Mandate:   -   Resolution of the Council concerning the terms of reference of an ad hoc Working Party on Shipbuilding as amended [C(66)57; C(67)104(Final); C(70)165(Final); C(73)214(Final) and C(89)122(Final)]

   -   Council Decision regarding a Sunset Clause for all Committees [C/M(2004)5, Item 75] entered into force on 22 April 2004 [C/M(2004)10, Item 143, IV, c)]

   -   Mandate renewed as a non-consolidated Part II Programme [C/M(2006)7, Item 89, b)]

   -   Mandate of the Working Party on Shipbuilding adopted by the Council at its 1180th session on 18 September 2008 [C(2008)121 and C/M(2008)16, item 194]

   -   Mandate of the Working Party on Shipbuilding adopted by the Council at its 1286th session on 15 October 2013 [C(2013)83, Annex I and C/M(2013)17, item 172]

 

 

 

Resolution of the Council [C(2013)83, Annex I and C/M(2013)17, item 172]

DRAFT RESOLUTION OF THE COUNCIL REVISING THE MANDATE OF THE COUNCIL

WORKING PARTY ON SHIPBUILDING (WP6)

“THE COUNCIL,

   Having regard to the Convention on the Organisation for Economic Co-operation and Development of 14 December 1960;

   Having regard to the Rules of Procedures of the Organisation;

   Having regard to the Financial Regulations of the Organisation;

   Having regard to the Resolution of the Council on Partnerships in OECD Bodies [C(2012)100/FINAL];

   Having regard to the Resolution of the Council establishing a Council Working Party on Shipbuilding (WP6) [C(66)57], as amended, and the last renewal of the mandate on 18 September 2008 [C(2008)121 and C/M(2008)16];

   Noting that negotiations on a multilateral agreement on shipbuilding were terminated in 2010, but that the WP6 currently represents the sole international platform bringing together OECD Members and Partners, as well as business/industry, trade unions and other stakeholders, to exchange views on economic and policy developments in shipbuilding and closely related sectors;   

   Noting that the Participants to the Sector Understanding on Export Credits for Ships (which has been incorporated as an Annex to the OECD’s “Arrangement on Officially Supported Export Credits”) retain responsibility through the WP6 for that Understanding, in co-operation with the Participants to the Arrangement on Officially Supported Export Credits;

   Considering that the shipbuilding industry has a strongly global nature and that among the trends shaping policy development in this area are:

• Ongoing cyclicality in the industry giving rise to unfair practices (subsidies and other support measures provided by governments to their industries, and other market distorting practices) that may prevent the market from functioning normally;

• The success of emerging economies in increasing their share of the global shipbuilding market;

• The need for adjustment and restructuring in some economies following the global economic and financial crisis and in response to broader market developments;

• Increasing international linkages and the evolution of global value chains, as well as the increasing interdependence of shipbuilding and related industries in the wider maritime sector;

• Challenges of climate change and environmental protection.

   Having regard to the proposed revision of the mandate of the Council Working Party on Shipbuilding (WP6) [C(2013)83];

DECIDES:

A.   The Council Working Party on Shipbuilding (WP6) is renewed with the following revised mandate:

I.   Objectives

1.   The overall objective of the WP6 is to work towards and assist governments in the reduction of factors that distort normal competitive conditions in the shipbuilding industry and designing and implementing policies that foster normal competitive conditions. This is to contribute to a wider OECD strategic objective of promoting sustainable economic growth, financial stability and structural adjustment.

2.   The intermediate objectives of the WP6 are to:

-   Increase transparency and improve the understanding of the shipbuilding market, including supply and demand, economy-level policy settings, and international and inter-industry linkages;

-   Contribute to a business climate that enables growth and innovation in the shipbuilding industry.

3.   In order to achieve these objectives, while taking into account the evolving global environment for shipbuilding, including the potential for market distortions, the growing role of Partner economies, the need for industry adjustment in some economies, the increasing international and cross-industry linkages, and the long-term challenges posed by climate change and environmental concerns, the WP6 will:

-   Keep the shipbuilding industry under review;

-   Consider the economic, social, environmental and other relevant conditions that impact on the global shipbuilding industry;

-   Develop policies that assist in the reduction of market distortions, and which account for globalisation and enable structural change; and

-   Seek to foster the active participation of major Partner shipbuilding economies in the work of the WP6.

II.   Co-ordination arrangements

4.   In the course of its work, the WP6 will:

-   Maintain close working relationships with other relevant bodies of the Organisation to complement and support WP6 work, in particular including those working on export credit issues;

-   Co-operate with other relevant international organisations such as the International Maritime Organization (IMO) and the World Trade Organization (WTO);

-   Engage actively and increasingly with Partners with significant shipbuilding sectors; and

-   Consult with the shipbuilding industry, including national and regional shipbuilder associations, relevant actors in the wider maritime industry, and trade unions and public interest groups, where appropriate.

III.   Participation

5.   WP6 membership is open to all OECD Members. Partners with an interest in the shipbuilding industry may also join the WP6, in line with the global relations strategy of the programme.

IV.   Budget

6.   The expenditure of the WP6 shall be charged against the appropriations authorised for it under Part II of the Budget of the Organisation.

7.   Contributions to the Budget of the WP6 to be paid annually by its members reflect the relative importance of shipbuilding to different members. Contributions are the sum of two components, as follows:

-   A flat fee, which equates to 30% of the Budget to be shared equally among WP6 members.

-   A member-specific fee, which equates to 70% of the Budget to be shared among WP6 members according to their share of WP6 shipbuilding output, measured by the average level of shipbuilding output* for each member over the most recent three-year period for which data are available.

8.   A cap of 25% is placed on contributions, so that no member contributes more than 25% of the overall Budget.

B.   The mandate of the WP6 shall remain in force until 31 December 2018.”

____________________

 

* Output measured by completions in compensated gross tonnes (CGT), as published in HIS Fairplay “World Fleet Statistics”, completions during the year of country of build.