JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) díospóireacht -
Thursday, 18 Dec 2003

Vol. 1 No. 58

Scrutiny of EU Proposals.

Chairman

The first set of proposals is contained in document 1117, which it is proposed does not warrant further scrutiny.

The first document is COM (2003) 537, which deals with the regulations concerning countries and territories participating in the EU stabilisation and association process. The departmental information note makes clear that this proposal is purely technical. It is proposed to note. Is that agreed? Agreed.

COM (2003) 570 is a proposed Council directive regarding health rules for the importation into the community of certain live animals. The proposal follows a review of community measures to prevent and combat foot and mouth disease and classical swine fever. The Department has indicated that implementation of the proposal would further protect Ireland's disease-free status. It is proposed that this technical proposal does not warrant further scrutiny. Is that agreed? Agreed.

I congratulate the members of the committee on what is a very impressive turnout for a Christmas session.

Deputy J. O’Keeffe

The Chairman's timekeeping has improved as the year has gone on.

Chairman

It is just that the Luas line is helping the traffic to flow better.

COM (2003) 663 is the Council regulation amending regulation EEC (1992) 2075 on the common organisation of the market in raw tobacco. The community tobacco fund, which is funded through deductions applied to the premium payments to tobacco growers, is used to finance the provision of information across the EU on the harmful effects of smoking and to support initiatives for growers to switch to other crops and economic activities. I understand that the Community tobacco fund has supported an EU-wide, three year anti-smoking campaign targeted at the 12 to 18-year age group, which was launched on the anti-smoking day, 31 May 2001. The fund has also supported conversion studies identifying crops or economic activities suitable to substitute for tobacco production. This proposal seeks to extend the current system of financing of the fund through a 3% deduction from the premiums paid to tobacco growers in the Community for a further year. The Department has indicated that there are no known growers of tobacco in Ireland. It is proposed that the measure does not warrant further scrutiny.

Senator Dardis

Tobacco has been grown in Ireland by the Agricultural Institute.

Deputy J. O’Keeffe

Were there not weeds being grown there at one time, in preference to nicotine?

Chairman

It does not warrant further scrutiny.

COM (2003) 684 is the proposed regulation on the establishment of the European partnership in the framework of the stabilisation and association process. The Brussels European Council in March 2003 concluded that the future of the western Balkans is within the EU and the Thessaloniki Council stated that the western Balkans will become an integral part of the EU once they meet established criteria. The association partnerships will build on the association process and identify priorities for action in supporting efforts to move closer to the European Union and serve as a checklist against progress which will be measured for the Balkan states. It is proposed to note. Is that agreed? Agreed.

COM (2003) 730 is a proposed regulation imposing anti-dumping duties on imports of certain tube or pipe fittings. This proposal would make provision to remove the possibility of the dual payment of both anti-dumping and what are called "safeguard" duties on certain iron and steel products from the People's Republic of China, Thailand and Taiwan. As members will recall from similar proposals considered at earlier meetings of the sub-committee, safeguard duties are paid if the quotas applying to a product are exhausted. The existing measures in place for the products concerned originating in Taiwan, Thailand and the People's Republic of China had not allowed for the dual payment possibility. It is proposed that this does not warrant further scrutiny. Is that agreed? Agreed.

COM (2003) 749 is a proposed Council decision on the specific programme for research, technological development and the demonstration integrating and strengthening the European research area. This proposal is an amended text of a proposal considered earlier by the sub-committee which sought to set guidelines for the funding of embryonic stem cell research. This proposal is an amended text of one considered earlier by the sub-committee, which sought to set guidelines for the funding of embryonic stem cell research. It incorporates many of the amendments passed on that earlier proposal by the European Parliament. These amendments are mainly technical. It does not include the amendment passed by the Parliament that would have removed the cut-off date for embryos used in the procurement of stem cells.

At the end of the meeting of the Competitiveness Council on 3 December, the Presidency concluded that "no agreement could be reached" on this amended proposal. It would appear, however, that the Commission proposal formally remains on the table even if it is unlikely to be revisited by the Council in the near future. The Commission's moratorium on the funding of related research projects in the EU expires at the end of this year and after this date it is possible that proposals for the funding of research on embryonic stem cells could be considered or received by the Commission. It is proposed that this proposal be forwarded to the Joint Committee on Enterprise and Small Business for consideration as part of its scrutiny process. The committee may be asking the Tánaiste to appear and it has already started the scrutiny process. We should send the committee this for further information as part of the process. Is that agreed? Agreed.

COM (2003) 788 is a proposed regulation establishing additional duties on imports of certain products originating in the United States. This proposal follows from a decision of the United States on 5 December 2003 to repeal the tariff measures it had imposed on the importation of certain steel products in March 2002. These measures had been found to be incompatible with WTO rules and the EU had put in place certain counter measures that would have come into force at a future date. This extended timeframe was to allow the US Administration to give the fullest consideration to the situation. This proposal repeals COM (2002) 1031 that would have imposed the counter measures on goods from the US. It is proposed that the proposal does not warrant further scrutiny but that this be forwarded to the Joint Committee on Enterprise and Small Business for information. Is that agreed? Agreed.

Senator Dardis

Has this been resolved?

Chairman

It appears to have been resolved. It is just being sent for information purposes.

On COM (2003) 684, which the committee noted, it is proposed to send that to the parent committee, the Joint Committee on European Affairs, for information purposes. It is on the Balkans - just to draw the committee's attention to the matter.

For proposed referral to sectoral committees Nos. 21 to 25, the proposed regulation COM (2003) 577 is on rules for the organisation of official controls on products of animal origin intended for human consumption. This proposal is an amended text of COM (2002) 337, considered by the sub-committee at its meeting on 31 October 2002. It is part of a wider package of food hygiene proposals from the Commission that have been scrutinised by the Joint Committee on Agriculture and Food. The current text takes account of amendments tabled in the European Parliament and the Department of Agriculture and Food has indicated that these do not substantially alter the scope of the measures outlined in the previous text.

In an additional note the Department has indicated, however, that COM (2003) 577 is seen as a working document and a number of issues remain to be resolved. The substance of the original proposal is to lay down detailed rules for official control on products of animal origin intended for human consumption. The proposal concerns specific rules for official controls on meat and meat products, bivalve models, fishery products and milk and milk products. For example, establishments will be approved and assigned an approval number. It is proposed that this be referred to the Joint Committee on Agriculture and Food for further scrutiny. Is that agreed? Agreed.

Deputy Harkin

I flicked through it and I was mind-boggled by the detail etc. It struck me to ask, as I was reading through it, whether this referred to food from outside the EU or just to food products that originate inside the Union.

Chairman

I am advised that it refers to within the EU. If that is not correct, a note will be sent to the Deputy.

Deputy Harkin

It is extremely detailed. Considering that so much of our food comes from outside the EU it is extraordinary that this regulation should be dealt with in this manner. When one considers how consumers are to be protected it looks as if we are working on two different levels.

Chairman

On that basis alone, it is worth asking the Joint Committee on Agriculture and Food to examine it. Is that agreed? Agreed.

COM (2003) 644 is the proposed regulation on the registration, evaluation, authorisation and restriction of chemicals, REACH. This significant proposal seeks to replace 40 existing regulatory instruments through the establishment of a new regime for chemicals. This regime would be overseen by a new European Chemicals Agency. The Competitiveness Council is currently taking the lead on the proposal and this followed a debate within the EU on whether that Council or the Environment Council should take the lead. Manufacturers through this proposal would be required to ensure that chemical substances are integrated into the regulatory regime by their registration, evaluation and authorisation. The European Chemical Agency, which will be established through this proposal, is likely to be largely self-financing, that is, through licence fees. The agency will play a central role in the implementation of the REACH measure and will be based in Helsinki. This proposal relates to the 100,106 chemical substances known to have been in existence in 1981 prior to the introduction of measures for new substances and consists of the following elements: registration - which requires industry to obtain relevant information on their substances and to use that data to manage them safely; evaluation - to provide confidence that industry is meeting its obligations; authorisation for use will be granted based on the evaluation, and a calculation of the likely socio-economic benefits and restrictions will be put in place to manage evaluated risks. It is proposed to refer this significant proposal to the Joint Commitee on Enterprise and Small Business for further scrutiny and to the Joint Committee on Environment and Local Government for information.

Senator Dardis

What about the Joint Committee on Agriculture and Food because there is agricultural registration in Ireland? It mightbe no harm for the committee to have a look atthis.

Chairman

It could be sent to that committee for information as well as to the Joint Committee on Environment and Local Government. The note says that the lead Department, after some debate, is to be the Department of Enterprise, Trade and Employment because that is the Council which will take it. It will be that Department that will lead it but it can be sent it to the Joint Committee on Agriculture and Food as well for information. Is that agreed? Agreed.

Chairman

COM (2003) 657 is the proposed directive implementing the principle of equal treatment between men and women in the access to and supply of goods and services. This proposed directive, under scrutiny here, includes definitions of the concepts of direct and indirect discrimination, harassment and sexual harassment. It lays out a framework for combating discrimination based on sex, in the access to and supply of goods and services available to the public. As the Department has indicated that it is already in the process of implementing many of the aspects of the proposal, it is expected that this proposed measure would particularly impact in Ireland on the calculation of premiums for new personal insurance business.

I understand that the directive will not apply to goods and services which are intended exclusively or primarily for members of one sex or the other and will permit the introduction of specific and time-restricted measures to address established discrimination. The Commission proposes that the burden of proof should revert to the respondent once the plaintiff has established facts before the court or other body from which it may be presumed that discrimination has taken place. Members may also have noted that compensation arising from discrimination as defined in this proposal would not be limited by the fixing of a prior upper limit. It is, therefore, proposed that this be forwarded to the Joint Committee on Justice, Equality, Defence and Womens' Rights for further scrutiny and to the Joint Committee on Enterprise and Small Business for information.

Deputy J. O’Keeffe

I find it difficult to understand the connection between sexual harassment and insurance premia and how this committee is involved in discussing a new regulation at all. Is it that companies are going to take out insurance policies against claims of harassment against their employees? How does the issue arise or get on the agenda? Is it that women are not allowed to get this because they are women?

Chairman

It really deals with the supply of goods and services, but before it deals with that it defines a lot of matters, including sexual harassment.

Deputy J. O’Keeffe

Why?

Senator Bradford

The point raised by Deputy O'Keeffe is on the discrimination clause which has been the subject of some discussion over the past few months in the insurance industry.

Chairman

That is the main concern, but Deputy O'Keeffe is asking why harassment is included.

Deputy Carey

Could we get clarity on this?

Deputy J. O’Keeffe

I do not want to slow things down.

Chairman

We will send you a note on this matter.

Deputy J. O’Keeffe

I just do not see the connection and I do not want to rubber stamp a document of which I do not have the full import.

Chairman

We will not be giving it a rubber stamp but will be sending it for examination. The main impact of the document here will be on the calculation of new personal insurance business. For example, young male drivers are considered to drive less safely than females, so can insurance companies charge lower premia to female drivers than male drivers if this is passed as it stands?

Deputy J. O’Keeffe

Will they be blocked from doing that, as it seems eminently sensible that an insurance company should be able to decide where the lower risk exists?

Chairman

If this is passed without amendment it could give rise to male and female drivers being charged the same premia irrespective of the risk, which is the issue.

Deputy Carey

Page 17 of the document may help, where it states that amendment to the legislation may be required to ensure compliance. There are consequences for national legislation.

Chairman

It is a proposal requiring detailed consideration. There are all sorts of implications, but in particular most of this, which is in the area of direct and indirect discrimination and sexual harassment, is already law here and is dealt with by the Equality Agency. The real issue for us is personal insurance premia in particular; there may be others. We will refer the document for detailed consideration.

COM (2003) 667 is the regulation on financial instruments for the environment called LIFE. This is a proposal to continue for a further two years the EU's LIFE financial instrument. It is proposed that it will continue for the years 2004 and 2005. The proposed budget for the two years is €317 million. Funding under this instrument is used to finance environmental projects in three areas: economic activities, conservation and through technical assistance to countries in the Mediterranean and Balkan areas. An evaluation of the existing instrument has found that it should continue but that there is a need for LIFE projects to be more closely tied into policy implementation. Members have the additional note provided by the Department on this proposal highlighting the benefits of this programme and the projects in Ireland that have been assisted by it. I understand that Dublin City Council receives approximately €750,000 for recycling and recovery of IT equipment. It is proposed to refer this to the Joint Committee on the Environment, Heritage and Local Government for further scrutiny. Is that agreed? Agreed.

COM (2003) 456 is a Council regulation amending COM (1994) 2100 on Community plant variety rights. This proposal seeks to address uncertainty that has arisen around the different approaches outlined under existing EU rules concerning the awarding of compulsory plant rights. While this proposal is essentially technical, I understand that a number of member states have questioned, at working group level, the consequences of the proposal beyond its intended goal. These legal and administrative concerns are likely to be outlined in greater detail at future meetings at working group level. The proposal would allow for the community plant variety office to determine if a compulsory exploitation right should be awarded in situations where there is a dispute between the holders of a Community plant variety right and a Community biotechnology patents right for the same plant variety. It is proposed to forward this to the Joint Committee on Agriculture and Food for further scrutiny and the Joint Committee on the Environment, Heritage and Local Government for information. Is that agreed? Agreed.

Senator Dardis

This is important as there has been a practice of people using so-called "second sown seed". In other words, one grows seed and then one saves the seed from that seed for the next crop. The commercial companies have become very vigorous in preventing that type of practice. They are trying to protect their rights which means there is an economic implication which is quite significant.

Chairman

I understand that if someone crosses two plants to form a new variety and someone else genetically alters that, the question arises as to who has the rights and the decision will be made by the Community plants variety office. It is, apparently, a very technical area which needs detailed consideration. Is that agreed? Agreed.

The next proposal was circulated yesterday and as members will be aware it was adopted at yesterday's Agriculture and Fisheries Council, as I said at the outset of the meeting. This proposed regulation authorises the offer and delivery for direct human consumption of certain imported wines which have undergone un-ecological processes not provided for in COM (1999) 1493. This proposal would extend for a further year the derogation to EU wine rules that was allowed for the importation of US wines that have undergone certain processes, for example, the addition of higher levels of water than usually permitted in the EU and labelled in a manner also not usually permitted in the EU, but both of which are permitted in the United States.

This proposal is being advanced in the continuing absence of a wider EU-US wine agreement. I understand that this was adopted by the Agriculture and Fisheries Council yesterday. Apparently the EU exports five times more wine to the US than we import and if there had been a dispute it may have involved whisky and liquors which had implications for Ireland. The information note informs me that the wine is perfectly safe as it is approved by the food safety administration in the United States.

Deputy Mulcahy

Is there a genetically modified issue with regard to the US wine?

Chairman

Not that I am aware of. We can check that for the Deputy.

Deputy Mulcahy

I am raising this question as it came to my attention recently that a vote was taken in Europe on genetically modified sweetcorn which arose out of legislation which had not come before the Sub-Committee on European Scrutiny as it pre-dated the Act under which the sub-committee was established. A vote was taken by an official in Europe to support the availability of genetically modified sweetcorn within the European Union. I will raise that matter later before the committee. We should know if any food being imported from the US contains genetically modified substances.

Chairman

We can inquire into that matter and circulate a note to members, but it does not arise from the current proposal. The issue relates to the level of water which is higher than usually permitted, and the labelling, which does not carry the same extent of content detail as in the US. I understand that it is monitored by the US Food and Drugs Administration.

Deputy Mulcahy

All of that pre-dates what has been set up. There is concern on this issue.

Chairman

The last regulation was EC number 1493, in 1999, so it pre-dates the scrutiny process. We will get a note on the question raised by Deputy Mulcahy, but I do not think it relates to the proposal before us. This was adopted yesterday because of the implications for trade and other issues raised. Under the regulation, it was taken as an urgent matter, which is permitted by the legislation.

Commission document (2003) 664 is the proposed regulation laying down the requirement for the competent authorities of the member states to stamp systematically the travel documents of third country nationals when they cross the external borders, and amending the convention implementing the Schengen Agreement and the common manual to this end. This is a Title Four proposal. The memorandum to the proposal explains that this stamping of documentation has not always occurred due to a number of factors, but that the accession of the new member states and the creation of separate channels for categories of travellers at border crossings should facilitate the introduction of this measure. The proposal places an obligation on the holders of third country travel documentation to ensure that their documentation is stamped on entry. Failure to arrange this may constitute a basis for the presumption of illegal residence on the territory of the member states. The proposal constitutes a development of the Schengen acquis in which Ireland does not participate. It is proposed to note the title for proposal and to forward it to the Joint Committee on Justice, Equality and Women's Rights for information. Agreed? Agreed.

Commission document (2003) 687 is the proposal to establish a European agency for management of operational co-operation at the external borders of the member states. I understand that the agency would not be tasked with a policy-making role but rather would develop and apply guidelines on, inter alia, the training of border guards. It would also have a co-ordinating role in the control and surveillance of the external borders and the removal of persons illegally residing in the member states. The agency would co-operate directly with member states and co-ordinate all relevant joint operations and pilot projects at the external borders. The approval of both Houses of the Oireachtas would be required for Ireland’s participation in this measure. It is proposed to note this Title Four proposal and to forward it to the Joint Committee on Justice, Equality and Women’s Rights for information at this stage, because at a later stage it will come by way of legislation if the Government proposes to participate in it. Agreed? Agreed.

The last item on today's agenda is the White Paper on space policy which follows on from a Green Paper considered by the committee earlier this year. The White Paper on implementing European space policy outlines options for developing a new European space programme. This programme would incorporate a number of measures that have come before the sub-committee in separate proposals, for example relating to the European Space Agency, ESA, and the Galileo programme. I understand that Ireland has traditionally had an economically positive return on its participation in the work of the European Space Agency, and the departmental note makes clear that space will figure prominently in Ireland's EU Presidency work in the research area. Members will received additional background material on the proposals from the Department of Enterprise, Trade and Employment, and I understand that the Department is seeking the views of a number of Departments before it firms up its views on the proposal. It is proposed to forward the White Paper to the Joint Committee on Enterprise and Small Business for its information, and to ask the Department to provide a background note for that committee when it has finalised its consultation process. Agreed? Agreed. Who will be the first Minister into space?

Deputy Mulcahy

Some have already gone into space.

Senator Dardis

Does the Deputy want them to come back?

Chairman

That concludes the scrutiny proposals. The minutes of the previous meeting have been circulated. Are they agreed? Agreed.

The draft twenty-third and twenty-fourth reports were circulated to members in advance of the meeting. It is proposed that they be circulated and laid before both Houses. Is that agreed? Agreed.

Members received a note on the Aarhus Convention regarding proposals on Commission documents 662 and 664 which were on the agenda for the last meeting. These concerned environmental issues and the right to information on appeal. I propose to note this correspondence and that we deal with the matter when we receive the update on developments on these proposals, and to note that the Department of the Environment, Heritage and Local Government has been asked to update us within three months. Agreed? Agreed.

The next meeting of the sub-committee will be on 22 January, to get us back in the cycle. Is that agreed? Agreed. There will be a meeting of the main committee at 11 a.m. today and a further meeting of the main committee on 20 January. That concludes our scrutiny process for this year.

The joint committee is charged under the legislation to report on the scrutiny process to both Houses of the Oireachtas as to how it worked up to 31 December 2003. We will proceed to draw up that report.

That concludes the business of the meeting. I wish everyone a very happy Christmas and I thank all for their efforts during the year. I also thank our staff for the very hard work they have put into scrutinising and preparing over 400 documents this year. This has been a wholly new process and it has worked pretty well. A lot of very hard work has gone into it. Thank you.

The joint committee adjourned at 10.10 a.m.sine die.