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JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Wednesday, 21 Sep 2005

Scrutiny of EU Proposals.

The following items are proposed for further scrutiny — Nos. 1.1 to 1.9, inclusive. No. 1.1 is COM (2005) 280, a proposal for a Council regulation establishing a European Union agency for fundamental rights and a Council decision empowering the European Union agency for fundamental rights to pursue its activities in areas referred to in Title VI of the Treaty on European Union. The lead Department is the Department of Justice, Equality and Law Reform. The Commission proposes that an EU agency be established to build on the work of the European Monitoring Centre on Racism and Xenophobia to provide relevant organisations within the European Union with assistance and expertise relating to fundamental human rights. It is also proposed that the role of the agency extend to Title VI issues.

The Department outlines the view in its note that no significant implications arise for Ireland from the proposal to establish a European Union agency for fundamental human rights and to extend its remit to the Title VI area, that is, judicial and police co-operation. It is proposed that the proposal be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights for further scrutiny given the importance of the issues around the proposed work of the agency. Is that agreed? Agreed.

No. 1.2 is COM (2005) 304, a proposal for a Council decision on Community strategic guidelines for rural development in the programming period 2007 to 2013. The lead Department is the Department of Agriculture and Food and the proposal is also of interest to the Department of Community, Rural and Gaeltacht Affairs. In September 2004 the sub-committee considered and referred for further scrutiny to the Joint Committee on Agriculture and Food a proposal from the Commission — COM (2004) 490 — which concerned the establishment of a funded programme for rural development over the period 2007 to 2013. The proposal noted the particular challenges to be addressed in the economic and social life of rural areas and underlined the view that agriculture and forestry should make a positive contribution to the countryside.

The proposed measure suggested that stakeholder consultation at national level should occur with regard to the design, implementation and evaluation of national programmes. The Department in its note categorised the proposal as one of "major significance", particularly with regard to the allocation of rural development funding. It also welcomed the general approach of the proposed measure but noted that more detailed information would be required on the allocation criteria.

This proposal from the Commission follows from the earlier framework proposal and advances strategic guidelines for national plans — Article 9 of COM (2004) 490. Inter alia, the proposed Community strategic guidelines for rural development identify areas where the use of EU support for rural development would create the most value added at EU level and linkages can be made with the European Union’s Lisbon and Gothenburg strategies. The guidelines relate to improving the competitiveness of the agriculture and forestry sectors; improving the environment and countryside; improving the quality of life in rural areas and encouraging diversification; building local capacity for employment and diversification; translating priorities into national programmes; and complementarity between Community instruments.

On the basis of these strategic guidelines it is proposed that member states shall prepare their rural development strategies. Given the clear linkages with the earlier proposal, COM (2004) 490 on rural development, it is proposed that this proposal also be referred for further scrutiny to the Joint Committee on Agriculture and Food. Is that agreed? Agreed.

No. 1.3 is COM (2005) 317, a proposal for a Council decision on the improvement of police co-operation between member states, especially at internal borders, and amending the convention implementing the Schengen agreement. The lead Department is the Department of Justice, Equality and Law Reform and there are no other interested Departments.

The aim of this proposed Council decision is to establish a framework for police co-operation at the internal borders of the European Union. The memorandum to the proposal outlines that the Schengen agreement limits itself in this regard to generalities and member states have, therefore, concluded bilateral agreements which can, for example, result in different practices that could thwart law enforcement and lead to "distortions in security". The draft decision lays down general rules to promote strategic and operational co-operation between the member states' law enforcement authorities. The proposal states it is for member states to determine if they will co-operate in this regard and that where they choose to co-operate, they do so on the basis of common standards. The proposed decision provides for co-operation in areas such as the harmonisation of operational planning and common situation exercises. In addition, this co-operation would be facilitated through the establishment of permanent co-operation structures and the co-operation handbook — Article 4.2E — would be informed by these structures.

The Department indicates that the adoption of the proposal may result in legislative changes in Ireland. In reply to a question raised with the Department in this regard, I understand it outlined that the extent to which new legislation might be required to give effect to the draft decision is a matter being pursued with the Office of the Attorney General. It is proposed to refer the proposal to the Joint Committee on Justice, Equality, Defence and Women's Rights for further scrutiny. Is that agreed? Agreed.

No. 1.4 is COM (2005) 334, an amended proposal for a Council directive amending Directive 77/388/EEC concerning the place of supply of services. The lead Department is the Department of Finance and the Office of the Revenue Commissioners is another interested party. The proposal concerns cross-border business to business and business to consumer services and amends Commission proposal COM (2003) 822, which dealt with business to business services only. The Sub-Committee on European Scrutiny considered the proposal in February 2004 and referred it for further scrutiny to the Joint Committee on Finance and the Public Service.

The Department's note on the current proposal outlines that political agreement on the earlier proposal was not possible and that the Commission has now decided to advance an amended proposal that widens the scope of the proposal to include business-to-consumer services. However, in this instance, the place of taxation would be determined by the place where the supplier is established. Some exceptions are made to this principle in regard to electronically delivered services such as music, games and videos. Members will have seen that the Department underlines the opportunities this offers companies based in Ireland to supply services in other member states with lower VAT rates. This is a proposal of major significance, the adoption of which would result in a fundamental change in VAT arrangements across the European Union. It is proposed that the proposal be referred for further scrutiny to the Joint Committee on Finance and the Public Service. Is that agreed? Agreed.

COM (2005) 338 is a proposal for a Council decision authorising the placing on the market of foods and food ingredients derived from genetically modified maize line MON 863 as novel foods or novel food ingredients under Regulation (EC) No. 258/97 of the European Parliament and the Council. The lead Department is the Department of Health and Children and the other interested Department is the Department of the Environment, Heritage and Local Government. This proposal from the Commission is seeking approval for the placing on the market across the member states of the European Union of a maize line and of food containing it as an ingredient. The maize line concerned has been modified to provide resistance to certain antibiotics and it was this factor that initially prompted the authorities in Germany to conclude that a further assessment of the line was required.

In accordance with the established procedure, reasoned objections were raised by a number of member states following the application with the German authorities for its placing on the Single Market. The Department's note indicates that based on scientific advice it had received, it had no objections to the proposal. The proposal did not, as has occurred in similar circumstances, receive the necessary support in the committee and is, therefore, being presented here for approval by the Council. In the event that the Council cannot come to a conclusion on this proposal, the proposed measure will return to the Commission for decision.

The committee has on a number of occasions considered proposals concerning the authorisation to place on the market GM foods and these have been referred for further scrutiny. The Department's note also updates the committee regarding a proposal — COM (2005) 163 — which it previously considered concerning approval of a product, MON 863, genetically modified for use as animal feed and in industrial processing. Ireland abstained in the vote on the proposed measure. That proposal was defeated by a simple majority of the Council, but not by a qualified majority, which would have been required if the proposal from the Commission was to be overturned. The current proposal concerns a similarly genetically modified product but in this instance the Department has supported the proposal for its use as a food ingredient. We will have to consider COM (2005) 346 in conjunction with this. It is proposed that the proposal be referred to the Joint Committee on Health and Children for further scrutiny and forwarded for information to the Joint Committee on Environment and Local Government in the context of its consideration of COM (2005) 284. It is also proposed that the report of the meeting or meetings on this issue be forwarded to the scrutiny committee for information. Is that agreed? Agreed. The Department of the Environment, Heritage and Local Government abstained in this matter and the Department of Health and Children supported it based on the same scientific advice. There is a contradiction here.

Let us consider COM (2005) 346, a proposal for a Council decision authorising the placing on the market of foods and food ingredients produced from genetically modified Roundup Ready maize line GA21. The lead Department is the Department of Health and Children and the other interested Department is the Department of the Environment, Heritage and Local Government. This proposal from the Commission is seeking approval for the placing on the market across the member states of the European Union of a maize product as an ingredient that has been genetically modified in relation to the herbicide Roundup Ready. It sounds like a breakfast cereal. In accordance with the established procedure, the application for its placing on the Single Market followed a positive assessment by the relevant authority of a member state, in this instance in the Netherlands. The application was subsequently considered by the authorities in the member states and members will have noted that the Department, based on advice from the Food Safety Authority of Ireland, had no objections to the proposal. The proposal did not, as has occurred in similar circumstances, receive the necessary support in the committee and is, therefore, being presented here for approval by the Council. The Department's note underlines that if the Council did approve the proposal it would be the first exercise by the Council of its decision-making role in respect of a proposal to authorise a GM product. In the event that the Council cannot come to a conclusion on this proposal, the proposed measure will return to the Commission for decision.

As members will recall, the committee has on a number of occasions considered proposals concerning the authorisation to place on the market GM products and these have been referred for further scrutiny, given the level of public interest in this area. The proposal is associated with COM (2005) 338. It is proposed that the proposal be referred to the Joint Committee on Health and Children for further scrutiny and for information to the Joint Committee on Environment and Local Government in the context of its consideration of COM (2005) 284. It is also proposed that the report of the meeting or meetings on this issue be forwarded to the scrutiny committee for information. Is that agreed? Agreed.

Let us proceed to SEC (2005) 547 which concerns the preliminary draft general budget of the European Communities for the financial year 2006. The Commission is proposing a budget for 2006 of €121.3 billion in commitment appropriations and €112.6 billion in payment appropriations. It is anticipated that amendments will be made to the budget over the months ahead, particularly as this budget is seen as a bridge to the next financial perspective. The Department has again on this occasion indicated that the budget is of "major significance" for Ireland, especially in regard to ensuring that payments are not excessive. In June 2005 consideration of this proposal was deferred until after the joint meeting of the European Parliament budget committee and representatives of the national parliaments concerning the 2006 EU budget. The committee on finance was represented at that meeting. It is proposed that the proposed measure be forwarded to the Joint Committee on Finance and the Public Service for further scrutiny and the Joint Committee on European Affairs for information. Is that agreed? Agreed.

No. 7307/05 is a Council framework decision on the European enforcement order and the transfer of sentenced persons between member states of the European Union. The lead Department is the Department of Justice, Equality and Law Reform. Consideration of this proposal which is being advanced by Austria, Finland, and Sweden was deferred to allow additional time to the Department to clarify a number of points. The proposal concerns the transfer of sentenced persons between member states. The Department has now outlined that it is consulting with the Office of the Attorney General and the Department of Foreign Affairs regarding the proposal that is based on the argument that there is "a basic duty on the executing State to take charge of those of its nationals and those persons permanently legally resident in its territory who have been given a final custodial sentence or a detention order in another member state, irrespective of their consent, unless there are specific reasons for refusal". A subsequent article in the proposal indicates that its provisions would also cover persons with "other close links" with the state.

Those who would be exempt from the implications of the proposal are those with sentences that would not constitute an offence under the law of the executing state; would be statute barred according to the law of the executing state; and would under the law of the executing state not be enforceable due to age. Also included are sentences rendered in absentia. The proposal raises significant questions for penal and rehabilitation services across the European Union, but also for the individuals concerned. The Department was, therefore, asked to clarify a number of points to assist in the deliberations by members on this proposal. The Department has, therefore, also outlined that at the end of March 2005, 682 persons detained in prisons in England and Wales had declared themselves as Irish nationals and that, as of 5 July 2005, 145 persons were detained in Irish prisons from the 24 other member states of the European Union. This will have major implications for our prison services. It is proposed that the proposal be referred for further scrutiny to the Joint Committee on Justice, Equality, Defence and Women’s Rights and for information to the Joint Committee on Foreign Affairs for the particular attention of the Sub-Committee on Human Rights which is exploring related issues. Is that agreed? Agreed.

No. 1.9 is COM (2005) 91, proposal for a Council framework decision on taking account of convictions in the member states of the European Union in the course of new criminal proceedings. The lead Department is the Department of Justice, Equality and Law Reform. Members may recall that in April 2005 the committee deferred consideration of this proposal and requested the Department to update the committee after it had received legal advice on the proposal from the Attorney General's office. The letter received by the Department in this regard has been circulated for the information of members.

The proposal seeks to require a member state to "draw the consequences of the earlier conviction on the occasion of the new proceedings". It would be for national legislation to draw the consequences of the principle that a conviction handed down in another member state would have equivalent effects to a national conviction.

In the letter from the Department it is outlined that the Department is satisfied, following the receipt of legal advice, that "there appears to be no constitutional or ECHR implications arising from the aim of the proposal and that the proposal is within the vires of the EU treaty”. The Department does, however, indicate that it is examining if legislation regarding a national register of convictions would be required. Given that related national legislation may be required concerning this proposal, it is proposed that the proposal be referred for further scrutiny to the Joint Committee on Justice, Equality, Defence and Women’s Rights. Is that agreed? Agreed.

There were no Title IV measures received for this meeting. The following CFSP measures have been received: Nos. 3.1 to 3.7. No. 3.1 is a Council joint action on support for IAEA activities in the areas of nuclear security and verification. The lead Department is the Department of Foreign Affairs and the other interested Department is the Department of Environment, Heritage and Local Government.

The joint action aims to contribute to the achievement of the aims of the International Atomic Energy Agency with respect to monitoring declared activities and promoting actions against the proliferation of weapons of mass destruction. It is proposed to note the measure. Is that agreed? Agreed

It is proposed to take Nos. 3.2 and 3.7 together as they are related. No. 3.2 is Council Decision 2005/444/CFSP of 13 June 2005 implementing Common Position 2004/161/CFSP renewing restrictive measures against Zimbabwe. No. 3.7 is Council Decision 2005/592/CFSP of 29 July 2005 implementing Common Position 2004/161/CFSP renewing restrictive measures against Zimbabwe. The lead Department is the Department of Foreign Affairs.

The committee has on a number of occasions considered EU restrictive measures concerning Zimbabwe imposed due to "the serious violations of human rights, of freedom of opinion, of association and of peaceful assembly" in that country. Council decision 2005/444/CFSP updated the restrictive measures concerning leading participants in the regime and these were further updated by Council Decision 2005/592/CFSP to include those responsible for violations of human rights through the implementation of the regime's so-called Operation Restore Order which, the measure underlines, includes forcible demolition and internal displacement. It is proposed to note the measures. Is that agreed?

It is agreed but I hope our efforts at national and EU level to tackle the shocking abuse of human rights and democracy in Zimbabwe are stronger than this. I appreciate that the Government, through the Department of Foreign Affairs, is pursuing the issue but it remains a challenge in human rights terms that faces the European Union and the United Nations. We are encouraging the Zimbabwean authorities to respect human rights but we need more than words. I appreciate this is part of the jigsaw but it must become stronger.

No. 3.3 is CFSP/2005/583, a Council joint action extending the mandate of Lord Paddy Ashdown, the European Union Special Representative in Bosnia Herzegovina until February 2006. The Department of Foreign Affairs is the lead Department. It is proposed to note the measure. Is that agreed? Agreed.

No. 3.4 is CFSP/2005/586, a joint action extending the mandate of Mr. Aldo Ajello, the EU Special Representative for the African Great Lakes region until February 2006. The lead Department is the Department of Foreign Affairs. It is proposed to note the measure. Is that agreed? Agreed.

No. 3.5 is CFSP/2005/587, a Council joint action extending the mandate of Mr. Marc Otte, the European Union Special Representative of the European Union for the Middle East peace process until February 2006. The lead Department is the Department of Foreign Affairs. It is proposed to note the measure. Is that agreed? Agreed.

No. 3.6 is CFSP/2005/589, a Council joint action extending the mandate of Mr. Michael Sahlin the European Union Special Representative in the Former Yugoslav Republic of Macedonia until November 2005. The lead Department is the Department of Foreign Affairs. It is proposed to note the measure. Is that agreed? Agreed.

No. 4 deals with deferred documents. There are no proposals proposed for deferral. No. 5 deals with proposals proposed for no further scrutiny. The next set of proposals on our agenda are proposals where it is proposed that they do not warrant further scrutiny: Nos. 5.1 to 5.28.

No. 5.1 is COM (2005) 145, a proposal for Council decisions concerning the signature and conclusion of the agreement between the Community and Denmark extending to Denmark the provisions of Council Regulation (EC) No. 44/2001. The lead Department is the Department of Justice, Equality and Law Reform.

Prior to the entry into force of Regulation No. 44/2001 the rules of the Brussels Convention applied uniformly in all member states. Denmark did not participle in that regulation due to its non-participation in Title IV of the treaty. The regulation revised and amended the Brussels Convention. The Commission opened negotiations with Denmark on its participation in the regulation and this proposal seeks approval in this regard.

The regulation applies in civil and commercial matters and relates to jurisdiction, recognition and enforcements. It is proposed that the proposal does not warrant further scrutiny, given its limited additional application, but that the proposed measure be forwarded for information to the Joint Committee on Justice, Equality, Defence and Women's Rights. Is that Agreed? Agreed.

No. 5.2 is COM (2005) 146, a proposal for Council decisions concerning the signing and conclusion of the agreement between the European Community and Denmark extending to Denmark the provisions of Council Regulation (EC) No. 1348/2000. The lead Department is the Department of Justice, Equality and Law Reform.

All member states, apart from Denmark, which does not participate in Title IV of the treaty, currently apply Regulation (EC) No. 1348/2000 on the service in the member states of judicial and extra-judicial documents. The Commission memorandum outlines that this situation jeopardises the uniformity and legal certainty of the Community rules. I understand that in May 2003 the Council authorised the Commission to open negotiations with Denmark in this regard. Following the positive conclusion of those negotiations, the Commission is proposing here that the provisions of Regulation No. 1348/2000 be extended to Denmark. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.3 is COM (2005) 244, a proposal for a Council decision on the signature of the protocol on soil protection, the protocol on energy and the protocol on tourism to the Alpine Convention. The lead Department is the Department of the Environment, Heritage and Local Government. Other interested Departments are the Department of Communications, Marine and Natural Resources and the Department of Arts, Sport and Tourism.

Apart from the European Community, the contracting parties to the Alpine Convention are Austria, France, Germany, Italy, Liechtenstein, Monaco, Slovenia and Switzerland. The Commission's memorandum to the proposal outlines that elements of the convention are covered by the EC environmental policy framework and, therefore, it is desirable for the European Community to sign the protocols to the convention concerning soil, energy and tourism. The Commission does, however, suggest that it would be necessary to introduce a reservation regarding Article 9 of the protocol on energy that concerns questions of nuclear power. The Commission contends that Article 9 which provides for the exchange of comprehensive information on plants and other nuclear installations falls within the competency of the EURATOM treaty. The Department underlines that the adoption of the proposed measure would have no implications for Ireland. It is proposed, therefore, that the proposal does not warrant further scrutiny, but that the associated documentation should be forwarded for information to the Joint Committee on Environment and Local Government regarding the points highlighted about Article 9 of the protocol on energy. Is that agreed? Agreed.

No. 5.4 is COM (2005) 255, a proposal for a Council decision concerning the position of the Community on Decision 1/2005 of the Community-Switzerland Inland Transport Committee on the creation of a joint observatory for traffic in the Alpine region. The lead Department is the Department of Transport. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.5 is COM (2005) 264, a proposal for Council decision on the signature, provisional application and conclusion of the agreement between the European Community and Australia on certain aspects of air services. The lead Department is the Department of Transport. This proposal concerns the agreement between the European Community and Australia that would supplement the national agreements in place. The agreement underlines the principle of non-discrimination between operators based across the European Union. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.6 is COM (2005) 265, a Green Paper on Energy Efficiency or Doing More With Less. The lead Department is the Department of Communications, Marine and Natural Resources. The recent price movements in energy costs make this discussion document from the Commission particularly timely. As members will be aware, high and volatile energy costs ultimately impact on the consumer and, on a broader level, have negative consequences for the prospects of economic growth in Europe. The paper underlines a number of significant factors in the European energy sector and also makes a number of practical suggestions that could result in positive contributions to reducing demand. It is proposed that the Green Paper should be forwarded for information and consideration to the Joint Committee on Communications, Marine and Natural Resources, particularly in the context of the recent volatility in energy costs. Is that agreed? Agreed.

No. 5.7 is COM (2005) 293, an amended proposal for a directive of the European Parliament and the Council on a Community air traffic controller licence. The lead Department is the Department of Transport and the other Department interested is the Department of Defence. At the meeting on 9 September 2004 the sub-committee considered COM (2004) 473. Through that proposal the Commission argued it was attempting to tackle what it saw as the fragmented nature of the regulation of the air navigation market in Europe. The training of air traffic controllers in Ireland comes under the auspices of the Irish Aviation Authority and the Department's earlier note outlined that this training takes place to the highest standards and that, therefore, compliance with the proposed directive was "not expected to cause particular difficulty". It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.8 is COM (2005) 294, a proposal for a Council regulation abolishing tariff quota for imports of soluble coffee. The lead Department is the Department of Agriculture and Food and other interested bodies are the Department of Enterprise, Trade and Employment and the Revenue Commissioners. The original regulation was introduced to increase the diversity of supply of soluble coffee. The Commission contends that this has now occurred and it is proposing the removal of the tariff-free quota from Brazil, among others. The Department's note underlines that the adoption of the proposal would have no implications for Ireland, as it has not used its quota in this regard since the adoption of the measure in 2002. I understand that in a follow-up to a number of questions raised with the Department relating to this proposal, it has been outlined that the adoption of the proposal is unlikely to impact on the price of coffee in Ireland, as in recent years supply has increased while demand in the USA has fallen. However, as members will be aware, the price of coffee is also heavily dependent on a number of factors, including the prevailing weather conditions. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.9 is COM (2005) 297, a proposal for a Council decision concerning the Community position concerning farmed fish and the European Convention for the Protection of Animals. The lead Department is the Department of Communications, Marine and Natural Resources and the Department of Agriculture and Food has an interest. The Commission's memorandum outlines that the Community is a contracting party to the European Convention for the Protection of Animals and a committee established under the convention issues recommendations and opinions in related areas. This proposal seeks approval for a Community position on a recommendation from the committee concerning farmed fish. The starting point of the proposed recommendation is that fish "shall be farmed without detrimental effects on their welfare". The follow on from this, according to the proposed recommendation, is, inter alia, that fish should be handled by trained staff and that enclosures containing fish shall be inspected at least once a day. The Department's note underlines that the recommendation would not be legally binding but the principles underpinning it would likely inform future EU legislation in this area. It is proposed that the proposal does not warrant further scrutiny but that it should be forwarded for information to the Joint Committee on Communications, Marine and Natural Resources. Is that agreed? Agreed.

No. 5.10 is COM (2005) 305, a proposal for a regulation of the European Parliament and the Council amending Council Regulation (EC) No 1348/2000 of 29 May 2000 on the service in the member states of judicial and extrajudicial documents in civil or commercial matters. The lead Department is the Department of Justice, Equality and Law Reform. This proposal concerns an amendment to an existing regulation to take account of the conclusions of a review of its operations. Regulation 1348/2000 puts in place a framework for the transmission of relevant documents between member states. The Commission's review of the operation of that regulation found that clearer language and standard forms were required. The amended proposal takes these findings into account and includes other minor amendments such as outlining the rules for fees incurred. The Department has also confirmed that it has now received legal advice to the effect that the above proposal, being a minor amendment to Regulation 1348/2000, Service of Documents, does not stray outside the competence Ireland granted to the Community when it opted into the latter measure. It is proposed that the proposal that follows from a Title IV measure does not warrant further scrutiny, but that it should be forwarded for information to the Joint Committee on Justice, Equality and Law Reform. Is that agreed? Agreed.

No. 5.11 is COM (2005) 314, a Green Paper on the enhancement of the EU Framework for Investment Funds. The lead Department is the Department of Enterprise, Trade and Employment while the Department of Finance has an interest. The Green Paper initially sets out some background to investment funds and indicates that the most common form of investment in the European fund industry are UCITS. The Green Paper argues that UCITS are not sufficiently developing as they should in a European-wide market and that the existing legislation should be built on. For example, the paper raises the possibility of fund managers establishing and operating UCITS domiciled in other member states. It also raises issues relating to the promotion of funds with the public and the meaning of certain terms such as a "guaranteed fund". It is proposed that the Green Paper should be forwarded for information to the Joint Committee on Finance and the Public Service. Is that agreed? Agreed.

Legislation was recently passed by the Houses of the Oireachtas regarding investment funds and the pooling of equities by various funds. Was this directive transposed under the legislation?

This is a Green Paper, not a directive.

The objectives set out in the Green Paper have been entertained by the Oireachtas. I do not know why this should be forwarded to the Joint Committee on Finance and the Public Service.

It is for the committee's information.

No. 5.12 is COM (2005) 315, a proposal for a Council decision on the Community position concerning government procurement in the context of the agreement with the Swiss Confederation. The lead Department is the Department of Finance and the Department of Enterprise, Trade and Employment has an interest, as does the national public procurement policy unit of the Department of Finance. The Commission's memorandum to this proposal outlines that the agreement between the European Community and the Swiss Confederation concerning government procurement requires amendment to take account of the most recent enlargement and the liberalisation of the telecommunications sector. The Commission seeks approval through this proposal for the amendment of the agreement within the joint committee that administers the agreement. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.13 is COM (2005) 318, a proposal for a Council regulation amending Regulation (EC) No. 384/96 imposing a definitive anti-dumping duty on imports of castings originating in the People's Republic of China and EWN 2004 C104/06 concerning imports of castings originating in the People's Republic of China. The lead Department is the Department of Enterprise, Trade and Employment.

The committee considered an early warning note from the Department on this issue in April. At the time it was determined that consideration of the proposal be deferred and that the Department be requested to provide additional background on the proposed measure as, inter alia, one of the then unnamed complainants to the Commission was based in Ireland. The current note from the Department indicates that the company is based in County Offaly and the proposal from the Commission seeks approval for the putting in place of definitive anti-dumping duties regarding the product concerned following the completion of its investigation.

It is proposed that the proposal and the early warning note do not warrant further scrutiny. Is that agreed? Agreed.

No. 5.14 is COM (2005) 321, a proposal for a Council decision enabling countries eligible for the future European neighbourhood and partnership instrument, ENPI, to benefit from the technical assistance and information exchange programme. The lead Department is the Department of Foreign Affairs and the Department of Enterprise, Trade and Employment also has an interest. The proposal seeks approval for the extension of the programme to the ENPI countries and Russia. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.15 is COM (2005) 235, a proposal for a Council decision on the conclusion on behalf of the European Community of the convention for the strengthening of the interim American tropical tuna commission. The lead Department is the Department of Communications, Marine and Natural Resources. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.16 is COM (2005) 326, a proposal for a Council regulation on the negotiation of agreements on trade in services other than transport. The lead Department is the Department of Enterprise, Trade and Employment. The Commission argues that this proposal follows from the Court of Justice's decision on keeping the Commission informed in respect of air service agreements between member states and third countries. The Commission contends that "in the field of trade in services other than transport there are good reasons not only for establishing an information exchange system but also for reinforcing it". The Commission even argues:

Even if the planned agreement does not encroach on areas of exclusive Community competence and does not include provisions contrary to European Union law the attainment of the common interest might require an agreement between the Community and the third country concerned.

The adopted proposal would require member states to inform the Commission of relevant agreements adopted prior to the adoption of the regulation and, subsequent to the adoption of their regulation, to notify it of all agreements to be negotiated in the field of trade in services other than transport. Other member states would be informed in this regard and it would also be open to the Commission and other member states to make observations on the proposed negotiations. In certain instances a member state could be required to postpone the initiation of the formal negotiation with third countries.

The Department in its note has not anticipated much delay in the adoption of the proposal. I understand, however, that following the raising of several points with the Department the indications are that the proposals could be the subject of "detailed consideration at appropriate fora over the coming months" and that the Department is undertaking consultations with other Departments on the nature and scope of the proposal. It is proposed, therefore, that the proposal does not warrant further scrutiny at this stage but that it be forwarded for information to the Joint Committee on Enterprise and Small Business and that the Department be requested to keep the committee informed of any developments in respect of this proposal. Is that agreed? Agreed.

The following issue is important being a Green Paper on mortgage credit in the European Union, COM (2005) 327. The lead Department is the Department of Finance and the Department of Justice, Equality and Law Reform also has an interest. The Green Paper explores the merits of Commission intervention in the European Union residential credit markets. Intervention would be based on meeting the Lisbon objectives on enhancing European Union competitiveness and the integration of European financial services.

The Department note indicates that changes in the mortgage sector could result in opportunities for mortgage providers and takers in Ireland. It is proposed that the Green Paper be forwarded for information and consideration to the Joint Committee on Finance and the Public Service. Is that agreed? Agreed.

How long does it take before the process is completed to enable consumers to benefit from this trans-frontier trading in the mortgage market? Currently, financial institutions can trade with one another but the consumer is not allowed to do so and does not receive the benefit of that process. Will the Chairman give a timescale within which it is envisaged these changes might occur?

The consultation period continues until 30 November. This proposal would be in the interests of the consumer.

Does it require the enactment of a directive in the Houses of the Oireachtas?

This is a Green Paper for discussion and it will be open to the Joint Committee on Finance and the Public Service to send its observations to the Commission. We hope it will do so as quickly as possible. I am told the Green Paper has been circulated.

COM (2005) 336 is a proposal for a Council decision establishing the Community position on the revision of the sub-committee structure of the co-operation committee established under the European Union-Ukraine partnership and co-operation agreement. The lead Department is the Department of Foreign Affairs.

This proposal seeks approval for the reconfiguration of the sub-committee structure in place with respect to the existing partnership and co-operation agreement with the Ukraine to take account of the priorities identified in the European Union-Ukraine action plan under the European neighbourhood policy. The three sub-committees cover issues related to trade and investment, economic and social affairs and enterprise, competition and regulatory co-operation. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.19 is a proposal for a Council decision on an amendment to the agreement establishing the European Bank of Reconstruction and Development, enabling the bank to finance operations in Mongolia. The lead Department is the Department of Finance. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed. The dialling code for Mongolia is 976 if members wish to call.

No. 5.20 is a regulation of the European Parliament and the Council on information on the payer accompanying transfer of funds. The lead Department is the Department of Finance and the Department of Justice, Equality and Law Reform also has an interest. The memorandum to this proposal outlines the general context in which it is being advanced by the Commission. It recalls the escalation in terrorist attacks in recent years and the declarations at European Councils on measures against terrorism and the need to adopt measures that help prevent the financing of terrorism and terrorist acts at international level. The proposed measure aims to assist in tracing the sources of terrorist funding and provides that a payment service provider, which is defined as "a natural or legal person whose business includes the provision of payment services to the payment service users", is required to maintain basic information on the persons involved in transfers such as name, address and account holder details. The proposed measure would not include credit or debit cards.

In response to several questions the Department has outlined that it consulted the Irish Payment Services Organisation, the umbrella body for the Irish payments industry. The organisation's perspective, as set out by the Department, is that it would be impractical for Ireland to approach this issue on any basis other than compliance with what will become the generally accepted international standard for information exchange. It is proposed that the proposal does not warrant further scrutiny but that it be forwarded for information to the Joint Committee on Justice, Equality, Defence and Women's Rights and the Joint Committee on Finance and the Public Service. Is that agreed? Agreed. I have a question which I should perhaps have asked earlier. Regarding the transfer of funding and investment in places such as Bulgaria, what impact would this have? I am told by the officials that it is related to the transfer of funds between banks, not investments. That answers the question.

No. 5.21, now No. 6.1, is an adopted measure, COM (2005) 345. No. 5.22 is COM (2005) 357, a proposal for a Council regulation amending Regulation (EC) 974/98 on the introduction of the euro. The lead Department is the Department of Finance and the Central Bank of Ireland will also be involved. This proposal from the Commission aims to build on the provisions of the treaty and provides a legislative programme for future additional introductions of the euro in member states. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.23 is COM (2005) 367, a proposal for a Council decision repealing Council Decision 2001/131/EC, concluding the consultation procedure with Haiti under Article 96 of the ACP-EC partnership agreement. The Department of Foreign Affairs is the lead Department. Political developments in Haiti during 2004 have resulted in the interim government advancing towards a series of elections at all levels of political control, and in that context the Commission proposes that the remaining restrictions on the provision of aid also be lifted. Those restrictions relate to the European Development Fund national programme. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2005) 370 amends Directive 2001/14/EC on the approximation of the laws of member states relating to noise emission in the environment by equipment for use outdoors. The lead Department is the Department of Enterprise, Trade and Employment and the Department of the Environment, Heritage and Local Government also has an interest. The stated objective of the noise directive of 2001 is to guarantee the free movement of certain equipment while reducing the permissible noise levels for such equipment to protect the health and well-being of citizens as well as the environment. It is outlined in the memorandum to the proposal that the experience of the first five years of application of the noise directive has demonstrated that the obligations foreseen in Articles 16 and 20 require additional time to fulfil. Those articles concern the Commission's reporting obligations regarding the products placed on the market, as well as the wider operations of the directive. In addition, it is set out in the memorandum that for several types of equipment the measured sound power levels to be applied would be technically impossible to achieve. The adopted proposal would, therefore, provide for additional time for the Commission to comply with the reporting obligations envisaged in the earlier directive and several pieces of equipment will no longer be required to comply with even more stringent noise levels from January 2006, as the limits set are not currently technically feasible.

I understand the Department has been asked to clarify the nature of any consultations with stakeholders regarding the proposal. We have just received the news that the Department has circulated details of the proposed amendment to representative bodies such as IBEC and the CIF for their attention.

Does that mean that they changed their minds? Someone must have made them do so.

Somebody has obviously expressed reservations.

It makes one wonder who came up with the idea in the first place if it is not technically possible to implement the directive. One wonders who those gurus might be.

Based on the current information provided by the Department, it is proposed that the proposal does not warrant further scrutiny. That is consistent with what we have been dealing with. I was worried that there might be an inconsistency, but I am told there is none. Is that agreed? Agreed.

COM (2005) 372 is a proposal for a Council decision on the conclusion of an additional protocol to the agreement on trade, development and co-operation between the European Community and the Republic of South Africa. The lead Department is the Department of Foreign Affairs. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.26 is a proposal for a Council decision on a Community position on the implementation of Article 66 of the Euro-Mediterranean interim association agreement on trade concerning the Palestinian Authority. The lead Department is the Department of Foreign Affairs. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2005) 416 is a proposal to impose specific anti-subsidy duties on an Indian exporter and accept price undertakings offered. COM (2005) 418 is a proposal to impose specific anti-dumping duties on an Indian exporter and accept price undertakings offered. It is proposed that the proposals do not warrant further scrutiny. Is that agreed? Agreed.

There was one adopted measure received for this meeting. COM (2005) 345 is a Council regulation temporarily reducing the autonomous common customs tariff duties for certain tropical fishery products. The Department of Communications, Marine and Natural Resources is the lead Department and the Department of Enterprise, Trade and Employment also has a role. It is proposed to note the adopted measure. Is that agreed? Agreed.

There were no early warning notes received for this meeting. The minutes of the meeting of 27 July 2005 have been circulated. Are they agreed? Agreed.

The draft 55th report of the sub-committee has been circulated. I propose that it be forwarded to the Joint Committee on European Affairs for agreement to lay before both Houses along with appendices. Is that agreed? Agreed.

The following correspondence has been received. The first piece is a letter from the Department of Justice, Equality and Law Reform acknowledging receipt of a letter dated 29 July 2005. It is proposed to note that correspondence. Is that agreed? Agreed. The second is a letter from the Department of Justice, Equality and Law Reform concerning document 10215/04 for our information. As the issue involved is being considered by a working group in Europe tomorrow, it is proposed to defer it until the next meeting, when further information will be available. Is that agreed? Agreed. The third concerns the receipt of six-monthly reports in accordance with the European Union (Scrutiny) Act 2002 from Departments covering the period 1 July to 31 December 2004. I propose to note receipt of the reports. Is that agreed? Agreed.

I propose that the next meeting of the sub-committee take place at 9.30 a.m. on Thursday, 6 October 2005. Is that agreed? Agreed. I thank members for their patience with such a lengthy agenda.

The sub-committee adjourned at 1.30 p.m. until 9.30 a.m. on Thursday, 6 October 2005.

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