12 Control of emissions from heavy-duty
diesel and gas engines
| (24963)
13664/03
COM(03) 522
| Draft Directive on the approximation of the laws of the Member States relating to the measures to be taken against the emission of gaseous and particulate pollutants from compression-ignition engines for use in vehicles, and the emission of gaseous pollutants from positive-ignition engines fuelled with natural gas or liquefied petroleum gas for use in vehicles
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| Legal base | Article 95 EC; co-decision; QMV
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| Department | Transport |
| Basis of consideration | SEM of 22 April 2004 and Minister's letter of 6 May 2004
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| Previous Committee Report | HC 42-iii (2003-04), para 10 (17 December 2003)
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| To be discussed in Council | Not applicable
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| Committee's assessment | Legally and politically important
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| Committee's decision | Cleared
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Background
12.1 Directive 1999/96/EC[38]
introduced three new stages of successively tighter limits for
emissions of carbon monoxide, hydrocarbons, oxides of nitrogen
and particulates from heavy duty diesel and gas engines. These
take effect from 2000, 2005 and 2008 as regards approval for new
engine types, and from 2001, 2006 and 2009 for all new heavy-duty
vehicles entering service. In this document, the Commission put
forward in September 2003 the further measures needed in order
to apply in 2005 and 2006 the second stages envisaged in the Directive,
covering three main areas, namely durability requirements, in-service
conformity requirements and on-board diagnostic systems.
12.2 In our Report of 17 December 2003, we noted
that, in an Explanatory Memorandum of 3 November 2003, the Government
had said that, although the detailed implications of the proposal
would be assessed fully in a subsequent Regulatory Impact Assessment,
much of its substance had already been anticipated by the industry.
This was broadly confirmed in a Regulatory Impact Assessment
submitted on 5 December 2003, which suggested that, on the basis
of experience in the United States, the cost to individual manufacturers
of developing on-board diagnostic systems to a common Community
standard might be about £1.3 million, amortised over three
years, for each engine type, with the unit costs per engine perhaps
varying between £94 and £422, depending on the size
of engine and production volume. In addition, there would be
the cost of providing the hardware and software needed by each
unit. Against this background, we decided to clear the proposal.
Second supplementary Explanatory Memorandum and
Minister's letter
12.3 We have since received a further supplementary
Explanatory Memorandum of 22 April, setting out amendments agreed
as a compromise package between the Presidency and the European
Parliament, following the amendments adopted by the latter at
its first reading of the proposal on 9 March. None of the changes
proposed was significant, and we were told that the proposal was
expected to be put to the Council as an "A point" (without
discussion) for agreement in the near future. However, we did
note that, whereas the original Explanatory Memorandum of November
2003 had said that the proposal updated the fiscal provisions[39]
contained in the Directives without making any material changes,
we were now being told that "unfortunately there has not
been sufficient support in Council Working Groups for the UK's
position of excluding [financial] provisions from a directive
based on qualified majority voting".
12.4 We therefore sought clarification as to significance
of this statement, and have now received from the Parliamentary
Under-Secretary of State at the Department for Transport (Mr David
Jamieson) a letter of 6 May, in which he says:
"With respect to the UK's general opposition
to the inclusion of fiscal provisions, this position is always
adopted on numerous directives that are based on Article 95 of
the Treaty, which provides for qualified majority voting. Article
95(2) excludes from its scope fiscal provisions, provisions relating
to the free movement of persons, and provisions relating to the
rights and interests of employed persons. The UK considers that
Article 95(2) prohibits any provision in a measure passed under
Article 95, if that provision has the purpose and effect of harmonising
Member States' national laws in the three main areas concerned.
In this particular case, our initial view was that
as this new proposal was merely a consolidation of previous provisions,
there were no points to raise issue with on the fiscal article.
However, on further examination, the proposal does introduce
additional measures for OBD [on-board diagnostic systems] and
durability. On reflection, therefore, we concluded that the proposal
did have material effect and should therefore be opposed. I regret
that this was not clarified in the SEM but trust that this clarifies
the position."
Conclusion
12.5 As the Minister says, it is unfortunate that
the significance of the fiscal provisions in this proposal was
not identified earlier, and, whilst the point has arisen on other
proposals (and hence need not affect our earlier clearance of
this document), we are drawing it to the attention of the House,
not least as a reminder that such provisions can arise on internal
market measures, and thus become subject to qualified majority
voting rather than unanimity.
38 OJ No. L 44, 16.2.00, p.1. Back
39
These relate to tax incentives for vehicles which comply with
the Directive. Back
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