2 SERVICES OF GENERAL INTEREST
(a)
(24595)
9824/03
COM(03) 270
(b)
(25476)
7549/04
SEC(04) 326
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Commission Green Paper on services of general interest
Commission Staff Working Paper: Report on the public consultation on the Green Paper on services of general interest
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| Legal base | —
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| Document originated | (b) 15 March 2004
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| Deposited in Parliament |
(b) 24 March 2004 |
| Department | Trade and Industry
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| Basis of consideration |
(a) Minister's letter of 29 March 2004
(b) EM of 29 March 2004
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| Previous Committee Report |
(a) HC 63-xxviii (2002-03), para 3 (2 July 2003)
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| To be discussed in Council
| Not known |
| Committee's assessment | Legally and politically important
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| Committee's decision | (Both) Not cleared; new document awaited
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Background
2.1 Services of general interest, including services of general
economic interest (SGEI), are services provided by the public
or private sector and subject to public service obligations.
SGEI can range from network industries such as energy supply or
telecommunications to services as diverse as waste collection,
port services and carcase rendering. Non-economic services of
general interest can include services such as education or health
provision. But the boundary between SGEI and non-economic services
of general interest is imprecise and shifting. A common justification
for the imposition of public service obligations is the promotion
of territorial and social cohesion. Typically public service
obligations include universal provision at a standard price.
2.2 At present, under the EC Treaty, it is for individual
Member States to determine their services of general interest,
and the means of their delivery. This results in a patchwork
of public services, defined and delivered differently from one
Member State to another.
2.3 In July 2003 we reported on the Commission Green
Paper designed to launch a debate on the provision of services
of general interest (document (a)). We deferred further consideration
of the document until receipt of promised information on the response
the Government was making to the Commission on the document.
But we noted that we might wish to recommend a debate on the Green
Paper.
The Minister's letter
2.4 The Minister of State for Industry and the Regions
and Deputy Minister for Women and Equality, Department of Trade
and Industry (Jacqui Smith) writes to tell us that through an
oversight we were not sent the further information we had been
promised before the Government gave its response in September
2003 to the Commission on the matters raised in the Green Paper.
The Minister readily apologises for this lapse and assures us
that future handling of this matter will be prompt "so that
your confidence in our procedures is fully restored".
2.5 The Minister now gives us the Government's response
to the Commission saying it:
"fully supports the provision of high quality
SGIs on a fair, transparent and efficient basis for the benefit
of all EU citizens; the constructive role played by the EU in
setting common public service obligations in the liberalisation
of utilities and the transport sector, in policing the single
market and enforcing competition rules; and flexibility in the
provision of SGIs at national and local levels in accordance with
the principle of subsidiarity.
"However it made clear that the Government does
not support a Framework Directive. The Green Paper did not make
a proven case for one, the variety of SGIs is such that the provisions
of a common directive would either have to be so vague as to have
no material effect, or risk cutting across current sector-specific
regulation, and a Directive would limit the flexibility of the
EU, Member States and regions to develop innovative delivery of
public services and to conduct further market opening measures.
From other responses to the Green Paper we know that a number
of other Member States do not support a Framework Directive."
The Commission's report on the consultation
2.6 The Commission's Staff Working Paper (document
(b)) reports the response to the public consultation launched
by the Green Paper, which evoked 281 contributions, of which 18
were directly attributable to the United Kingdom — including
the one from the Government. The paper considers the comments
under a number of broad headings. The Commission summarises these
comments at the end of each section — we annex the Commission's
collated version of these summaries.
2.7 Points highlighted in the report include:
- no consensus on the need for
amendment of the Treaty;
- broad agreement that the Community should not
be given additional powers in this area;
- broad agreement amongst respondents that sector-specific
regulation must not be extended to all services;
- for some water, waste and local public transport
services diverging views are expressed as to whether a specific
Community regulatory framework is desirable;
- large consensus that there is no need for the
creation of European Regulatory Authorities at this stage —
networks of national regulators co-ordinated at European level
preferred;
- strongly expressed differing views on the need
for a general legal framework;
- agreement on the continued need for sector-specific
legislation — with many contributions noting the benefits
of existing sectoral polices and little support for additional
Community level sector-specific obligations;
- broad agreement that protection of pluralism
should be left to Member States;
- distinction between SGEI and non-economic considered
by many contributors to be important with a number calling for
other criteria beyond this to create more legal certainty;
- some interest in further clarification of the
situation of organisations providing social services and in protecting
non-economic services of general interest as part of "the
European social model";
- divided views on the need for and feasibility
of a common set of obligations, or additional obligations at Community
level;
- broad consensus that regulation at Community
level should establish principles and objectives, with Member
States able to implement and specify the rules in line with specific
needs at national and regional level;
- some perceptions of problems resulting from application
of Community law, especially in the areas of procurement and state
aid, and many calls for clarification of the rules on concessions
and public-private-partnerships;
- a firm call for clarification and simplification
of the rules relating to financing services of general interest,
in particular regarding state aid;
- broad agreement that Member States must remain
free to determine the most appropriate way of financing a service
of general interest, providing competition is not unduly distorted;
- consensus on how evaluation of services of general
interest might be taken forward — that it should be comprehensive
and take account of political, social and environmental criteria.
But no agreement on coverage or procedural and institutional
arrangements;
- clear wish for compatibility of Community
positions in international trade negotiations with its internal
regulatory framework; and
- wide recognition of importance of basic essential
services for the development of the poorest countries.
The Government's view on the report
2.8 The Minister says (in the Explanatory Memorandum):
"The purpose of the Commission's document
is to summarise responses to the public consultation. It does
not aim to draw political conclusions from the consultation process
as such. Potentially, a future Commission Communication could
make proposals with far-reaching implications for the provision
of all public services in the UK. I suggest that the Department
provides a further Explanatory Memorandum then."
2.9 The Minister also says (in her letter):
"We are aware that the Commission will follow-up
their Green Paper with a Communication during the next month.
This will further the debate opened by the Green Paper."
Conclusion
2.10 Naturally we regret the failure to inform
us of the Government's proposed response to the Green Paper, but
we accept the Minister's explanation and her assurance that the
subject of services of general interest will be dealt with promptly
in future.
2.11 We note the Minister's expectation that the
Commission will table shortly a further Communication, as a follow-up
to the Green Paper. Until we see that document we shall defer
consideration of whether to recommend a debate on the subject,
but it remains probable that we will indeed recommend such a
debate.
2.12 Meanwhile we do not clear these documents.
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