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EEC transport fund could gc way of CAP. Not a pretty thoughi

5th July 1980, Page 28
5th July 1980
Page 28
Page 28, 5th July 1980 — EEC transport fund could gc way of CAP. Not a pretty thoughi
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Which of the following most accurately describes the problem?

INFRASTRUCTURE is one of those words which gives the European Economic Community a bad name. Laymen, and even professionals choke upon it as they try to pretend they understand exactly what it means. My dictionary defines it as "subordinate parts of an undertaking, especially permanent installations as basis for military etc operations", writes ALAN MILLAR.

The European Commission's Green Paper on transport infrastructure is concerned with less sinister infrastructure, the roads and railways which are needed before transport services can be provided. The Green Paper proposes a central fund which will finance projects in the Community interest, It is aimed at helping member states on the edge of the EEC or finan cing projects which will ease bottlenecks which hinder free trade.

This is very much the baby of Transport Commissioner Richard Burke who is deter mined to make some headway before he steps down from office at the end of the year, but he could hardly be proud of its progress at last week's Council of Transport Ministers meeting in Luxembourg when the paper received only passing reference.

He hopes more will happen when the Ministers meet again at the end of the year.

For Britain, the fund could bring in support for a Channel tunnel and it could be used to upgrade the routes between the West Midlands and the East Anglian ports. The cross Britain road link stands a better chance of being pushed nearer the top of the EEC's priorities as Commissioner Burke wants to use this to help boost trade between mainland Europe and his native Ireland.

But progress with an infrastructure fund promises to be painfully slow, even by tardy EEC standards. The only common fund at present operating in the EEC is the common agricultural policy, and everyone is wary about setting up what could grow into a similarly threatening monster. This point was not lost on the House of Commons Select Committee on Transport when it took evidence earlier this year from interested parties. It was worried that a transport fund might be manipulated by the strong members in much the same way as the CAP helps France and West Germany, and even France is now thought to be having second thoughts about CAP.

But more fundamental than that, few seem to know for sure what is "in the Community interest."' It is a bigger mystery to the Select Committee than the meaning of infrastructure. In its written report (CM J une 21), the Committee says: -We recommend that the Government should, in its further negotiations, pursue the particular problem areas discussed in this report, and especially it should seek clarification of the definition and criteria for assessment of 'Community interest'. The Government should report the results of its negotiations to the House.

Put simply, is "Community interest"' something which helps the Community as a whole, is it something which benefits weaker states, or is it something which makes the wealthy states wealthier?

As far as the Commission is concerned, each submission for infrastructure funds will have to justify itself. Some claims might meet one of the interpretations of the term, others another, but they will not necessarily be rejected (or accepted).

The Select Committee recognises that it could be bad for Britain if the Commission does come up with a precise definition. "It may well be that a pre

cise definition of Community interest is neither practicable nor desirable.

And it has heeded British Rail chairman Sir Peter Parker's warning that "we could let perfection really get in the way of getting on with something practical."

It is, of course, Sir Peter's enthusiasm for a single-track rail tunnel under the English Chan nel which is boosting British interest in Commissioner Bur ke's plan. But the Select Com mittee is wary. "It would be quite wrong for the United Kingdom to endorse the present draft Regulation merely in the hope of obtaining support for a Channel tunnel scheme if the longer-term effects on the United Kingdom were uncertain."

And that is the charitable view about the Channel tunnel.

A Road Haulage Association spokesman told CM that it disagrees with the present

"mousehole" tunnel plans. "It is no use to us at all, and we would prefer more money to be spent on roads like the A45 and M3.

In its evidence to the Select Committee, the RHA pointed to the need for more money to be spent on roads to the ports, and

this has been reflected by thi recent White Paper on Englisl roads policy. RHA wants EE( I money to be used to improvi these links. -This would be t( the advantage not only of th( United Kingdom or even Britist hauliers, but to all trade to anc from the United Kingdom anc the rest of the EEC.

The Freight Transpor Association is a body whicf suspects Britain will have to play the infrastructure game carefully if it is to win. It feeh Britain might lose out as it ha.! fewer E routes than its partners. but it does see scope for money being spent on something big like a fixed Channel link.

But it adds: -It seems to u! that general infrastructure fun. ding on the basis of Community interest could be woolly anc wasteful. The provision of one off grants from EEC funds fop specific large-scale projects, in

dividually justified and budgeted, like a Channel link, would have a better chance of being cost effective."

That is the theory and some of the opinion, but what will happen? Ultimately, there is every chance of there being a common transport fund and even a common transport policy, but it will take a very long time to come to pass. Every country has nagging doubts about some aspect of Commissioner Burke's proposals, and there will be many sessions of the Council of Ministers before anything worth while emerges.

Some in the corridors of European power think Portugal holds the key to possible progress. Its transport network is a sorry, primitive mess with many single-track highways and even unsurfaced roads, and money may be made available to the Lisbon Government as part of its terms of entry to the EEC, now expected in January 1984.

If that happens, a precedent will have been created, and the infrastructure floodgates could be opened. There is nothing like inter-state jealousy to break down the semantics of worrying about the precise meaning of infrastructure or Community interest.


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