The European Transport Workers Federation discussed the issue of Maximizing Regional Value through Maritime Connectivity Investment. ETF’s Political Secretary for Maritime Transport, Philippe Alfonso, called for reforms in State Aid Guidelines in order to improve their effectiveness in promoting EU/EEA seafarers and quality national registers.
He noted that employment, training and the greening of sector are the conditions to be attached by the Commission when validating any national State Aid scheme for maritime transport.
He continued that maritime subsidies, as the tonnage tax, are important for unfair competition, mainly due to the widespread use of Flags of Convenience (FoC) within European waters. Mainly FOC vessels are operated from non-EU seafarers under international working and living conditions. Mr Alfonso, therefore, notes that this is the end of EU/EEA seafarers, leaving all workers in European waters at risk poor working conditions. In other words, EU seafarers should be competitive with seafarers from third countries.
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In the meantime, the benefits coming from the wider economy, do not increase the vessels registered under the European flag, as the shipping companies that get subsidies do not employ domestic seafarers. Additionally, tonnage tax schemes do not boost the employment of domestic seafarers, as an increasing number of European countries provide subsidies to shipowners that use international registries, including FOCs.
ETF supports that loopholes in the way State Aid schemes are designed and applied should be closed, addressing that existing support schemes have not achieved their objectives.
Concerning foreign investment in ports, the Federation is in favour of them as long as operators are in compliance with the provisions of the national legislation, in particular social legislation. ETF is concerned that the foreign investments given for sustainable and quality jobs are not in line with EU’s strategic interests, and may lead to port over capacity, resulting to increased competition between ports, downward pressure on prices, threats to job stability.
