The committee has several EU proposals before it for consideration. In regard to No. 1, there are no adopted measures.
No. 2 relates to proposals in respect of which no further scrutiny is required and it is proposed to note them. It is recommended that COM (2008) 39 does not warrant further scrutiny. It is further recommended that we should write to the Department pointing out for information that Article 48 is referred to in the title of the proposal, but Article 58 is referenced elsewhere in the text of the proposal. Is that agreed? Agreed. It is recommended that the proposals in COM (2008)138, COM (2008)139, COM (2008) 140, COM (2008) 149, COM (2008) 161 and COM (2008) 205 do not warrant further scrutiny. Is that agreed? Agreed.
In respect of No. 3 there are no proposals to be sent to sectoral committees for information, and in respect of No. 4, there are no CFSP measures. No. 5 relates to Title IV measures. There are no Title IV measures. No. 6 relates to early warning notes. There are no early warning notes.
No. 7 relates to proposals in respect of which no further scrutiny is proposed. COM (2008) 147 is a proposal for a Council Directive amending VAT Directive 2006/112/EC of 28 November 2006 on the common system of value added tax to combat tax evasion connected to intra Community transactions. The proposal of the EU Commission is designed to tackle VAT fraud by speeding up the existing arrangements for the collection and exchange of information on intra Community transactions. The Department states that Ireland considers the fight against VAT fraud should, if possible, be targeted in the areas of greatest risk without imposing additional obligations on the entire body of taxpayers involved in cross-border transactions.
The Department does not consider the Commission's proposal to be proportionate or necessarily an effective response to fraud. It states that the increased reporting requirements also run contrary to the EU Commission's objectives of reducing the administrative burden on business by 25% by 2012 and the Government's similar objectives through better regulation. The proposal has been presented without any substantial analysis of the potential impact on business. The Department states that the Revenue Commissioners remain unconvinced that a strategy weighted heavily in favour of increased frequency of returns from traders would necessarily provide an effective anti-fraud platform. Ireland is, therefore, of the view that further analysis is needed to assess the potential effects on business and tax authorities. Given the concerns expressed by the Department about the proportionality of the proposal and to properly assess the potential increased administrative burden, it is recommended that the proposal warrants further scrutiny. Is that agreed? Agreed.
It is also recommended that to assist the committee in its detailed examination of the proposal, the following will be invited to attend before the committee to offer their views: from the regulators and Government point of view, the Department of Finance and the Office of the Revenue Commissioners; from the industry point of view, the Irish Business and Employers Confederation, Irish Small and Medium Enterprises Association and the Small Firms Association; and from the tax practitioners' point of view, a representative of the tax administration liaison committee. Is that agreed? Agreed.
No. 8 on the agenda refers to proposals proposed for forwarding to sectoral committees for observations to be returned to the Joint Committee on European Scrutiny preferably within four weeks but within six weeks at the latest. There are no proposals proposed for forwarding to sectoral committees for observations.
No. 9 relates to proposals proposed to be forwarded to sectoral committees for detailed scrutiny. COM (2008) 16 is a proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC to improve and extend the greenhouse gas emission allowance trading system of the Community.
COM (2008) 17 is a proposal for a decision of the European Parliament and of the Council on the effort of member states to reduce their greenhouse gas emissions to meet the Community's greenhouse gas emission reduction commitments up to 2020.
COM (2008) 19 is a proposal for a directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources. On 23 January, the European Commission published a package of legislative proposals known as the climate change package, the overall aim of which is to realise the commitments entered into by the European Council in March 2007. The European Council has agreed an objective of a 30% reduction in greenhouse gas emissions by 2020 compared with 1990 as its contribution to a global and comprehensive agreement for the period beyond 2012, provided that other developed countries commit themselves to comparable emission reductions. However, the European Council made a firm independent commitment to achieve at least a 20% reduction by 2020 compared with 1990. The European Council invited the Commission to submit a proposal for a new comprehensive directive on the use of renewable sources of energy, including legally binding targets for the overall share of renewable energies and bio-fuels for transport in each member state.
The Commission proposes to realise these commitments and instructions with a package consisting of three legislative proposals. COM (2008) 16 is a draft directive amending the EU emissions trading directive, EU ETS. COM (2008) 17 is a draft Council decision on the sharing of its efforts to meet the EU's independent greenhouse gas emission reduction commitment in sectors not covered by the EU ETS, such as transport, building, services, smaller industrial installations, agriculture and waste. COM (2008) 19 is a draft directive to promote renewable energy to help achieve both of the above emissions targets.
The Department notes that the Commission's climate change package will have significant implications across all sectors. The specific proposal in respect of the ETS will have particular implications for energy-intensive industries and all electricity consumers. The Department notes that 40% of Ireland's greenhouse gas emissions in the non-ETS sectors originate from agriculture, with transport accounting for 27% and the balance arising from the residential and commercial sectors. To reach Ireland's target of a 20% reduction as laid out in the draft Council decision, there must be significant improvements in energy efficiency, a substantial shift towards more sustainable transport patterns, technological innovation in agriculture, etc. The target for the use of renewable energy will challenge business communities and the Government, as there will probably be a necessity for a significant level of public investment and funding.
The Department notes that the issues raised by the Commission's climate change package have been signalled by the national climate change strategy and the programme for Government. The renewable energy targets are consistent with the Government's targets in the energy White Paper. The Department reiterates the Government's intention to pursue through the Joint Committee on Climate Change and Energy Security an all-party agreement on long-term national reduction targets and the necessary measures. To this end, that committee has begun discussing the Commission's climate change package. In March, the European Council agreed to set the objectives of agreeing this package of legislative proposals by the end of 2008 with a view to their adoption in the first quarter of 2009.
Given the importance of these proposals in addressing one of the major challenges facing the EU and the far-reaching implications they could have on all aspects of the economy and society, it is proposed that they warrant further scrutiny. Given that work has begun on these proposals and to avoid duplication, it is proposed to forward these proposals to the Joint Committee on Climate Change and Energy Security for detailed scrutiny. That committee is requested to keep this committee informed of any report it may adopt in respect of these proposals. Is that agreed? Agreed.