Select Committee on European Scrutiny Thirteenth Report


3 Digital content programme

(25384)

6431/04

COM(04) 96

+ ADD 1

Draft Decision establishing a multiannual Community programme to make digital content in Europe more accessible, usable and exploitable

Commission Staff Working Paper Ex ante Evaluation: Multiannual Community programme to make digital content in Europe more accessible, usable and exploitable (eContentplus) (2005-2008)

Legal baseArticle 157(3) EC; co-decision; QMV
Document originated13 February 2004
Deposited in Parliament24 February 2004
DepartmentTrade and Industry
Basis of considerationEM of 8 March 2004
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionNot cleared; progress report requested

Background

3.1 The existing eContent programme runs for a four-year period up to January 2005. Its objective is to stimulate the production, use and distribution of European digital content on global networks, by encouraging the growth of a competitive EU digital content industry. The mid-term evaluation was generally positive. One of the main recommendations to the Commission was that the commercial dimension of the projects should be emphasised.[3]

The Commission proposal

3.2 The proposal is for a Decision to establish a four-year programme, to be called eContentplus, which would build on, but not replicate, the eContent programme. Its overall aim is to make digital content in the EU more accessible, usable and exploitable, facilitating the creation and diffusion of information and knowledge, in areas of public interest.

3.3 The programme focuses on the end-users, whether citizens, students, researchers, businesses or re-users of documents wishing to enhance and exploit digital content resources for economic return. It aims to broaden choice, and its overall emphasis is on quality content that serves to disperse information and diffuse knowledge, not just more content. The use of metadata[4] to improve the quality of the content — "content enhancement" — is considered an essential element to guarantee interactivity, re-usability and interoperability[5] of content. It will facilitate the creation of content tailored to specific contexts such as education and culture. It can contribute to tackling issues such as searchability, composability, re-usability, authentication, multilinguality, data protection and digital rights across distributed collections of content.

3.4 The Commission says that the proposal has both social and economic aims. The social aims relate to areas where market forces are not sufficient to ensure that citizens and user organisations can benefit from content offerings made accessible by the latest technologies. The purpose is to facilitate broader availability of re-usable and interoperable quality content. It covers areas of public interest such as public sector information, learning content, scientific and scholarly content, and content from cultural institutions.

3.5 The economic aim is to help establish conditions for greater economic return from content-based services. Effective use of the latest technologies in their products and service offerings can give companies a decisive competitive edge in the global economy. Special emphasis will be placed on spatial data[6] addressing interoperability issues. This is a particularly acute problem because the collection of spatial data is technology-dependent. It is derived from, for instance, remote sensing and mapping and is particularly vulnerable to technical fragmentation. According to the Commission this has held back the growth of some 6000 organisations, public and private, in the EU.

3.6 The programme has three operational goals:

  • Facilitating access to European digital content;
  • Improving quality by facilitating best practice related to digital content; and
  • Reinforcing co-operation and awareness between digital content stakeholders.

3.7 The programme will finance projects designed to improve tools, processes and services related to the production, access, use and distribution of digital content. It will support the emergence of pan-European frameworks and will target public sector information, spatial data, learning and cultural content. The proposed reference amount is €163 million, compared to €100 million for eContent, covering a period of four years (2005-2008).

The Government's view

3.8 The Minister for Energy, e-Commerce and Postal Services at the Department of Trade and Industry (Mr Stephen Timms) says that the Government agrees that the areas addressed by the proposal are major and important ones. Public sector information, particularly geographical, educational and cultural information, are important resources for industry and important parts of the eEurope agenda. However, the Minister says:

"The case made by the Commission in their Explanatory Memorandum for a new programme in this area is not compelling. There is little, if any, persuasive argument (or evidence) that action is needed by the public sector at any level, including the European. Although it is acknowledged that the production of content products as such should be left to the market, no reasons are given as to why the market will not address the requirements of major categories of users identified as the target/beneficiary of the proposed programme, and develop the metadata and interoperability required.

"The impression is left that, because the eContent programme was approved and has been positively evaluated, there is a strong presumption that there should therefore be a follow-on programme. The Government is not convinced by this logic. However, at present, there appears to be little sympathy from other [Member States] for a cessation of EU-level funding in this policy area once the current eContent programme finishes. Therefore, the Government will seek to limit the programme to an appropriate scope and scale in Working Group negotiations."

3.9 On the financial implications of the proposal, the Minister comments in some detail:

"Under the Commission's proposal, the programme would run from 2005 to 2008 with a total budget of €163 million. The programme would be wholly funded from the EC budget, to which the UK makes an annual contribution (in 2004, the UK contribution will be 17.7% before abatement).

"While the Government is content with the proposed annual expenditure on the programme in 2005 and 2006 (at €27.5 million and €28.1 million respectively, this represents a modest decrease compared with the Commission's most recently published programming), it has concerns about the post-2006 commitments. Principally, this is because agreeing commitments now would prejudice the ongoing negotiations on the next Financial Perspective. Additionally, post-2006, the annual budget for the programme will show a substantial increase (to €45.3 million in 2007 and €62.1 million in 2008) compared to the present. Little argument has been put forward for the increased reference amount of funding. The suggestion is that the previous programme, with a budget of €100 million over four years, lacked focus. However, no strong case [is] made that a more focussed programme, which the proposal professes to be, needs a budget of €163 million, considerably in excess of the increase in GDP of the EU following accession. It is true that the costs of linguistically and culturally customising content will increase over the base rate of inflation and GDP growth, but the increase seems excessive.

"To counter both these concerns, [the] Government believes that the programme should ideally be limited to a two-year duration. If the UK does not find enough support among other Member States for shortening the programme it will instead push for wording that will allow post-2006 commitments to be set only when the outcome of the Financial Perspective negotiations is known."

3.10 The Minister says that it is not yet clear what the timetable will be for the proposal. The rapporteur of the European Parliament's Committee on Industry, External Trade, Research and Energy (Mr Van Velzen) has told the Presidency that he is anxious for the proposal to be dealt with as rapidly as possible and that he is aiming for his report to be adopted by the Committee on 6 April and by the European Parliament Plenary on 23 April. We note that in his report, which was published on 5 March, several amendments are proposed which recognise the need for the expenditure proposed from 2007 to be consistent with the Financial Perspective for that period.

3.11 The Minister comments that, given the UK Government's reservations on the justification and funding of the programme, it is unlikely that it will agree to rush the proposal through. It is likely that there will be a gap between the eContent programme and any successor.

Conclusion

3.12 It is all too easy for EC programmes to become institutionalised, and we welcome the Government's decision to challenge the need for a new programme in this area. There is a tendency for the Council to be too ready to call for and to endorse action by the public sector to improve competitiveness in the EU, but a convincing case must be made for the activities proposed to be supported by public money. The fact that the earlier programme was positively evaluated certainly does not on its own amount to a convincing case for further EU funding.

3.13 We also agree that the Government should ask why the Commission is seeking a substantial increase in the annual budget for the programme in 2007 and 2008. We, too, wish to be satisfied that this increase is justified.

3.14 We ask the Minister to report on the progress of negotiations on this proposal. Meanwhile, we shall hold the document under scrutiny.





3   (24957) 13644/03; see HC 63-xxxvi (2002-03), para 13 (5 November 2003). Back

4   Metadata (data about data) is information added to a document which describes it. It can cover many categories, such as background, context, content type, format, language, user rights and copyright. Back

5   The ability to combine information and functionality from different systems across different organisations, applications or platforms. This is fundamental to attaining the full potential of distributed systems such as the World Wide Web. But to achieve it, content must be enriched with metadata that is well-defined. Back

6   Information that combines geographical location with other data. It is embedded in up to 80% of all data held in public sector institutions and can be exploited to support areas such as transport, community development, environmental management and emergence responses. Back


 
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