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Competing for the Island Lifeline: European Law, State Aid and Regional Public Services

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  • Paul Bennett

Abstract

Bennett P. (2006) Competing for the island lifeline: European law, state aid and regional public services, Regional Studies 40, 953-966. Ensuring the freedom to provide services in Europe often means that state subsidies for loss-making, but essential, services are subject to competitive tendering. For the past three decades 'lifeline' ferry services to the islands of Western Scotland have been operated by the state-owned company Caledonian MacBrayne. State-owned companies are not exempt from European Union state aid and procurement rules, however, and the Scottish Executive is about to issue an invitation to tender for these services. This paper examines the aims of European Union rules on state aid, procurement and 'services of general economic interest', and their application to ferry services in the spatial periphery of Europe. The advantages and disadvantages of competitive tendering are then considered, focusing on the consequences for efficiency, labour, quality and investment, and the likelihood of such effects arising in the Western Isles is examined. The paper concludes by discussing the potential conflicts that arise when 'universal' market rules encounter the needs of more peripheral localities. Bennett P. (2006) Rivaliser pour une liaison insulaire vitale: le droit europeen, l'aide de l'Etat et les services publics regionaux, Regional Studies 40, 953-966. Souvent, assurer la liberte de fournir des services en Europe veut dire que les aides de l'Etat en faveur des services essentiels vendus a perte sont soumis aux appels d'offres. Pendant les trois dernieres decennies, l'operation des services de ferry vitaux a destination des iles de l'Ecosse de l'Ouest est assuree par l'entreprise publique Caledonian MacBrayne. Neanmoins, les entreprises publiques doivent remplir les conditions necessaires a l'obtention des aides de l'Ue et se conformer aux dispositions reglementaires relatives aux commandes publiques. Le Parlement ecossais est sur le point de lancer un appel d'offres pour ces services. Cet article cherche a examiner les objectifs des reglements de l'Ue quant aux aides de l'Etat, aux commandes publiques et 'aux services d'interet general', et leur application aux services de ferry a la peripherie geographique d'Europe. On discute des atouts et des inconvenients des appels d'offres, portant sur les consequences pour l'efficacite, le travail, la qualite et l'investissement, et on examine la probabilite que de tels impacts en resultent dans les iles Hebrides occidentales. Pour conclure, l'article discute des conflits eventuels qui en resultent au moment ou les lois du marche universelles affrontent les besoins des communautes plus peripheriques. Aide de l'Etat Droit commercial Appel d'offres Services publics Transport maritime Bennett P. (2006) Konkurrenzkampf um die fur Inseln lebenswichtige Fahrverbindungen: europaische Gesetze, staatliche Zuschusse und regionale offentliche Dienstleistungen, Regional Studies 40, 953-966. Die Freiheit des Angebotes von Dienstleistungen in Europa zu garantieren bedeutet oft, dass staatliche Subventionen fur mit Verlust arbeitende, doch lebenswichtige Dienstleistungen konkurrierenden Firmenangeboten ausgesetzt sind.Fur westschottische Inseln 'lebenswichtige' Fahrverbindungen sind in den letzten drei Jahrzehnten von Caledonian MacBrayne, einer in staatlichem Besitz befindlichen Gesellschaft, betrieben worden. In staatlichem Besitz befindliche Gesellschaften sind jedoch nicht von EU-Regelungen hinsicht-lich staatlicher Subvention und Beschaffung befreit, und die schottische Regierung ist im Begriff, Angebote fur diese Dienstleistungen einzuholen. Dieser Aufsatz untersucht die Ziele der EU-Regeln bezuglich staatlicher Subventionen, Beschaffungen und 'Dienstleistungen allgemeinwirtschaftlichen Interesses' und ihre Anwendung auf Fahrverbindungen in der raumlichen Peripherie Europas. Anschliessend werden Vor- und Nachteile der Konkurrenz bei Ausschreibungen in Betracht gezogen, wobei die Konsequenzen fur Leistung, Arbeit, Qualitat und Investitionen sowie die Wahrscheinlichkeit der in den westlichen Inseln Schottlands zu erwartenden Auswirkungen unter die Lupe genommen werden. Der Aufsatz schliesst mit einer Erorterung der potentiellen Konflikte, die entstehen, wenn allgemein gultige Marktregeln auf Bedurfnisse an der Peripherie gelegener Standorte treffen. Staatliche Subventionen Konkurrenzbestimmungen Konkurrenz bei Ausschreibungen Offentliche Dienste Schiffstransport Bennett P. (2006) Competir por el servicio de Lifeline en las islas: ley europea, ayuda estatal y servicios publicos regionales, Regional Studies 40, 953-966. Para garantizar la libertad de los servicios en Europa, los subsidios estatales por las empresas que ofrecen servicios importantes pero con perdidas estan sujetos a licitacion competitiva. Los servicios de transbordadores 'Lifeline' a las islas de Escocia del Oeste han estado operando a traves de la compania estatal Caledonian MacBrayne en las tres ultimas decadas. Sin embargo, estas companias estatales no estan exentas de las normas de la UE sobre ayuda y adquisicion, y el Ejecutivo escoces esta a punto de cursar una invitacion para licitar por estos servicios. En este ensayo examino los objetivos de las normas de la UE para conceder ayudas estatales, la adquisicion y los servicios de intereses economicos en general y su aplicacion en los servicios de transbordadores en la periferia espacial de Europa. Se analizan luego las ventajas y las desventajas de la licitacion competitiva con un enfoque en las consecuencias para la eficacia, el trabajo, la calidad y la inversion y se examina la probabilidad de que tales efectos aparezcan en las Islas Occidentales. Termino analizando los posibles conflictos que surgen cuando las normas del mercado 'universal' tropiezan con las necesidades de las localidades mas perifericas. Ayuda estatal Legislacion sobre competencia Licitacion competitiva Servicios publicos Transporte - maritimo

Suggested Citation

  • Paul Bennett, 2006. "Competing for the Island Lifeline: European Law, State Aid and Regional Public Services," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 953-966.
    • Handle: RePEc:taf:regstd:v:40:y:2006:i:8:p:953-966
    DOI: 10.1080/00343400600983959
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