COHESION AND THE INFORMATION SOCIETY
13. We consider that the
following raises questions of political importance. We do not
recommend its further consideration, but suggest that it would
be relevant to the debate we have recommended on (17766) 12614/96
on cohesion policy[32]:-
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(17887)
5581/97
COM(97)7
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Commission Communication: Cohesion and the Information Society.
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Legal base:
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Background
13.1 The Commission has
recently adopted its first report on economic and social cohesion
under Article 130b of the Treaty, which we have recommended for
debate in European Standing Committee B. This Communication forms
part of the follow-up to the report.
The Communication
13.2 The Communication
points out that the emerging "information society" offers
huge opportunities. One of the objectives of the gradual liberalisation
of telecommunications markets is to make these opportunities available
throughout Europe so that all regions, citizens and firms are
equally well-placed to compete. The Communication argues that:
"The development
of the information society needs to be complemented, where necessary,
by policy action in order to close the existing gaps and ensure
that the information society develops at the desired rate throughout
the Union. This calls for the participation and co-ordination
of regions, national governments and the European Institutions
so as to avert a polarisation between 'information haves' and
'information have-nots' as the new technologies spread."
13.3 To achieve this,
the Commission suggests, will require targeted support for investment
expenditure in less developed, peripheral and/or rural areas.
At present, only about 2% of expenditure from the European Regional
Development Fund (ERDF) and the European Social Fund (ESF) goes
towards investment in the telecommunications sector. The Commission
considers that, as well as making the necessary adaptations to
the regulatory framework, Member States should
"target investment
on projects that optimise the contribution to cohesion and on
areas where investment would not otherwise be forthcoming under
market conditions."
Member States are also
recommended to promote education and training, which the Commission
also intends to support.
The Government's view
13.4 In his Explanatory
Memorandum of 4 March, the Minister for Industry at the Department
of Trade and Industry (Mr Knight) argues that extensive support
for infrastructure should not be necessary, since "most such
investment is viable in growing markets". He also suggests
that the Communication understates the amount being spent from
the ESF to support training. He continues:
"The Government
believes that telecommunications liberalisation across the European
Union, and indeed beyond, will provide substantial benefits to
all regions and citizens. It will foster cohesion, both in terms
of lower costs, particularly for long distance and international
calls, and in terms of the greater quality of services resulting
from competition. The information society is already helping
to boost opportunities in UK regions: for example in telephone
based banking and insurance, freephone or low cost calls can now
connect customers with well informed providers all over the UK.
This has created new employment opportunities in many regions,
and will continue to do so.
"In terms of
the European Structural Funds, the Government intends to continue
to use Structural Funds money to support projects related to the
broader information society, amongst others, when this contributes
to the overall economic and employment aims of the Funds."
Conclusion
13.5 This Communication
is stronger on general exhortations than on specific suggestions
as to how the Commission's laudable aims might be achieved. We
do not think that it should be debated itself, but it would be
relevant to the debate in European Standing Committee B on cohesion
policy which is due to take place on 19 March.
32 (17766) 12614/96; see HC 36-xi (1996-97), paragraph 3 (29 January 1997). Back
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