The EU has demanded that Spain abolishes the preferential port taxes for the Canaries

Janet© · 30-10-08, 23:36

The press is reporting that the Council of Transport Users announced yesterday that Madrid is looking into the removal of tax discounts on maritime transport between the islands, and between the Canaries and EU ports, which currently compensate the Canaries for their distance from Europe.

In compliance with a mandate from the EU, the Government is having to prepare a new system of port taxes which will see the discounts from which the Canarian port system currently benefits eliminated. It is calculated that the impact of abolishing these deductions will amount to 50 million Euros a year, an amount which will have repercussions in merchandise, travel costs, and ships, and which is expected almost inevitably to be passed on to consumers.

The discounts applied to Canarian port taxes were established in Ley 48/2003, dated 26 November 2003, and were intended to compensate for the Archipelago's geographic and logistical disadvantages, and to favour maritime relations with the continent of Europe. In the case of merchandise, the law established a 40% discount to transport in ships providing a service between the Balearics, Canaries, Ceuta, Melilla and the EU; a discount of 80% when the service was within the Canaries themselves, and of 70% in the movements of empty cargo ships headed for the EU.

Last April, however, a European Commission judgement ruled against Spain for applying these discounts on the grounds that they are discriminatory and that they are contrary to the principle of free movement of maritime transport between all states, whether EU members or not. The Commission urged Spain to modify its tax system and to abolish the deductions.

The Council of Transport Users say that this will have drastic consequences for the Canaries, especially in the present economic climate, and it is asking both the national and regional Governments to defend the discounts since "as an island region, the Canaries depend exclusively on maritime means for its internal connections, its supplies, and exports". But it doesn't sound too good if it's an EU ruling .....

El Dia

pelinor · 30-10-08, 23:47

I have just given this a few seconds thought but when was the last time we heard anything good to come out of Brussels?

Janet© · 30-10-08, 23:50

they surely cannot enforce this? These discounts have been accepted by Europe since the year dot ... they can't just designate them "discriminatory" now, surely?

pelinor · 30-10-08, 23:53

The question we have to ask is what's in it for Madrid and then we will have the answer

macbee48 · 31-10-08, 00:08

Here's another one to remember next time someone tries to tell me that the EU is a good thing.

Why not tell them to take a hike?

Janet© · 31-10-08, 00:18

Spain won its argument over the driving licences. Let's hope they argue this one.

aquayle · 31-10-08, 16:14

However, isn't the amount of money paid to the Canaries being substantially dropped next year. Part of the calculation was the amount of discounts given by&to the Canaries. If this discount is to be removed, then Spain 'should' increase the amount paid to the Canaries. HA!