Select Committee on Deregulation Ninth Report


I

PROPOSAL FOR THE DEREGULATION (WEIGHTS AND MEASURES)
ORDER 1998
- continued

Has the proposal been the subject of, and does it take account of, adequate consultation?

43. As the previous Committee noted[74], proposals relating to self-verification in the weighing and measuring industry have been under discussion since the mid-1980s. The first systematic consultation exercise was undertaken in August 1993. This was followed by consultation on a proposed Deregulation Order in February 1996. On 10 June 1996, the proposal for the Deregulation (Weights and Measures) Order 1996 was laid.

44. The third consultation document was issued on 12 February 1998, and replies were requested by 6 April 1998. A number of respondents raised significant concerns relating to the proposed Order; the most significant of these points have been outlined above. However, the Department do seem to have given proper consideration to the points made. We conclude that the timing and scope of the consultation was adequate and that the Department has taken account of the concerns of respondents.

Does the proposal impose a charge on the public revenues or contain provisions requiring payments to be made to the Exchequer or any government department or to any local or public authority in consideration of any licence or consent or of any services to be rendered, or prescribe the amount of any such charge or payment?

45. The proposed Order would enable the Secretary of State to charge fees to applicants for an approval to become a self-verifier[75]. The schedule provides that a fee may be charged on application for an approval and on the grant of an approval. The previous Committee recommended that, in accordance with Treasury Guidance, the level of fees should be set at a level intended to recover expenses[76]. This recommendation has been accepted[77]. We have no further points to raise under this heading.

Does the proposal purport to have retrospective effect?

Does the proposal give rise to doubts whether they are intra vires?

Does the proposal require elucidation or appear to be defectively drafted?

46. We have no concerns to raise under these headings.

Does the proposal appear to be incompatible with any obligation arising from membership of the European Union?

47. Directive 83/189/EEC is intended to help avoid the creation of new technical barriers to trade within the Community. It requires Member States to notify technical regulations to the European Commission in draft, and then generally to observe a standstill period of at least three months before adopting a regulation, in order to allow other Member States and the Commission an opportunity to influence the outcome. Non-notification of draft technical regulations renders the regulations unenforceable in certain circumstances.

48. Technical regulations are technical specifications and other requirements, the observance of which is compulsory in the case of marketing or use in a Member State. A technical specification is defined as follows:

    "a specification contained in a document which lays down the characteristics required of a product such as levels of quality, performance, safety or dimensions, including the requirements applicable to the product as regards the name under which the product is sold, terminology, symbols, testing and test methods, packaging, marketing or labelling and conformity assessment procedures;

    ...production methods and processes relating to...products, where these have an effect on their characteristics".[78] (Emphasis added)

49. The NWML claims that the Deregulation (Weights and Measures) Order is not a technical specification for the purposes of the Directive, and that it is consequently not notifiable[79]. The Department argues that because the Deregulation proposals do not seek to change the verification requirements in relation to weighing and measuring products, but merely expand the category of approved verifiers, the characteristics required of the products will not be altered and hence the proposals do not qualify as technical specifications. The NWML has resisted any suggestion that, given the extent of the doubt over whether the draft Order was notifiable, it should notify it to ensure its future enforceability. This resistance has been justified on the grounds that to notify in these circumstances would prejudice the interests of other Departments which introduced similar measures[80].

50. While it is true that no new tests or standards will be introduced to evaluate the characteristics of weighing and measuring equipment as a result of the proposals, the fact that self-verifiers will be required to establish and maintain quality systems means that a new dimension is being added to the current regulatory framework. The requirements for self-verifiers to establish a quality system and to conduct verification in accordance with a DTI Approval may well qualify as conformity assessment procedures within the definition of technical specifications.

51. The Commission defines conformity assessment procedures as "those used to ensure that the product conforms with specific requirements", and distinguish such procedures from testing and test methods, which "cover the technical and scientific methods to be used to evaluate the characteristics of a given product"[81].With regard to the weights and measures proposal, the Commission has told us that

    "there can be no doubt that the determination of the person carrying out and being responsible for the testing and for... checking the conformity... is clearly one of the most fundamental characteristics of any testing and conformity assessment procedure and therefore can be said to affect the marketing or use of the products concerned."[82]

It thus regards the proposals as notifiable within the terms of Directive 83/189.

52. If a case were to go to the European Court of Justice, and the Court agreed with the opinion that was expressed by the Commission that the Order was notifiable, it is not clear what the implications would be for the enforceability of the proposed Deregulation Order. We were informed that the Department was trying to meet with representatives of the Directorate-General of the Commission with responsibility in this area (DG III)[83]. We were also told that the NWML would shortly consult interdepartmentally to ascertain the degree of risk to other departments of notification in this case and might need to take further legal advice following that consultation. We were informed that if, after discussions with DG III, the NWML considered that the proposed Order was notifiable, it would then notify the Commission accordingly[84]. If it concluded that notification was not necessary, it would not. We expect this matter to be resolved satisfactorily before a draft Order is laid before the House, and we expect the Department to report fully to us on the outcome of all these consultations when it lays a draft Order.

Measuring Instrument Directive

53. ITSA questioned the wisdom of establishing a new system of verification in advance of the Measuring Instrument Directive (MID)[85]. The MID would harmonise the verification and other requirements for around 20 categories of measuring instruments. ITSA argues that, by pre-empting harmonisation in this field, the proposed Order would not be able to ensure that overseas authorities were performing their duties to the exact standards that UK inspectors would demand. LACOTS pointed out the difficulties of extending to Europe (and beyond) a piece of UK legislation different from that which overseas authorities ordinarily applied[86]. Following an EC directive, this would no longer be an issue because the requirements would be the same in the UK and other EC Member States[87]. We concluded at paragraph 29 that we believed that the Secretary of State could be expected to use his discretion, on the basis of information gathered about other countries, to ensure that self-verification was carried out only in countries where accreditation bodies would work to standards equivalent to those of UK inspectors. In addition, we also accept the principle that self-verification may be extended outside the EU.

54. Although a proposal for the MID has not yet been submitted by the Commission, we understand that it is expected in the autumn of this year. It would be a long, complex measure and would be likely to take some time in Council (assuming that it is placed on the Council agenda by successive Presidencies)[88]. The NWML does not expect it to be adopted and transposed into UK law before around 2003 (with transitional provisions lasting for about 10 years)[89]; this could, however, be regarded as a worst case scenario. The NWML argued that the proposed Order was not intended as a stop gap measure[90]; it is intended to remove burdens sooner than would be achieved by waiting for the directive, and moreover, is expected to form the foundations for the implementation of the directive.

55. Having regard to the points made by ITSA and LACOTS in paragraph 53, we see considerable merit in securing Community-wide legislation as soon as possible and not anticipating it with domestic legislation. However, we see this as a matter for the judgment of the Department.

Extent

56. The proposed Order would apply to Great Britain. The NWML believes that the equivalent provision for Northern Ireland will be made in April 1999; it acknowledges that this timetable may be liable to change[91].

Report under Standing Order No. 141

57. We recommend that the proposal for the Deregulation (Weights and Measures) Order 1998 should be amended as set out in paragraph 18 before a draft Order is laid before the House.


74  First Report, Session 1996-97, paragraph 33. Back

75  Paragraph 1 of the Schedule to the proposed Order. Back

76  First Report, 1996-97, paragraph 38. Back

77  Paragraph 1 of the Schedule to the proposed Order. Back

78  Council Directive 83/189/EEC, Article 1(2). Back

79  Evidence, page xxxviii. Back

80  Q63. Back

81  Commission booklet on Directive 83/189/EEC. Back

82  Evidence, pagexl. Back

83  Q63. Back

84  Q63. Back

85  Response to consultation document. Back

86  Q18. Back

87  Evidence, pagexliv. Back

88  Q72. Back

89  Q42. Back

90  Q73. Back

91  Evidence, page xxx. Back


 
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