JOINT COMMITTEE ON EUROPEAN AFFAIRS (Sub-Committee on European Scrutiny) díospóireacht -
Thursday, 26 Jan 2006

Scrutiny of EU Proposals.

Chairman

We will address proposals warranting further scrutiny, items 1.1 to 1.7. COM (2005) 447 is a proposal for a directive on ambient air quality and cleaner air for Europe. The Commission's memorandum to the proposal sets out some sobering estimates of the impact on human health of air pollution. For example, it is suggested that across Europe, air pollution results in 348,000 premature mortalities per annum.

I understand that European legislation in this area was introduced in 1996 and has been subsequently amended on a number of occasions. This proposal seeks to revise and combine the existing body of legislation relating to air pollution to take account of stakeholders' views and more recent scientific developments, particularly with regard to fine particles. The proposed measure sets new emission targets which the Department of the Environment, Heritage and Local Government indicates are not sufficiently unambiguous as to the nature of their application. The Department had, I also understand, been asked to provide additional background on the proposal and has indicated that it is consulting other Departments and agencies on the matter and that the level of doubt around the proposal arises due to the fact that the monitoring of finer particles has commenced only in recent times. Given the concerns indicated by the Department in respect of the emission targets concerning air pollution, it is proposed that the proposal be referred for further scrutiny by the Joint Committee on Environment and Local Government. Is that agreed? Agreed.

COM (2005) 567 is a proposal for a regulation on advanced therapy medical products, amending Directive 2001/83/EC and Regulation (EC) 726/2004. Both the Commission's memorandum and the Department of Health and Children's note outline the potential benefits of advances in medical science in the area of gene and cell-based approaches to the prevention and treatment of diseases or other issues in respect of the human body. It is then outlined that the regulatory framework for the classification of associated products and the trade in them is divergent across the Union and not regulated under Community law. The current proposal aims to guarantee a high level of consumer protection, harmonise market access, foster European competitiveness in this area and provide legal certainty.

The proposed regulation, inter alia, would include advanced medical products under the provisions of the directive on donation, procurement and testing of cells and tissues, Directive 2004/23/EC, and would provide for the issuing by the Commission of detailed guidance on good clinical practice specific to advanced therapy medical products. A committee would also be created within the European Medical Agency with a particular responsibility for advanced therapies.

The Department has set out its view that the adoption of the proposal would "not interfere with decisions made by Irish policy makers on whether to allow the use of any specific type of human cells, such as embryonic stem cells or animal cells". The Department had been requested to provide additional information and its views in respect of a number of issues concerning the proposal. Given the significance of the potential benefits that would flow from the adoption of such a proposal and the questions raised with regard to the impact on established medical practice and the likely impact on a developing medical industry, it is proposed that the proposal be referred for further scrutiny by the Joint Committee on Health and Children. Is that agreed? Agreed.

COM (2005) 577 is an amended proposal for a regulation on medical products for paediatric use, amending Regulation (EEC) No. 1768/92, Directive 2001/83/EC and Regulation (EC) No. 726/2004. In November 2004, the sub-committee considered the original proposal — COM (2004) 599 — from the Commission for a revised regulation on medical products for paediatric use and referred the proposal for further scrutiny by the Joint Committee on Health and Children. This amendment to the 2004 proposal follows the adoption by the Commission of a number of amendments to COM (2004) 599 and the Department of Health and Children's note indicates that the adoption of the amended proposal is at an advanced stage.

Central to the Commission's proposal to address this issue would be the proposed paediatric committee, which would have responsibility for the assessment and agreement of paediatric investigation plans and requests for waivers and deferrals in respect of authorisation. The amendments accepted by the Commission include those highlighting that not all testing in children may be appropriate and underlining the role of the paediatric committee in checking compliance with procedures and in giving an opinion on the safety, quality and efficacy of a medicine in children.

It is proposed that the amendment proposal be referred to the Joint Committee on Health and Children for further scrutiny in the context of its consideration of the issue, following the earlier agreement to consider the Commission's proposal — COM (2004) 599. Is that agreed? Agreed.

COM (2005) 608 is a proposal for a regulation laying down the Community customs code and item 1.5 is COM (2005) 609, a proposal for a decision regarding the implementation of the Community Lisbon programme on a paperless environment for customs and trade. Both these proposals aim to facilitate the modernisation of the customs code across the member states. Ultimately, it is suggested that centralised clearance would permit economic operators to conduct all their customs affairs in the particular member state where they are established. COM (2005) 608 sets out a revised customs code and Article 22 of the proposal makes provision for the imposition of administrative and criminal sanctions for breaches of the code. The administrative sanction could include the withdrawal, suspension or amendment of any authorisation held by the person concerned.

COM (2005) 609 provides for the development and establishment of a co-ordinated, interoperable and accessible automated customs system that the Department of Finance's note indicates could result in a requirement by Ireland for a "large investment" to provide additional IT infrastructure in order that Revenue's customs clearance systems will be interoperable with other systems in the EU.

The Department and Revenue have been asked to provide some additional background to the proposal and I understand that the answers to a number of these have been circulated to members. In summary, it appears the Department has indicated that the additional IT investment that would be required following the adoption of the proposal should be relatively minor.

It is proposed that the proposals be referred to the Joint Committee on Finance and the Public Service for further scrutiny, given that the adoption of these measures could result in a requirement for substantial investment by Ireland in a new customs IT infrastructure. Is that agreed?

Senator Dardis

I note that the answers to some of the questions raised are fairly uninformative in terms of the financial cost involved.

Chairman

We trust that these issues will be further examined in the Joint Committee on Finance and the Public Service if it is proven necessary. Therefore, we will pass the proposals on to the committee. Is that agreed? Agreed.

Item 1.6 is the document COM (2005) 579, a proposal for a regulation amending EC Regulation No. 1592/2002 on common rules in the field of civil aviation and establishing a European aviation safety agency. The proposed amendment to the regulation seeks, among other aims, to establish basic principles in the area of aircraft operation and pilot licensing and of certain measures adopted through the committee procedure. The principles would apply in certain circumstances to the craft of third countries. There would also be provision for member states to seek derogation from aspects of the measure. The proposed regulation would require most pilots operating in the community to hold a licence on the basis of common requirements regarding theoretical and practical knowledge and physical aptitude. There are also provisions on the training of cabin crew and their medical fitness. It is suggested that the proposal be put forward for further scrutiny by the Joint Committee on Transport. That committee may wish to explore the Department's view on the need for procedure that would be followed on the safety of aircraft of third countries and to explore the likely impact of the measures on cabin crew. Is that agreed? Agreed.

Item 1.7 is the document COM (2005) 602, communication and regulation concerning the new generation European air traffic management system, SESAR, and the establishment of the SESAR joint undertaking. The proposed regulation seeks approval for the establishment of a joint undertaking to ensure the modernisation of the European air traffic management system by federating research and development efforts in the community. Joint undertaking would be established as an international organisation and would be co-financed by a levy on air navigation charges and by the Commission. It would organise research, development and validation activities in accordance with its implementation plan and liaise with the international civil aviation organisation.

The development of the SESAR project would be undertaken over the period 2005 to 2020. The Department's note indicates that it views the adoption of the proposal as having no implications for Ireland, however the proposals would be of some significance for the future of air transport across Europe. It is therefore suggested that the proposals should be referred for further scrutiny by the Joint Committee on Transport. Is that agreed? Agreed.

Item 2 is Title IV measures comprising items 2.1 to 2.4. Item 2.1 is the document COM (2005) 639, a proposal for a Council decision on the accession of the European Community to the Hague conference on private international law. This is a Title IV proposal that would not automatically apply to Ireland. The approval of both Houses would be required for Ireland's participation. The proposal seeks approval for the European Community to accede to the Hague conference on private international law. It is currently an observer at the conference and it is argued that a formalisation of this relationship is required, given the level of work that is taking place within the European Union on judicial co-operation in civil matters. It is proposed that the Title IV proposal be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights for information and consideration in advance of any decision to seek the approval of the Houses for Ireland's participation in the proposed measure. Is that agreed? Agreed.

I propose to take COM (2005) 649 with COM (2005) 648. COM (2005) 648 was circulated today as an additional document and is a communication and proposed decision concerning a change in voting procedure from unanimity to QMV in relation to COM (2005) 649. COM (2005) 649 is a proposed regulation regarding recognition and enforcement obligations and is a Title IV proposal that would not automatically apply to Ireland. The approval of both Houses would be required for Ireland's participation. As members may recall, on 1 July 2004 the scrutiny committee considered the earlier Green Paper on maintenance obligations that flagged that this was an issue on which the Commission was actively considering advancing a proposal. That paper, COM (2004) 254, was forwarded for information to the Joint Committee on Justice, Equality, Defence and Women's Rights and the Joint Committee on Social and Family Affairs. The paper had suggested that a lack of awareness of existing mechanisms in place as well as deficiencies in co-operation between member states results in "all manner of difficulties" for those seeking enforcement measures.

I understand that in a separate development the Commission has requested that the Council agree to altering the voting procedure in relation to the proposal and agree that it be adopted under the co-decision qualified majority vote procedure. This request came in the form of a communication and proposed decision from the Commission to the Council, COM (2005) 648. In the communication the Commission concedes that COM (2005) 649 contains "aspects relating to family law" and therefore falls outside the co-decision procedure. The Commission then however goes on to argue that, while this is a conclusion that is "legally inescapable", it is one that is also "unsatisfactory", due to the cross-cutting nature of the proposal. It therefore proposes the use of the so-called "passerelle” procedure, that is, moving from unanimity and consultation with the European Parliament to QMV voting and co-decision by the European Parliament. I also understand that this is the first occasion on which the Commission has proposed the use of this procedure in this area of Title IV proposals.

The Department's note relating to COM (2005) 649 indicates that the current proposal has the potential to be of particular assistance to Irish litigants who may wish to have a maintenance order that was obtained in Ireland quickly and efficiently recognised and enforced by another member state. The ambition of the proposal is to eliminate all obstacles which still today prevent the recovery of maintenance within the European Union. The Commission however concedes that the adoption of the proposal "will certainly not abolish the economic and social precariousness which afflicts certain debtors". The central planks to the proposal seek to provide clarity in relation to the principle that a maintenance decision has the same force as it has in the member state of origin and ensure that decisions are enforceable throughout the European Union.

Deputy Sexton

Will the Chairman explain something? COM (2005) 648 and COM (2005) 649 differ in their briefings, summaries and the consequences for national legislation. I am confused. Will the Chairman take me through the two of them?

Chairman

COM (2005) 648 relates to a change in the voting procedure.

Deputy Sexton

We are not happy with that. It changes our negotiating position.

Chairman

COM (2005) 649 would be adopted only under the new voting procedure as referred to in COM (2005) 648. We are suggesting a change in voting procedure that would allow COM (2005) 649 to be adopted under QMV. Ireland would first decide to opt into COM (2005) 648 to change the voting system and, if so, would adopt, if it wished, COM (2005) 649.

Deputy Sexton

I thank the Chairman.

Chairman

It is proposed that these significant Title IV proposals and the communication be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights for information and consideration in advance of any decision to seek the approval of the Houses for Ireland's participation in the proposed measure. It is also suggested that the proposal be forwarded for information to the Joint Committee on Social and Family Affairs. It is furthermore suggested that the Department be requested to keep this committee informed of significant developments in relation to these proposals. Is that agreed? Agreed.

Item 2.3 is the document COM (2005) 650, a proposal for a regulation on the law applicable to contractual obligations, Rome I. This is a Title IV proposal that would not automatically apply to Ireland. The approval of both Houses would be required for Ireland's participation. The committee at its meeting on 9 September 2003 considered COM (2003) 427 that related to non-contractual obligations.

This proposal concerns contractual obligations and the proposed regulation sets out the rules determining which country's substantive laws will be applied by the court to contractual obligations in any given situation involving a choice between states. In principle the parties to a contract under the proposed regulation are free to select the law applicable. In certain circumstances the law that will be applied is that of the country of habitual residence of the person performing the service. The Department's note contends that the adoption of the proposal would have no implications of a "particular Irish dimension". It is proposed that this significant Title IV proposal be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights for information and consideration in advance of any decision to seek the approval of the Houses for Ireland's participation in the proposed measure. Is that agreed? Agreed.

Item 3 is CFSP measures comprising items 3.1 to 3.8. Item 3.1 is CFSP (2005) 805, Council decision implementing joint action CFSP (2005) 556 appointing a special representative of the European Union for Sudan. The mandate of EU special representative, Mr. Pekka Haavisto, includes the promotion of dialogue and maximising the EU's contribution to the African mission in Sudan. This measure extends the mandate for a further period of six moths until 17 July 2006. It is proposed to note the measure. Is that agreed? Agreed.

CFSP (2005) 824 is a Council joint action on the European Union police mission in Bosnia Herzegovina. The previous mandate for the EUPM in Bosnia Herzegovina expired at the end of 2005. This joint action refocuses the operational mandate of the EUPM on the fight against organised crime and police reform. As members will have seen from the material circulated, the Department has confirmed that three Irish personnel continue to participate in the re-focused mission. It is proposed to note the measure. Is that agreed? Agreed.

CFSP (2005) 826 is a Council joint action on the establishment of an EU police advisory team in the Former Yugoslav Republic of Macedonia. The joint action sets out that the EU has enhanced its role in the Former Yugoslav Republic of Macedonia to contribute, inter alia, to the development of an efficient and professional police service that is based on European standards of policing. It is proposed to note the measure. Is that agreed? Agreed.

CFSP (2005) 868 is a Council joint action amending Joint Action CFSP (2005) 355 concerning the provision of assistance and advice for the security sector in the Democratic Republic of Congo with regard to improving the payments system in the Ministry of Defence. It is proposed to note the measure. Is that agreed? Agreed.

CFSP (2005) 888 is Council Common Position 2005/888/CFSP of 12 December 2005 concerning specific restrictive measures against certain persons suspected of involvement in the assassination of former Lebanese Prime Minister, Rafiq Hariri. The CFSP measure provides the framework for the operation of the UN support measures within the European Union. It is proposed to note the measure. Is that agreed? Agreed.

CFSP (2005) 889 is a Council joint action on establishing a European Union border assistance mission for the Rafah crossing point. The aim of the border assistance mission is to monitor the Palestinian Authority's performance in security related matters, contribute to the building of the PA's capacity on management of the crossing point, and contribute to the liaison activities of the three authorities concerned. The Department's note indicates that Ireland contributed €200,000 to the start-up costs of the border mission. It is proposed to note the measure and that it be forwarded for information to the Joint Committee on European Affairs. Is that agreed? Agreed.

CFSP (2005) 913 is a Council joint action on support for activities of the Organisation for the Prohibition of Chemical Weapons in the framework of the implementation of the EU strategy against the proliferation of weapons of mass destruction. The financial assistance amounts to €1,697,000. It is proposed to note the measure. Is that agreed? Agreed.

CFSP (2005) 936 is a Council common position updating Common Position 2001/931/CFSP on the application of specific measures to combat terrorism and repealing Common Position 2005/847/CFSP. It is proposed to note the measure. Is that agreed? Agreed.

It is proposed to defer COM (2005) 632, a proposal for a decision on the accession of the Community to the United Nations Economic Commission for Europe Regulation No. 107 on the provisions concerning the approval of the construction of medium-large buses and coaches. The proposal relates to the adoption by the EU of certain standards for the manufacture of medium-large buses and coaches. The Department indicates that the proposal is fully supported by Ireland as, among other things, it would improve safety levels. The Department has also suggested that the proposal is not of major consequence for Ireland, given we have only one manufacturer of coaches.

It is outlined in the Department's note that the Commission has given no information on the costs to manufacturers, and consequently to consumers, of seeking approval for the decision. The Department was therefore requested to identify the company based in Ireland and to indicate if it had consulted the company. The views of the company involved might then be sought. It is proposed to defer consideration of the proposal until the Department has provided the requested information to the committee on its consultation, if any, with the producer in Ireland of the products concerned by this proposal. Is that agreed? Agreed.

The next set of proposals on our agenda are proposals that do not warrant further scrutiny. COM (2005) 606 is a Green Paper on the future of the European Migration Network. The EMN was created in 2002 on a pilot basis as a means to improve the exchange of information on issues relating to migration and asylum between the member states and with the Commission. There are 14 national contact points in place and these are co-financed by national authorities and the Commission. The points bring together and make accessible existing data on relevant matters.

The Green Paper poses a number of questions with respect to the future development of the EMN and suggests that it should go beyond its current activities and begin filtering and synthesising the information. It is also suggests that contact points could issue views and opinions. Ultimately, the Commission paper envisages the creation of an EU agency to oversee this work. The contact point in Ireland is the Economic and Social Research Institute. The Commission has indicated that it is seeking views on this matter by 28 January 2006. However, I have been advised that submissions will be received up to two weeks after this date. It is proposed that the Green Paper be forwarded for information and consideration to the Joint Committee on Justice, Equality, Defence and Women's Rights. It is also proposed that the paper be forwarded for information purposes to the Joint Committee on European Affairs. Is that agreed? Agreed.

COM (2005) 637 is a Green Paper promoting healthy diets and physical activity, a European dimension for the prevention of overweight, obesity and chronic diseases. As members will have seen from the material circulated, the national report on obesity presented to the Taoiseach in May 2005 indicated that this is an issue that requires some attention. The Commission seeks to launch a debate in the member states on this issue and to receive the views of interested parties by 15 March 2006. In particular, the Green Paper explores ways to integrate the promotion of healthier lifestyles across a range of European policy areas. The Department's note outlines that the thinking behind the paper is very much in line with current national planning. It is proposed that the paper be forwarded for information and consideration by the Joint Committee on Health and Children given the significance of the issues surrounding obesity and the parallel work that the Department indicates is being undertaken in Ireland on this issue. Is that agreed? Agreed.

COM (2005) 492 is a proposal for a decision on a Community position in the EC-Turkey Association Council on implementing the final phase of the customs union. To ensure that the benefits of freer trade are underpinned by consumer confidence, it is a requirement that certain Turkish products must conform to the requirements of relevant European legislation. This process is undertaken through the establishment and monitoring of conformity assessment bodies, which are designated by the competent authorities of the member states and which must be notified to other member states and the European Commission. This proposal relates to the procedures that should be followed in the context of the operationalisation of competent assessment bodies in Turkey. The agreement on this matter would be approved in the EU-Turkey Association Council. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2005) 510 is a proposal to amend the customs schedules of the European Union to allow for the withdrawal of specific concessions previously allowed by the ten countries that acceded in May 2004 regarding Thailand. This proposal relates to the tariff rates and quotas for rice. The Department has outlined in its note that it views the adoption of the proposal as having no significance to Ireland. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2005) 513 is a proposal for a Council decision on the conclusion and provisional application of the agreement between the European Community and Singapore on certain aspects of air services. The agreement primarily includes a Community clause that permits Community carriers to benefit equally regarding air services. The Department's note outlines its view that the adoption of the proposal would have no significant implications for Ireland. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

COM (2005) 566 is a proposal for a regulation on the submission of data on landings of fishery products in member states. Existing European legislation requires that member states provide information on a monthly basis concerning the quantity and value of landed fishery products in ports. The Commission outlines in its memorandum that this proposal to amend the legislation follows consultations with interested parties. The proposal seeks to have data related to landed fishery products submitted annually. The data would also pertain to the nationality of the vessels rather than broad groups of states. The proposal also seeks to provide for greater flexibility in the sampling techniques.

The Department's note indicates that it supports the proposed measure and the amendment of the existing legislation would appear to be more provider friendly while also offering a greater depth of data to users. It is proposed that the proposal does not warrant further scrutiny but that the proposed measure be forwarded for information to the Joint Committee on Communications, Marine and Natural Resources. Is that agreed? Agreed.

I propose to take Nos. 5.7 and 5.8 together. No. 5.7 is COM (2005) 584, a proposal for a Council decision on the signature and provisional application of amendments to the protocol with the Islamic Republic of Mauritania on fishing opportunities. No. 5.8, COM (2005) 591, is a proposal for a regulation in the form of an exchange of letters on amendments to the protocol with the Islamic Republic of Mauritania on fishing opportunities.

The committee has on a number of occasions considered proposals concerning the provision of assistance by the EU for certain states and the opening of fishing opportunities to the vessels of member states. The existing financial arrangement with Mauritania results in an annual European contribution of €86 million and this would remain unchanged under the proposed amendments advanced by the Commission. The adoption of the proposals could, however, alter the allocation of fishing opportunities and this has given rise to an opportunity for Ireland to explore the possibilities for licences in this regard. The Department has therefore indicated in its information note that it will focus its efforts on securing a licence or licences during negotiations early in 2006.

It is proposed that the proposals do not warrant further scrutiny, but that the proposed measures be forwarded for information to the Joint Committee on Communications, Marine and Natural Resources in the context of the expression of interest in securing fishing opportunities in Mauritanian waters for Irish vessels. It is also proposed that the Department be requested to inform this sub-committee of the outcome to the negotiations, as the matter of Irish non-participation in this type of fishing opportunity has been raised on a number of occasions by members. Is that agreed? Agreed.

No. 5.9, COM (2005) 611, is a proposal for a Council regulation repealing Council Regulation (EEC) 3178/78 and Council Regulation (EEC) 1736/79 in the area of monetary policy. The proposed measure seeks to remove a number of pieces of European legislation that have become obsolete owing to developments in the area of monetary policy. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.10, COM (2005) 613, is a proposal for a Council regulation applying certain rules of competition to production of and trade in agricultural products — codified version. The proposed measure is part of a codification exercise by the Commission which both it and the Department indicate will fully preserve the content of the existing legislation which sets down the role of the Commission in the area of competition in this sector. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.11, COM (2005) 616, is a proposal for a regulation amending Regulation (EC) No. 74/2004 imposing a definitive countervailing duty on imports of cotton-type bed linen originating in India. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.12, COM (2005) 618, is a proposal for a directive relating to restrictions on the marketing and use of perfluorooctance sulfonates, PFOS. This is used in products such as paper and textiles and a number of bodies have found it to be harmful to the environment and mammalian species. The proposed measure is seeking approval for the use of PFOS to be restricted. The Department's note indicates that this is the established practice and that the adoption of the measure would ensure that it is not used extensively in future. The Department's note indicates that PFOS is used in the semiconductor industry in Ireland and its continued use would, subject to certain restrictions, be permitted under the proposal. The Department also indicates that it is undertaking consultations with relevant stakeholders on the proposal.

It is proposed that the proposal does not warrant further scrutiny but that the proposed measure be forwarded to the Joint Committee on Enterprise and Small Business for information. It is also proposed that the Department be requested to inform the sub-committee of the outcome.

No. 5.13, COM (2005) 619, is a proposal for a regulation reinstating a price undertaking offered by an Indian producer of sulphanilic acid which is used in the making of dyes. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.14, COM (2005) 622, is a proposal for a regulation amending Regulation (EC) No. 2505/96 opening and providing for the administration of autonomous Community tariff quotas for certain agricultural and industrial products. Following requests via member states for the granting of temporary tariff-free status or reduced tariff rates for specific quantities of certain products, this measure was advanced by the Commission. This type of action is taken where it is considered that this is in the economic interest of the Community. It is proposed that the proposal does not warrant further attention.

I propose to take Nos. 5.15 and 5.16 together. Is that agreed? Agreed. No. 5.15, COM (2005) 630, is a proposal for the conclusion of an agreement between the EC and the Democratic Republic of São Tomé et Principe concerning fishing opportunities. No. 5.16, COM (2005) 631, is a proposal for the signature and provisional application of an agreement between the EC and the Democratic Republic of São Tomé et Principe concerning fishing opportunities. The financial assistance for the year May 2005 to May 2006 would amount to €687,500 and the Department has indicated that vessels from France, Spain and Portugal will participate in the opportunities offered. It has also indicated that Irish fishermen have not expressed an interest to fish in this area. It is proposed that the proposals do not warrant further scrutiny. Is that agreed? Agreed.

No. 5.17, COM (2005) 638, is a proposal for a regulation amending Regulation (EC) No. 1255/96 temporarily granting tariff-free status or reduced tariff rates to specified goods. The sub-committee has on a number of occasions previously considered amendments to Regulation (EC) No. 1255/96 and determined that they did not warrant further scrutiny. The sub-committee also requested the Department to indicate on notes relating to the amendment of this measure and related regulations whether any of the requests for the inclusion of products came from Ireland. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed. It has also been suggested that in future the Department states the products on its information notes.

No. 5.18, COM (2005) 676, is a proposal for a regulation amending Regulation (EEC) No. 1408/71 and Regulation (EEC) No. 574/72 concerning the application of certain social security measures relating to employed persons and members of their families moving between the EU and the EEA-Switzerland. The two regulations at the centre of this proposal are designed to facilitate the free movement of persons and aim to co-ordinate aspects of the social security systems across the EU-European economic area. The Commission's memorandum indicates that the proposed amendments to the regulations do not concern Ireland and this has, I understand, been confirmed by the Department. It is proposed that the matter does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.19, COM (2005) 686, is a proposal for a regulation laying down the weightings applicable from 1 July 2005 to the remuneration of Community officials serving in third countries and in new member states. It is proposed that this proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 5.20, COM (2005) 603, is a proposal for a directive on a new legal framework for payment services. The proposed directive aims to establish a harmonised legal framework for the creation of an integrated payments market which would enable payments to be made more quickly and easily across the EU. This would be achieved through a common licensing regime, simplified and harmonised rules and standardised rights and obligations for providers and users. Applications for authorisation would be made through the competent authorities of the home member state. The Department has indicated it has been in a position to make only an initial assessment of the proposal and it has concluded that the adoption of the proposal would have a modest but positive implication for Ireland. It is proposed that the matter does not warrant further scrutiny but that the Department be requested to inform the sub-committee of its final assessment of the proposal. Is that agreed?

Deputy Mulcahy

I question whether this is necessary. Is this more meddling on the part of the EU? I would be surprised if the proposal does not have implications for Ireland in terms of our banking system and so on. I am nervous about more meddling by the EU which may result in it having a handle on all the financial transactions carried out throughout Europe. This proposal should not pass uncommented upon.

Chairman

I request that we be briefed further once the Department has made a further and final assessment. In light of the points made by the Deputy, the sub-committee should perhaps also refer the proposal to the Joint Committee on Enterprise and Small Business for its deliberation.

Deputy Mulcahy

I agree.

Chairman

Is it agreed to take up the Deputy's suggestion? Agreed.

No. 5.21, COM (2005) 565, is a proposal for a decision on a Community position regarding the amendment of Decision No. 1 of 1998 of the EC-Turkey association council on the trade regime for agricultural products. The Department's advice indicates that it views the adoption of the proposal as having no implications for Ireland. Is it agreed, therefore, that it does not warrant further scrutiny? Agreed.

No. 5.22, COM (2005) 125, is a proposal for regulation on the definition, description, presentation and labelling of spirit drinks. New elements in the proposal concern procedures for registering geographical indicators. Applications for a geographical indication to be included under Annex 3 of the proposed measure will be submitted to the Commission along with technical specifications. Objections to a registering of a name may be raised within three months of publication of the application. The technical file on the product is required to be lodged with the Commission within seven years of the adoption of the regulation. The Department has confirmed it will not be possible to withhold information on the basis of commercial confidentiality. However, it may be possible for indicators such as Irish whiskey and Irish cream to be registered on the basis of reputation.

It is proposed that the proposal does not warrant further scrutiny but that it should be forwarded for information to the Joint Committee on Enterprise and Small Business and the Joint Committee on Agriculture and Food. It is also proposed that the Department be requested to keep the Sub-Committee on European Scrutiny informed of any significant developments in this proposal to protect the geographical indicators for spirit drinks. Is that agreed? Agreed.

Nos. 6.1 to 6.7 on the agenda are adopted measures. COM (2005) 470 is a proposal to amend the customs schedules of the European Union to allow for the withdrawal of specific concessions previously allowed by the ten countries that acceded in May 2004 in relation to the Republic of Korea. This measure relates to video recorders and other broadcasting instruments and the Department has outlined in its note that it views the adoption of the proposal as having no significance to Ireland. It is proposed that the proposal does not warrant further scrutiny. Is that agreed? Agreed.

No. 6.2, COM (2005) 471, is a proposal to amend the customs schedules of the European Union to allow for the withdrawal of specific concessions previously allowed by the ten countries that acceded in May 2004 in relation to Japan and New Zealand. This measure relates to photographic equipment and certain agricultural produce and, as members will have seen, the Department has outlined in its note that it views the adoption of the proposal as having no significance to Ireland. It is proposed to note the adopted measure. Is that agreed? Agreed.

No. 6.3, COM (2005) 610, is a proposal for a decision on the signing and provisional application of a biIateral agreement between the EC and the Republic of Belarus on trade in textile products. The current measure concerns the extension of the present textiles agreement until 31 December 2006. The Commission's memorandum sets out that in the absence of an agreement, Belarus would be free to increase its import duties and introduce other import restrictions. It is proposed to note the adopted measure and that it be forwarded for information to the Joint Committee on Enterprise and Small Business. Is that agreed? Agreed.

No. 6.4, COM (2005) 623, is a proposal to grant market economy status, MES, to the Ukraine. I understand that in practical terms the granting of MES means that the methodology in arriving at anti-dumping decisions is less severe. The granting of MES would also be seen as a landmark in the process of economically restructuring the Ukraine. It is proposed to note the measure and that it be forwarded for information to the Joint Committee on European Affairs. Is that agreed? Agreed.

No. 6.5, COM (2005) 663, is a proposal for a regulation concerning the withdrawal of an undertaking on imposing anti-dumping duties on imports of urea from, among other places, Bulgaria. Urea is used in the manufacture of plastics and fertiliser. It is proposed to note the adopted measure. Is that agreed? Agreed.

Deputy Sexton

It appears that one company in Bulgaria breached the undertaking it had given. Does this mean all the companies will suffer because of the Bulgarian breach?

Chairman

I am advised it simply concerns this company, Chimco AD.

Deputy Sexton

I thank the Chairman.

Chairman

No. 6.6, COM (2005) 664, is a proposal for a regulation imposing definitive anti-dumping duties on imports of polyethylene terephthalate, PET, originating from, among other places, the People's Republic of China. The product is used in the manufacture of liquid containers. It is proposed to note the adopted measure. Is that agreed? Agreed.

No. 6.7, COM (2005) 688, is a proposal for a Council regulation imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of farmed salmon originating in Norway. This is a follow-up report to an early warning note received from the Department of Enterprise, Trade and Employment last year. The Commission outlines in its memorandum to the proposal that a definitive anti-dumping duty is required to remove the effects of the injurious dumping. The adoption of the measure results in the imposition of a minimum import price on the farmed salmon originating in Norway. The Commission contends that the imposition of a minimum price rather than a rate of duty would have less of an impact on consumers. The Department has also outlined that it views the proposal as representing a suitable outcome to the proceedings.

Deputy Sexton

I presume the minimum import price is a moveable figure and will not be written into the regulation as a definitive figure.

Chairman

The Department will advise. I am informed it appears to be a definitive minimum price.

Deputy Sexton

It is welcome but one would not wish to see it fixed at a price now.

Chairman

It is proposed to note the measure but it is suggested it should be forwarded to the Joint Committee on Communications, Marine and Natural Resources. We will seek clarification from the Department. Would the Deputy prefer to have a figure which could move with normal pricing?

Deputy Sexton

Yes.

Chairman

I draw members' attention to the following adopted measures from the Department of Enterprise, Trade and Employment. As members can observe, most of these measures were adopted quite quickly following their publication and are the subject of a post-adoption note. The early warning system has operated very well and we wish to acknowledge the Department's efforts on this system. However, it is noted that two proposals, COM (2005) 663 and COM (2005) 663, were adopted without an early warning note being received. I propose that a letter should issue to the Department of Enterprise, Trade and Employment highlighting the sub-committee's concern in ensuring that the early warning system operates as envisaged.

Deputy Mulcahy

The sub-committee should note this is not the first occasion the Department of Enterprise, Trade and Employment has erred with regard to the Sub-committee on EU scrutiny. The committee secretariat may be able to confirm or deny what I say but since this sub-committee was founded and in other circumstances rather than in this category, it is the worst offender of any Department. I ask for a brief note setting out all the transgressions of that Department since the foundation of this sub-committee.

Chairman

I am advised that the early warning system works well and has been satisfactory but in this case apparently it did not work.

Deputy Mulcahy

If I am not mistaken this is the only Department we have to write to consistently.

Chairman

We propose to write again advising of our concerns and requesting strongly that the early warning system operate fully within the Department to our satisfaction.

Deputy Mulcahy

May I put down a marker? If this happens again I will insist on a report to us of all its trangressions and that they be brought forward. This is not the first time this Department——

Chairman

It is not the first time but we hope our further warnings and early warnings might be taken on board. I propose that the letter issue from the Chairman when he returns.

No. 7 — early warning notes — we have received no early warning notes for this meeting. No. 8 — minutes of previous meetings — these had been circulated after the meetings of 1 December and 15 December. Are those minutes agreed? Agreed. No. 9 — reports of the sub-committee — I propose to defer consideration of the draft 60th report until the next meeting. Is that agreed? Agreed. No correspondence has been received for today's meeting.

The sub-committee adjourned at 10.25 a.m. until 9.30 a.m. on Thursday, 9 February 2006.