JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Thursday, 27 May 2004

Scrutiny of EU Proposals.

Chairman

We will deal first with items 1.1 to 1.12. We will deal with items 1.13 to 1.20 later.

COM (2004) 68 is a proposed decision on the position to be adopted by the Community regarding the revision of the terms and conditions of financing for short-term fluctuations in export earnings. The Department has provided for additional clarifications from the European Commission on the proposal outlining that, in general, assistance from the scheme is channelled into complementary macro-economic programmes. The funding provided is also required to be, inter alia, “consistent with broader development policy”. The Commission has outlined that the additional funding for the scheme over four years will amount to €415 million, which I understand will be drawn from the European Development Fund, to which no additional costs will result. In the light of the additional information provided through the Department, it is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 217 and COM (2004) 218 deal with a proposed decision on the provisional application of the fishing agreement with Madagascar. This should just be noted.

COM (2004) 228 is a proposed regulation suspending the autonomous common customs tariff duties on certain fishery products originating in Ceuta and Melilla. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 229 is a proposed decision authorising Spain to extend until 7 March 2005 the agreement on mutual fishery relations with South Africa which has also been extended in the past. It is proposed to note this decision. Is that agreed? Agreed.

COM (2004) 233 is a proposed regulation on measures to provide information on, and to promote, agricultural products in third countries, and on information and promotion actions for agricultural products in the Internal Market. The departmental note indicates that the programme offers trade associations in Ireland the opportunity to avail of assistance for information and promotional campaigns. The categories covered by the programme include fruit and vegetables, milk, organic foods, wine and olive oil. It is proposed that the proposal does not warrant further scrutiny but that the proposed measure be forwarded to the Joint Committee on Agriculture and Food for information. Is that agreed? Agreed.

COM (2004) 234 is a proposed decision authorising the Portuguese Republic to extend until 9 April 2005 the agreement on mutual fishery relations with the Republic of South Africa. The Department has set out that the proposal is of "minor significance" to Ireland. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 242 is a proposed decision on the convention for the strengthening of the Inter-American Tropical Tuna Commission. I understand Spain is currently a member and has fishing vessels operating in this area. Following a change in the rules of the IATTC, it is possible for the European Commission to become a member of the organisation. The proposal seeks approval for this. Spain's membership is temporary and will cease on the Community's accession. The departmental note underlines that the proposed measure "has no implications" for Ireland. It is proposed that it be noted. Is that agreed? Agreed.

COM (2004) 258 is a proposed decision on a protocol to the agreement on co-operation and customs union between the European Union and San Marino regarding the participation, as contracting parties, of the accession states. It is proposed to note this. Is that agreed? Agreed.

COM (2004) 275 is a proposed decision on the principles, priorities and conditions contained in the European partnership with Croatia. The departmental note outlines that Croatia is expected to respond to the European partnership by preparing a timetabled plan on how it proposes to implement the partnership. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 295 is a proposed directive amending the sixth VAT directive to take into account the accession states. Directive 1999/85/EC provides for the possibility of introducing for a limited period reduced rates of VAT on labour-intensive services. In February this facility was extended for the member states until 31 December 2005. This proposal seeks to extend the facility to the new member states. I understand the services covered by the facility include the repair of bicycles, shoes and leather goods and window cleaning. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed. I am sure all VAT-registered window cleaners will be very interested in this.

SEC (2004) 593 is the preliminary draft amending budget No. 7 for 2004. This technical proposal takes account of the budgetary surplus for 2003 which, as the departmental note outlines, becomes revenue for the 2004 budget. This revenue reduces the contribution for member states. In the case of Ireland, the Department indicates that this amounts to €65 million. It is proposed that while the proposal does not warrant further scrutiny, it should be forwarded to the Joint Committee on Finance and the Public Service for its information. Members also received an additional note this morning which will also be sent to that committee. Is that agreed? Agreed.

To sum up, it has been proposed that items 1.1 to 1.12, inclusive, do not warrant further scrutiny and should be forwarded for information to sectoral committees as agreed, except COM (2004) 217, which has been adopted and noted by the sub-committee. The next proposals are contained in the documents which it is proposed to refer to sectoral committees for further scrutiny.

COM (2004) 224 relates to fishing opportunities and associated conditions for certain fish stocks which are, I understand, set out in Council Regulation (EC) No. 2287/2003. The European Commission's memorandum to this proposal indicates that the measure requires amendment to take account of a number of changes in international agreements or undertakings and the accession of the new member states. The Department's note, at point 14, highlights that the change to the regulation concerning fishing gear would result in further restrictions on fishing effort. The note also sets out that Ireland has questioned the need to include a new fishing gear category which has no impact on cod stocks. The Department informed us last night that this document had been adopted. We need a memorandum containing an explanation from it. While we have received a note, we need an explanation from it as to the reason this did not come to us in a timely fashion.

Deputy Carey

The Department's note, which is dated 13 May states: "This will be discussed at an internal working group over the next few weeks with a view to adoption by the end of May in order to allow fishermen to plan their fishing activities". This is the kind of departmental activity that brings the scrutiny process into disrepute or has the potential to do so.

Chairman

We will communicate that point strongly to the Department. If its response is not strong enough, we will ask the Secretary General to come along to explain himself. This legislative process is not optional. Public servants are required to comply with the law laid down by the Legislature. We will seek a written explanation and if it is not satisfactory, we will ask the Secretary General to come here to explain himself. Is that agreed? Agreed.

COM (2004) 227 is a proposed directive on the general arrangements for products subject to excise duty and the holding, movement and monitoring of such products. Council Directive 92/12/EEC, which sets out the regulations governing the application of excise duty across the European Union gives indicative levels for determining whether the goods being brought into a member state are for personal use. Examples of such levels are 800 items of cigarettes and 110 litres of beer. The regulations also state goods for personal use should be transported by the personal buyer.

The proposal before the sub-committee seeks to remove the indicative limits and allow for transfers across member states to be arranged for the personal buyer. I understand such an amendment could assist in undermining the existing tax base of certain member states. Tobacco is not covered by the proposed amendment on health grounds. It does not seem that similar consideration has been given to the implications of the proposal for levels of alcohol consumption. The European Commission argues in the memorandum to the proposal that the proposal is needed to "enable members of the public to buy excisable products on the domestic market of one Member State and then take them to another Member State without having to pay more excise duty". I understand the Department has indicated that the proposal, which would be adopted on the basis of unanimity, is at the early stages of consideration.

This is an important proposal which the Department considers to be of "major significance" for this country. I propose that it be referred to the Joint Committee on Finance and the Public Service for further scrutiny. If the proposal goes ahead, citizens could make orders on the Internet, perhaps for everyone on their street. This would undermine the basis of tax collection in this jurisdiction.

Deputy Mulcahy

I agree to refer the proposal to the Joint Committee on Finance and the Public Service. The matter is linked to the ongoing discussions on whether taxation should remain an issue of sovereign power in the proposed EU constitution. While it is essentially an excise matter, it is also a revenue-generating measure for a nation-state. I wonder if we should attach a note. Should someone examine whether this measure would breach the national veto on fiscal measures?

Chairman

Such a breach would be possible only if all member states agreed to the proposal. It is difficult to foresee that such unanimity will be achieved.

Deputy Carey

Do we know from where the pressure to introduce this change is coming? I realise the proposal was initiated by the European Commission but is an industry or consumer lobby behind it?

Chairman

I understand the European Commission is making the case for the proposal on the basis of the rights of individuals, rather than as a consequence of lobbying by any group. The proposal seeks to give the Commission initiatives more appropriate to member states. The unanimity issue is central to this. I do not envisage that unanimous agreement will be reached on the proposal in its present format. I propose that it be examined by the Joint Committee on Finance and the Public Service because it is of major significance. Is that agreed? Agreed.

COM (2004) 314 is a proposed amended regulation on the application of social security schemes to employed persons, self-employed persons and members of their families moving within the Community. Council Regulation 1408/71 was introduced in 1971 as part of EU measures to facilitate the free movement of persons within the Community. The regulation sets out the aspects of the social security system of a member state transferable across the Community. Some 12 social security benefits or payments are listed in the annex to the regulation as non-transferable or "non-exportable" from Ireland. The allowances in question are unemployment assistance, old age and blind pensions, widow's pension, disability allowance, one-parent family payment, carer's allowance, family income supplement, mobility allowance, infectious diseases maintenance allowance, domiciliary care allowance, blind welfare allowance and disabled person's rehabilitation allowance. Each member state has included specific benefits on the "non-export" list.

The proposal was considered by the sub-committee on 9 September last and referred for further scrutiny. It originally involved the removal of all but the first four of the allowances from the list of "non-exportable" benefits. The amendment to the proposal seeks to restore mobility allowance to the list. It seems likely that a proposal may be made soon to restore the infectious diseases maintenance allowance. I understand the Department has indicated that further amendments to the original proposal are possible and may be presented in the months ahead. It is proposed to refer the proposal to the Joint Committee on Social and Family Affairs for further scrutiny. It is also recommended that the measure be forwarded for information to the Joint Committee on Health and Children as a number of the benefits referred to in the proposal fall within the remit of the Department of Health and Children. Is that agreed?

Deputy Carey

I made an attempt last night to understand this matter. Is the proposal a limiting and restricting measure, or is the opposite the case? I refer to one's entitlement to receive in a member state the entitlements available to recipients in another member state.

Chairman

The proposal does not affect one's entitlement. It affects one's right to bring the allowance abroad. In this case——

Deputy Carey

I refer to the case of a person who changes his or her residence from one state to another.

Chairman

One can bring unemployment benefit abroad. If the proposal is accepted, one will be able to bring other allowances abroad. The full list is not complete.

Deputy Carey

It is not curtailing the number of entitlements but extending it.

Chairman

There might be a fear that people who come here will qualify for a benefit and then bring it abroad with them, back to where they came from. The original report which we considered on 9 September last sought the removal of all but the first four from the list of non-exportable benefits. The proposal we considered at the time stated unemployment assistance, old age and blind pensions, widow's pension and disability allowance could not be brought abroad from Ireland. The proposal now before the committee states mobility allowance will not be allowed to be brought abroad. It is likely that it will be proposed that the infectious diseases maintenance allowance should not be brought abroad. It is clear that it may not be desirable for persons to travel to other countries with an infectious disease. The other allowances on the list I mentioned — one-parent family payment, carer's allowance, family income supplement, domiciliary care allowance, blind welfare allowance and disabled person's rehabilitation allowance — will be exportable, or capable of being brought abroad, if this proposal is accepted and approved. A person who qualifies for such allowances here and then goes to Brussels, for example, will be able to bring them with him or her.

Senator Dardis

It depends on whether one is fortunate enough to go to Brussels.

Chairman

Or unfortunate enough, as the case may be. Is it agreed that the measure be forwarded for examination to the Joint Committee on Social and Family Affairs? Agreed.

We now proceed to items 3.1 to 3.18 and 3.29 which were adopted prior to scrutiny. We will deal with items 3.20 to 3.28 separately. There is no item 3.19, the reference to which is a typographical error.

Item 3.1 is a proposed regulation to amend regulation 2888/2000 in the field of transport by reason of the accession of the new member states. It is proposed to note this. Is that agreed? Agreed.

COM (2004) 184 is a proposed regulation to amend regulation 2327/2003 in the field of transport by reason of the accession of the new member states. It involves Community authorisation for access to Austria by trucks. It is proposed to note the proposal. Is that agreed? Agreed.

Item 3.3 is COM (2004) 187, a proposed regulation to amend regulation 685/2003 in the field of transport by reason of the accession of the new member states. Is that agreed? Agreed.

Item 3.4 is COM (2004) 190, a proposed decision on an agreement between the European Community and the USA on the processing and transfer of passenger name records — PNR — data by air carriers to the United States Department of Homeland Security's bureau of customs and border protection. This proposal was considered at some length by the sub-committee at its last meeting. The European Commission chose a procedure under which, while the European Parliament is consulted on the agreement, its assent is not necessary. The proposed measure is based on a reciprocity provision and has a time limit of three and a half years. Criminal penalties could apply to employees of the USA for unauthorised disclosure of PNR information. It is proposed that the measure be noted and that the Department be requested to keep the sub-committee up to date.

Deputy Mulcahy

As I understand it, this decision has already been made. Is that correct?

Chairman

Yes.

Deputy Mulcahy

When was it made?

Chairman

It was made at the last meeting of the General Affairs and External Relations Council on 17 May. The issue was raised by the joint committee with the Minister of State prior to that meeting.

Deputy Mulcahy

While the European Parliament did not express an opinion on the proposed measure, it referred it to the civil liberties committee.

Chairman

And the court.

Deputy Mulcahy

Did the court come back with an opinion?

Chairman

No. That is one of the reasons we are asking the Department to keep us informed. The note on the proposal indicates that the European Commission chose a procedure under which the European Parliament is consulted but does not need to give its assent. It is possible for this to be processed without the scrutiny of the Parliament.

Deputy Mulcahy

This is of major interest, if not concern, to the people. It would do no harm to tell the Joint Committee on Justice, Equality, Defence and Women's Rights that this decision has been taken to allow it to debate the matter, if necessary, and inform the public of its operation and ramifications.

Chairman

We will refer the matter to that committee for its information and indicate that we have asked that the Joint Committee on European Affairs be kept informed of developments. We may wish to raise the matter with the Minister at a pre-General Affairs and External Relations Council meeting.

Deputy Carey

I will be brief as this matter has been discussed on a number of occasions, both here and elsewhere. I am concerned and would like to hear the view of the Data Protection Commissioner on the collection of this data. In the light of discussions on other matters today, data collected for one purpose might well be used for another. Can we be provided with an assurance that our data protection legislation will not be breached by this provision?

Chairman

I understand the Office of the Data Protection Commissioner is represented at committee 29, which was consulted on this measure. It might be interesting to hear the views of the commissioner directly. Perhaps we will ask for a note from him in the first instance. Is that agreed? Agreed.

COM (2004) 195 is a proposed regulation to impose definitive anti-dumping duty and collect definitively the provisional duty imposed on imports of certain malleable cast-iron tube or pipe fittings originating in Brazil, the Czech Republic, Japan, the People's Republic of China, the Republic of Korea and Thailand. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 213 is a proposed regulation to extend the definitive anti-dumping duty on imports of steel ropes and cables originating, inter alia, in the Ukraine to imports of steel ropes and cables consigned from Moldova. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 231 is a proposed regulation to impose definitive anti-dumping duty on imports of television camera systems originating in Japan. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 236 is a proposed regulation to impose definitive anti-dumping duty and collects definitively the provisional anti-dumping duty imposed on imports of silicon originating in Russia. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 243 is a proposed directive on the possibility for certain member states to apply transitional periods for the application of a common system of taxation applicable to the interest and royalty payments made between associated companies of different member states. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 276 is a proposed regulation to impose definitive anti-dumping duty on imports of ammonium nitrate originating in Russia. It also imposes definitive anti-dumping duty and collect definitively the provisional duty imposed on imports of ammonium nitrate originating in Poland and the Ukraine and terminates the anti-dumping proceedings in respect of imports originating in Lithuania.

Deputy Carey

How can the European Union impose anti-dumping duty on its own members?

Chairman

It is terminating the duty in the case of Lithuania. The duties remained in place until 1 May. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 277 is a proposed regulation to impose definitive anti-dumping duty on imports of certain aluminium foil originating in China and Russia. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 278 is a proposed regulation to impose definitive anti-dumping duty on imports of silicone carbide originating in China, Russia and the Ukraine. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 280 is a proposed regulation to impose definitive anti-dumping duty on imports of colour television receivers originating in China, Korea, Malaysia and Thailand and terminate the proceedings on imports of same originating in Singapore. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 281 is a proposed regulation to impose definitive anti-dumping duty on imports of potassium chloride originating in Belarus, Russia and the Ukraine. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 282 is a proposed regulation to impose definitive anti-dumping duty on imports of certain grain-oriented electrical sheets originating in Russia.

Deputy Carey

I am fascinated to know what grain-oriented electrical sheets are. The Chairman needs a table quiz book.

Chairman

We know they are used in transformers, whatever that means.

COM (2004) 283 is a proposed regulation on imports of coke or coal in pieces with a diameter of more than 80 mm originating in China and which terminates the interim review of the anti-dumping measures imposed thereby. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 284 is a proposed regulation to impose definitive anti-dumping duty on imports of certain grain-oriented products originating in Russia. It is proposed to note this measure. Is that agreed? Agreed.

COM (2004) 332 is an opinion of the European Commission on the European Parliament's amendments to the Council's common position on the proposal for a regulation on the co-ordination of social security schemes. The measure contains two minor amendments to a proposal previously considered by the sub-committee. It is proposed to note this measure. Is that agreed? Agreed.

It is now proposed to proceed to item 3.29 and take items 3.22 to 3.28, inclusive, later, as discussed. Item 3.29 is COM (2004) 169, a proposed decision on a Community position within the EU-Mexico joint council concerning the liberalisation of the tariff treatment of certain products. We have been told that this has no implications for Ireland. It is proposed to note this measure. Is that agreed? Agreed.

Items 4.1 to 4.6, inclusive, are Title IV measures. Item 4.1 is a Common Foreign and Security Policy measure, CFSP (2004) 293. This is a Council common position to renew measures in support of the effective implementation of the mandate of the International Criminal Tribunal for the Former Yugoslavia. It is proposed to note this measure. Is that agreed? Agreed.

Item 4.2, a Common Foreign and Security Policy issue, is Council Common Position CFSP (2004) 309 on the application of specific measures to combat terrorism. The common position updates the list of names annexed to the original anti-terrorist measure. The sub-committee previously considered the amended list, CFSP (2003) 906, at its meeting on 22 January 2004 when it noted the amendment to the original measure. With regard to the persons, groups and entities listed, member states afford to each other the widest possible assistance in preventing and combating terrorist acts. The common position adds the National Liberation Front of Colombia to the list. It is proposed to note the amended measure. Is that agreed? Agreed.

Item 4.3 is CFSP (2004) 423, a Council common position to renew measures against Burma-Myanmar. The common position on Burma relates, inter alia, to a visa ban, an asset freeze on leading figures of the regime and restrictions on high level contact with the regime. It is proposed to note this measure. Is that agreed? Agreed.

Item 4.4 is CFSP (2004) 494, a joint action on EU support for the establishment of the integrated police unit in the Democratic Republic of Congo. It is proposed to note this measure. Is that agreed? Agreed.

Item 4.5 is CFSP (2004) 493, a Council common position concerning the temporary reception by member states of the European Union of certain Palestinians. Following the ending of the siege of the Church of the Nativity in 2002, a number of Palestinians were received in the European Union by member states, two of whom, Mr. Jihad Youssef Jaara and Mr. Rami Kamel Eid Kamel, came to Ireland. The common position provides for an additional six months for the national permits for the people concerned. It is proposed to note this measure. Is that agreed? Agreed.

Item 4.6 is CFSP (2004) 495, a joint Council action on support for the IAEA activities under its nuclear security programme and in the framework of the implementation of the EU strategy against the proliferation of weapons of mass destruction. The Thessaloníki European Council endorsed the declaration on the non-proliferation of weapons of mass destruction. The EU strategy on weapons of mass destruction followed from the declaration and foresees the release of financial resources to support specific projects conducted by multilateral institutions. This joint action provides for financial assistance for projects operated by the International Atomic Energy Agency in, inter alia, the strengthening of states’ capabilities for detection and response to illicit trafficking. The financial assistance will amount to €3,329,000. It is proposed to note this measure. Is that agreed? Agreed.

Deputy Mulcahy

We might note that today the Israeli Government has rearrested the nuclear whistleblower, Mr. Vanunu. This action should not go unnoticed. Mr. Vanunu told the world about serious developments in Israel.

Chairman

Okay.

Item 5 refers to additional items. These proposals, a number of which have been adopted, relate to a technical procedure to take account of the accession of the ten new member states. This is achieved through protocols to the international agreements concerned. A departmental note regrets that nine of the 16 proposals, Nos. 252, 266, 269, 270, 271, 300, 303 and 306, were adopted before their presentation to the Oireachtas for scrutiny. The note also states they are purely technical in nature and that the amendments to take account of the new member states do not, in any way, affect the scope of the agreements.

The proposals not yet adopted are items 1.13 to 1.20, inclusive, relating to the conclusion of the amended agreements with the following countries: the Ukraine, COM (2004) 251; Azerbaijan, COM (2004) 267; Georgia, COM (2004) 268; Uzbekistan, COM (2004) 272; the Russian Federation, COM (2004) 292; Moldova, COM (2004) 302; Kyrgyzstan, COM (2004) 305; and Kazakhstan, COM (2004) 307.

The adopted proposals are items 3.20 to 3.28, inclusive, relating to the signing and provisional application of the agreements with the following countries: the Ukraine, COM (2004) 252; Azerbaijan, COM (2004) 266; Georgia, COM (2004) 269; the United Mexican States, COM (2004) 270; Uzbekistan, COM (2004) 271; the Russian Federation, COM (2004) 291; Moldova, COM (2004) 300; Kyrgyzstan, COM (2004) 303; and Kazakhstan, COM (2004) 306. It is proposed to note the adopted measures and suggested that the others do not require further scrutiny. Is that agreed? Agreed.

The minutes of the previous meeting have been circulated. Are they agreed to? Agreed. No. 4 notes the explanatory memoranda circulated to members this morning. Is that agreed to?

Deputy Mulcahy

On the general statement of revenue surplus, it appears Ireland's contribution in 2004 will be €65 million less than anticipated. How will this be addressed? Has Ireland already paid the money? If so, will it receive a rebate or will we transfer a smaller amount?

Chairman

I understand we will deduct the sum from our contribution for this year.

Deputy Mulcahy

Will that figure show up in the Irish financial records at the end of 2004?

Chairman

Yes, our gross contribution will be shown. It will, therefore, take account of what we actually paid in. Instead of receiving a refund, we will be given a credit for €64 million plus the figure we pay for this year. The total amount will be shown in the accounts.

Deputy Mulcahy

Does this mean the Government will have an extra €65 million to spend in 2004?

Chairman

Effectively, it will mean that we will have to pay €64 million less than anticipated. No. 5 is the proposal that the next meeting of the sub-committee be held three weeks from now on 17 June to allow for the local and European elections. Is that agreed? Agreed.

Deputy Carey

I wish the Chairman the best of luck in his endeavours.

Deputy Mulcahy

But not at our expense.

The joint committee adjourned at 10.20 a.m. until Thursday, 17 June 2004.