Select Committee on European Scrutiny Twenty-Third Report


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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