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JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) debate -
Thursday, 27 Apr 2006

Scrutiny of EU Proposals.

The sub-committee is now in public session. The following proposals are proposed for further scrutiny, namely, items 1.1 to 1.3.

Item 1.1, COM (2006) 91, is a proposal for a regulation establishing a European Globalisation Adjustment Fund. As members will have seen the Commission's memorandum to this proposal suggests that there is a significant asymmetry between the overall benefits of economic openness, which often takes some time to materialise, and its adverse effects which are more visible, immediate and concentrated on specific individuals and areas.

The European Globalisation Fund, EGF, proposed here would be focused on areas most negatively impacted upon by globalisation and would seek to underpin what the Commission calls flexicurity: a balance between flexibility and employment security.

The EGF would have a maximum of €500 million available in any one year and this would be sourced from savings elsewhere in the European Union budget. The fund would provide up to 50% of the costs of, for example, retraining ex-employees. The Department's note would appear to correctly identify that the basis of the proposed fund is to assist large-scale regional concentrations that would, for example, be more commonly found elsewhere in the European Union budget. The Department also acknowledges that changing economic circumstances in Ireland might result in a greater need for such a fund to assist here.

In a follow-up to the initial note the Department of Enterprise, Trade and Employment has confirmed that the current system of reporting redundancies in Ireland does not match the requirements of the proposed fund. This is a significant proposal that seeks to directly address concerns as regards globalisation and to demonstrate solidarity across the European Union with regions experiencing particular employment difficulties.

This proposal seeks to address that initially negative implications of globalisation on employment in Europe be referred for further scrutiny by the Joint Committee on European Affairs, particularly as regards how the proposed fund might operate in practice across the European Union. It is also suggested that the proposed measure be forwarded for information to the Joint Committee on Enterprise and Small Business. Is that agreed? Agreed.

Item 1.2, COM (2006) 83, is an amended proposal for a regulation on the law applicable to non-contractual obligations — Rome II.

In September 2003 the scrutiny sub-committee considered an earlier draft relating to Rome II that was forwarded to and noted by the Joint Committee on Justice, Equality, Defence and Women's Rights. This was a Title IV proposal that sought to harmonise the rules applicable for non-contractual obligations, both civil and commercial. The proposal covered civil liability for damage caused to others by, for example, defective products, unfair competition and violation of privacy or of the environment.

Rome II draws on the previous Rome and Brussels conventions and sets out the law applicable in the situations concerned. Ireland opted in October 2003 to participate in this legislative process.

The Commission has accepted a number of amendments of the original proposal adopted by the European Parliament and these are included in this amendment text. Many of the amendments seek to provide further clarity concerning aspects of the original text. In many cases the Commission has included references to other instruments and the Court of Justice, rather than including lists of instances that would be covered by the proposed measure.

It is proposed that the amended Title IV proposal be referred for further scrutiny by the Joint Committee on Justice, Equality, Defence and Women's Rights, given that Ireland has opted to participate in the process and that the implications of the adoption of the amended text remain unclear from the text presented. Is that agreed? Agreed.

Item 1.3, COM (2006) 60, is an amended proposal for a directive on services in the Internal Market.

In March 2004 the scrutiny sub-committee considered the earlier draft services directive and determined that the proposal be referred for further scrutiny by the Joint Committee on Enterprise and small Business. The proposal was presented by the Commission in the context of the Lisbon process of economic reforms and aimed to give "both the providers and the recipients of services (by 2010) the legal certainty they need in order to exercise two fundamental freedoms enshrined in the Treaty", that is, freedom of establishment for service providers and the free movement of services between the member states. The freedom to provide services anywhere in the EU would be underpinned. Business would be under an obligation to make key information available to consumers and would not be allowed to discriminate against a consumer on grounds of residence or nationality.

The significance of the proposed liberalisation of the services sector to the European Union as a whole, and Ireland in particular, is highlighted by the situation whereby services account for only around 20% of total OECD trade, though the figure is somewhat larger for Ireland. Ireland had a 2.2% share of world services exports in 2004.

It is proposed that this highly significant proposal be referred for further scrutiny by the Joint Committee on Enterprise and Small Business. It is also proposed that it be forwarded for information to the joint committees corresponding to the range of Departments listed in the departmental information note, plus the Joint Committee on European Affairs. Is that agreed? Agreed.

There is just one Title IV measure on the agenda for today, item 2.1. It is a modified proposal for a regulation amending Regulation EC/1030/2002, laying down a uniform format for residence permits for third country nationals. This proposal is a modified version of COM (2003) 558, which was considered by the scrutiny sub-committee in November 2003. The proposal arises under Title IV of the treaty and therefore does not automatically apply to Ireland. The current text seeks to take account of technical problems in the development of residence permits and will be required under the proposed legislation. The Commission's memorandum to the present text sets out that "it is technically not feasible to integrate biometrics into the visa sticker and the sticker version of the residence permit for third country nationals". The Department's note and the Commission's memorandum, therefore, indicate that consensus has been reached that the identifiers shall be included on a separate card. The Department has been requested to outline whether any evaluation has taken place into the cost benefits of the proposed measure at a European and or national level and if this has occurred, what are the estimated costs for Ireland of participating in the measure?

It is proposed that the Title IV proposal be forwarded for information and consideration by the Joint Committee on Justice, Equality, Defence and Women's Rights. Is that agreed? Agreed.

There are no CFSP measures on today's agenda except item 3.1, CFSP (2006) 276, a Council Common Position concerning restrictive measures against certain officials of Belarus and repealing Common Position CFSP (2004) 261. This common position provides for the widening of the scope of the restrictive measures in place as regards certain officials in Belarus, to include among others, President Lukashenko. The earlier restrictive measures were put in place following the disappearance of four well-known opposition figures in Belarus in 1999-2000. The widening of the scope of the restrictive measures follows the recent violent break-up of peaceful demonstrations in Belarus. The restrictions concern an entry visa ban on the persons concerned. It is proposed to note the measure. is that agreed? Agreed.

No proposals are proposed for deferral at today's meeting. It is proposed that items 5.1 to 5.19 need no further scrutiny.

Item 5.1, COM (2006) 105, is a Green Paper for a European strategy for sustainable, competitive and secure energy. The introduction to the Green Paper outlines concerns with the energy sector in Europe. In particular, it sets out that import dependency as well as oil and gas prices are rising. It indicates that our climate is getting warmer and that the EU and the rest of the world will face serious consequences for economies and ecosystems. It is in this context that the Commission suggests that the absence of a fully competitive energy market is particularly felt.

The paper suggests a number of priorities that should be considered in addressing concerns relating to the energy sector. Members will have noted that the Department indicates that it is not in a position to anticipate what elements of the paper will be advanced in the near future. However, it welcomes the suggestions on renewable energy, research and development and energy efficiency. It is proposed that this significant Green Paper be forwarded for information and consideration to the Joint Committee on Communications, Marine and Natural Resources. Is that agreed? Agreed.

Item 5.2, COM (2005) 653, is a proposal for a regulation amending Regulation (EC) No. 2223/96 with respect to the transmission of national accounts data. This proposed measure seeks approval to up-date the existing regulation in the transmission of national accounts tables. These tables are used in economic and social policy analysis at the level of the member states and the European Union. The Commission indicates in the memorandum to the proposal that the proposed changes follow from intensive discussion at technical level and would reconfigure the tables to offer what it believes would be more timely information that would be used in policy decisions. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.3, COM (2006) 11, is a proposal for a regulation on the European system of integrated social protection statistics. The proposed regulation would give a legal base for the collection of social protection data that is currently supplied on a voluntary basis by the statistical organisations of the member states. The proposal does not warrant further scrutiny; it is also proposed that it be forwarded for information to the Joint Committee on Social and Family Affairs, especially the aspect related to the pilot project on net social benefit data. Is that agreed? Agreed.

Item 5.4, COM (2006) 80, is a proposal for a decision on the conclusion of the protocols on soil protection, energy and tourism to the Alpine Convention. In September, the committee considered COM (2005) 244 that concerned the signature of these protocols. At that time, the committee determined that the proposal did not warrant further scrutiny, but that the associated documentation be forwarded for information to the Joint Committee on the Environment and Local Government regarding the points highlighted concerning Article 9 of the protocol on energy, which dealt with sharing certain information on nuclear sites. The proposal does not warrant further scrutiny; it is also proposed that the measure be forwarded to the Joint Committee on the Environment and Local Government regarding the aspect concerning the EURATOM Treaty. Is that agreed? Agreed.

Item 5.5, COM (2006) 112, is a proposal for a decision concerning the approval of partitioning systems to protect passengers against displaced objects. Item 5.6, COM (2006) 127, is a proposal for a decision concerning the approval of motor vehicles with regard to the forward field of vision of the driver through the windscreen and other glazing. These are in a series of technical proposals relating to motor vehicles that aim to ensure the free movement of the products concerned within the single market. The Department indicates that it can support the proposals as their adoption should improve road safety. In regard to COM (2006) 112, partitioning systems, the Department has set out that the inclusion of the product in the vehicle is optional. The Department has confirmed that the Commission has not indicated the anticipated costs of the adoption of the measure on windscreens and it has again set out that Ireland does not have a motor-manufacturing industry. It is proposed that the proposals do not currently warrant further scrutiny, but that the Department be requested to provide a broad outline of the expected costs of the adoption of COM (2006) 127 for motorists. Is that agreed? Agreed.

Item 5.7, COM (2006) 123, is a proposal for a Council directive on control of the insect, San Jose Scale. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.8, COM (2006) 125, is a proposal for a regulation amending Regulation (EC) No. 1673/2000 on flax and hemp. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.9, COM (2006) 132, is a proposal for a decision relating to the multi-annual financial framework for the period 2008-13 concerning the ACP states and the European Community. This proposal is technical and would result in the modification of the agreement between the ACP countries and the European Community to take into account the longer period of the agreed next multi-annual financial framework. While this is a technical proposal, it relates to substantial financial commitments by the member states of the European Union concerning development aid. In the case of Ireland, assistance through this mechanism would amount to €206 million over the period 2008-13. It is proposed that the proposal be forwarded for information to the Joint Committee on Foreign Affairs for the attention of the development sub-committee in the context of the related financial commitment by Ireland. Is that agreed? Agreed.

Item 5.10, COM (2006) 143, is a proposal for a regulation adjusting from 1 May 2006 the scale for missions by officials and other servants of the European Communities in the member states. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.11, COM (2006) 146, is a proposal to amend the customs schedules for Malaysia to take account of the accession of ten additional member states in 2004. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.12, COM (2006) 147, is a proposal to amend the customs schedules for the customs territory of Chinese Taipei to take account of the accession of ten additional member states in 2004. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.13, COM (2006) 148, is a proposal for a regulation extending Regulation (EC) No. 964/2003 to include a definitive anti-dumping duty on imports of tube and pipe-fittings consigned from the Philippines. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.14, COM (2006) 158, is a proposal for a regulation amending Regulation (EC) No. 397/2004 imposing a definitive anti-dumping duty on imports of cotton-type bed linen originating in Pakistan. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.15, COM (2006) 165, is a proposal for a regulation imposing a definitive anti-dumping duty on imports of dead-burned magnesia originating in the People's Republic of China. The proposal does not warrant further scrutiny. Is that agreed? Agreed.

Item 5.16, SEC (2006) 490, is a preliminary draft amending budget No. 2 to the general budget for 2006. This proposed measure concerns the transfer of the surplus from the 2005 European Union budget into revenue for the 2006 budget. This occurs because the EU budget must be balanced under European law. The surplus is due to higher than budgeted revenue and lower than expected expenditure. The Department's note sets out that it is very satisfied with the Commission's management of the budget in 2005. It is proposed that this technical adjustment to the budget does not warrant further scrutiny. However, it is proposed that the documentation concerning this proposed measure be forwarded for information in the context of the proposed globalisation fund to the Joint Committee on European Affairs. Is that agreed? Agreed.

Item 5.17, COM (2006) 138, is a proposal for decisions on the signing and conclusion of the stabilisation and association agreement between the European Union and Albania.

Item 5.18, COM (2006) 139, is a proposal for a decision on the conclusion of the interim agreement on trade and trade-related matters between the European Union and Albania. In the period between agreement on a stabilisation and association agreement, or SAA, with Albania and its ratification, the Commission is proposing that an interim arrangement be agreed whereby the trade-related elements of the SAA would become operational in advance of the SAA itself. The adoption of the proposal would facilitate the liberalisation of trade between the Community and Albania.

The SAA process is designed to assist the strengthening of political and economic stability in south-east Europe. The SAA with Albania is expected to be signed on the margins of the GAERC in Luxembourg on 15 and 16 May. The agreement with Albania covers a wide spectrum of matters with a view to, inter alia, supporting the efforts of Albania to strengthen democracy and the rule of law; fostering regional co-operation; providing an appropriate framework for political dialogue, and supporting the efforts of Albania to move towards a functioning market economy. The Department’s note indicates that it views the proposal concerning trade as purely technical in nature and the adoption of which would have no particular implications for Ireland. The proposals do not warrant further scrutiny. Is that agreed? Agreed.

Item 5.19, COM (2006) 153, is a proposal for a regulation amending regulations concerning the application of exceptional market support measures. The Commission's memorandum to this proposal indicates that the percentage drop in consumption of poultry meat following media reports of instances of the so-called avian flu has, in some instances, been more than 50%. It is therefore proposed here that a legal basis be agreed for the operation of support measures in the poultry and eggs sector where there have been serious market disturbances. The proposed measure does not specify the level of assistance, which would be the subject of a separate proposal. The proposal does not warrant further scrutiny; it is also proposed that the proposal be forwarded for information with regard to the wider issue of the level of support for the poultry industry to the Oireachtas Joint Committee on Agriculture and Food. Is that agreed? Agreed.

There were no adopted measures received for this meeting.

Items 7.1 to 7.5 on today's agenda refer to early warning notes. Regarding Item 7.1, EWN 2006/C78/06, anti-dumping measures regarding exports of hand pallet trucks and their essential parts from the People's Republic of China, it is proposed that the early warning note does not currently warrant further scrutiny. Is that agreed? Agreed.

Item 7.2, EWN 2006/L91/3, anti-dumping measures in respect of exports of coumarin from the People's Republic of China, it is proposed that the early warning note does not currently warrant further scrutiny. Is that agreed? Agreed.

Item 7.3, EWN Regn 439/2006, anti-dumping measures regarding exports of chamois leather from the People's Republic of China, it is proposed that the early warning note does not currently warrant further scrutiny. Is that agreed? Agreed.

Item 7.4, EWN 2005/C159/07, anti-dumping measures with regard to exports of plastic carry-bags from the People's Republic of China, Malaysia and Thailand, it is proposed that the early warning note does not currently warrant further scrutiny. Is that agreed? Agreed.

Item 7.5, EWN 2005/C159/05, anti-dumping measures regarding exports of protective toecap footwear from the People's Republic of China and India, it is proposed that the early warning note does not currently warrant further scrutiny. Is that agreed? Agreed.

The sub-committee will now deal with correspondence. A letter regarding COM (2006) 98, a proposal for a Council regulation regarding arrangements for the importation of rice has been circulated to members of the sub-committee. Are there any comments? It is proposed that it be noted. Is that agreed? Agreed.

Regarding the third annual report of the operation of the European Union (Scrutiny) Act 2002, it is proposed that it be forwarded to the Oireachtas Joint Committee on European Affairs. Is that agreed? Agreed.

As there is no further business, I thank members for attending.

The sub-committee adjourned at 9.55 a.m. until 9.30 a.m. on Thursday, 11 May 2006.

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