JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate

Scrutiny of EU Proposals.

Chairman

We still have some way to go on the agenda. Item 1.1 is not considered to need scrutiny. It amends an earlier proposal scrutinised by the Joint Committee on Health and Children, the adoption of which the Department strongly supported. The proposal also makes explicit reference to the importance of the introduction of a regulation to replace the area directive. This should allow for greater clarity and the simultaneous updating of the measures in a Europe of 25 member states. It is proposed to note this item. Is that agreed? Agreed.

Item 1.2 is an amended proposal for a directive of the European Parliament under the Council of co-generation based on a useful heat demand in the internal energy market. This proposal is highly technical in nature and outlines definitions of co-generation based on useful heat demand. Its aim is to assist in the development of this area of heat demand. It is likely that the proposal will be negotiated during the Irish Presidency and perhaps beyond. It is proposed that the item be referred to the Joint Committee on Communications, Marine and Natural Resources for information purposes at this stage and that the Department be requested to keep that committee informed of major developments in the proposal in the months ahead. Is that agreed? Agreed.

Item 1.3 is an amended proposal for amending Council Regulation No. (EC) 973/2001 laying down certain technical measures for the conservation of certain stocks of highly migratory species. It is proposed that this measure does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.4, COM (2003) 437, is a proposal for a Council regulation amending Council Regulation No. (EC) 2561/2001 aiming to promote the conservation of fishing and the conversion of fishing vessels and fishermen who were, until 1999, dependent on the fishing agreement with Morocco. I do not know to what extent they want to convert the fishermen. Perhaps it is a religious conversion. The Department indicated the proposal would not result in supplementary funding of the Community budget. It is proposed that this measure does not warrant further scrutiny. Is that agreed? Agreed.

Deputy Mulcahy

It is nice to know that Spanish fishermen are being well compensated.

Chairman

Item 1.5, COM (2003) 455, is an amended proposal for a directive of the European Parliament and of the Council repealing certain directives on the hygiene of foodstuffs and the health conditions for the production and placing on the market of certain products of animal origin intended for human consumption and amending another directive. This proposal is a technical amendment to an earlier directive on the hygiene of foodstuffs. It amends the current wording which indicates that the directive would enter into force on 1 January 2004. It is proposed that, while this technical amendment does not warrant further scrutiny, the drafts should be forwarded for information purposes to the committee to which the earlier proposal was sent for scrutiny, namely, the Joint Committee on Agriculture and Food, and also to the Joint Committee on Enterprise and Small Business. Is that agreed? Agreed.

Item 1.6, COM (2003) 462, is a proposal for a Council directive amending Directive 90/435/EC on the common system of taxation applicable in the case of parent companies and subsidiaries of different member states. It is proposed that the measure does not warrant further scrutiny. Is that agreed?

Deputy Mulcahy

This could be of relevance to Irish companies operating in several jurisdictions. There may not be a difficulty with it in the Department of Finance. I do not know but I would have thought it could affect Irish companies that pay dividends or operate in several jurisdictions, as many of them do. I certainly would have thought that they should have been informed about it.

Senator Dardis

It is a double taxation matter and it is the same for an individual as it would be for a company.

Chairman

It is to prevent tax being paid twice. It deals with reducing the level of holdings after which a company would be considered to have a parent subsidiary relationship from 25% to 10%, widening the scope of tax relief to include subsidiaries of subsidiaries, and the inclusion of subsidiaries of a branch of a parent company in another member state. The information note from the Department indicates that this proposal holds no difficulty for Ireland. It would appear that there might be some relief for companies rather than difficulties.

Deputy Mulcahy

It does not change the fact that it may be of relevance and importance——

Chairman

It is relevant and important.

Deputy Mulcahy

——to Irish companies.

Chairman

Yes, it could, but beneficially I would imagine.

Deputy Mulcahy

Yes, but we always try to include as many of the social elements as we can.

Chairman

The objective of the directive is to exempt the payment of such dividends from double taxation and thereby improve the workings of the Single Market. It is to reduce double taxation.

Deputy Mulcahy

My point is a democratic one.

Chairman

Can we agree the proposal? Agreed. Item 1.7 is the proposal for a regulation of the European Parliament and of the Council on promoting gender equality in development co-operation. It is proposed that this measure does not warrant further scrutiny. Is that agreed? Agreed.

Deputy Sexton

I welcome that.

Chairman

Item 1.8, COM (2003) 474, is a proposal for a Council regulation amending Regulation No. (EC) 2803/2000 regarding the opening of and increase in autonomous Community tariff quotas for certain fisheries products. It is proposed that this measure does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.9, COM (2003) 479, is a proposal for a Council regulation amending Regulation No. (EC) 1907/90 on certain marketing standards for eggs. The stated aim of this proposal is to improve the traceability and consumer information available for eggs. If this amendment to existing measures is adopted, egg producers selling their own eggs in local markets will be obliged to stamp the eggs with a registered number of the farm of origin and farming methods used, for example, cage, barn or free range. There is already a requirement that eggs sold in retail outlets be so marked by 1 January 2004.

An additional aspect of the proposed amendment is that eggs graded as B class, owing to having been washed in Sweden, will continue to be sold for human consumption. In Sweden, there is a long tradition of washing eggs. In the rest of the EU, only A class eggs are sold for human consumption. Apparently the reason for it is that, in Sweden, they have highly developed machinery for washing eggs, something other countries do not have. Washing eggs affects the membrane and, ultimately, the quality of the egg. The Swedes have developed an advanced procedure that can clean eggs without damaging them which is the reason they can sell them. While the proposal may not warrant additional scrutiny, it is suggested that it should be forwarded to the Joint Committee on Agriculture and Food for information purposes. Is that agreed?

Deputy Mulcahy

This is clearly of relevance to egg producers. I do not understand the reason it is not being referred to the committee for scrutiny.

Chairman

The advice is that it is not——

Senator Dardis

This is significant because, increasingly, impediments are being put in the way of farm producers selling their own eggs locally. It strikes me that many of these regulations are being devised by large multi-national and national egg distributors to limit the capacity of local farmers to sell their eggs in the local supermarket.

Chairman

Would the sub-committee prefer to send this for scrutiny than for information? It is a matter for the sub-committee.

Deputy Mulcahy

I think we should.

Deputy Sexton

It would do no harm.

Chairman

We will send it to the Joint Committee on Agriculture and Food to decide on it. Item 1.10, COM (2003) 528, is a proposal for a Council regulation concerning certain restrictive measures in respect of the Democratic Republic of Congo. It is recommended that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.11, COM (2003) 523, is a proposal for a regulation of the European Parliament and the Council amending Council Regulation No. (EC) 1734/94 on financial and technical co-operation with the occupied territories. The current programme allows for annual commitments of €45.75 million for each of the next three years which are overseen by the European Anti-Fraud Office, OLAF. The programme is implemented by the Commission but in co-operation with the international organisations. It supports the provision of basic public services, institution building for a future Palestinian state and improvement of the humanitarian situation of the Palestinian people. The amendment proposes, inter alia, where circumstances allow, that implementation should be purely on an annual programme basis.

Deputy Mulcahy

This should go to the Joint Committee on Foreign Affairs for information.

Chairman

It does not warrant scrutiny but we will send it for information purposes.

Deputy Mulcahy

Yes.

Chairman

Item 1.12, COM (2003) 423, is a proposal for a directive of the European Parliament and the Council relating to arsenic, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air. I will get a job in RTE after pronouncing all that. It is recommended that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.13 is a proposal for a regulation of the European Parliament and Council on certain fluorinated greenhouse gases. The proposed measures include obligations for the maintenance of records of fluorinated gas leaks, frequent inspection of facilities and the implementation of training and certification programmes for those involved in the fluorinated related industries. It is recommended that the proposal as drafted does not require further scrutiny. It is also recommended that the Department be requested to keep the Joint Committee on the Environment and Local Government informed of major developments in the negotiations on the measure. Is that agreed? Agreed.

Item 1.14, COM (2003) 511, is a proposal for a Council regulation adopting autonomous and transitional measures concerning the importation of certain processed agricultural products originating in Malta and the export of certain processed agricultural products from Malta. It is recommended that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.15 is a proposal for a Council regulation amending Regulation No. (EC) 527/2003 authorising the offer and delivery for human consumption of certain wines imported from Argentina which may have undergone oenological processes not provided for in Regulation No. (EC) 1493/1999. We examined a draft of this and the Department of Agriculture and Food has indicated that the current proposal may be adopted before the end of September 2003. It is recommended that this proposal does not warrant further scrutiny. Is that agreed?

Deputy Mulcahy

Should it not be referred to the Joint Committee on Health and Children or the Joint Committee on Agriculture and Food for information?

Chairman

Which is the lead Department in this?

Deputy Mulcahy

It does not affect Irish agriculture.

Chairman

I think Agriculture and Food is the lead Department. We will send it to that committee for information purposes.

Item 1.16 is a proposal for a regulation of the European Parliament and the Council amending Regulation No. (EC) 1406/2002 establishing a European maritime safety agency. The Department has indicated that it welcomes the proposal. Is that agreed? Agreed. In summary, it is proposed that items 1.1 to 1.16 do not warrant further scrutiny with the exception of the measures to which we referred.

The next set of items, 2.1 to 2.8, are the documents it is proposed to refer to sectoral committees for further scrutiny. Item 2.1, COM (2003) 370, is a Council regulation amending Regulation (Euratom) 2587/1999 defining the investment projects to be communicated to the Commission in accordance with Article 41 of the treaty establishing the European Atomic Energy Community. This is a proposal to widen the areas where information will be provided to the Commission on proposals for nuclear installations.

In many regards, it builds on current proposals for waste management and providing for the financing for the decommissioning of installations which were scrutinised by the sub-committee at an earlier date. COM (2003) 370 would require that projects forward information on proposed installations, setting out the plans for management of waste fuel investments for decommissioning and information on private and public financing of the project.

The Department has indicated that it welcomes the requirements for the provision of additional information on the proposals for new installations. Given that this would appear to be part of a package of measures, many of which were sent for scrutiny, it is recommended that the proposal be forwarded to the Joint Committee on the Environment and Local Government for further scrutiny and to the Joint Committee on Communications, Marine and Natural Resources for information. Is that agreed? Agreed.

COM (2003) 446 is a proposal for a directive of the European Parliament and the Council amending Directive 77/779/EEC concerning mutual assistance by the competent authorities of the member states in the field of direct and indirect taxation. Ireland and a number of member states have questioned the legal basis of this proposal, arguing that taxation matters should be decided in conformity with the treaty by unanimity.

The Department has indicated, however, that it is supportive of the stated aims of the proposal to build upon existing bilateral arrangements between member states on the sharing of information on direct and indirect taxation. Nonetheless we, along with many member states, have asked that the language in the proposal be tightened up. It is believed that some of the difficulties have arisen in this regard due to translation problems. It is recommended to forward this to the Joint Committee on Finance and the Public Service for further scrutiny of this taxation proposal. Is that agreed? Agreed.

Item 2.3, COM (2003) 448, is a proposal for a directive of the European Parliament and Council amending Directive 1996/62/EC on the charging of heavy goods vehicles for the use of certain infrastructure. This is a proposal to amend existing measures relating to the charges imposed on heavy goods vehicles, HGVs, whereby minimum charges are set. Ireland does not apply time based charges. The proposals would see the measures impacting on HGVs of more than 3.5 tonnes. That level is 12 tonnes at present.

It is also proposed that the charges imposed should reflect in the most comprehensive manner the costs incurred in constructing and maintaining the relevant road network. These maintenance costs would include insurance, congestion, the number of accidents and weather related costs. It is recommended in the proposal that the introduction of the European Galileo system will contribute to this objective when it comes into service. We had a previous note on that. It is the satellite monitoring system.

It is also proposed that tolls collected should be used to construct and maintain the transport sector as a whole. A national authority with a supervisory role will ensure that the moneys collected will be used exclusively for the stated purpose. The proposal also suggests that member states may reduce motor taxation to take account of these charges which reflect the level of use of the vehicle.

The adoption of the proposal could see the introduction of national legislation in a number of related areas, including motor taxation. It is therefore recommended that the proposal be forwarded to the Joint Committee on Transport for further scrutiny. It is also recommended that it be forwarded to the Joint Committee on the Environment and Local Government for information purposes. Is that agreed? Agreed.

COM (2003) 451 is a proposal for a Council regulation laying down measures concerning the incidental catches of cetaceans in fisheries and amending Regulation No. (EC) 88/98. It is proposed that this be forwarded to the Joint Committee on Communications, Marine and Natural Resources for further scrutiny, especially of the possible cost and technological uses of acoustic deterrent devices. Is that agreed? Agreed.

Item 2.5, COM (2003) 453, is a proposal for a directive of the European Parliament and Council on establishing a framework for equal design requirements for energy using products and amending Council Directive 92/42/EEC. This is a proposal for a framework directive setting out the scope of future measures that will be taken by the Commission in establishing eco-friendly designs for energy using products, with particular reference to the life cycle of the products concerned. Article 12 of the proposal sets out the parameters of the draft framework.

The proposal is seen as filling any gaps in existing environment related measures in place. The scope is therefore rather wide and would impact on a number of Departments and agencies. It is considered that the proposal would have a significant environmental impact and represent a significant volume of sales and trade in terms of these products. It is recommended that the proposal be forwarded to the Joint Committee on Enterprise and Small Business for further scrutiny and the Joint Committee on the Environment and Local Government for information purposes. Is that agreed? Agreed.

Item 2.6, COM (2003) 471, is a proposal for a Council regulation on the establishment of structures for the management of the European satellite radio navigation programme. While this is a technical proposal for the establishment of a public authority for the supervision and deployment of the European satellite radio navigation system, Galileo, it touches on issues of some importance. The Galileo system will cost €3.6 billion and will have many possible applications, including traffic management. It is also proposed that a centre for security and safety be established to protect Galileo. A number of issues relating to the operation of this centre remain to be clarified. The EU and the European Space Agency financed the development of the Galileo system. Earlier this year a proposal on the reorganisation of the ESA was forwarded to the Joint Committee on Enterprise and Small Business for scrutiny. It is therefore recommended that this proposal be forwarded to the same committee for further scrutiny in the context of the development and proposed reorganisation of the ESA. Is that agreed?

Deputy Mulcahy

This is the second time I have raised this issue. This has the potential to be a complete "Big Brother" for all Europe. Every time a vehicle moves, it will be recorded in some data system to which the USA will undoubtedly demand access and so on. What is the legal basis for this proposal? Does it breach the ultra vires principle or any parts of our Constitution? What are the civil rights implications? The proposal should at least be forwarded to the Joint Committee on Justice, Equality, Defence and Women’s Rights and possibly to the All-Party Committee on the Constitution. We should not sleepwalk our way into this proposal. I have severe reservations about it.

Chairman

This proposal is only concerned with the management structures and security of the European satellite radio navigation programme. The system is already in place and has a treaty basis.

Some committees complain that we refer too many proposals to them. The appropriate committee would be the Joint Committee on Enterprise and Small Business.

Senator Dardis

The proposal cannot be referred to the All-Party Joint Committee on the Constitution because it is not a joint committee of the Houses. To deal with the issue practically, we should recommend that Dublin be included which means the satellite will go off course and crash.

Chairman

We will refer it to the Joint Committee on Enterprise and Small Business. I am aware of the concerns.

Deputy Mulcahy

What about sending it to the Joint Committee on Justice, Equality, Defence and Women's Rights for information purposes? This is the type of proposal that will come back on us.

Chairman

We will refer the proposal to the Joint Committee on Enterprise and Small Business for scrutiny and to the Joint Committee on Justice, Equality, Defence and Women's Rights for information purposes.

COM (2003) 397 is a proposal for a Council directive amending Directive 77/388/EEC concerning rates of value added tax. This is a proposal that, as drafted, could result in the application of a VAT rate of 21% on children's clothes and shoes throughout the EU.

Senator Dardis

We will refer this to Deputy John Bruton.

Chairman

I have been through this before. As the Department note makes clear, the proposal would also have major significance and, if adopted as drafted, would impact negatively on the tax arrangements in place on sectors important to the Irish economy. As a proposal relating to taxation, it will require unanimity to approve the measure. It is unlikely that the draft will be adopted in its current form. It is, however, a significant proposal that should be scrutinised at this early stage of its life. It is recommended, therefore, that it should be forwarded to the Joint Committee on Finance and the Public Service for scrutiny. Is that agreed? Agreed.

COM (2003) 476 is an amended proposal for a directive of the European Parliament and Council amending Directive 1999/32/EC concerning the sulphur content of marine fuel. This is a proposal amending an earlier one considered by the sub-committee. It is recommended that the proposal be referred to the Joint Committee on Communications, Marine and Natural Resources for further scrutiny. Is that agreed? Agreed.

In summary, it is proposed that items 2.1 to 2.8, inclusive, warrant further scrutiny and should be referred, as appropriate, to the sectoral committees agreed.

We now move to proposals that had been adopted prior to scrutiny. Item 3.1, COM (2003) 447, is a proposal for a Council regulation amending Regulation No. (EC) 2341/2002 fixing for 2003 the fishing opportunities and associated conditions for certain fish stocks and groups of fish stocks applicable in Community waters and to Community vessels in waters where such limitations are required. Incorporating recommendations made by the International Baltic Sea Fishery Commission, this proposal sets out the total allowable catch for sprat and adjustments to mesh size. The measure only relates to fishing in the Baltic Sea. The Department has indicated that Irish vessels do not participate in this activity. It is proposed to note this. Is that agreed? Agreed.

Item 3.2, COM (2003) 535, is a proposal for a Council regulation amending Regulation No. (EC) 1030 concerning certain restrictive measures in respect of Liberia. It is proposed to note this measure. Is that agreed? Agreed.

Item 3.3, COM (2003) 448, is a proposal for a Council regulation terminating the anti-dumping proceedings concerning imports of polyester textured filament yarns originating in Taiwan, Indonesia and Malaysia. It is proposed to note this. Is that agreed? Agreed.

Item 3.4, COM (2003) 494, is a proposal for a Council regulation amending the Commission decision of 8 July 2002 on administering certain restrictions on imports of certain steel products from the Russian Federation. It is proposed to note this. Is that agreed? Agreed.

COM (2003) 1204 is a proposal for a Council regulation extending the definitive anti-dumping duty imposed in Regulation No. (EC) 408/2002 on imports of zinc oxide originating in the People's Republic of China to imports of certain zinc oxide consignments from Vietnam, whether declared as originating there or not, and to imports of certain zinc oxide consignments originating in the People's Republic of China and mixed with silica. It is proposed to note this measure. Is that agreed? Agreed.

Item 3.6, COM (2003) 505, is a proposal for a Council regulation imposing a definitive anti-dumping duty and collecting definitively the provisional duties imposed on imports of para-cresol originating in the People's Republic of China. It is proposed to note this. Is that agreed? Agreed.

Item 3.7 is a proposal for a Council regulation amending Regulation No. (EC) 1796/1999 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of steel ropes and cables originating, inter alia, in Poland and Ukraine. It is proposed to note this. Is that agreed? Agreed.

Item 3.8 is a proposal for a Council regulation amending Regulation No. (EC) 1995/2000 imposing, inter alia, a definitive anti-dumping duty on imports of solutions of urea and ammonium nitrate originating in Algeria, Belarus, Lithuania, Russia and Ukraine. It is proposed to note this. Is that agreed? Agreed.

Item 3.9 is an amendment to a proposal for a directive of the European Parliament and Council relating to the protection of pedestrians and other vulnerable road users in the event of a collision with a motor vehicle and amending Directive 75/156/EEC. This proposal was adopted at a Competitiveness Council meeting on 22 September. It is proposed to note it. Is that agreed? Agreed.

Item 3.10 is a proposal for a Council regulation concerning certain restrictive measures in respect of the Democratic Republic of Congo. This proposal was adopted at the External Relations and General Affairs Council on 29 and 30 September. It is proposed to note. Is that agreed? Agreed.

The following proposals are CFSP measures to be noted by the committee. As Chairman, I have received a confidential brief in advance of the adoption of these measures under the arrangements in place. No. 51 is CFSP/2003/651, the Council common position of 12 September updating common position 2001/931 on the application of specific measures to combat terrorism and repealing common position CFSP/2003/482. It is proposed to note. Is that agreed? Agreed.

The minutes of the meeting of 9 September have been circulated. Are the minutes agreed? Agreed. Item 4 is the draft of the 19th report of the sub-committee. It is proposed to defer this to the next meeting as we have had a lot to deal with today. Item 6 is correspondence, of which there is none. Item 7 is the date of the next——

Deputy Mulcahy

Sorry, Chairman, but in some of the recent meetings I think I asked for a legal opinion from the parliamentary legal officer on one or two items. Maybe the reports came back to the committee, or are there still some legal opinions to come from the parliamentary legal adviser? I think I did refer one or two items to the legal officer.

JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate - Thursday, 2 Oct 2003

Scrutiny of EU Proposals.

JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Thursday, 2 Oct 2003