Transport logistics operators call on EU to stamp out unfair state subsidies
Associations representing privately-held transport and logistic operators said they called on the European Commission this morning to stamp out unfair subsidies to their publicly-owned counterparts and to put an end to the misuse of those subsidies.
In particular, the associations are concerned about state subsidies to Deutsche Post AG’s unit DHL, Belgium’s SNCB’s ABX Logistics, La Poste’s GeoPost and SNCF’s road haulage unit Sernam.
Two associations — Germany’s Wettbewerbsverein and France’s HALTE — said they asked the commission to beef up regulations and implementation and to take a proactive role towards state aid, putting an end to ‘unjustifiable competitive advantages’ enjoyed by the public companies.
The commission is already examining two cases in this area. On April 30 2003, it opened a probe into the French aid to Sernam, the road haulage subsidiary of SNCF. On July 23 of the same year, it opened a probe into Belgian aid granted to SNCB subisidiary ABX Logistics.
However, the two associations said the commission is not doing enough. Jean-Louis Lesquins, lawyer for the groups, said state aids in this sector are ‘very badly controlled or little controlled’ by the commission. He added that the commission ‘should have been active rather than looking at notified aid’.
In the case of ABX, they highlighted its ‘aggressive’ acquisition policy. ‘The question arises how such a loss-making company could have undertaken the acquisitions adhering to the criteria that of the privately financed transport and logistics sector.’
The associations said they have proposed several measures to ensure fair competition, including stricter and more timely enforcement of the rules, sanctions, and greater powers for third parties to participate in sector inquiries and thereby support the commission.
They said the commission takes too long to reach conclusions and take action on illegal state aid or misuse of public funds. ‘Some of these practices date back as much as ten years and, in many cases, the harmful economic effects are irreversible.’ Complaints against ABX were first brought to the commission in 1999.
Furthermore, they said, the commission should be paying ‘special attention’ to the misuse of subsidies for the purchase of private companies and should ban the use of monopoly income and state-backed funding for the acquisition of private enterprises.
They said the commission should initiate sector inquiries rather than waiting for complaints. In particular, the commission should investigate aid that has already been approved and aid that is planned by governments to state-owned or partially state-owned companies.
Commission spokesman for transport, Amador Sanchez Rico, said it is premature to say the commission is not doing enough about the ongoing cases. ‘We are studying these and we have not taken a decision yet,’ he said. A decision on ABX is expected before the end of the summer.
emma.davis@afxnews.com
