I welcome the chairman or the European affairs committee of the Bulgarian Parliament. I will not attempt to pronounce your name.
Visit of Bulgarian Parliamentary Delegation.
Mr. Mladen Tcherveniakov, MP
It is very difficult to pronounce but very easy to remember.
I have no doubt it is. I welcome the chairman and his delegation to the meeting. You are most welcome, as the most recent members of the European Union. I have met some of your colleagues, as have other members of this committee.
We will begin with an opening address from the delegation, to which we will respond. We do not intend to continue for very long and I am sure the delegation has many other things to do.
Mr. Mladen Tcherveniakov, MP
We have waited a long time for our membership of the EU but we have only waited a couple of minutes for this meeting. I will introduce the delegation. I am Mladen Tcherveniakov and I am head of the European affairs committee. I am a former Minister for Justice and a member of the socialist party. Mr. Radoslav Ivanov is the head of the sub-committee relating to European funds and a member of our committee. Mr. Tsanko Bogdanov is chargé d'affaires at the Bulgarian Embassy. Two further members of the delegation were supposed to be present today but we encountered problems with our flights, among other problems in our country, so they have been delayed. They will arrive this afternoon.
Our task while visiting Ireland is to study its experience with a view to learning how best to control the logistics of European funds. We know Ireland has enjoyed very good results in this regard. Tomorrow morning we will meet with the Department of Transport and we are aware that, from 2000 to 2006, the planned expenditure of that Department was approximately €28 billion. In Bulgaria we propose to spend €2 billion in that area from 2007 to 2013.
I will say a few words about our task. From 1 January we will not be a committee for European integration but the European affairs committee. Our task comprises three main points. First, we are responsible for European legislation, in the area of harmonisation and the transposition of European regulations and directives into Bulgarian law. We have drawn up a programme, which we have put before the Bulgarian Parliament. This year some 67 laws are the focus of our attention, relating to acts which the European Commission sends to our Government for an opinion.
Second, we now have a new chapter in our legislation, under which we control and monitor what the Government does in the area of European affairs. In this respect we take part in hearings with Ministers who take part in meetings of the European Council. Twice a year we take part in a hearing with the Prime Minister in Parliament to hear his opinion on the tasks facing our country and other matters relating to future presidencies of the EU. Legislation is our first task and monitoring the Government our second. We are present today to gain more experience of the work of the Joint Committee on European Affairs, to learn something new and to get a better impression of what we must do in our country in the near future. I thank members for their attention.
I thank the delegation. Deputy Timmins has another appointment for which he is late so I apologise for his absence.
I welcome the Bulgarian delegation and I am sorry they have been kept so late. Bulgaria is one of the two most recent recruits to the European Union. What is Bulgaria's experience of membership of the European Union since January 2007? What is the situation vis-à-vis the free movement of labour or the lack of it, as the case may be? There are fewer Bulgarians than Romanians in Ireland. While there are restrictions in respect of the free movement of labour to Ireland there are many Romanian people here. Perhaps Mr. Tcherveniakov would comment on this.
This committee will deal with all matters in respect of European Affairs. The main priority for us in the coming months will be ratification of the reform treaty and this will require a referendum here. Perhaps Mr. Tcherveniakov will set out for us the process by which Bulgaria will ratify the treaty. Will it be ratified by parliament or by way of referendum?
Mr. Mladen Tcherveniakov, MP
I will deal with the Deputy's last question first. Bulgaria is one of many countries that will ratify the treaty on the establishment of a constitution of Europe. It will not be a problem for us. Following signing of the reform treaty, Bulgaria will ratify it in Parliament. I expect the treaty will be ratified in December.
Deputy Costello asked for our views in respect of Bulgaria's membership of Europe. The expectations of the new member countries far outweigh reality. We expect a great deal. Of particular note in Bulgaria has been that while prices have increased in a relatively short time salaries have not increased. We are finding it hard to establish new rules because membership of the EU has come before all these rules. We have many tasks to complete in respect of our membership of the EU.
I apologise, I am unsure if Deputy Costello asked two or three questions.
The second part of my first question--
Mr. Mladen Tcherveniakov, MP
The Deputy has two questions, the first of which is in two parts.
You are in Ireland now.
I asked for Mr. Tcherneviakov's views on Ireland's restrictions on the labour market.
Mr. Mladen Tcherveniakov, MP
We are not satisfied with the restrictions. We hope the decision taken at the end of 2008 by England and Ireland in respect of access by Bulgarian people to work in these countries will be positive. We also hope Bulgarian people will not in future require permission to work in other EU countries. The restrictions are causing problems for Bulgarian people. It is difficult for us to understand. Are Polish workers better than Bulgarian workers? I am aware there are a number of Polish people in Ireland. I am not, however, aware of your views in terms of their work. Perhaps members can tell us if they are satisfied with them? I understand that workers from new countries can create problems. However, Bulgarian workers are good workers. If they go somewhere, they produce positive results. For example, in the communist era, our country specialised in high level technologies among the socialist states. We have very well educated professionals in this field. If there is a need for well educated professionals, Ireland can open its market for our workers.
I meet a Bulgarian worker regularly in Dublin Airport and he is very enthusiastic about living in Ireland. I welcome him every time I see him there. I am not sure if it is entirely legal, so I will not tell anybody who he is.
I am chairman of an organisation called EuroCommerce, which represents trade and distribution in Europe. In that role I met Ms Kuneva, who is the Bulgarian EU Commissioner for Consumer Protection. I was very impressed with both her knowledge of Ireland and the job she is doing. She has a difficulty wearing a Bulgarian hat, as textile manufacturing is one of Bulgaria's major industries, yet in consumer protection we are trying to do away with all barriers — known as the trade defence instrument — in order to allow the lowest cost textiles enter Europe. Does the delegation see this as a threat to its textile industry? Can Bulgarian industry change its production procedures to compete or to be in position not to object to the importation of textiles at much lower prices from the Far East?
There have been some big Irish property investments in Bulgaria, but there have also been expressions of concern about the ability to guarantee the title deeds of the property in Bulgaria. That has inhibited other investments that might have taken place. A number of concerns have been expressed from people who have invested in property there and who are in fear of losing that property because they do not have a guarantee to the title of it.
Mr. Mladen Tcherveniakov, MP
I can answer this because I am lawyer and am working in this field. The good news is that Irish investment in Bulgaria is increasing very fast. Between 2000 and 2007, there has been about €400 million worth of investment. In the past two years, there has been much investment in property. Irish companies involved in these ventures are making very good profits. House prices are about 20 times lower in Bulgaria than in Ireland. Bulgaria is a beautiful country, with great potential by the sea, in the mountains and the small cities. It is a good idea to invest in Bulgaria at the moment, because the price of land and houses is increasing. This is because Bulgarian property values must eventually reach those of all other EU member states.
We protect foreign investments in Bulgaria with a special law. Last year and this year we have introduced some tax reforms and are providing good opportunities for foreign investment because the rate of tax on company profits is approximately 10%. In many countries years ago a rate of 10% would have been incredible. We will perfect foreign investment and take care to make better opportunities for everybody to invest in our country.
On the first question, I am not a specialist in the textile industry. The EU Commissioner for Consumer Protection, Ms Meglena Kuneva, did her best to bring order to our country and the European Union. For a few months at the beginning of this year she gave the European Parliament a White Paper on consumer protection and a plan on how she would develop this in her period as Commissioner. Many foreign companies manufacture textiles in Bulgaria and these companies are interested in quality of production. Year by year quality will improve. We have a procedure to protect consumers. We have a special state commission which will bring us in the right direction.
Polish people are very good workers and I am sure Bulgarians are even better.
In my constituency there are many Polish and Romanian workers and some Bulgarians and their reputations are good. They all work very hard and have made a worthwhile contribution to the economy.
May I ask another question on the economy? What challenges must Bulgaria overcome to join the euro?
Mr. Radomir Ivanov, MP
As I said, it is an official secret but Bulgaria has already fulfilled all the criteria for joining the euro zone, except inflation. It is only a matter of time before we join. We must be members of the European exchange rate mechanism, ERM II, for at least two years. After this special treatment we will become a fully fledged member of the European Union.
Mr. Mladen Tcherveniakov, MP
I anticipate that by 2012 we will be members of the euro zone.
I again thank the delegates for coming before the committee. Our previous experience of dealing with Bulgaria has been positive and engaging and I have no doubt it will be a good member of the European Union.
Mr. Mladen Tcherveniakov, MP
I thank the Chairman. It would be useful if he could talk for two or three minutes about the task of this committee.
The Joint Committee on European Affairs was previously called the Joint Committee on Secondary European Legislation and examined legislation drawn up in the European Union that applied to Ireland. It investigated where primary legislation was required, or not as the case may be. With the growth in the number of European directives, the committee was divided into two. One of these committees monitors EU directives and legislation and examines the impact they may have on Ireland in respect of each Department. Previously the committee did all the work alone. We receive a briefing from the Minister before he attends Council meetings and he uses the committee as a means of getting information--
Mr. Mladen Tcherveniakov, MP
Does the committee give him a mandate?
No. He attends the committee and outlines what he is doing. We then engage with him and give a reaction, which can be supportive or otherwise. When I previously served on this committee, I recall a senior person attending an important meeting in Brussels only to be told we did not agree with his proposal. He was not pleased but he was not a Minister. However, he kindly returned to appear before the committee a few weeks later, revised his thinking and carried on about his business. It is a question of addressing European legislation and engaging with the Commission, Parliament and Council with a view to ensuring matters run smoothly. The committee cannot dictate to or mandate Ministers but we can advise and give an opinion, which we do generally. Our discussions are relayed to the relevant Minister on an ongoing basis.
For instance, the committee intends to play a major role regarding the reform treaty. The majority of the committee favour its adoption but Ireland is the only member state that holds a referendum. We will engage in the debate and because this is a multi-party committee, provision will have to be made for both sides of the debate. Naturally, we hope the "Yes" campaign will dominate. Like the delegation, we all recognise every change has positive and negative aspects. In the 1970s when Ireland joined the EEC, it was not able for the competition because its industries were protected. Our manufacturing industries, particularly cars, tyres and footwear, suffered heavy losses but we recovered largely because of access to the bigger markets in the Union. There will always be swings and roundabouts, good times and bad times, including in politics. Sometimes one has a good run and other times one does not. Sometimes one must wait a long time for a good run but, by and large, the democratic process has served us well.
Our duty is to ensure we can influence the Union through COSAC and meeting colleagues such as the Bulgarian representatives through the Union. We have a great deal in common. I met Bulgarian parliamentarians prior to the country's accession and I always found Bulgaria's representatives to be very positive and knowledgeable about Europe. It has a major contribution to make and that will emerge as times goes by.
Mr. Mladen Tcherveniakov, MP
Does the committee monitor spending by European funds?
The Council generally engages in spending while the Commission is the driving force. The Council of Ministers and national Parliaments will have an increased role under the reform treaty. The committee proposes to send a delegation to the Court of Auditors shortly, having not attended for some time. We do not have a direct function in assessing spending. While we cannot mandate a Minister, we can advise or lobby. We represent all parties in the Parliament and we are reasonably representative of parliamentary opinion and society in general.
It is my belief that this committee will become more important as time goes on. There was a time when it was an adjunct of the Joint Committee on Foreign Affairs. That is no longer the case. There are now two European affairs committees, one that monitors European directives and this committee which deals with general European issues.
Deputy Costello explained part of what we are trying to do. I would add that Ireland voted "No" in a referendum on the first Nice treaty and turned it down. At that point we realised there had not been enough discussion. I am not talking about propaganda or trying to sell it. There had not been enough discussion.
At that stage the National Forum on Europe was created in an effort to create discussion on both sides so that people would have a better understanding of Europe. When the referendum on the second Nice treaty was held, a sufficient number of people voted. Perhaps those who had always voted "No" continued to vote "No" but others who had not bothered to vote before voted in the second referendum which was passed.
The reason I mention this is that it is part of our task to put Europe higher on the agenda for discussion, to make sure more people understand Europe, whether or not they are in favour of a reform treaty, a Nice treaty or a Maastricht treaty. Our function is to put Europe higher on the agenda so that more people discuss it and understand it and a higher vote will, therefore, be more likely. If there is a higher vote, whether it is "Yes" or "No", it is more satisfactory as more people will have become involved. That is part of the challenge we face.
Mr. Mladen Tcherveniakov, MP
In the end it is better to be a member of the Committee on European Affairs of the Bulgarian Parliament than of the committee in the Irish Parliament because in our country we do not have the possibility of holding a referendum on this question. This is a decision of the Parliament and there are no anti-European parties in the Parliament. It will be an easy decision for the Bulgarian Parliament.
I thank the delegation. Its visit has been a pleasure for the committee. We look forward to further engagement in the time ahead.
The joint committee went into private session at 3.43 p.m. and adjourned at 3.45 p.m. until 11.30 a.m. on Thursday, 6 December 2007.