SECCIÓN 109 EJECUCIÓN Y AVANCE DEL TRABAJO

Financial practice in the major European ports varies • considerably from one country to the next although on the whole there is little variety of practice within any one country despite the widely different bases upon which the ports are established i.e. accounting practice for ports usually follows the normal accounting practice for the country concerned. An exception to this is for all the municipalities of the Benelux countries where standard Benelux rules have been laid down for the drawing up of the annual municipal accounts. (These rules are already applied in the Belgian ports).

2.7.2. Annual accounts

No annual accounts are produced for the state ports in Italy or the non-autonomous ports of France as their financial affairs form part of the State budget. No separate annual accounts are drawn up for the German ports and the Belgian municipal port administrations, Antwerp, Ostend and Ghent (until the end of 1978). Annual accounts are published, in a variety of forms, for nearly every other port.

The cargo handling companies and companies engaged in other port activities are, in all the member states, treated no differently from other commercial enterprises of comparable legal status: insofar as the relevant legislation obliges them to do so their annual accounts are published. However if their activities cover several ports or if they are also active outside the port sector it is virtually impossible to isolate the activities in any one port in these accounts.

2.7.3. Depreciation

There are no rules or general practice as far as depreciation is concerned. In the German ports, as well as in the Italian ports no provision is made for depreciation; in Ireland there is no obligation to make such provision but some ports do. The other port authorities provide for

depreciation, almost always on the basis of the historic cost of the assets concerned (1).

There is scarcely any general practice as regards the revaluation and/or writing down of assets. For some port administrations it depends upon occasional Government decision.

( 1 ) One port authority in Great Britain is required by the Government to provide for replacement cost' depreciation. In Spain historic cost is revalued annually to allow for inflation.

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2.7.4. Rates of return

There are no general rules either tor the rate ot return required on new investments. In Spain a net rate of return is laid down by the government.

2.7.5. Obligations

The Community ports are usually obliged to provide free facilities for certain official services e.g. customs, and to allow official/State ships to use the port without paying port dues. Other than this, however, there is virtually no requirement for the ports to provide facilities at less than cost. The Belgian ports, however, are obliged to provide a wide range of facilities at less than cost. The "Havenbedrijf" of Rotterdam is obliged to pay 6.75 million guilders per annum to the municipality of Rotterdam for general purposes.

Apart from facilities or services mentioned expressly elsewhere in this report, Community port authorities do not generally receive any facilities or services at less than cost.

2.7.6. Loans

The situation as regards loans is more varied. No special facilities exist for port loans but, in many member states, the ports may benefit from the slightly more favourable conditions which exist for public bodies. The state owned ports in Denmark may borrow at 4 1/2%. Other Danish ports, the Dutch ''Havenschappen", the French ports the major Belgian municipalities and the Spanish and Portuguese ports borrow either directly or indirectly on the open market. In Italy, after having obtained the agreement of the competent ministries, and in the smaller Belgian municipalities borrowing is usually arranged through state approved bodies. In Germany, in the bigger Belgian municipal ports and in the Dutch "Havenbedrijven" this is done by the competent local authority within the framework of its overall financial plan. Irish ports normally borrow from a National Government fund but may borrow on the open market.

2*7.7. Taxation

The fiscal position of the port administration varies considerably from one country to another and often also, because of their different institutional bases, within the same country. However, private port undertakings are everywhere, without exception, treated for fiscal purposes in exactly the same way as any other private companies. Port administrations are liable to profits tax in France, Italy and Great Britain. In Germany, Denmark, Ireland, the Netherlands, the Belgian, Spanish, Portuguese and Greek ports in principle no such obligation exists.

The position as regards V.A.T. varies m detail from one country to another. In general it can be said that private port businesses are subject to the same V.A.T. as other business concerns in the country in question. In the Netherlands and in Ireland the ports are zero rated. In France, Great Britain, Germany, Belgium, Spain and Italy the ports are liable to V.A.T. but in practice virtually the whole of their services are exempted from payment. In Denmark the ports pay V.A.T. just like other business concerns.

Local taxation, in the form of rates or real estate tax, is paid everywhere except by some port authorities in Ireland and the "Havenbedrijven'* in the Netherlands (1).

2.7.8. Restraints

2.7.8.1. Port authorities

Whatever the statutes setting them up, ports form part of the basic transport services of every member state. Hence, in most countries, there is a degree of central government intervention in their affairs, differing from state to state, but usually exercised on a similar pattern within any one state.

In no Member State are the ports entirely free to engage in any activity they please. In most the freedom exists only within their statutes as, for example, in Great Britain and Ireland where, in both cases, the statutes are fairly liberal and in France where the statutes are more restrictive. In Belgium, the municipal ports enjoy no freedom and any such change in activity would require provincial and/or state approval. In Denmark, no specific rules exist but the ports are understood to enjoy no freedom to engage in anything outside port activity. In the Netherlands, neither the "Havenbedrijven" nor the "Havenschappen" have any freedom to extend their activities. In Germany the port

administrations of Hamburg and Bremen are non-autonomous parts of the city administrations (cities with the Statute of "Land") and are therefore subject to the decisions of their governments and parliaments: on the other hand in Schleswig-Holstein and Lower Saxony, the port administrations are subject to certain intervention powers of, and in some cases, the right of decision by, the respective "Lander" governments.

Indeed in every Member State, ports require some measure of approval for new investments from a superior authority. Usually the need for such approval is linked to the cost involved. For example, in the Belgian municipal ports any major expenditure must be voted by the City Council and approved by the higher authorities. In Great Britain, since May 1984, there has been no requirement for ports to seek Government sanctions for new investment regardless of size.

(1) As from 1 January 1979 a property tax (rates) has been levied

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In Denmark and in Spain, all larger investments are subject to the approval of the Minister of public Works - in Germany subject to a resolution of the appropriate public authority. Although the Irish ports are free to initiate new works the appropriate ministerial permission is required for major works. The same permission is required by the Italian autonomous ports, except insofar as there are special conditions at Genoa.

Few ports are entirely free to fix the charges, either for the services that they provide or rentals. In Italy, the autonomous ports fix cargo-handling charges while the charges for all other port services are, in principle, fixed by the central government. There are some exceptions in Genoa. British ports are free to set and vary their charges subject only to the right of appeal of port users with regard to two specific types of charge. In French ports, both autonomous and non-autonomous, and in Copenhagen rents are fixed freely by the port authority. Irish ports have a certain latitude in fixing rents although Government approval is required for the conditions of leases of over 10 years duration. As far as rents are concerned, the autonomous Italian ports follow the specific conditions laid down in their enabling statutes. In Spain and Portugal the port authority sets charges within the limits laid down by government. Elsewhere, the responsible local authority or, indeed, the central Government, has to give approval.

2.7.8.2. Private port undertakings

Private port enterprises are generally free, within their Articles of Association, to undertake a variety of activities, fix their own salaries within the relevant joint agreements and fix charges (e.g. cargo-handling tariffs). Sometimes these tariffs come under the general supervision of the public sector. In the French ports, it is the port authority that controls the tariffs for the private sector. In the Italian ports, cargo handling activities covered are subject to authorisation. Those undertakings which are authorised must apply the scale of charges fixed by the port authority. Private enterprises are, however, rarely allowed to sublet port land that they rent without prior approval of the port authority. In the Spanish and Portuguese ports private undertakings are subject to authorisation by the port authority.