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JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Thursday, 9 Sep 2004

Scrutiny of EU Legislative Proposals.

We will turn to the first set of proposals for consideration, documents 1.1 to 1.23 which it is proposed do not warrant further scrutiny. The secretariat also circulated an additional 12 documents, items 1.24 to 1.34 and item 3.5. It is perhaps not ideal for us to receive documents at this stage. However, by and large, these are measures which are likely to be agreed quite quickly and they have been circulated to ensure that the sub-committee has the opportunity to consider them prior to consideration at Council.

Item 1.1 is a proposed regulation concerning the administration of Community tariff quotas for certain agricultural and fishery products originating in Norway. Both this proposal and COM (2004) 434 follow from the agreement for the expansion of the European Economic Area which was considered by the sub-committee at its meeting on 11 March.

As I understand it, this proposal seeks to implement the new quotas and imports from Norway of certain fish under amending Council Regulation (EC) No. 992/95. Members will have seen that the Commission's memorandum to the proposal indicates that these quotas are based on the liberal access Norway had to the markets for fish in the new member states prior to their accession.

The Department's note indicates that this proposed measure will have significance for Irish fish processors in that competition will be greater than would have been the case if barriers had been put in place. However, the issue of fish quotas was resolved in the agreement on the expansion of the European Economic Area and, to a great extent, maintains that status quo in regard to access by Norway to the enlarged EU markets. It is proposed that this does not warrant further scrutiny but that it be sent to the Joint Committee on Communications, Marine and Natural Resources for its information. Is that agreed? Agreed.

Item 1.2, COM (2004) 434, is a proposed regulation concerning the administration of Community tariff quotas for certain fishery products and live horses originating in Iceland. Both this proposal and COM (2004) 433 follow from the agreements to the expansion of the European Economic Area which we considered on 11 March. The proposal seeks to amend the regulations setting tariff quotas on the imports of certain fishery products and live horses from Iceland but, in this instance, relates only to the fishery products. The Department has indicated that it is of minor significance to Ireland. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

I presume the horses would be used in the Winter Olympics.

Item 1.3, COM (2004) 441, is a proposed decision amending the regulation on the entry of pets to take account of the accession of Malta. Regulation (EC) 998/2003 provides for the freer movement of certain species of pets where it can be demonstrated that the pet has received certain anti-rabies vaccinations and-or has entered from certain countries. Given their rabies free status, Ireland, Sweden and Great Britain were granted a five year transition period for the introduction of these measures and they may maintain additional procedures in place until the end of that period. Malta, which has a similar status to those three states, will be granted the same five year transitional period under this proposed measure. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.4, COM (2004) 451, is a proposed regulation on the European Agency for Reconstruction. The European Agency for Reconstruction is responsible for the management of the main EU assistance programmes in the Republic of Serbia, the Republic of Montenegro, UN administered Kosovo and the former Yugoslav Republic of Macedonia. I understand that since 2000 the agency has managed a cumulative total of about €2.3 billion of EU taxpayers' money. The agency's projects are designed to support the region's own reform processes and especially to help strengthen the state machinery of central and local administration, the police, the judiciary, public finances and state utility providers. It is proposed that this does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.5, COM (2004) 456, relates to a proposed decision, for which approval is sought, on the signature and conclusion of a co-operation agreement with the principality of Andorra that covers a number of areas including education and transport. The significant issues of savings tax and monetary affairs have been left outside the scope of the agreement. It would build on the existing customs union between the European Union and Andorra and, inter alia, provides for the development of cultural exchanges and projects of common interest in the area of transport. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.6, COM (2004) 462, relates to a proposed decision on renewal of the membership of the European Social Fund committee. This proposal seeks to appoint a new committee following the recent enlargement. The note from the Department indicates the members from Ireland have been nominated following consultation with IBEC and ICTU. The nominated members include civil servants, employers and representatives of the trade union movement. A list of members has been provided. It is proposed that this does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.7, COM (2004) 464, relates to a proposed decision on the signing of the agreement on scientific co-operation between the European Union and Egypt. This proposal follows from the Euro-Mediterranean agreement with Egypt signed in 2001 and the goal of promoting socio-economic progress throughout the Euro-Mediterranean region. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.8, COM (2004) 465, is a proposed regulation establishing an instrument of financial support to encourage the economic development of the Turkish Cypriot community. Members will be aware that at the previous meeting of the committee, proposal SEC/2004/910 was discussed, which proposed a package of support measures for the Turkish community in Cyprus for the period 2004-06. This proposal seeks to establish a legal basis for that programme of support. It is proposed that it does not require further scrutiny as a separate proposal, but that it be forwarded to the Joint Committee on European Affairs for its information in the context of that committee's consideration of the 2005 budget. The last document was also sent to it. Is that agreed? Agreed.

Item 1.9, COM (2004) 466, is a proposed regulation on special conditions for trade with those areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control. It is proposed that it does not warrant further scrutiny, but that it be forwarded to the Joint Committee on European Affairs for its information in the context of the general situation in Cyprus. Is that agreed? Agreed.

Item 1.10, COM (2004) 473, is a proposed directive on a Community air traffic controller licence. This proposal is presented as a package and seeks to establish European standards for air traffic controller licences in the European Union. The training of air traffic controllers in Ireland comes under the auspices of the Irish Aviation Authority and the Department's note outlines that this training takes place to the highest standards and that, therefore, compliance with the directive is not expected to cause particular difficulty. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

How many air traffic controllers do we have in Ireland and where are they trained?

They train in Shannon. We do not know the number but we can get it if the Deputy wishes.

Item 1.11, COM (2004) 489, is a proposed regulation on the financing of the Common Agricultural Policy. The Department's note outlines that the proposal should not result in major changes to the current provisions. The stated aim of the proposal is to simplify and make more transparent Community legislation establishing the legal framework of the financing of the CAP. It would introduce common financial arrangements for the two funds that would replace the European Agricultural Guidance and Guarantee Fund. These two funds, the European Agricultural Fund and the European Agriculture Fund for Rural Development would, respectively, fund support measures and rural development. It is proposed that it does not warrant further scrutiny, but that the proposed measure be forwarded to the Joint Committee on Agriculture and Food for its information. Is that agreed? Agreed.

Item 1.12, COM (2004) 512, is a proposed decision regarding the extension of the Community action programme in the field of civil protection. This proposal seeks an extension of two years to the life of the Community action programme in the field of civil protection. The programme is intended to support and supplement the efforts of member states in the area of responses to natural and technological disasters. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

I will deal with items 1.13 and 1.14 at a later stage when we are dealing with item 1.20; we will take the three together.

Item 1.15, COM (2004) 528, is a proposed regulation establishing a catch documentation scheme for tooth fish. In 1999, the Commission on the Conservation of Antarctic Marine Living Resources, CCAMLR, adopted a scheme to monitor the trade in tooth fish. The Department's note indicates that Irish vessels do not operate in the CCAMLR area and "as a result the proposal does not have any implications for Ireland". There is a nice photograph of a tooth fish on the documentation supplied. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

Items 1.16 and 1.17 are to be taken together. They concern the proposed decision on the signing and provisional application of the fishing agreement between the European Union and the Federal Islamic Republic of the Comoros and also the proposed regulation on the conclusion of the same agreement. These two proposals seek approval for the conclusion and the provisional application of the agreement between the Community and Comoros for an extension of the existing agreement on fishing opportunities off the islands up to December 2004. The Department's note indicates that the proposals hold no implications for Ireland as Irish vessels do not operate in the area. It is proposed that they do not warrant further scrutiny. Is that agreed? Agreed.

Item 1.18 is a proposed regulation concerning fishing opportunities in Greenland waters. In December 2003 the committee referred COM (2003) 609 on the fisheries protocol with Greenland to the Joint Committee on Communications, Marine and Natural Resources. This proposal reflects the modified total allowable catch, TAC, and quotas for the period 2004 to 2006, agreed in July. The Department's note indicates that Ireland secured a quota of 125 tonnes of snowcrab in Greenlandic waters and that licences for two Irish vessels have been procured in this regard. It is proposed that it does not warrant further scrutiny, but that it be sent to the Joint Committee on Communications, Marine and Natural Resources for further information. Is that agreed? Agreed.

Item 1.19, COM (2004) 555, is the proposed regulation concerning the number of days at sea for vessels fishing for haddock in the North Sea and the use of bottom trawls in waters around the Azores, the Canary Islands and Madeira. The Department's note indicates that this does not have significance for Irish vessels. It is proposed, therefore, that it does not warrant further scrutiny. Is that agreed? Agreed.

As I stated, it is proposed to take the following three proposals together: item 1.14, COM (2004) 521; item 1.20, COM (2004) 556; and item 1.33, COM (2004) 520. They seek to conclude and implement a partnership and trade agreement between the European Union and Tajikistan that aims to consolidate and strengthen the Union's role in that country and the wider region. The agreement includes clauses on action against terrorism and weapons of mass destruction. Provision is also made for its unilateral suspension if an essential element such as respect for democracy is violated. It is proposed that these three items do not warrant further scrutiny. Is that agreed? Agreed.

Can we send the Chairman to inspect the situation in the region?

The Chairman is doing too much travelling as it is. The Federal Islamic Republic of the Comoros would be a better proposal.

I would say it is more attractive.

Item 1.21 concerns COM (2004) 558. The proposal which is technical in nature concerns a regulation establishing certain concessions for the Swiss Confederation in the form of Community tariffs for certain processed agricultural products. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.22, COM (2004) 566, concerns a proposed decision on the Community position on the adaptation, following enlargement of the European Union, of Annexes 1 and 2 to the agreement between the Community and the Swiss Confederation on trade in agricultural products. The note indicates that the Department of Agriculture and Food has been consulted and that the proposal holds no implications for Ireland. It is proposed, therefore, that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.23 concerns SEC (2004) 1018, the preliminary draft amending budget No. 10 for 2004. The memorandum for this proposal sets out the process to date in the establishment and operation of the European Data Protection Office. The budget for its operation in 2004 was based on outline estimates. According to the Commission's proposal, this needs to be amended in response to a request from the Office of the Data Commissioner for additional resources. I understand that at the time the initial estimates were agreed it had been anticipated that the Data Commissioner would actually be seeking additional resources. This would be particularly the case if the operations of the office had advanced as much as they have. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.24, COM (2004) 463, is a proposed regulation on common rules for imports of certain textile products from third countries. The committee has on a number of occasions since the recent enlargement of the European Union considered a number of proposals that have sought to change the quantitative restrictions in place to take account of the enlarged market. This proposal adjusts the limits in place on imports of textiles from Vietnam, which adjustments are based on an average of the trade flows in the years 2000 to 2002. The Department's note indicates that the adoption of the proposal would result in no difficulties for Ireland. It is proposed, therefore, that it does not warrant further scrutiny. Is that agreed? Agreed.

It is proposed that the following two proposals be taken together: item 1.25, COM (2004) 482, and item 1.26, COM (2004) 483. They concern the conclusion of an agreement with the Republic of Moldova on the establishment of a system for double-checking documentation concerning trade in steel products and the administrative procedures of this system. Members will see that the Department's note indicates that its consultation process has resulted in its concluding that the adoption of the proposal would hold no difficulties for Ireland. It is proposed, therefore, that they do not warrant further scrutiny. Is that agreed? Agreed.

The next two items, COM (2004) 510 and COM (2004) 511, are also related. It is proposed that they be taken together. They concern amendments to the agreements with Romania and Bulgaria and take account of recent institutional developments such as EMU and the expiry of the European Coal and Steel Community and include additional trade liberalisation measures. It is proposed that they do not warrant further scrutiny. Is that agreed? Agreed.

Item 1.29, COM (2004) 513, concerns a proposed regulation on administering certain restrictions on imports of certain steel products from the Republic of Kazakhstan. The Department's note indicates that its consultation process has resulted in its concluding that the adoption of the proposal would hold no difficulties for Ireland. It is proposed, therefore, that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.30, COM (2004) 514, also concerns the conclusion of an agreement with Kazakhstan on trade in certain steel products. The Department has indicated that its consultation process has resulted in its concluding that the adoption of the proposal would hold no difficulties for Ireland. It is proposed, therefore, that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.31, COM (2004) 522, concerns a proposed decision on the conclusion of an agreement with the Kingdom of Norway on Protocol 2 to the bilateral free trade agreement between the European Union and the Kingdom of Norway. The Department's note indicates that the Departments of Agriculture and Food and Health and Children have been consulted and that the adoption of the proposal would hold no implications for Ireland. It is proposed, therefore, that it does not warrant further scrutiny. Is that agreed? Agreed.

Item 1.32, COM (2004) 548, is a recommendation for a Council decision on the opening of negotiations on an agreement concerning monetary relations with the principality of Andorra. This recommendation from the Commission that the Council should decide to open negotiations with Andorra follows that country's intention to apply the provisions of Directive 2003/48/EC on the application of taxation on savings. The directive was most recently considered by the committee at its meeting on 22 July this year and provides for the savings income of non-residents to be subject to effective taxation through the sharing of information or the application of a withholding tax. The negotiations will primarily concern the conditions for the issuing of euro coins by Andorra — as a quid pro quo, I presume. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

I understand the issuing of euro coins by small states such as Andorra, the Vatican, Liechtenstein and Monaco is quite a lucrative business.

Where is the money?

They sell them as sets.

It is proposed that item 1.33, COM (2004) 570, and item 1.34, COM (2004) 571, be taken together. Provisional duties were put in place on the importation from India of graphite electrode systems used in the steel industry. These proposals follow from the Commission's investigation into the market and would impose anti-dumping and anti-subsidy duties on the product concerned. The Department's note reports that its consultation process indicates that the adoption of the proposals would result in no difficulties for Ireland. It is proposed, therefore, that they do not warrant further scrutiny. Is that agreed? Agreed.

To sum up, it was proposed that items 1.1 to 1.34, inclusive, do not warrant further scrutiny and should be forwarded for information to sectoral committees, as agreed.

The next set of proposals comprises the documents which it is proposed to refer to sectoral committees for further scrutiny. COM (2004) 468 is an amended proposed directive concerning value added tax on services provided in the postal sector. Members may recall that the committee considered this matter in June 2003 when it scrutinised COM (2003) 234 which proposed the introduction of VAT on public postal services. That proposed measure, the Commission contended, was required to address the distortions in the postal market arising from the absence of VAT on services provided by public postal services.

As the Department's note underlines, the introduction of VAT on public postal services would have negative financial implications for voluntary bodies and organisations not in a position to reclaim VAT. I understand a number of these have made their views known to the Department. Following an opinion of the European Parliament, the Commission is presenting this amended proposal on imposing VAT on public postal services. The amended text provides that all items in excess of 10 kg would be taxed in the country of departure at the standard rate or a reduced rate of VAT. The original proposal has set this limit at 2 kg. Any decision on this proposal will be made by unanimity. However, the Department's note indicates that it remains opposed to this proposal.

The committee determined in June 2003 to refer the original proposal to the Oireachtas Joint Committee on Communications, Marine and Natural Resources for further scrutiny and forwarded it to the Oireachtas Joint Committees on Finance and the Public Service and Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs for their information. It is proposed that the amended text also be forwarded to these committees for their information and referred to the Oireachtas Joint Committee on Communications, Marine and Natural Resources for detailed scrutiny. Is that agreed?

Does the Department intend to establish the views of the Revenue Commissioners on this matter? I presume they are assimilated into the Department's note since I have not had a chance to go through it in detail.

The Revenue Commissioners were consulted. The note does not state what their views are but the Department itself remains opposed. Given that it is Government policy, I presume the Revenue Commissioners have to follow it since they only implement such policy.

What rate of VAT is proposed? How much will the additional charge be on an ordinary letter arising from the adoption of this proposal?

We do not know what the figure will be but I will look it up in the briefing notes. The proposal is for a standard rate of 21% or a reduced rate to be agreed unanimously by the Council.

That would involve an additional charge of more than one fifth.

It would. The difficulty arises for voluntary organisations, for example, which are not registered for VAT. Business entities which are registered for VAT offset input VAT against output VAT. Therefore, there is no cost to the business — the cost is to the consumer. However, when a voluntary organisation, for example, an NGO, sends documents abroad, it cannot reclaim VAT if it is not registered. In those circumstances, such an organisation would bear the cost.

That would be the case for a political party.

It would, not that we would send much abroad.

Is that the position in respect of sending material abroad only?

The proposal states that the VAT would be charged in the country of departure. Therefore, the charge would not only apply to material sent abroad, but also to internal post.

Essentially, internal postal costs will rise more than one fifth as a consequence of the adoption of this regulation.

If the reduced rate was introduced, that would be the case. It would have implications for the consumer and for companies or entities not registered for VAT. It clearly has serious implications.

This matter was also previously referred to the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs and, in view of the fact that the Government has published a charities Bill, would it be appropriate for us to consider referring the matter to that Department too? There are suggestions in respect of registration of charities and so on.

If the committee agrees on the proposal, it would be sent to that committee among others for consideration. However, the Joint Committee on Communications, Marine and Natural Resources would carry out the detailed scrutiny. Is that agreed? Agreed. The proposal will be sent for further detailed scrutiny and information to the other committees.

COM (2004) 475 is a proposed regulation determining the general rules for the granting of Community financial aid in the fields of the trans-European transport networks, TENS, and energy. Members will recall that the committee has on a number of occasions considered proposals similar to the one presented here by the Commission. On previous occasions, it had been indicated that opposition had been expressed at the level of working groups to the proposals to increase the percentage of community support for trans-European network projects. The Department's note suggests that a similar situation will arise with the current proposal. On this occasion, the Commission proposes that the percentage rates of assistance increase from their current level of 10% to 15%, 20%, 30% and 50%. The proposal also includes provision for the establishment of a mechanism for encouraging private sector participation in TENS.

To date, financial support for TENS in Ireland has been limited and the earlier proposals have been forwarded for information. However, I understand that interest in this scheme is likely to increase in Ireland in the years ahead as the roles of Structural and Cohesion Funds change. It is proposed that this proposal be referred to the Oireachtas Joint Committee on Transport for further scrutiny.

Essentially, if this was adopted and Ireland's qualification for Structural and Cohesion Funds ran out or decreased, it might be more attractive for Ireland to apply for funds under TENS because of the increased levels. However, the measure is, in the main, opposed by the net contributing countries such as Germany and the Netherlands.

Is there a relationship between the differential rates referred to in this proposal and Objective One and Objective One in transition status designations under the national development plan? In other words, I presume the rate we attract for infrastructural projects under our regional status has no bearing on this proposal. Is it a separate issue?

I will have to check. I will circulate a note on the matter. The application of TENS was very limited in Ireland up to now because of the situation in regard to Structural Funds. Is it agreed to refer the proposal to the Joint Committee on Transport for detailed examination? Agreed.

COM (2004) 490 is a proposed regulation on support of rural development by the European Agricultural Fund. The Commission in its memorandum to this proposal sets out that rural development will be the next major focus for policy reform in the new financial period. Members will have seen that it notes that particular challenges need to addressed in the economic and social life of rural areas and that it underlines its view that agriculture and forestry should make a positive contribution to the countryside. The Commission also contends that the large number of programmes, financial management and control systems have considerably increased the administrative burden and decreased the coherence, transparency and visibility of rural development policy.

It proposes that this situation should be addressed through bringing rural development under a single funding and programming framework. The first step in this programming will be the preparation of a strategy document setting out priorities in three policy areas. These are competitiveness — to which a minimum funding level of 15% would be allocated which would phase out a number of programmes in the new member states relating to human and physical capital; wider rural development — under which a minimum level of funding of 15% would be targeted at sub-regional entities; and land management — where a minimum of 25% of funding would be allocated and there would be an emphasis on capacity to produce rather than socio-economic data. In addition, a minimum of 7% of funding would be allocated to the Leader programme. The proposed measure suggests that stakeholder consultation at national level should occur with regard to the design, implementation and evaluation of national programmes.

The Department, in its note, categorises the proposal as of major significance, particularly for the allocation of rural development funding. It also welcomes the general approach of the proposed measure but notes that more detailed information will be required on the allocation criteria and that the amounts concerned will emerge only following negotiations on the financial framework for 2007-13. It is proposed that it should be referred to the Joint Committee on Agriculture and Food for further scrutiny and forwarded to the Joint Committee for Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs for its information. Is that agreed? Agreed.

COM (2004) 499 is a communication from the Commission to the Council and the European Parliament regarding a sustainable agricultural model for Europe through the reformed CAP sugar sector reform. Members will have seen that this document is merely one from the Commission for the consideration of the other European institutions and is not a legislative proposal. However, if the Commission was to present this as a proposal and it was adopted, the resulting measure would have serious implications for the 3,800 producers and for approximately 1,000 people in associated employment in Ireland. These figures were provided by the Department. It is, therefore, not surprising that the Department classifies the document as of major significance.

The Commission's communication argues that the sugar sector has remained unreformed for four decades and that the European Union's sugar policy is in danger of becoming an anomaly. It also points out that the market for sugar will see greater competition and presumably price pressure when the market increasingly opens to producers in the 49 least developed countries in the years 2006-09. The Commission's document suggests that a reduction in quotas and prices over three to four years should occur and that farmers should be compensated for 60% of their loss of revenue. The document also suggests that the current sugar regime should be changed by mid-2005. However, I understand that producers and processors are operating on the basis of a system that had been envisaged to operate at least until mid-2006.

I note from discussions with the committee staff that this could have implications for Mallow where the recent problems at Dairygold have already had implications. Clearly there are significant regional applications for this proposal. It is proposed that the document be forwarded to the Joint Committee on Agriculture and Food for its information and appropriate action in advance of any future legislative proposal from the Commission. Is that agreed? Agreed.

I am sure the Department is keeping a close eye on this critically important issue regarding the future shape of the sugar regime. One of its potentially serious aspects is that beet could be grown anywhere in Europe, in other words, an Irish grower could decide to sell his or her entitlement to grow the beet to somebody in Poland, the Czech Republic or wherever. When the sugar company became Greencore the legislation provided for a golden share, meaning that the company could not be disposed of except by agreement of the Government, which was perfectly sensible. One could find oneself in the position of having a company but no beet to process.

This is a serious issue. Does the A quota of 180,000 tonnes still exist?

The A, B and C quotas exist.

Who holds the A quota, the country or the company?

The country rather than the company holds it.

Do the quotas for the producers result from discussions between the producers and Greencore?

They arise from discussions between the representatives, namely, the growers and the company.

Is the proposal that those producer quotas could be transferred to Estonia or somewhere else?

Yes. There is a suggestion that the grower could decide to grow his or her beet anywhere within the Union. I do not know how valid that is because I am not as familiar with this area as I was.

One could buy land in Poland and grow it there but obviously one would not transport it to Mallow.

No. The reform process for the regime has very serious implications and the Department is very concerned about it.

I concur with Senator Dardis's point. The Department elected to send this here even though it is not yet a legislative proposal. It is a very welcome development that it should alert us at an early stage.

Is it intended to keep an eye on this committee?

We will send this for scrutiny and I am sure the Joint Committee on Agriculture and Food will see the importance of it.

The committee will be aware of its significance.

Perhaps Senator Dardis knows whether it will be possible for processors here to buy in beet grown in other countries, or is it possible at the moment for them to do so?

As far as I know, it is technically possible but it is a very bulky, low value product to transport over a long distance and it does not bear transport costs very well. The sugar does but not the beet.

We will send this for scrutiny and I commend the Department for sending it at such an early date in order that the Oireachtas is aware of it.

Does the Joint Committee on Agriculture and Food report back to us?

Yes. It reports on what it has done with the proposal.

I would like to reconsider this when we receive that report.

It is to be welcomed that the Department would refer it to us.

Absolutely. I have just said that it should be commended for sending it to us.

Other Departments might learn from it.

I agree.

We now move to five proposals which were adopted prior to scrutiny. It is proposed that related proposals be taken together. A post-adoption explanatory memo has been received and circulated. COM (2004) 460 is a proposed decision concerning the conclusion of an agreement with the Russian Federation amending the agreement between the European Coal and Steel Community and the Government of the Russian Federation on trade in certain steel products. COM (2004) 459 is a proposed regulation on administering certain restrictions on imports of certain steel products from the Russian Federation.

The Department views the measures as purely technical and reports no difficulties for Ireland arising from the changes in quantitative limits for such products as coated steel sheets. The additional note from the Department also outlines that the legislation was urgently required to ensure that enlargement did not impact on trade flows. It is proposed to note these adopted measures. Is that agreed? Agreed.

COM (2004) 502 is a proposed Council regulation concerning certain specific restrictions on economic and financial relations with Iraq. The lead Department had indicated that this proposed measure was likely to be adopted shortly after its forwarding. The Council adopted it on 3 August. It is proposed that it does not warrant further scrutiny and that we note it. Is that agreed? Agreed.

COM (2004) 518 imposes definitive anti-dumping duties on imports of the product concerned from the People's Republic of China and Australia. This measure was adopted on 13 August by written procedure. The written procedure mechanism is usually used for highly technical issues where there is no Council sitting. Member states agree to its use for a proposal and then indicate if they agree to the proposal. Action against the dumping of products on European markets often requires a timely response to avoid damaging the market concerned. It is proposed to note the measure. Is that agreed? Agreed.

COM (2004) 535 imposes a definitive anti-dumping duty on imports of certain tube or pipe fittings originating from Thailand, among other places. This measure was also adopted on 13 August by written procedure. It is a highly technical issue and requires a timely response. It is proposed to note the measure. Is that agreed? Agreed.

There is just one Title IV measure, COM (2004) 437, a proposal for a Council regulation concerning the reciprocity mechanism. This proposal relates only to those member states participating in the Schengen agreement and, therefore, does not directly concern Ireland. It seeks to give a greater role to the Commission in discussions with third countries with Schengen reciprocal visa arrangements in place and which impose or maintain a visa requirement for nationals of a member state participating in that agreement. It is proposed that it be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights for information purposes. Is that agreed? Agreed.

Is there any indication of interest in joining the Schengen agreement from the United Kingdom? This would obviously affect our situation.

The indications are completely the opposite. We move on to matters to be deferred until the next meeting.

Item 5.1, COM (2004) 477, is a proposed regulation on the implementation of the deployment and commercial operating phases of the European programme of satellite radio navigation on which we are seeking more information. A number of issues are involved, including, for example, security and rights of citizens. Since the circulation of the earlier materials, the Department has outlined that Ireland's contributions are set at 1.2% of the cost of the project and that Ireland has to date directly contributed €6.6 million to its realisation. It has also indirectly contributed €1.7 million through its participation in the European Space Agency. There is, however, a guaranteed return on the European Space Agency contribution. I understand this facilitates a return on the direct contribution also. I also understand the Department has indicated that the direct financial contribution for Ireland in respect of this proposal would be about €12 million over the years 2007 to 2011. We should defer this proposal for further consideration as more information is being sought on it. Is that agreed? Agreed.

Item 5.2, COM (2004) 515, is a proposed regulation concerning the establishment of a voluntary licensing scheme for imports of timber into the European Union. Members will see that the Department indicates that it believes the adoption of the measure should have a positive impact on a similar scheme in operation for the protection of the world's most threatened timber species. It is possible, however, that the operation of the scheme, at least initially, would result in negative price changes in the timber market which would have implications, for example, for the housing market in Ireland, if substitute products were not readily available. Clarification is being sought from the Department on a number of areas in regard to the proposal. It is proposed, therefore, to defer consideration until a fuller picture is available. Is that agreed? Agreed.

Item 3 concerns the minutes of the previous meeting which have been circulated. Are they agreed? Agreed. Item 4 concerns the 32nd report of the sub-committee which has been circulated. It is proposed that it be laid before both Houses. Is that agreed? Agreed. We are required under scrutiny legislation to provide a report up to the end of December last. I am working on a draft report for the committee which I propose to circulate at its next meeting to bring all our affairs up to date before any changes are made to the sub-committee and the main committee.

Is there any other business?

Issues were raised at the last meeting, in the absence of the Chairman, regarding the format of meetings and the circulation of documents. I suggest that those issues be placed on the agenda for a future meeting.

It will be done. I propose that the next meeting of the sub-committee take place in three weeks, at 9.30 a.m. on Thursday, 30 September, to allow for the COSAC chairpersons meeting which will be attended by the Clerk and the sub-committee policy adviser. As Vice-Chairman, Deputy Haughey will lead the COSAC meeting. I do not know if other members have indicated they will attend.

The sub-committee adjourned at 12.45 p.m. until 9.30 a.m. on Thursday, 30 September 2004.

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