Mandate:    -   Resolution of the Council revising the Mandate of the Council Working Party on Shipbuilding (WP6), approved by the Council on 4 October 2018 at its 1382 session [C(2018)113 and C/M(2018)19, item 196] 

-   Resolution of the Council renewing the Shipbuilding Programme and renaming its Governing Body as the Shipbuilding committee by the Council on 13 October 2023 at its 1382 session [C(2023)112 and C/M(2023)12, item 167]

 

DRAFT RESOLUTION OF THE COUNCIL RENEWING THE SHIPBUILDING PROGRAMME AND RENAMING ITS GOVERNING BODY AS THE SHIPBUILDING COMMITTEE

“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 Procedure 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/REV2/FINAL];

HAVING REGARD to the Resolution of the Council establishing a Council Working Party on Shipbuilding (WP6) [C(66)57], with the last revision adopted in 2018 [C(2018)113 and C/M(2018)19, Item 196];

NOTING that negotiations on a multilateral agreement on shipbuilding were terminated in 2010, but that the Shipbuilding Committee 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, including the marine equipment industry;

NOTING that the Participants to the Sector Understanding on Export Credits for Ships (which has been incorporated as an Annex to the Arrangement on Officially Supported Export Credits) retain responsibility through the Shipbuilding Committee 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 and distort the level playing field;

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 and excess capacity;

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 including marine equipment manufacturers; and

Increasing importance of environmental protection and the decarbonisation of the shipbuilding industry and maritime transportation, the growing uptake of digital technologies and the increasing importance of research and development.

HAVING REGARD to the proposed Resolution of the Council Renewing the Shipbuilding Programme and Renaming its Governing Body the Shipbuilding Committee [C(2023)112];

DECIDES:

A.   The Shipbuilding Programme is renewed with the following revised mandate for the Shipbuilding Committee:

I   Objectives

1.   The overall objective of the Shipbuilding Committee 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 Shipbuilding Committee 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 in the context of the decarbonisation of the maritime sector.

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, the Shipbuilding Committee 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 Shipbuilding Committee.

II   Participation

11.   The Shipbuilding Committee’s membership is open to all OECD Members. Non-OECD Members with an interest in the shipbuilding industry may also join the Shipbuilding Committee, in line with the Global Relations Strategic Directions of the Shipbuilding Committee.

12.    Together, OECD Members and non-Member Associates should be referred to as “Shipbuilding Committee members”.

III   Budget

4.   The expenditure of the Shipbuilding Programme shall be charged against the appropriations authorised for it under Part II of the Budget of the Organisation.

5.   Contributions to the Budget of the Shipbuilding Programme 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 Shipbuilding Committee members.

A member-specific fee, which equates to 70% of the Budget to be shared among Shipbuilding Committee members according to their share of 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.

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

7.    A Shipbuilding Committee member would fall into arrears on 1 January of the year following the year of the call for payment of the assessed contribution if the contribution remains unpaid at that date. If a participating country’s contribution remained unpaid, a proposal would be considered to suspend the participating country from participation, unless it paid the outstanding contribution. Settlement of the outstanding debt by the participating country in arrears will reverse the suspension. If, in the third year following the year of call for payment, a participating country’s contribution remained unpaid, a proposal would be considered to exclude it from the Shipbuilding Committee, unless it paid the outstanding contribution. The decision of exclusion shall be adopted by the Council. This decision shall be notified to the Shipbuilding Committee member.

8.   Appropriations of no more than EUR 10 000 for which no commitment has been entered into before the end of the Financial Year for which they were appropriated, as well as any surplus income, shall be automatically carried forward to the Budget of the Shipbuilding Programme for the ensuing year by decision of the Secretary-General, notwithstanding the provisions of Regulation 10 of the Financial Regulations of the Organisation.

9.    The annual assessed contribution of a new member shall be added to the Budget of the Shipbuilding Programme. If a new member joins during a financial period, its contribution calculated on a prorata temporis basis shall become a supplementary Budget.

10.    Should a Shipbuilding Committee member withdraw, the total amount of the Shipbuilding Programme Budget to be financed by the assessed contributions shall be reduced by the full amount of this withdrawing member’s assessed contributions. In order to ensure sufficient sustainability and allow for appropriate planning measures, withdrawals from the Shipbuilding Programme shall only take effect on 31 December of the year following that in which the written notice of withdrawal was received by the Secretary-General.

IV Co-ordination arrangements

13.   In the course of its work, the Shipbuilding Committee will:

Maintain close working relationships with other relevant OECD bodies, in particular those working on export credit issues, as well as well as relevant entities of the OECD family, in particular the International Energy Agency (IEA) and the International Transport Forum (ITF), to complement and support Shipbuilding Committee’s work;

Co-operate with other relevant international organisations and fora such as the International Maritime Organization (IMO), the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD) and the International Organisation for Standardisation (ISO) with a view to increasing synergies, avoiding duplication and supporting sound development of both global shipbuilding industry as well as international trading system and its rules;

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.

B.   The Resolution Renewing the Shipbuilding Programme shall remain in force until 31 December 2028.