WRITTEN QUESTION No. 545/99 by Christian ROVSING Tendering by the state-owned Danish bus company COMBUS A/S
C 348/96 Official Journal of the European Communities EN 3. 12. 1999 (1999/C 348/119) WRITTEN QUESTION P-0545/99 by Christian Rovsing (PPE) to the Commission (1 March 1999) Subject: Tendering by the state-owned Danish bus company COMBUS A/S Considering that the state-owned Danish bus company COMBUS A/S has forced a large number of private tenderers to close down, does the Commission consider it in keeping with EU competition rules, including the ban on predatory pricing, and EU rules on state aid that COMBUS A/S has increased its share of the Danish market for contract bus services from 22-25 % to 35-40 % by offering cut prices financed by state aid earmarked to cover pension contributions and wages for officials, by funding of the deficit mentioned in the remarks on Bill 1998-99 L 127 corresponding to loss of one third of the company’s net capital, and by further state aid laid down by law in December 1998? If not, will the Commission initiate an inquiry? Answer given by Mr Kinnock on behalf of the Commission (20 April 1999) Allegations of state funding by undertakings may entail an examination under the Community regime governing the payments of state aid by administrations. However, the Commission is only obliged to start formal procedures under Articles 92 and 93 of the EC Treaty if it has doubts about the existence and compatibility of state aid. In particular the application of Article 92 para 1 requires that the aid distorts or threatens to distort competition by favouring certain undertakings and affects trade between Member States. With regard to land transport, full market access is not provided for directly by the EC Treaty, but must according to Article 75 be achieved through Community legislation. In the case of regular bus services, competition on Community level is only open for international services and a restricted number of national services (services for workers, pupils and students 9 until 11 June 1999 only in frontier zones) (Council Regulation (EEC) 24/54/2 of 23 July 1992 laying down the conditions under which non-resident carriers may operate national road passenger transport services within a Member State was declared void by the Court of justice for formal reasons on 1 June 1994 (case C-3882, European Parliament v. Council [1994] ECR I-2081), but its legal effects were upheld until such time as the Council adopted new legislation on the matter. Council Regulation No 12/98 of 11 December 1997, replacing Regulation No 2454/92, is to be applied as from 11 June 1999 (1)). In the event of alleged state aid to regular bus services in geographically restricted areas on the territory of a Member State, therefore, the effect on trade between Member States must be established and verified in each individual case. Whenever the effect on trade between Member States cannot be proven, state aid rules are not violated. (1) OJ L 251, 29. 8. 1992. (1999/C 348/120) WRITTEN QUESTION E-0548/99 by Alexandros Alavanos (GUE/NGL) to the Commission Subject: Transfer to Italy of cultivation of the ‘Katerini’ tobacco variety (12 March 1999) The Commission has tabled a proposal concerning the transfer to Italy of cultivation of the ‘Katerini’ tobacco variety. However, it is a known and scientifically documented fact that this variety is peculiar to the Pieria region, given its particular soil quality and climatic conditions, and unsuited to cultivation in any other areas since this would result in a lower quality product and an immediate fall in prices. Will the Commission consider withdrawing its proposal concerning the cultivation of the ‘Katerini’ tobacco variety in Italy also?