Written Answers. - EU Directives.
Ruairí Quinn
Ceist:
145
Mr. Quinn
asked the
Minister for Finance
the EU, EUSC or EURATOM directives, wholly or partly under the auspices of his Department, which are not fully implemented; the subject, date and reference number of each; the date on which implementation is or was due; whether the proposed mode of implementation is primary or secondary legislation; when each directive will be implemented; and if he will make a statement on the matter.
[13230/99]
Directive 98/80/EC of 12 October 1998 supplementing the common system of value added tax and amending Directive 77/388/EEC – special scheme for investment gold – primary legislation was enacted in the Finance Act, 1999. Secondary legislation to implement some provisions will be required by 1 January 2000. The date of coming into force of the directive is 1 January 2000.
Directive 94/19/EC of the European Parliament and the Council of 30 May 1994 on deposit guarantee schemes broadly provides for a scheme to protect the deposits of small investors, up to an amount of 15,000 euro, which is to rise to 20,000 euro by the end of 1999. The directive, which was due for implementation by 1 July 1995, was implemented in Ireland by the European Communities (Deposit Guarantee Schemes) Regulations, 1995, SI No. 168 of 29 June 1995, as amended by the Central Bank Act, 1997. Under the Irish scheme, the maximum level of cover to any eligible depositor is 90 per cent of aggregate qualifying deposits held by that depositor subject to a maximum compensation of 15,000 euro. As mentioned above, the directive provides that the maximum level of cover must be increased to 20,000 euro by 31 December 1999. It is intended that this be done by secondary legislation under the European Communities Act, 1972.
Directive 95/26/EC of the European Parliament and the Council of 29 June 1995, known as the BCCI directive, amends a number of directives in the financial regulation area. The provisions provide for communication between regulatory authorities. This directive was due to be transposed by 18 July 1996. The mandatory provisions of this directive were transposed by SI No. 267 of 9 September 1996. Consideration is being, given as to whether to implement the non-mandatory provisions by primary legislation.
Directive 97/5/EC of the European Parliament and the Council of 27 January 1997 on cross border credit transfers provides for transparency in charges relating to cross border credit transfers, the avoidance of double charging, and specific performance in relation to the time taken to complete a transfer. In the event of failure, a credit institution is obliged to refund the amount of the transfer plus a penalty interest rate. It must be implemented by member states before 14 August 1999. It is intended that the directive will be implemented by statutory order made under section 22 of the Central Bank Act, 1997, which gives the Minister for Finance the power to make regulations providing for the regulation of cross-border credit transfers.
Directive 98/26/EC of the European Parliament and the Council of 19 May 1998 on settlement finality in payment and securities settlement systems aims to reduce the legal risks associated with participation in settlement systems, in particular as regards the legality of netting agreements and the enforceability of collateral security. The directive's provisions apply to any EU payment or securities settlements system operating in any currency or the euro, any EU institution which participates in such a system, collateral security provided in connection with participation in such a system, and collateral security provided in connection with monetary policy operations.
The final date for transposition of the directive is 11 December 1999. The European Communities (Finality of Settlement in Payment and Securities Settlement Systems) Regulations, 1998, SI No. 539 of 31 December 1998, made under section 3 of the European Communities Act, 1972, give effect to the mandatory provisions of the directive. Article 4 of the directive provides that the opening of insolvency proceedings against a participant in a payment system shall not prevent funds or securities available on the settlement account of that participant from being used to fulfil that participant's obligations in the system on the day of the opening of the insolvency proceedings. This is not a mandatory provision and it has not yet been decided whether to transpose it.
Directive 98/31/EC of the European Parliament and the Council of 22 June 1998 amends Directive 93/6/EEC on capital adequacy of investment firms and credit institutions. Directive 98/32/EC of the European Parliament and the Council of 22 June 1998, as regards in particular mortgages, amends directive 89/647/EEC on solvency ratio for credit institutions.
Directive 98/33/EC of the European Parliament and the Council of 22 June 1998 amends Directives 77/780/EEC on credit institutions, 89/647/EEC on solvency ratio for credit institutions and 93/6/EEC on capital adequacy of investment firms and credit institutions. The provisions mainly relate to prudential regulation of credit institutions, that is, ensuring they follow sound business practices, particularly in relation to valuation of mortgages and other balance sheet items, so as to avoid the collapse of credit institutions. Implementation of all three directives is due by 22 June 2000. It is proposed that they will be implemented by administrative orders made under the statutory powers of the Central Bank.
Council Regulation – EC, EURATOM – 2988/95 of 18 December 1995 on the protection of the European Union's financial interests is a general framework regulation allowing for the application of control procedures and administrative penalties to irregularities arising in the use of Union funds.
The substantial implementation of the regulation is awaiting the specification, in further regulations to be tabled by the Commission, of actual fines and penalties to be applied in particular sectoral fields. Further legislative action at national level must await the adoption of these sectoral regulations.
In one respect – the provision of sectoral arrangements for on-the-spot checks by Commission inspectors – statutory arrangements have been put in place, viz. SI No. 168 of 1998.
