Item 1.2 is COM (2004) 509, which is a proposal for a regulation on mutual assistance for the protection of the financial interests of the Community against fraud and any other illegal activities. This proposal concerns the Department of Finance. It was deferred for consideration until further significant developments occurred. The Department of Finance has indicated that there have been a number of working group meetings on the proposal and that a number of member states have signalled some opposition to the proposal, especially elements that concern VAT. When this proposal was originally considered by the committee, it was indicated that a number of member states, including Ireland, disagreed with the Commission's proposed legal base for the proposal, Article 280, which operates under QMV rather than unanimity. However, the Department has also indicated that the Council legal service recently issued an opinion that supported the legal base proposed by the Commission.
The Department has also outlined that the Presidency has not scheduled meetings of the working group on combating fraud and that the issue will probably continue into the UK Presidency and perhaps beyond. The Department's original note indicated that it had little difficulty with much of the proposal, but that it questioned the need for additional measures on VAT so soon after the adoption of an EU regulation setting out requirements for compliance with the VAT rules. At its meeting on 30 September, the sub-committee considered a proposal on a general strengthening of money laundering measures, raising questions as to why the Commission is seeking to establish money laundering rules specifically for EU fraud. The Department had also questioned the proposed use of QMV to decide on a proposal concerning taxation. Furthermore, Commission access of VAT records raises issues of taxpayer confidentiality. It is proposed that the proposal be referred to the Select Committee on Finance and the Public Service for further scrutiny as consideration may be required by that committee after substantive discussions have commenced. Is that agreed? Agreed.
No Title IV or CFSP measures have been received and no deferred document items are proposed for this meeting. The next set of proposals under No. 5 on our agenda are those where it is proposed they do not warrant further scrutiny, Nos. 5.1 to 5.5, inclusive. No. 5.1 is COM (2004) 864, which is a proposal for a Council decision to amend the EU-China maritime transport agreement to provide for the necessary and linguistic adaptations of the agreement that ensues from the accession of ten new member states as contracting parties. The Department of Communications, Marine and Natural Resources is the lead Department. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.
No. 5.2 is COM (2005) 66, which is a proposal to amend Council Regulation EEC No. 2454/93 to extend the use of the new computerised transit system, NCTS, to all customs traders from 1 July 2005. The Department of Finance and the Revenue Commissioners are leading this. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.
No. 5.3 is COM (2005) 36, which is a proposal for a Council regulation to amend regulation EC No. 2792/99 regarding a specific action for the transfer of vessels to countries struck by the tsunami in 2004. The Department of Communications, Marine and Natural Resources is the lead Department. At the previous meeting of the committee, while it was determined that this proposal did not warrant further scrutiny, it was agreed that additional information was required on one central aspect. The Department has been asked to provide this concerning the agreement on countries that would be eligible to benefit from the proposed measure. It subsequently outlined that it is intended that the measure will be carefully co-ordinated with other rebuilding efforts and will be implemented exclusively on the Third World's explicit request and on condition that the assessment currently being carried out by the UN Food and Agriculture Organisation in these areas shows that a transfer of fishing vessels could contribute to the rebuilding of local fleets. It is proposed to note the additional information.