Richard Bruton
Question:14 Mr. R. Bruton asked the Minister for Enterprise and Employment whether he foresees any danger of loss of competitiveness for Ireland through the decision by the British Government to opt out of the social chapter.
Written Answers. - Ireland's Competitive Position.
Any implications for us arising from the British opt out depend on the nature and content of the specific measures which are adopted by the European Union.
The European Commission has just tabled a Green Paper on Social Policy to be followed in mid-1994 by a White Paper. That White Paper's specific proposals will set the future direction of the European Union's social policy. In the meantime — specifically, at the December European Summit — the Commission has announced it will propose a White Paper on Employment, Growth and Competitiveness on which it hopes to have a common approach adopted by all Union member states.
The text of the Green Paper, Commissioner Flynn's comments on it and early indications of the White Paper's contents on employment indicate that there has been close co-operation within the Commission in the drafting of both documents: the employment and competitiveness implications of social policy proposals are matters which the Commission and all member states wish to consider.
Again the social policy proposals to be formulated in mid-1994 will have to take full account of the common approach to employment, growth and competitiveness which will already have been put in place. In the unlikely event that the European Commission failed to do so the member states in Council can be expected themselves to assure this in examining the proposed measures. Furthermore, the Agreement on Social Policy concluded by 11 member states, including Ireland, has a number of provisions which may be invoked in the event of proposals presenting particular problems. These specifically include proposals seen as having a significant competitiveness implications including, of course, any seenvis-à-vis the UK.
The Single European Act, which applies to all 12 member states of the Union, is expected to continue to provide the legal base as far as possible for Commission proposals in the social field.
Given the links between the upcoming proposals in the social and wider economic field, the relative timing of likely decisions on these proposals, the concerns, at this time, of all member states to foster employment, the terms of the Agreement on Social Policy and the continued general use of pre-Maastricht legal bases for proposals can be expected to minimise any danger of the kind referred to in the question.
The Deputy can be assured that the concerns which underline his question are understood and that developments in this area will be kept under close review. I would also refer the Deputy to the Dáil Official Report of 30 April 1992 (col. 2246-2249) wherein this matter was also discussed.