31964D0160

14 Official Journal of the European Communities

710/ 64 OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES 13.3.64

COMMISSION DECISION of 26 February 1964 authorizing the maintenance of Annex B ter to the 'Conditions générales d'application des tarifs pour le transport des marchandises* (CGATM) of the Société nationale des chemins de fer français (SNCF) (Only the French text is authentic) (64/ 160/EEC)

THE COMMISSION OF THE EUROPEAN Whereas Annex B ter is for the benefit of all con­ ECONOMIC COMMUNITY, signors or consignees in areas served by SNCF sta­ tions situated in the regions set out in that Annex; Having regard to the Treaty establishing the Euro­ pean Economic Community, and in particular Article Whereas at present reductions apply in respect of the 80 thereof; following departments ; Aveyron, Cantal, Charente­ Maritime, Corrèze, Côtes-du-Nord, Creuse, Deux­ Having regard to Annex B ter to the 'Conditions Sèvres, Finistère , Haute-Loire, Hautes-Alpes, Ile-et­ generates d 'application des tarifs pour le transport Viliane, Lot, Lozère , Morbihan, Puy-de-Dôme , Tarn des marchandises' ( CGATM) of the SNCF, in its and Vendée, and also in respect ôf certain specified present form as published in the rates and conditions stations in the departments of Allier, Ardèche, the of 10 June 1963 (Journal Official de la Republique Dordogne, Haute-Vienne and the Loire Atlantique; frangaise No 131 of 6 June 1963 ) ; Whereas that tariff applies in respect of goods traffic between the regions concerned and other countries; Having regard to the opinions expressed by the Gov­ ernments of the Member States concerned during the Whereas the reductions applied in accordance with consultation undertaken by the Commission pursuant Annex B ter, depending on the transport link, the to Article 80 (2) of the Treaty on 29 October and 5 product transported and the method of dispatch, December 1963 ; amount to 5, 10, or 15 % of the standard rates ap­ plicable since 1 October 1962;

I Whereas the effect of such reduction is that rates for Whereas Annex B ter to the CGATM is included in the transport concerned, on certain transport links, the SNCF's goods tariff reform of 1 October 1962, are lower than those in force before 1 October 1962, which was the subject of an Opinion delivered on and whereas this is also generally true for the whole 24 September 1962 by the Commission pursuant to of Brittany; Article 2 of the Council Decision of 21 March 1962 . In that Opinion of 24 September 1962 the Commis­ Whereas, as regards the economic effects on the sion reserved to itself the detailed examination of the SNCF of the maintenance of Annex B ter, carriage under the terms of Annex B ter rose in 1961 to different tariff rates and in particular of the correc­ 5 778 000 metric tons, and whereas the SNCF re­ tives, in the light of Articles 79 and 80 of the Treaty; ceives no direct compensation from public funds for - loss of revenue resulting from application of those Whereas Annex B ter to the . CGATM lays down terms ; special provisions to be applied to certain goods dis­ patched or received at stations situated in given Whereas in 1962 the tonnage carried under the terms regions ; of Annex B ter rose to 1-2 % of the total goods traf­ fic of . the SNCF, and whereas the resultant revenue Whereas special provisions are applied to certain represented 3-2 % of the total revenue of the SNCF; goods mainly important to the rural economy, such as live animals, agricultural products, building ma­ Whereas Annex B ter was introduced on 1 October terials, etc .; 1962, at the same time as the tariff reform, and was

Official Journal of the European Communities 15

extended on 25 October 1962 to apply to Brittany - a system of weighting of tariff rates by distance, and on 10 June 1963 to apply to the eight depart­ related to the technical characteristics of the ments of Aveyron, Cantal, Creuse, Haute-Loire, routes used; Hautes-Alpes, Lozere, Puy-de-Dome and Tarn, in - the elimination from the network, as regards which, until that date, the previous tariff rates had calculation of distances , of sections either dis­ continued to apply; used or closed to goods traffic; - the abolition of the system of indexing stations; II - the tariff reform must be studied as a whole, in conjunction with the correctives which formed an Whereas the French Government has recognized that integral part thereof; the provisions of Annex B ter which, from 1 October 1962 and 10 June 1963 respectively, involved a reduc­ - distance-related weighting, which forms part of the tion of tariff rates to a level lower than that in force new rates and conditions, made a positive contribu­ before those dates, may constitute measures falling tion to French regional development, since most within the scope of Article 80 ( 1 ) of the Treaty; regions possess one or more well equipped local whereas it has therefore requested the Commission to lines on which goods trains could circulate at authorize the maintenance of Annex B ter, in accord­ modest cost; in other ways also the new rates and ance with Article 80 (2) ; conditions served the same end, namely, by mak­ ing the scale of charges more markedly degressive Whereas the tariff rates in question apply to carriage as regards long-distance traffic which is distinctly within the Community, including domestic traffic of advantageous for peripheral regions such as the a Member State; Midi mediterraneen and Aquitaine, and by abolish­ ing the indexing of stations which improves the Whereas Annex B ter to the CGATM , since it was situation of secondary localities on major lines; introduced by regulation, must be considered as a - it has emerged from a public inquiry that outright measure imposed by the State within the meaning of , application of the new rates and conditions might Article 80 ( 1 ) of the Treaty; entail an excessive additional burden on isolated regions or regions situated in compact mountain Whereas Annex B ter to the CGATM constitutes a masses, where it is often very costly for the rail­ support for the economy of the regions concerned way to give adequate service or even to penetrate which corresponds to the measurable difference bet­ at all; such regions are low productivity areas ween the previous tariff rates and those of the An­ whose industries, far from progressing at the same nex ; rate as the rest of the country, often find it diffi­ cult to remain in business ; the most vulnerable Whereas this support operates in favour of particular industries, and in particular those spread over a undertakings or industries, that is to say undertakings wide area (large scale cultivation, stock farming or industries determined on the basis of their geo­ and light industry that is the greater part of the graphical situation; output of such regions), would therefore have been seriously affected by increased tariff rates Whereas on the other hand it is not claimed that resulting from increases in short distance rates and Annex B ter contains tariffs fixed to meet competi­ from the extension of tariff distances imposed on tion as referred to in Article 80 ( 3 ) ; lines operating in mountainous areas; - to apply the reform without correctives should Whereas, consequently, the provisions of Annex B therefore have been prejudicial to lines where run­ ter to the CGATM come within the scope of Article ning costs are increased owing to the physical 80 ( 1 ); whereas the Commisison must therefore characteristics of the region, and in particular lines make a decision in accordance with Article 80 (2 ), serving mountainous areas, short distance (less on the request by the French Government for author­ than 200 km) traffic, and small consignments as ization to continue to apply Annex B ter to the compared with complete wagon-loads ; CGATM ; - unless regional correctives were applied, the eco­ nomy of the less developed regions could be en­ III dangered by the reform, since the regions involved are in many cases mountainous districts with a Whereas the arguments put forward by the French generally inadequate road network and therefore Government in support of its request are basically dependent on the railway even for short-distance the following : traffic, and in which production is organized in - the recasting of 1 October 1962 by the SNCF of such a way that a substantial part of the traffic the goods rates was designed to relate the price of consists of small consignments; there was a risk each transport operation to its actual cost by that regional imbalance would be dangerously in­ means of: creased by the tariff reform;

16 Official Journal of the European Communities

- the regional correctives therefore represented the agriculture. Except for the central western countcr-balance to a basic reform which ran the area, the population in all the areas chosen risk of having undesirable economic effects on cer­ had decreased between 1936 and 1963 while tain types of traffic or certain areas; the French population as a whole had in­ - the reform as a whole was discusssed with re­ creased by 10 % . Furthermore, whereas real income in France increased by 10 % between presentatives of the other modes of transport who 1955/ 56 and 1958, Alsace, Brittany, Limousin, had raised no objection; Auvergne, and Poitou-Charentes showed a - in the long term, the economic development ap­ rate of increase of less than 8 % : propriate to the physical characteristics of these areas could be promoted by the establishment of IV more extensive goods transport served ' by road without measures of support being required; in Whereas in making its examination, pursuant to Ar­ the meantime, the areas concerned should not be ticle 80 (2) of the Treaty, of Annex B ter to the allowed to suffer too great a loss; such a danger is 'Conditions generates d'application des tarifs pour le the more real in that the tariff reform occurred transport des marchandises' (CGATM) of the SNCF precisely at a time when the economies of the the Commission must take into account both the pre­ Member States of the common market were coming amble thereof and the general objectives defined in into contact, involving , the risk of encouraging the Articles 2 and 3 of the Treaty, and further clarified concentration of activities in an industrial centre in the preamble to the Treaty; whereas it emerges enjoying obvious geographical, technical and human from those provisions that a harmonious develop­ advantages; ment of economic activities must be promoted - the French Government had consequently intro­ throughout the Community by reducing the differ­ duced reductions of 10 or 15 % , called 'regional ences existing between the various regions and the correctives', in favour of certain categories of con­ backwardness of the less favoured regions, of which signments dispatched from or received in various the areas concerned form part ; whereas under Ar­ carefully defined areas; ticle 80 (2) , it is the duty of the Commission to take account in particular of the requirements of an ap­ - goods to which such correctives apply are defined propriate regional economic policy and of the needs in relation to the problems of each of the areas of underdeveloped areas; concerned ; the products involved were primarily derived from or intended for agriculture and the Whereas it emerged from the inquiry that the pro­ food industry; visions of Annex B ter to the CGATM are for the - the choice of areas to which such tariff support benefit of those underdeveloped areas of the Com­ ' was granted was based on a detailed examination munity whose activity French regional policy is de­ of the effects of the reform on the different lines or signed to stimulate; regions concerned, with reference to the general criteria of French regional policy; the general tariff Whereas the need to develop those regions is indi­ reductions were reserved to areas prejudiced by cated ; the introduction of the reform in a way which could not be made good by other means; - as regards Brittany, by the fact of its outlying loca­ tiori, under-industrialization and rural over-popu­ - the areas chosen were those which combined the lation; three following characteristics : - more than half the rural population is engaged in ( 1 ) Unfavourable geographical conditions by rea­ agriculture and although in Brittany rich alluvial son either of the outlying location of those soil is lacking population density is 10 % higher areas in relation to the dynamic centres of the than that of the rich land of Picardy. Industrially national economy and to the poles of develop­ the region is markedly backward; in 1959 indus­ ment in the Community (Brittany and the trial electricity consumption per capita was less southern side of the Massif Central), or of than one-fifth of the national average. From 1946 their marked isolation, where such areas are to 1952, total emigration rose to more than 220 000 cut off from the richer areas by inadequately persons, and still reaches 10 000 departures per developed compact mountain masses (Au­ year; vergne, Limousin, and certain Alpine valleys) ; (2) Inadequate communication routes (the inte­ - as regards the 'central-western coast (the depart­ rior of Brittany, the Massif Central, and cer­ ments of Vendue, Deux-Sevres and Charente-Mari­ tain central western rural areas ; time) its economic characteristics, closely related to those of Brittany, with a high rural population (3) Widely scattered economic activities, which density and practically no modern industry. are generaly the rule in predominently agri­ cultural areas. In thirteen of the departments The non-agricultural labour available, as estimated to which regional correctives apply, over 50 % by the Planning Commission between 1961 and of the active population were employed in 1966, reaches the same critical level in Vendue and

Official Journal of the European Communities 17

Deux-Sevres as in Brittany, hardly exceeding 14 % having the effect of applying to certain transport re­ of the active population. This is the least urbanized ductions of up to 15 % (Brittany, Hautes-Alpes, At­ part of France; the geography of the region, of lantic seaboard, Centre and Midi-Pyrenees) seem to which 10 % is marshland , creates difficulties for be measures which are now both necessary and ap­ land use planning in areas which can be developed propriate under the regional policy for development and for transport links with other provinces be­ in Brittany, the Massif Central, the central-western cause of distance, poor communications to the seaboard, and certain valleys in the Alps and in the East, and the need to skirt the Massif Central in Jura; whereas goods which may be carried under the order to reach the dynamic centres of the South­ terms of Annex B ter to the CGATM are essential East; materials, widely used in all branches of industry and agriculture in those regions; - as regards the Massif Central, the region along its southern edge, and some districts of Dordogne and Whereas it has not been proved that Annex B ter to Ardfcche, by under-population resulting from heavy the CGATM affects the competitive position of the and continuing emigration. products to which it applies to an extent not justified Some departments have lost half their population by the needs of the underdeveloped areas concerned; since 1851 . In the South and West, the rural den­ whereas the examination carried out has not revealed sity is often less than 20 inhabitants to the square that these rates and conditions have unfavourable kilometre. Industrial expansion is slow, and tra­ effects on competition between the different modes of ditional agricultural methods are employed on transport; mainly acid soil, whose full potential is however still far from being exploited. The agricultural per Whereas, for these reasons, the continued application capita income of farmers is one of the lowest in of Annex B ter to the CGATM may be authorized; France, because of the obsolete agrarian structures whereas the Commission while granting authorization and agricultural techniques. for an indeterminate period, retains the power to La Causse and the plateau of Millevaches are the amend or revoke this authorization if it finds, of its most underprivileged areas. Although 50 % of the own accord or at the request of a Member State, that active population of Limousin is still engaged in such authorization is no longer justified, agriculture, Auvergne and the southern side of the Massif Central contain a number of small scattered HAS ADOPTED THIS DECISION : pockets of industry. Article 1 The decline of coal-mining has created a difficult situation for the small industrial districts of De­ The application of the provisions of Annex B ter to cazeville, Carmaux, Brassac, and Saint-Eloy. There the 'Conditions generates d'application des tarifs pour are few large undertakings. Specialized industries le transport des marchandises' of the SNCF as ap­ must sell in far-distant markets ; hence the need plied on 5 December 1963 , and taking into account to solve quickly the communication problem; any amendments made thereto since they came into force, is hereby authorized with effect from 1 Octo­ - as regards the valleys of the Alps, by the fact that ber 1962 . there remain some areas which are poorly served for communications, and in which the railway still Article 2 has a decisive role, and that agriculture in the isolated valleys of the Hautes-Alpes is not parti­ This Decision may be amended or repealed if the cularly productive; Commission is satisfied, of its own accord or at the request of a Member State, that it is no longer justi­ Whereas, having regard to the particular circum­ fied . stances of those regions, a specific development po­ Article 3 licy would appear to be in accordance with the ob­ jectives of the Treaty; whereas it is also in the in­ This Decision is addressed to the French Republic. terest of the Community to reduce percetibly, by measures of support taken by the French Govern­ ment, the economic and social disparity between Done at Brussels, 26 February 1964 . highly developed and underdeveloped regions of France; For the Commission

The President Whereas, in those circumstances, the provisions of Annex B ter to the CGATM and in particular those Walter HALLSTEIN