international law), it will cut down red tape and will introduce premiums for quality shipping. We carefully listened to your comments during the preparation of the package. We also conducted an impact assessment which concludes that the cost for operators that respect the internationally agreed standards will be marginal. The new proposals will seek to establish a level playing field and reduce unfair competition from sub-standard shipping. Quality shipping is an objective that we all share. Efforts will also be required from national administrations, which must live up to their obligations as Coastal and as Flag States. The new set of measures will contribute to the long term development of our shipping industry, taking into account the requirements of seaborne transport in the 21st century.
I will need your input also beyond the presentation of the Commission proposal. Dialogue with the industry and trade unions on these issues is vital and must be pursued. I need “partnership for quality shipping “with all of you.
Europe going global
Europe can relay the point of view of 25 member States. We must act together to the benefit of a shipping industry that operates globally and ensure the widest international liberalisation of market access and supply of maritime transport services possible. We can do this bilaterally, as was the case with China in 2002 (and recently confirmed for all 25 member states in Beijing) and also via the multilateral process of the WTO/GATS negotiations. I am happy to say that more and more countries around the world share the same approach and actively participate in the bilateral and in the Geneva multilateral liberalisation processes.
Allow me to stress in this trade related context , and being here in Limassol, that I do hope that a rapid solution will be found to ensure full freedom for trade goods via ship between Cyprus and Turkey . In a customs union goods must circulate freely. I am convinced that the 29 July 2005 Ankara protocol will offer the necessaries incentives and instruments for achieving this process rapidly.
A European vision for the oceans and the Seas
Mr Chairman, Ladies and Gentlemen, allow me a final word on the European initiative on the oceans and Seas. This initiative is steered by my colleague in the Commission in charge of Fisheries, Joe Borg with the active participations of the commissioners responsible for industry, research, environment, energy and myself.
This “blue” paper will seek to identify beneficial interfaces and synergies between the different policies with an impact on the oceans and seas covering maritime transport of course but also notably energy, fishing, marine resources, shipbuilding, environment and coastal development. We will strive to develop a methodology for striking the right balance between the economic, social, safety and environmental dimensions of a maritime policy whilst ensuring the preservation of the resource base.
The paper should be adopted by the European Commission in the first half of 2006 and will hopefully lead to a lively debate and wide consultation with the objective of listening and taking stock of the views of the main stakeholders concerned. I invite you all to participate actively in this consultative process.
Mr Chairman, Your Excellency, Ladies and Gentlemen,
It is time to conclude,
Promoting EU shipping is a major strategic objective of the EU maritime policy. I will make further proposals to enhance quality, safety and competitiveness of the sector. Channels of communication between the regulatory bodies and the market operators are open. They need reinforcement, greater transparency and mutual respect. As stated recently by one of your most influential ship-owners, the solution is dialogue, dialogue, and more dialogue, even when the process is repetitive, frustrating and takes time”. Be sure that I work towards that end.
Thank you very much for your attention. (Source: European Commission Press Room)
