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French proposal will block Cabotage plan

5th October 1989
Page 7
Page 7, 5th October 1989 — French proposal will block Cabotage plan
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Which of the following most accurately describes the problem?

• Plans for a trial EC cabotage scheme next year have been hit by a French proposal which is considered unworkable by other member countries.

The original Spanish scheme was for 5,000 three-month licences valid anywhere in the EC, but last week in Brussels the French came forward with a plan for 15,000 one-month/ one-country permits, with 2,500 allocated to British hauliers. About 300 of these would be for cabotage operations within Germany, a few more would cover work in Italy and so on. Foreign hauliers from other countries would be able to share about 3,000 licences to compete for UK loads.

Under the French scheme, each haulier would base a representative in each country where its cabotage operations take place, to deal with legal and fiscal matters, and the vehicles would be subject to the national rules of the "host state".

French transport minister Michelle Delebarre — the current president of the EC Transport Council — will propose the scheme at the council's next meeting on 16 October. But it is likely to be heavily criticised as unworkable by Britain, Holland, Denmark and most other countries which favour the Spanish solution.

French hauliers have never liked the Spanish cabotage plan, designed to run until the Single European Market comes into operation at the end of 1992, because they fear France will become a prime target for foreign competition.

No decision can now be expected at this month's meeting.

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Organisations: EC Transport Council
Locations: Brussels

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