Appendix 1: reports on Council meeting
Replies concerning a recent Council meeting are published
below.
Letter from the Secretary of State for Work and
Pensions at the Department for Work and Pensions (Andrew Smith)
to the Chairman of the Committee
EMPLOYMENT, SOCIAL POLICY, HEALTH AND CONSUMER
AFFAIRS (ESPHCA) COUNCIL, 1-2 JUNE LUXEMBOURG
I attended the first day of the 1-2 June Employment,
Social Policy, Health and Consumer Affairs Council in Luxembourg,
accompanied by Jacqui Smith, Minister of State for Industry and
the Regions, deputy Minister for Women and Equality. Colleagues
from Department of Health will write separately to inform you
of proceedings on the second day.
This was the last ESPHCA of the Irish Presidency
and was run in a business-like fashion, with all 25 Member States
present as full members for the first time. The key issues discussed
were: the 2004 Employment Package; a regulation making miscellaneous
amendments to Regulation 1408/71; a first discussion by Ministers
of a planned Directive under Article 13 (TEC) extending the principle
of equal treatment to goods and services; and the setting up of
a European Gender Institute. Jacqui Smith dealt with the latter
two items in her role as gender minister.
Council reached political agreement on the 2004 Employment
package (Employment Guidelines and Recommendations to Member States).
The recommendations in particular were welcomed as reflecting
the work of Wim Kok's employment taskforce and being better focused
on achieving the employment targets set at Lisbon in 2000. I stressed
the importance of increasing participation amongst those currently
excluded from the labour market if the Lisbon targets were to
be met by 2010.
Council agreed a common position on a regulation
making miscellaneous amendments to regulation 1408/71. UK non-contributory
disability benefits will continue not to be paid outside the UK.
Sweden and Finland maintained similar positions. I will write
to you separately on this issue.
Council also reached political agreement on a decision
establishing the Social Protection Committee (SPC) under its new
bespoke legal base of Article 144 (TEC).
My colleague, Jacqui Smith, took the UK chair for
an orientation debate on the proposed directive extending the
principle of equal treatment to goods and services, Council discussion
focused on Article 4 of the draft Directive which prohibits the
use of sex-based actuarial factors in the pricing of insurance
products. The UK argued that the directive should be fair for
both men and women and that the use of sex-based actuarial factors
is justified where they are based on reasonable and objective
data. We were supported by 10 other Member States, and the Commission
promised to examine any compromise proposal for reaching agreement.
Overall 17 Member States declared that they cannot accept Article
4 as it stands.
Council also reached broad agreement on the setting
up of a European Gender Institute, following a lunchtime discussion
attended by Jacqui Smith. The Presidency noted concerns about
budget, duplication with existing bodies and independence from
the gender lobby.
Council also dealt with a number of issues under
AOB including a Commission presentation of its Communication proposing
open coordination on health care and long-term care for the elderly;
the communication on the social dimension of globalisation; and
its recent proposal to recast equality legislation. There was
a brief discussion, led by Belgium, on the proposed directive
on services in the internal market.
The Presidency also explained that it would soon
bring forward a draft worker protection directive on optical radiation.
The Council noted Commission proposals to amend the regulations
establishing the European Agency for Safety and Health at Work
and the Foundation for the Improvement of Living and Working Conditions.
No votes were taken at this Council.
14 June 2004
Letter from the Secretary of State for Work and
Pensions at the Department for Work and Pensions (Andrew Smith)
to the Chairman of the Committee
EMPLOYMENT, SOCIAL POLICY, HEALTH AND CONSUMER
AFFAIRS COUNCIL — 1 JUNE
Social security co-ordination legislation: Proposal
to amend Regulation 1408/71 (miscellaneous amendments) 12094/03
My letter of 14 June gave general details of the
discussions at the Council on 1 June. This letter is to give you
further details of the outcome with regard to the amendments to
Regulation 1408/71. Chris Pond wrote to you on the 20 May about
this agenda item and you subsequently cleared it from scrutiny.
As you will recall, the issue of greatest concern
for the UK was that Disability Living Allowance, Attendance Allowance,
and Carer's Allowance should continue to be listed in Annex IIa
of Regulation 1408/71. This listing ensures that the benefits
continue to be non-exportable.
Political agreement was reached on the text of the
Miscellaneous Amendments to Regulation 1408/71 at the ESPHCA Council
on 1 June. There was little discussion; but the Commission did
reserve the right to review the Annex listings in the light of
any future rulings of the European Court of Justice.
As anticipated in Chris Pond's letter of 20 May,
the UK did place a declaration in the minutes of the meeting.
Its purpose is to make clear that we fully support the creation
of the informal working group, but we have not agreed to replace
the current system of coordination that we have for special non-contributory
benefits. The declaration states:
"The UK welcomes the fact that an informal working
group will consider the difficult question of coordinating, in
particular, those benefits that are no longer listed in Annex
IIa. We agree on the basis that the current provisions of Art.
4.2a in relation to special non-contributory benefits that provide
specific protection for the disabled and the system of co-ordination
for those benefits where they are listed in Annex IIa shall not
be amended or replaced."
The miscellaneous amendments package will now move
to its second reading in the European Parliament. We do not have
any details of timing for any further work on this document.
15 June 2004
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