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JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Thursday, 22 Jan 2004

Scrutiny of EU Proposals.

We will deal with the first set of proposals for consideration, documents 1.1 to 1.12, which, it is proposed, do not warrant further scrutiny.

The first item is Commission Document (2003) 671 regarding the proposed regulation on the addition of vitamins and minerals to foods. This proposal aims to harmonise the rules on the addition of nutrients to food in the European Union. The memorandum to the proposal indicates that the national rules in operation in this regard by the member states vary widely. The Department information note also suggests that these rules have been used as a barrier to trade against Irish food producers. The memorandum notes the concern that has been expressed with regard to the proliferation of fortified foods, foods to which vitamins, minerals, etc., have been added. It acknowledges the fear that this may result in the undermining of consumer knowledge of basic nutritional principles. It is also suggested that products that do not have a desirable nutrition profile, such as high fat and sugar products, should not be permitted to be fortified.

There is, however, recognition that for various cultural and societal reasons it may be desirable to make exceptions to this rule. The proposal is therefore made for a provision for member states to have the right to apply for a derogation of up to seven years from this measure. This would allow for a transition period for consumers and producers. The Department has indicated that it is likely to seek a derogation.

Any vitamin or mineral added must, according to the proposal, not be the subject of an unfavourable opinion from the European Food Safety Authority. The proposal lists the vitamins and minerals that will be permitted to be added to food and these will only be added for the purpose of restoration, nutritional equivalence and fortification or enrichment. The measures contained in this proposal will be regulated by the Commission on the Standing Committee on the Food Chain and Animal Health, which would operate on the basis of QMV in the event of a vote.

The Department has indicated that, with the Food Safety Authority of Ireland, it has consulted on the proposal. It has also indicated the proposal has no direct implications for GM foods. It is proposed that this proposal does not warrant further scrutiny but that it be forwarded to the Committee on Enterprise and Small Business for information. Is that agreed? Agreed.

Commission Document (2003) 698 is the proposed regulation on direct support schemes under the CAP and establishing certain support schemes for farmers and proposed regulations on the market in olive oil and table olives. As the Department note points out, the consideration of proposals for reform of the regime governing a number of crops was deferred at the time of the June 2003 agreement on reform of most aspects of the Common Agricultural Policy. This proposal relates to the regime that would govern cotton, olive oil, tobacco and hops. The proposal will result in decoupling levels of between 60% and 100%, with the higher levels relating to tobacco and cotton. It relates to cotton because it is argued that the cultivation of cotton requires the existence of relatively high levels of chemicals that can damage the environment.

I understand a number of member states have argued that tobacco and cotton are labour intensive crops and, therefore, more favourable measures are required for the areas that grow these crops. I also understand the Department has indicated that the proposals are likely to be discussed at the March-April Council and that any changes to the proposals are likely to be internal to this package of proposals. The Department has also indicated that there are no commercial growers of these crops in Ireland and that the proposal is ultimately budget neutral. It is proposed that this does not warrant further scrutiny but that it be referred to the Joint Committee on Agriculture and Food for information. Is that agreed? Agreed.

Item No. 1.3, COM (2003) 701 covers the proposed regulation on markets in flax and hemp grown for fibre. The Commission is required by Council Regulation (CE) No. 1673-2000 of 27 July 2000 to report on, and make proposals to, the organisation of the markets in flax and hemp grown for fibre not later than 31 December 2003. Since July 2000 financial aid has been available for the production of these crops. Due to unfavourable weather conditions over the period concerned, the Commission does not believe that it is in a position to give a fully representative picture of the markets concerned. It has concluded, however, from the information available that interest in these crops beyond the desire to benefit from the financial assistance has increased and that a niche market may be developing or redeveloping for these crops and materials. This proposal therefore seeks to extend until 2005-06 the current support measures. These include aid of between €90 and €160 per tonne of fibres pending the completion of a further report. This aid is available for processors and the Department has indicated that it understands that there are no processors in Ireland. It is proposed that this does not warrant further scrutiny. Is that agreed? Agreed.

I commend the secretariat on the historical note on hemp, which could be useful at table quizzes.

It could. Item No. 1.4, COM (2003) 714 is a proposed regulation laying down the weightings applicable to the remuneration of officials of the European Union in third countries. The Department has advised the secretariat that subsequent to its notification to the Oireachtas this proposal has been adopted, quite possibly at midnight when nobody was around, I suspect. It is proposed to note this measure. Is that agreed? Agreed.

Item No. 1.5, COM (2003) 721 is a proposed regulation amending the staff regulation of officials and the conditions of employment of other servants of the European Union. This proposal is the comprehensive amendment of the regulations we considered previously and was anticipated at the time the earlier measures were being considered. The Department's information note outlines that the proposal constitutes a significant revision of the regulations. The proposal also indicates that in the period 2003-06 the measures should result in a reduction in expenditure of €203 million in the EU budget. The proposal would result in the following changes, inter alia, in the existing regulations: the outlining of a comprehensive principle of non-discrimination; an increase in the number of grades but a reduction in the number of steps within grades; greater emphasis on the ability to work in a third language; the continuation for a further nine years of the so-called “method” whereby multi-annual adjustments are made to salaries to take account of purchasing power movements - the sub-committee recently considered a proposal on this method; the introduction of a special levy to reflect the costs of social policy such as improved working conditions. It is proposed to forward the proposal to the Joint Committee on Finance and the Public Service for information and to the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs on the issue of language requirements, also for information. Is that agreed? Agreed.

Item No. 1.6, COM (2003) 731 is a proposed directive on waste. Both the Commission's explanatory memorandum to this proposal and the Department's information note outline that this proposal is a codification exercise that results in no changes of substance to the existing waste framework directive and its subsequent amendment. It is proposed therefore that it does not warrant further scrutiny. Is that agreed? Agreed.

Item No. 1.7, COM (2003) 737 is a proposed regulation on measures to improve production and marketing of honey in codified version. It is proposed, as this is a codification measure, it does not warrant further scrutiny. Is that agreed? Agreed.

Item No. 1.8, COM (2003) 757 is a proposed regulation terminating the partial interim review concerning the anti-dumping measures imposed on imports of cotton-type bed linen originating in India. In 1997 the Council through Regulation (EC) No. 239897 imposed definitive anti-dumping duties ranging from 2.6% to 24.7% on imports of cotton-type bed linen originating from, among other places, in India. These duty levels for India were reduced in 2001 to between 0% and 9.8%. This proposal seeks to terminate the expiry review of the measures in place and not to impose any additional duties as the Commission review found that there is little or no evidence of dumping of the product concerned from India. It is therefore proposed that this measure does not warrant further scrutiny. Is that agreed? Agreed.

Item No. 1.9, COM (2003) 772 is a proposed regulation terminating the partial interim review of the anti-dumping measures applicable to imports of urea originating in Russia. This proposal seeks to terminate a review of the anti-dumping measures in place on the imports of urea from Russia. The review has determined that the current system of a set minimum import price is operating as intended and there is no evidence of price manipulation between related companies. In the memorandum to the proposal the Commission indicates that it is open to review the situation again if evidence is provided that this situation has changed. It is proposed that the measure does not warrant further scrutiny. Is that agreed? Agreed. Now members know what urea is too for a table quiz.

Item No. 1.10, COM (2003) 825 is a proposed directive to extend the facility allowing member states to apply reduced rates of VAT to certain labour intensive services. This proposal seeks to extend a scheme for reduced rates of VAT in labour-intensive sectors for a further two years, from 2003 to 2005. Ireland does not participate in this experimental scheme as many of the services covered already benefited from zero or reduced rates of VAT. Only countries already participating may seek an extension to their participation. The services covered by the scheme include bicycle and shoe repairs. It is proposed that this does not warrant further scrutiny. Is that agreed? Agreed.

Item No. 1.11, COM (2003) 761 is the proposed regulation concerning the compilation and transmission of data on the quarterly Government debt. This proposal seeks to have member states provide data on Government debt on a quarterly basis and this would be in line with other measures adopted on Government expenditure and revenue. It is proposed that the proposal does not warrant further scrutiny and that it be forwarded to the Joint Committee on Finance and the Public Service for information. Is that agreed? Agreed.

COM (2003) 639 is proposed regulation on the implementation of development co-operation operations which contribute to the general objective of developing and consolidating democracy and the rule of law and to that of respecting human rights and fundamental freedoms. The proposal incorporates various elements required by EU multi-annual programmes, for example, it contains a financial framework for its entire duration. There are also provisions made to increase the role of the human rights and the democracy committee in the programming phase on policy and strategy. It is proposed that this measure does not warrant further scrutiny. Is that agreed? Agreed.

It is proposed that Items Nos. 1.1 to 1.3 and Nos. 1.5 to 1.12, inclusive, do not warrant further scrutiny and should be forwarded for information to sectoral committees as agreed. It was agreed to note that item No. 1.4 should be noted and has been adopted. Are those points agreed? Agreed.

The next set of proposals concerns the documents which it is proposed to refer to sectoral committees for further scrutiny, Items Nos. 2.1 to 2.7. Item No. 2. 1 is COM (2003) 674, a proposed directive on the safety of third country aircraft using Community airports. This proposal is an amended text of COM (2003) 664 that was scrutinised by the sub-committee in January 2003. The basis of the proposal is to put in place an obligation for the safety assessment of non-EU aircraft using airports within the EU. In January 2003, the sub-committee determined at that stage that the proposal did not warrant further scrutiny.

The current text incorporates a number of amendments tabled by the European Parliament and accepted by the Commission. The amendments, inter alia, introduce a two-year period for the transposition of the measure and allow for a four year timeframe for the Commission to report on the application of the directive.

The Department's note indicates that the directive "will have no major implication for air services to or from Ireland, or for Irish Airlines". However, following the recent tragic crash in Egypt, it would be timely to refer the amended proposal for additional scrutiny. I understand that if the Flash Airline jet which crashed in Egypt had the same track record in a EU member state as it had in Switzerland, under these new regulations the member state would be required to notify other member states and, therefore, the flight would have been grounded. It is timely that this is referred to the Joint Committee on Transport for further scrutiny. Is that agreed? Agreed.

COM (2003) 688 is a proposed framework decision on the European evidence warrant for obtaining objects, documents and data for use in proceedings in criminal matters. The memorandum to this proposal sets out the international conventions that govern the existing mutual assistance regime in criminal matters for EU member states and suggests that the existing procedures can be slow and inefficient. This situation occurs, according to the memorandum, because of differences in national legislation and a number of exemptions to the mutual assistance rule, for example dual criminality, that is, an action that is a crime on both the state seeking and the state receiving the request for assistance.

This proposal would, inter alia, introduce recognition of a request by judicial decision from another member state, without the need for its transformation into a national decision. Requests will be standardised by the use of a single form - a proposed form is attached at the back of the proposal. Deadlines will be laid down for the execution of requests and minimum safeguards would be introduced both for the issuing of a request and for its execution. The safeguards include the requirement that the objects, documents or data requested are likely to be admissible in the proceedings for which they are sought.

The Commission, in the memorandum, also envisages the subsequent introduction of a proposal for a consolidated instrument for mutual recognition of orders for the obtaining of evidence. This would include evidence that does not already exist, for example the taking of DNA samples. The current proposal relates to objects, documents etc. that already exist in retrievable form. The Department has indicated that it is awaiting the advice of the Attorney General's office on this proposal. It is proposed that the proposal be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights for further scrutiny. Is that agreed? Agreed.

COM (2003) 703 is a proposal on a directive on cross-border mergers of companies with share capital. This proposal is seen as part of the Commission's framework proposals to remove obstacles to cross-border mergers within the EU. This proposal did not advance during the Italian term of the EU Presidency and it is anticipated that it will be discussed at a working group on 22 January 2004. It is, therefore, only after this that a picture of the likely future evolution of the proposal will become clearer. The Department of Enterprise, Trade and Employment has indicated that it is consulting on the proposal and that feedback is currently ongoing.

The proposal seeks to simply and to clarify the legal framework for cross-border mergers of enterprises by outlining the common features that should apply in the member states. It also outlines that if agreement cannot be found between interested parties, the employee participation system that best protects the acquired rights of workers which already exists in one of the merging companies is extended to the merged company. It is suggested that this means that cross-border mergers would not be used to reduce employees' rights.

It is proposed to forward the proposal for further scrutiny to the Joint Committee on Enterprise and Small Business and to the Joint Committee on Finance and the Public Service for information. Is that agreed? Agreed.

COM (2003) 723 is a proposal which would, inter alia, prohibit the disposal of industrial and automotive batteries and accumulators in landfills and by incineration and provides for a free take-back scheme for portable batteries and accumulators. The Department of the Environment, Heritage and Local Government does not anticipate the proposal being concluded during the Irish Presidency. The Department has indicated that it supports the aims of the proposal but that consultation with industry and interested parties is ongoing and that experience with similar initiatives has shown that such initiatives are not always practically feasible. It is proposed to forward the proposal for further scrutiny to the Joint Committee on Environment and Local Government for further scrutiny? Is that agreed? Agreed.

COM (2003) 796 is a proposal for a decision on a single framework for the transparency of qualifications and competencies, called Europass. It bothers me to see a proposal such as this, but it is a matter for another committee. This proposal seeks to advance, in the context of bringing the EU closer to the peoples of Europe, the establishment of a single framework for a portfolio of documentation outlining qualifications and skills held by those searching for employment or further education within the EU. The promotion and operation of the portfolio would be carried out on a national level, but there is a small EU budget available for its development at €2 million per annum.

The portfolio would include a standard curriculum vitae format and documentation outlining the courses completed by an applicant for further education or employment. I understand that many of the documents contained in the portfolio have been available for some time, but their use across the EU has been uneven.

It is proposed to forward the proposal for further scrutiny to the Joint Committee on Education and Science for further scrutiny and the Joint Committee on Enterprise and Small Business for information. I do not understand why we need a standardised curriculum vitae across the EU.

Nor do I. Is that linked to the mutual recognition of qualifications?

No, I understand it is not. We will let the Joint Committee on Education and Science consider it. Is that agreed? Agreed.

COM (2003) 741 is a proposal for the regulation on conditions for access to the gas transmission network. This proposal would establish in EU law the principles and guidelines for the operation of the gas transmission systems across the EU. The guidelines were agreed by stakeholders during a forum in Madrid on 24 and 25 September 2003. The guidelines set out criteria for charges for access to transmission systems and contractual frameworks between operators and those seeking third party access to the systems.

The Department of Communications, Marine and Natural Resources has outlined that many aspects of the proposal are already in operation in Ireland but that its implementation across the EU should help in minimising costs in the future. It is also outlined that the importance of this proposal will increase following the depletion of reserves from around these coasts and when gas supplies are being sought, possibly from Algeria or the Russian Federation. At that point, it would be important that all players have access to the networks across the EU and that charges set for access are neither excessive not pancaked. The term "pancaked" is used to describe the progressive addition of minor charges for entry into a network that results in making entry economically unviable. As it is an important aspect of energy supply, it is proposed that this be sent to the Joint Committee on Communications, Marine and Natural Resources for further scrutiny. Agreed? Agreed.

Commission Document (2003) 739 is a proposal for a directive of the European Parliament and of the Council on energy end-use efficiency and energy services. The Commission's memorandum to the proposal suggests that the total energy consumption in the EU is approximately 20% higher than can be justified on purely economic grounds. The aim of this proposal is to oblige energy providing companies to encourage energy saving measures by its consumers. The public sector of member states would be required to make annual energy savings of 1.5% and on a national level, overall energy savings should amount to 1% of the average consumption of final customers in the five year period previous to the adoption of the proposal. These savings would occur on an annual basis over a six year period, resulting in a 6% saving of energy. Allowances will be made for economic growth of the member states.

I understand the Department has indicated that the proposal has not yet been discussed in detail at working group level and is at the early stages of evolution. In particular it would appear that there is a need to include a definition of the public sector to the list of other relevant definitions outlined in the proposal. The definition of the public sector is important as a somewhat disproportionate amount of the energy savings is required to take place in that sector. It is proposed that this be forwarded to the Joint Committee on Communications, Marine and Natural Resources for further scrutiny. Agreed? Agreed.

I wonder if it would be worthwhile referring it also to the Joint Committee on Environment and Local Government because of its implications for climate change strategy.

We could refer it to the committee for information. Agreed? Agreed.

We now move to three proposals which were adopted prior to scrutiny. The first item is Commission Document (2003) 641, a proposed regulation regarding fishing opportunities for anchovy and angler fish in certain zones. The adoption of this measure by the Council on 8 December would have allowed for fishing to continue for angler fish to the end of the year, as the Department's information note has also indicated that over 90% of the quota had been utilised at that time. The Department has outlined in an additional note that the proposal was adopted as a matter of urgency to take immediate account of the changes made to the TAC. There are proposals to allow Ministers bring matters of urgency to the Council prior to scrutiny. Is this matter noted? Agreed. We will send it to the Committee on the Marine for information. For quiz purposes, angler fish live below the photic zone.

The depth of the ocean exposed to sunlight. I knew the answer.

I might not do another political quiz. I might do a quiz on all these terms.

The Chairman could write a book.

Commission Document (2003) 774 is the proposed regulation temporarily suspending the autonomous common customs tariff duties on certain industrial, agricultural and fishery products. The Department has indicated that the inclusion of submissions from the accession countries resulted in a delay in the presentation of the final proposal, and this meant that the proposal needed to be adopted within one week, on 22December 2003. The measure includes approximately 70 new additions, one of which was as a result of an application from a company in Ireland. It came from a company in Cork, for the inclusion of cellular film.

I do not like the idea of these proposals being considered before they arrive here. We can note the proposals but we should write again to the Departments reminding them of their responsibilities and telling them that the committee does not wish to be taken for granted in this regard.

This particular measure obviously underwent a fair deal of discussion before a decision had to be taken on it, and it ought to have come before this committee.

We will make a point of bringing that to the attention of the Department. We do not want this to become a regular experience.

Commission Document (2003) 762 is the third item, which is the proposal for a Council regulation fixing for the 2004 fishing year the guide prices and Community producer prices for certain fishery products. This proposal was adopted by the Council on 19 December and sets guide prices and Community producer prices for certain fishery products. Members will have received an additional note from the Department noting that the measure was adopted to ensure that the new price regime was in place by 1 January. The measure, inter alia, decreases the guide price for most species of white fish by between 0.5% and 6% and allows for increases of between 1% and 1.5% for plaice and sole. It is proposed to note the measure. Is that agreed? Agreed.

We now move on to the Title IV measures on today's agenda. The first item is document No. 727 of 2003, the proposal for a Council decision establishing a secure web-based information and co-ordination network for member states' migration management services. This is a Title IV proposal which seeks to create a more technically reliable information sharing system based on the web by building on the existing early warning system that is based around the sharing of information via fax. The system would be used to exchange general points of interest on migration matters and not for the exchange of personal information on individual cases.

I understand that Ireland participates in the existing early warning system and that any decision to opt into this new measure would require the approval of the Oireachtas. It is proposed to note the Title IV proposal and to forward it to the Joint Committee on Justice, Equality, Defence and Women's Rights for its information. In due course it will have to go to that committee in terms of legislation. Agreed? Agreed.

Commission Document (2003) 790 is a Council decision concerning the conclusion of the memorandum of understanding between the European Union and the National Tourism Administration of China on visa and related issues concerning tourist groups from China.

This proposal seeks to facilitate and regulate Chinese tourism within the Schengen area. It would work on the basis of a memorandum of understanding between the EU and China whereby designated travel agencies in China would report without delay if a tourist participating in the scheme had not returned to China. There is also provision for a binding readmission clause. The issuing of a Schengen 30 day visa would occur according to applicable legislation. I understand that the Department has outlined that Ireland is currently negotiating a similar memorandum of understanding agreement with the People's Republic of China. It is proposed to note the proposal and to forward it to the Joint Committee on Justice, Equality, Defence and Women's Rights and the Joint Committee on Foreign Affairs for information in advance of any conclusion of a similar agreement with China. Is that agreed? Agreed.

Item No. 5 relates to common foreign and security policy measures. It is proposed to take items Nos. 5.1 to 5.6 together. These measures, about which I, as Chairman, have been briefed in advance in accordance with the arrangements for the scrutiny of confidential measures, all relate to the reappointment of EU special representatives and to the extension of EU mandates for a further six months. The sub-committee has considered measures similar to these at previous meetings. The mandates and special representatives relate to the EU monitoring mission in the Western Balkans, the African Great Lakes, the Former Yugoslav Republic of Macedonia, Afghanistan, the South Caucasus and the Middle East peace process. It is proposed to note all these items. Is that agreed? Agreed.

The following two proposals were adopted very quickly without sufficient time to allow an advance briefing on the matters. The Department of Foreign Affairs has supplied a note on this. The first is 2003/906/CFSP, the common position on the application of specific measures to combat terrorism. The common position follows the regular review of EU measures, which is 2001/931/CFSP, implementing UN Security Council Resolution 1373 of 2001. The common position updates the list of names annexed to the original anti-terrorist measure. The sub-committee previously considered the amended list 2003/651/CFSP at its meeting on 2 October last and noted the amendment to the original measure.

With regard to the persons, groups and entities listed, the member states afford to each other the widest possible assistance in preventing and combating terrorist acts. I understand that the common position adds to the list the Great Islamic Eastern Warriors' Front, which claimed responsibility for recent terrorist attacks in Istanbul, and removes several individuals previously listed as being linked to ETA and an additional Basque Fatherland and Liberty group. An additional note from the Department indicates that these individuals have been convicted of and imprisoned for terrorist-related offences. It is proposed to note the amended measure. Is that agreed? Agreed.

Next is a Council decision. Members will note that we were not being sent Council decisions and decided that we should be. This is the new process. No. 2003/902/CFSP is a specific restrictive measure directed against certain persons and entities with a view to combating terrorism. That Council decision was adopted on the same day as the related position, 2003/906/CFSP. The Council decision gives effect to Article 2(3) of EC Regulation No. 2580 of 2001 through, inter alia, the imposition of certain financial restrictions on an undated list of named persons and entities linked or related to third countries. It is proposed to note the measure. Is that agreed? Agreed. That concludes the scrutiny process.

The last meeting was on 18 December. We had quite a few things to catch up on over Christmas. The minutes have been circulated. Have they been agreed? Agreed.

The draft 25th report of the sub-committee was circulated to members in advance of the meeting. It is proposed that the report, as circulated, be laid before both Houses. Is that agreed? Agreed.

There being no other business, it is proposed that the next meeting of the sub-committee be held on 5 February. Is that agreed? Agreed. Did Deputy Mulcahy wish to deal with the motion?

I understand my motion will be dealt with at the Joint Committee on European Affairs.

The sub-committee adjourned at 10.25 a.m. until 9.30 a.m. on Thursday, 5 February 2004.
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