Select Committee on European Scrutiny Twenty-First Report


14 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
DepartmentTrade and Industry
Basis of considerationMinister's letter of 20 May 2004
Previous Committee ReportHC 42-xiii (2003-04), para 3 (17 March 2004)
To be discussed in Council10 June 2004 Telecoms Council
Committee's assessmentPolitically important
Committee's decisionCleared

Background

14.1 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.[40]

The Commission proposal

14.2 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, such as public sector information, learning content, scientific and scholarly content, and content from cultural institutions. It 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. Its 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. Its overall emphasis is on quality content that serves to disperse information and diffuse knowledge, not just more content.

14.3 The proposed reference amount is €163 million, compared to €100 million for eContent, covering a period of four years (2005-2008).

Previous consideration

14.4 We first considered the Decision on 17 March, on the basis of an Explanatory Memorandum from the Minister for Energy, e-Commerce and Postal Services at the Department of Trade and Industry (Mr Stephen Timms), in which he outlined the Government's concerns. There was no argument over the aims, or over the relevance of the issues to the eEurope agenda. Rather, the doubts were, firstly, whether a new programme in this area was justified, in the absence of any Commission evidence that the market would not address the requirements of the users identified and that action by the public sector was needed at any level, including the EU level; the impression instead being that, because the eContent programme was positively evaluated, there was a strong presumption that there should be a follow-on. And secondly, its expense — both as to the amount (€163 million, compared to €100 million for eContent) and the extent to which it could effectively prejudge decisions on the 2007-2008 years of the next Financial Perspective. However, the Minister noted that there appeared to be little sympathy in other Member States for ceasing this funding and that, if the Government was unable to attract support for shortening the programme to two years, it would seek to limit its scope and scale.

14.5 We noted that it is all too easy for EC programmes to become institutionalised, and welcomed the Government's decision to challenge the need for a new programme in this area. Given 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, we felt that a convincing case was needed for the activities proposed to be supported by public money, which requirement was not met by positive evaluation of the earlier programme alone. We also agreed that the Government should ask the Commission why a substantial increase in the annual budget for the programme in 2007 and 2008 was justified. Pending a further report from the Minister on the progress of negotiations on this proposal, we held the document under scrutiny.[41]

The Government's view

14.6 As the Minister's letter of 20 May details, despite its best endeavours, the Government has been a lone voice in questioning the rationale for a further publicly-funded programme. Moreover, there is no appetite, even on the part of those Member States which joined the UK in seeking budgetary restraint, for entering into the conciliation procedure with the European Parliament. They and other Member States are determined that the full four-year programme will go ahead as proposed; and the best budgetary outcome is likely to be €140 million, the only likely alternative being the full €163 million originally proposed. Having secured wording to ensure that the annual appropriations are consistent with the Financial Perspective in 2007-08, the Government is disposed to preserve unity with its "budgetary allies" around the lowest available budgetary outcome.

Conclusion

14.7 This is in many ways regrettable, since neither the original doubts as to the necessity for another publicly-funded programme, nor the expense of the proposed programme, have been properly addressed or satisfactorily resolved. However, the Commission will now have to produce an evaluation report by January 2007 at the latest, including reporting on the consistency of the amount for 2007-08 with the Financial Perspective and, if necessary, taking steps to ensure such consistency. We trust that, when the time comes, the Government will ensure that the Commission is held firmly to this commitment.

14.8 Though not even half a loaf, a few slices are arguably better than no bread at all, and that would appear to be the only alternative. In these circumstances, we now clear the document.





40   (24957) 13644/03; see HC 63-xxxvi (2002-03), para 13 (5 November 2003). Back

41   See headnote. Back


 
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