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JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Thursday, 30 Sep 2004

Scrutiny of EU Proposals

We will turn to the first set of proposals for consideration today, that is, documents which it is proposed should be referred to sectoral committees for further scrutiny. The first is COM (2004) 487, a Commission communication of 14 July 2004 on the future financial perspective. It is addressed to the European institutions and sets out the Commission's general thinking on the European Union's next financial perspective for the period 2007-13. Like the document considered at the previous meeting of the sub-committee on the future of the sugar market, this communication is not a legislative proposal. I understand it follows talks during the Irish Presidency that highlighted areas where further discussion would be required on the Commission's earlier indications of its views on the upcoming financial perspective.

Members will have seen that in the communication the Commission argues that the European Union's budget is relatively small and that much is expected of it. It also contends that as there is a lack of connection between the efforts of the member states across various sectors, the effectiveness of action is impeded; that there is a lack of European perspectives for larger projects undertaken by member states resulting in a waste of resources and impeding the efficiency of action; and that there is a lack of synergy between objectives and actions arising from the absence of systematic complementarity in "the different levels of action", that is, supranational, national and regional.

The Commission is suggesting that there is a need for substantial increases in expenditure in certain policy areas for the period 2007 to 2013. One argument it uses to support these increases is that it believes "a failure to match commitments to act with the necessary resources is a recipe for public disillusionment about Europe". It also gives a short outline of the areas which require further funding. These are the subject of separate proposals that will be considered by the sub-committee. At its previous meeting, it considered four of these proposals, three of which were forwarded to sectoral committees while consideration of the other, COM (2004) 477, was deferred.

I understand the related proposals are likely to advance at approximately the same pace as discussions on the financial perspective. The framework of the net contributions of member states will only emerge fully following discussions and agreement in working groups on the criteria for qualification for support in the related programmes. The agreed outline of the perspective is likely to advance towards conclusion at the end of the Dutch Presidency. However, it is possible that discussions could continue into the Luxembourg Presidency.

It is proposed that the Department be requested to keep the sub-committee informed of major developments on the proposed financial perspective with a view to determining at a later date when this issue might be considered for detailed scrutiny. It is also proposed that the communication be forwarded for information to all sectoral committees to which related proposals have been referred for further scrutiny. It is further proposed that the Department of Finance be requested to keep the sub-committee informed of progress on the related package of funding proposals. Is that agreed? Agreed

COM (2004) 469 is a proposal for a decision of the European Parliament and the Council establishing the Culture 2007 Programme, 2007-13. In the memorandum to this proposal the Commission contends that the consultation exercise it undertook as regards this proposal demonstrated "the merits and relevance of cultural action by the European Union". Members will have seen that the Commission also outlines what it sees as shortcomings in the existing cultural actions at the level of the European Union. These perceived shortcomings are outlined forcefully. It is suggested in the memorandum that the fragmented nature of the existing programmes "harms the Community's image with its citizens".

Through this proposal the Commission is seeking to address the perceived shortcomings in the existing cultural actions by consolidating all cultural actions in one programme with three strands of intervention. The programme would run for the period 2007 to 2013 and the three strands would consist of action in the following areas: supporting the transnational mobility of people working in the cultural sector, for example, through exchanges; encouraging the circulation of works of art and artistic and cultural products; and promoting intercultural dialogue. The programme would also seek to promote "European culture" and "the European dimension" of the European Capitals of Culture project. Support would also be given to European cultural co-operation organisations.

The Commission is proposing that the programme would have a budget of €408 million over the period 2007 to 2013. The Department indicates that it views the proposal as one of significance which should result in greater co-operation between member states on cultural matters and lead to "a strengthening of our common cultural heritage". It is proposed, therefore, that the proposal be forwarded to the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs for further scrutiny. Is that agreed? Agreed

COM (2004) 470 is a proposal for a decision of the European Parliament and the Council concerning the implementation of a programme of support for the European audiovisual sector, MEDIA 2007. In its communications on the next financial perspective the Commission has set out its view that there is a need to instil a greater European perspective into the programmes of the European Union. This theme runs through much of the proposed implementing measure for EU support for the European audiovisual sector in the period 2007 to 2013. For example, in justifying greater and more focused support, the Commission suggests that there is a need for a "harmonious construction of a common European identity and the political concept of European citizenship". It then outlines that the sector and the cultures in which it operates are fragmented. While it views this plurality as positive to some extent, it indicates that it believes the industry needs to overcome aspects of this fragmentation if it is to "match the high competitiveness of its American counterpart".

Three central aims are set for the proposed programme: to increase the circulation of European audiovisual works inside and outside the European Union; to strengthen the competitiveness of the European audiovisual sector; and to preserve and enhance cultural diversity and promote intercultural dialogue. In addition, the focus of the programme would be on the areas of pre-production and post-production in the audiovisual sector.

The proposed budget for the programme is €1 billion which would appear to be an increase of approximately one third on the existing programme. I understand, however, that the Department has confirmed that it is not currently possible to make a direct comparison with the existing programme as the proposed measure includes a number of innovations. It is proposed to refer the proposal to the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs for further scrutiny. Is that agreed? Agreed

COM (2004) 471 is a proposal for a decision of the European Parliament and the Council creating the Youth in Action programme for the period 2007 to 2013. The youth programme is the European Union's mobility and non-formal education initiative targeting young people aged between 15 and 25 years. The current programme is open to youth in 31 European countries and concludes in 2006. The programme offers possibilities to young people across a wide spectrum of activities for which there are national agencies in participating countries. In Ireland the relevant agency is Léargas which, like agencies in the other states involved, assists with the promotion and implementation of the programme at national level.

The proposed programme would be open to young people aged between 13 and 30 years. I understand this wide spectrum of ages is likely to be the subject of some debate, given the very different requirements and needs of those at both ends of the spectrum. The proposed budget for the programme is €950 million. It is proposed that the proposal be forwarded to the Joint Committee on Education and Science for further scrutiny. Is that agreed? Agreed.

COM (2004) 474 is a proposal for a decision of the European Parliament and the Council establishing an integrated action programme in the field of lifelong learning. This proposal for an integrated programme for lifelong learning follows earlier indications from the Commission that it intended to build on the existing mechanism for supporting specific activities in the field of education and training such as the ERASMUS, Leonardo and Grundtvig programmes. In its memorandum to this proposal the Commission argues that an integrated programme with a budget of €13,620 million for the period 2007 to 2013 is required due to four developments: the new challenges of a knowledge-based society and demographic change; the need to progress the Lisbon strategy; the current lack of synergy in the programmes highlighted in interim evaluations; and the need to simplify Community legislative programmes.

The Department indicates that it welcomes the proposal in relation to the simplification of the process of drawing down funding, that the proposed integrated programme should be more user-friendly and that it believes it would cut down on the bureaucracy involved. I understand the adopted proposal would be of major significance to the education sector for the five year period concerned. It is proposed, therefore, that the proposal be forwarded to the Joint Committee on Education and Science for further scrutiny. Is that agreed? Agreed

The next document is COM (2004) 478. In its memorandum to this proposal the Commission outlines some sobering forecasts for the increase in road freight over the next ten to 15 years. These suggest that it will increase by between 50% and 60% over the period. The Commission goes on to outline some of the environmental and socio-economic implications, including an over-dependence on fossil fuels leaving member states vulnerable to changing supply patterns and a loss of GDP due to congestion.

Building on its White Paper on Transport of 2001, the Commission is proposing that a budget of €740 million be allocated for the period 2007-13 to fund a second Marco Polo programme which would encourage alternative modes of transport, including so-called "motorways of the sea". It would also encourage inter-modal transport. On previous occasions the sub-committee has considered proposals seeking the adoption of EU standards for inter-modal loading units.

The Department's note highlights Ireland's overwhelming dependence on sea transport for economic activity and sets out its view that the development of new or improved sea links between Ireland and Community markets and regions should deliver positive economic benefits for the country. The material circulated indicates that the Department was asked to provide additional information on a number of lesser points raised in the note. It has now done so. It sets out that one aim of the proposed programme would be to encourage more load-on/load-off freight traffic, as distinct from roll-on/roll-off traffic. It is proposed, therefore, that the proposal be forwarded to the Joint Committee on Communications, Marine and Natural Resources for further scrutiny. Is that agreed? Agreed.

The next document is COM (2004) 493. The European Social Fund, inter alia, aims to support improvements in productivity at work and promote social inclusion and cohesion in the European Union. The Commission proposes that the efforts of the fund during the next financial period, 2007 to 2013, should be more focused on the goals of the Lisbon strategy. In this regard, it has set for the fund four key areas for particular action: increasing the adaptability of workers and enterprises; enhancing access to employment and prolonging working lives; promoting the integration of disadvantaged people in work; and promoting partnership for reform in the fields of employment. It is proposed, therefore, that the proposal be forwarded to the Joint Committee on Enterprise and Small Business for further scrutiny and the Joint Committee on Finance and the Public Service and the Joint Committee on European Affairs for their information. Is that agreed? Agreed.

The next document is COM (2004) 495. The recent enlargement of the European Union has, as set out by the Commission, resulted in a large increase in the number of regions lagging behind, with many facing the challenge of achieving convergence. However, the Commission's memorandum to the proposal also acknowledges that other relatively more developed regions face the continuing challenge of establishing and reinforcing their attractiveness through increasing their competitiveness. The European Regional Development Fund, ERDF, has been designed with a view to paying particular attention to territorial specificities and take account of particular situations and-or natural difficulties.

During the next financial perspective the goals of the ERDF, as set out in the proposal, are to strengthen competitiveness and innovation; to create sustainable jobs; and to promote environmentally sound growth. With a view to achieving these goals, the ERDF would support productive investment, infrastructure and development initiatives. It is proposed, therefore, that the proposal be forwarded to the Joint Committee on European Affairs for further scrutiny and the Joint Committee on Finance and the Public Service, the Joint Committee on Transport and the Joint Committee on Enterprise and Small Business for their information. Is that agreed? Agreed.

The next document is COM (2004) 496. In its memorandum to this proposal the Commission outlines that it is of the view that to date cross-border co-operation has not been at a level that will achieve the treaty objective of greater economic, social and territorial cohesion across the member states of the European Union. It also contends that the existing economic structures are ill-adapted to programmes such as INTERREG. It is proposing, therefore, that bodies be established across the member states that would be delegated work regarding specific cross-border tasks and projects and which would be known as European groupings of cross-border co-operation, EGCC. According to the proposal, it would be possible for member states and-or regional and local authorities and-or local public bodies to participate in an EGCC, the tasks of which would also be set out in a convention on European cross-border co-operation.

The proposed EU-wide commitment for EGCCs would be €13 billion over the period 2007 to 2013. This is one of a number of significant proposals that are intrinsically linked to the process of concluding agreement on the next financial perspective. It has a significant additional dimension of seeking to encourage cross-border co-operation in an EU context, with all of the associated possible implications for the further development of cross-border relations in a European context. It is proposed, therefore, that it be forwarded to the Joint Committee on European Affairs for further scrutiny and the Joint Committee on Environment and Local Government for its information. Is that agreed? Agreed.

It is worth commenting on the fact that when we looked at the measure on culture, the figure came to €408 million. This involves a sum of €13 billion and seems to be another quango.

It may well be that the money would be spent on infrastructural projects, which are expensive.

I understand that but it does not appear to include INTERREG funding.

I understand that it would replace it to a great extent.

I was not clear about that.

The next document is COM (2004) 497. In its note on this proposal the Department classifies the proposed measure as one of major significance and within whose framework member states would be required to draw up their national fisheries priorities for the period up to 2013. The Commission argues that existing policies for the fisheries sector have brought about modernisation and that this process needs to be continued. Among the areas highlighted for support are the development and dissemination of more environmentally-friendly fishing techniques; the development of the aquaculture sector; adding greater value through limiting wastage and improved marketing; and sustainable economic development of coastal areas. The proposed budget for the five year period is €4.963 billion.

This is one of a number of significant proposals which are intrinsically linked to the process of concluding agreement on the next financial perspective and which will be a central basis for fisheries policy with a European dimension over the period 2007 to 2013. It is proposed, therefore, that it be forwarded to the Joint Committee on Communications, Marine and Natural Resources for further scrutiny. Is that agreed? Agreed.

The next document is COM (2004) 492. This proposal is central to the package of proposals on cohesion, regional and social funding by the European Union. The proposed measure concerns an outlining of the regulations governing the expenditure of €336 billion. According to the current text, 78% of the funding would be related to the convergence objective. Regions with a GDP less than 75% of the EU 15 or 25 average, as the case may be, would be eligible for funding under this heading. The Department has also indicated that certain post-Objective One regions would also be eligible for certain additional assistance. Up to 17% of the funding would be related to regional competitiveness and employment. Ireland would be eligible for such support on the basis of a 50% contribution from public funds to approved projects. Up to 4% of the funding would be related to territorial co-operation while the remaining 1% would be related to technical assistance. Competitiveness would be promoted through support for, inter alia, innovation, promotion of the knowledge society and improving the adaptability of workers. The Department indicates that the amount of structural funding available to Ireland under the proposal would be substantially less than that received under the 2000 to 2006 programming round. It is proposed, therefore, that it be referred to the Joint Committee on European Affairs for further scrutiny. Is that agreed? Agreed.

The next section deals with Title IV and CFSP measures of which none is to be considered today. Item 4 deals with deferred documents. COM (2004) 477 is a proposal which seeks approval for an additional €1 billion of public funding from the Commission for the deployment and commercial operating phases of the GALILEO system. The memorandum to the Commission's proposal indicates that the deployment phase, from 2006 to 2007, will involve the building and launching of the satellites and ground-based component. The commercial operating phase will cover the management, maintenance and updating of the system from 2008. The total estimated cost of both phases is €2.1 billion and the proposal suggests that the additional funds would be provided by the private sector. Additional information on safeguards concerning personal information collected by the system is awaited from the Department. It is proposed, therefore, to defer consideration of the proposal. Is that agreed? Agreed.

The next document is COM (2004) 515. Members will recall that the sub-committee deferred consideration of this proposal from the previous meeting as clarification had been sought from the Department on a number of points. The proposal follows from the Commission's action plan for tackling illegal logging and envisages the establishment of a licensing scheme to help ensure only licensed timber enters the European Union. In the memorandum to the proposal the Commission acknowledges that the adoption of the scheme is likely to result in job losses in certain producing countries, particularly in Africa, but contends that this should be offset by "the improved practise that generally accompanies legal enterprises". It also argues that the scheme should assist in ensuring a continuing supply of timber.

The additional material provided by the Department which I understand has been circulated to members again outlines the possible advantages in the short to long term of the introduction of the scheme. However, the note from the Department also concludes that "the impact in Ireland of a licensing scheme is difficult to quantify". I understand the final decision on the types of woods included and any related efforts to encourage the supply of alternative products will influence the extent of the impact of the scheme in Ireland. I also understand these are details that will be discussed in greater detail at working group level in the months ahead.

There is a possibility that the operation of the scheme, at least initially, would result in negative price changes in the timber market which would have implications for the housing market in Ireland, if substitute products were not readily available. It is proposed, therefore, that the proposal be referred to the Joint Committee on Environment and Local Government for further scrutiny and forwarded to the Joint Committee on Agriculture and Food for its information. Is that agreed? Agreed.

Item 5 deals with proposals of which there will be no further scrutiny. COM (2004) 449 is a proposal for a Council decision on the position of the European Community on the draft regulation of the United Nations Economic Committee for Europe on uniform provision regarding hand controls, tell-tales and indicators. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 450 is a proposal associated with COM (2004) 449 and concerns heating systems in cars and small vans. There is no costing outlined in the proposal but the Department has indicated that in this case no significant costs are involved. It is proposed, therefore, that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 454 is a proposal for a Council decision amending Decision 2001/131/EC concluding the consultation procedure with Haiti under Article 96 of the ACP-EC partnership agreement. There was concern about the democratic situation in Haiti which has been discussed further with the Prime Minister and the Commission is no longer as concerned as it was. It is proposed, therefore, that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 486 is a proposal for a directive amending the existing capital adequacy rules for banks, credit institutions and investment firms. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

On COM (2004) 494, the Department's note sets out that Ireland will not be eligible for assistance from the Cohesion Fund as its per capita gross national income is greater than 90% of the Community average. The proposal otherwise deals with a Council regulation establishing a Cohesion Fund. It is proposed that it be forwarded to the Joint Committee on European Affairs and the Joint Committee on Finance and the Public Service for their information in the context of the next financial perspective. Is that agreed? Agreed.

COM (2004) 516 is a proposal for a directive of the European Parliament and the Council establishing an infrastructure for spatial information in the Community, INSPIRE. Members will have seen that the proposed measure is general in nature. I understand that many of the technical aspects would be left for determination within the comitology process. It is proposed, therefore, that the proposal does warrant further scrutiny at this point but that it be forwarded to the Joint Committee on Environment and Local Government for its information, particularly in the context of the proposed national policy paper on the issue of spatial information later this year. Is that agreed? Agreed.

COM (2004) 531 is a Council decision on the conclusion by the European Community of the Agreement on the Conservation of African-Eurasian Migratory Waterbirds, AEWA. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 537 is a proposal for a Council decision on amendments to annexes to the 1979 Convention on Persistent Organic Pollutants. Based on the current understanding of the Department, it is proposed that this proposed measure does not warrant further scrutiny. It is also proposed that the Department be requested to inform the sub-committee if its consultation process currently under way results in it drawing conclusions different from those outlined in the note submitted to the Oireachtas on the production or use of the nine POPs in Ireland. Is that agreed? Agreed.

COM (2004) 550 is a proposal to amend Regulation (EC) No. 2037/2000 to adjust the allocation of quotas of hydrochlorofluorocarbons, HCFCs. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 554 is a proposal for a Council decision concluding an additional protocol to the agreement on trade, development and co-operation between the European Community and its member states and the Republic of South Africa. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 563 is a proposal for a Council directive amending Directive 87/328/EEC as regards the storage of semen of bovine animals intended for intra-Community trade. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 564 is a proposal for an agreement between the European Community and the principality of Andorra providing for the taxation of savings income. We considered related issues recently. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 566 is a proposal for a Council decision on the signature and conclusion of an additional protocol to the EU-Chile association agreement to take account of EU enlargement. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 569 is a proposal for an agreement between the European Community and the principality of Liechtenstein providing for the taxation of savings income. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 577 is a proposal for a Council decision on the withdrawal by the European Community from the Convention on Fishing and Conservation of the Living Resources in the Baltic Sea and Belts. This is because only two parties would remain in the IBSFC due to changes which have taken place — the Russian Federation and the European Community. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 578 is a proposal for a Council decision on the signature, conclusion and provisional application of a protocol to the EU-Jordan Euro-Mediterranean agreement to take account of EU enlargement. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.17 has already been adopted. Therefore, we will take this proposal in section 6, the section that deals with proposals already adopted. It will be taken as item 6.1.

COM (2004) 591 is a proposed regulation imposing a definitive anti-dumping duty on imports of synthetic fibre ropes originating in India. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 448 is a proposed directive of the European Parliament and the Council on the use of the financial system for the purpose of money laundering, including terrorist financing. In its note the Department has indicated that the proposed measure does not raise particular difficulties for Ireland and that many of its aspects are included in enacted and proposed legislation. It is proposed, therefore, that the proposal does not warrant further scrutiny, but that it be forwarded to the Oireachtas Joint Committee on Justice, Equality, Defence and Women's Rights for its information. Is that agreed? Agreed.

COM (2004) 529 is a proposal for a Council decision on the Community position for the 13th meeting of the conference of the parties to the Convention on the International Trade in Endangered Species of Wild Fauna and Flora, CITES, in Thailand from 2 to 14 October 2004. The proposed areas for agreement include positions on the status of whales, elephants, dolphin and the African lion. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 546 is a proposal for a Council decision relating to the agreement between the Community and the Swiss Confederation concerning the enlargement of the European Union. In its note the Department confirms that the proposed measure is "purely technical" in nature. It is proposed that it does not warrant further scrutiny. Is that agreed? Agreed.

COM (2004) 446 is an amended proposal for a directive of the European Parliament and the Council on the approximation of the laws of the member states relating to electromagnetic compatibility — the ability of a device or system to function without error in its intended electromagnetic environment. Examples of electromagnetic interference are a computer interfering with FM radio reception, a vacuum cleaner causing "snow" on the television and a car radio buzzing when driving under a power line. The sub-committee considered the initial proposal relating to electromagnetic compatibility in 2003. In an additional note the Department has outlined issues with which we concerned ourselves at the time. It indicates the number of member states, including Ireland and the European Parliament, which are opposed to the inclusion of "ready made connecting devices" — cables with plugs — within the scope of the directive. The Commission subsequently deleted the proposed section on "ready made connecting devices" and Ireland was in a position to support the amended text. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 6 deals with adopted measures. COM (2004) 585 is a proposed regulation imposing a definitive anti-dumping duty on imports of glyphosate originating in the People's Republic of China. The Department had earlier confirmed that there was widespread support for the continuation of the anti-dumping measures at a new rate within the working group and that it was anticipated that the proposed measure would be adopted by Council in the near future. The measure was adopted by the recent Competitiveness Council as an "A point". It is proposed that it be noted. Is that agreed?

Glyphosate is the active ingredient in Roundup for which Monsanto held the original patent. It is most relevant to breeding GM crops. It is a herbicide in that one spreads it around and it kills everything. It is particularly effective against grass weeds and has been useful in agriculture. GM crops are likely to breed an intolerance to the herbicide in that it can be used selectively, killing the weeds but not the crop. There is one producer of Roundup in Ireland. I do not understand the reason we cannot be told who the producer is. It was mentioned in the briefing as well as in the note. I do not think Monsanto is the producer because Roundup is no longer covered by patent and others are now producing it. There is an element of large multinational companies protecting themselves which makes me wonder. While I know it is a matter for the Department of Enterprise, Trade and Employment, it might be no harm if the Department of Agriculture and Food looked into it.

Shall we ask that Department for its views on the matter?

Yes, I think so.

Is that agreed? Agreed. We will ask the Department of Agriculture and Food for its comments on this proposal which we will note for the moment.

Item 7 deals with the minutes of previous meetings. The minutes of the meeting of 9 September 2004 have been circulated. Are they agreed? Agreed.

Item 8 deals with the reports of the sub-committee. I propose to defer consideration of further reports to the next meeting.

Item 9 deals with correspondence received. In a letter, dated 24 September 2004, Deputy Harkin indicates her wish to resign from the sub-committee. As Deputy Ó Snodaigh is Opposition Whip on the sub-committee, we will ask him to arrange a nomination for Deputy Harkin's replacement. I thank her for her contribution to the sub-committee.

Item 10 is any other business while item 11 deals with the date and time of the next meeting. I propose that the next meeting of the sub-committee be held in two weeks time on 14 October 2004. However, we have already agreed that I should call a meeting of the sub-committee when we have the final report which should only take a short period to clear.

Will there be a meeting on 14 October?

There will be an ordinary meeting on that day.

The sub-committee adjourned at 10.20 a.m. until 9.30 a.m. on Wednesday, 14 October 2004.

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