Select Committee on European Scrutiny Thirteenth Report


EMPLOYMENT PACKAGE


(a)
(20508)
10994/99
COM(99) 445

(b)
(20909)
5344/00
COM(99) 712

Recommendations on the implementation of Member States'
employment policies.



Draft Council Decision on guidelines for Member States' employment
policies 2000.
Legal base:
Department: Education and Employment
Basis of consideration: Minister's letter of 17 March 2000
Previous Committee
Report:
(a) HC 34-xxxi (1998-99), paragraph 14 (10 November 1999)
(b) HC 23-ix (1999-2000), paragraph 10 (16 February 2000)
Discussed in Council: Already agreed
Committee's assessment: Politically important
Committee's decision: Cleared (decisions reported on 10 November 1999 and 16
February 2000)

Background

  21.1  When we last considered document (a), as part of the Employment Package, we cleared it but asked for more information on one point. Some months later, when we were considering document (b) — a later version of the Guidelines for Member States' Employment Policies, the third part of the Employment Package — we cleared the document but raised two further questions, and noted that we were still waiting for a reply to our earlier one.

The Minister's letter

  21.2  The Minister for Employment, Welfare to Work and Equal Opportunities at the Department for Education and Employment (The Rt. Hon. Tessa Jowell) has now replied to all our questions. She begins by answering those we asked in relation to document (b), as follows:

    "First, the Committee asked for confirmation that the UK's concerns about the early drafts of Guideline 8 (training for the acquisition of computer literacy and skills) and Guideline 15 (the rôle of the social partners) had been resolved through the textual amendments which were agreed in the final draft. I can confirm that we are content with the text of these Guidelines.

    "Secondly, the Committee asked why the old Guideline 15 (possibility of VAT reduction on labour intensive services) had been dropped. The Guideline has now been superseded by the introduction of Directive 1999/85/EC which provides for the possibility of Member States applying for a reduced VAT rate on labour-intensive services on an experimental basis. Given that it is no longer needed in the Guidelines, it was agreed that it should be dropped so as to enable a clearer focus on the remaining Guidelines."

  21.3  The Minister then addresses the outstanding question on document (a), saying:

    "Finally, the Committee asked for more details of the disagreement with the Commission about statistics needed to monitor the European Employment Strategy, prompted by my Explanatory Memorandum on the Recommendations made by the Council to the UK on our employment policies. This issue arises with particular reference to the third Recommendation, which links to the UK's response to Guideline 3 [increasing the numbers of unemployed people offered training and similar measures to improve their employability]. The UK's main difficulty has arisen in trying to agree with the Commission a definition of active labour market policies, particularly what constitutes 'training and similar measures', in order then to assess whether we meet the 20% indicator for Guideline 3. We understand that we are not the only Member State to have difficulty with the definitions for this Guideline, and the Commission have acknowledged that there is a problem with the interpretation and therefore are working with the Member States to clarify this. We hope that some progress may be made on this issue during this year, through two channels. First, the Commission and all Member States take part in on-going work to agree definitions and indicators, and are currently reviewing these in respect of Guidelines 1 to 3. Secondly, a 'mid-term review' of the Employment Guidelines is planned for this year and this might result in amendments which would resolve our concerns under Guideline 3."

Conclusion

  21.4  We thank the Minister for her helpful response which ties up some loose ends, and supplies the detail missing from her earlier answer. We had already cleared both documents.


 
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