Select Committee on European Scrutiny Fifth Report


26 Guidelines for rural development

(26711)

10893/05

COM(05) 304

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ADD 2

Draft Council Decision on Community strategic guidelines for Rural Development (Programming period 2007-2013)

Commission Staff Working Document - Annex to the draft Council Decision on Community strategic guidelines for Rural Development: Update to Impact Assessment Report

Commission Staff Working Document - Annex to the draft Council Decision on Community strategic guidelines for Rural Development: Update to Impact Assessment Report (Annex 2: maps)

Legal baseArticle 37EC; consultation; QMV
Document originated5 July 2005
Deposited in Parliament13 July 2005
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 8 August 2005
Previous Committee ReportNone, but see footnote
To be discussed in CouncilOctober 2005
Committee's assessmentPolitically important
Committee's decisionCleared

Background

26.1 In July 2004, the Commission brought forward two proposals[79] arising from the mid-term review of the Agenda 2000 reforms of the Common Agricultural Policy (CAP), aimed principally at strengthening the so-called rural development ("second") pillar. In particular, the first of these involved replaced the existing European Agricultural Guidance and Guarantee Fund (EAGGF) by two new funds — the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD), whilst the second set out the detailed basis on which support would be provided under the EAFRD. As our predecessors noted in their Report of 13 October 2004, the Commission had suggested that a more strategic approach to rural development would be achieved by the adoption of a Community strategy, which would then form the basis of various national strategies linked to three main policy "axes" — increased competitiveness, enhancement of the environment, and enhancing the quality of life and promoting diversification. In addition, it was envisaged that each of these axes would contain a so-called LEADER (local rural development strategies) axis, funding local partnerships involving the public, private and voluntary sectors in rural areas.

The current document

26.2 The second of these proposals has since been adopted by the Council, and contains a provision that the Community should adopt strategic guidelines in this area for the period from 1 January 2007 to 31 December 2013. Accordingly, the Commission has now sought in this document to set out what those guidelines might be. In doing so, it identifies six priorities for Member States in formulating their national strategy plans, as well as the areas under each guideline where it believes they should focus resources. These are as follows:

Improving the competitiveness of the agricultural and forestry sectors

The Commission states that the agriculture, forestry and agri-food sectors have great potential to develop further high quality and value added products meeting the diverse and growing demand of consumers within Europe and world-wide. It suggests that the resources within this axis should contribute to this aim by focussing on knowledge transfer and innovation in the food chain, and that in particular Member States should concentrate support on facilitating access to research and development, improving integration within the food chain, encouraging the updating and diffusion of information technology, fostering dynamic entrepreneurship, developing new outlets for products, improving the environmental performance of farms and forestry, and restructuring the agriculture sector.

Improving the environment and countryside

The Commission believes that the three priority areas within this axis should be biodiversity and the preservation of high nature value farming and forestry systems; water; and climate change. It suggests that the relevant support should concentrate on promoting environmental services and animal-friendly farming practices, preserving the farming landscape, combating climate change, consolidating the contribution of organic farming, encouraging environmental/economic win-win initiatives, and promoting territorial balance.

Improving the quality of life in rural areas and encouraging diversification

The Commission considers that the range of measures under this axis should be used to promote capacity building, skills acquisition, and ensuring that rural areas remain attractive for future generations, with particular consideration being given to the needs of women and young people. This would involve concentrating on raising economic activity and employment rates in the wider rural economy, encouraging the entry of women into the labour market, developing micro-business, training young people in traditional rural skills, encouraging the take-up and diffusion of information technology, developing the provision and innovative use of renewable energy sources, encouraging the development of tourism, and upgrading local infrastructure, particularly in the new Member States.

Building local capacity for employment and diversification

In so far as this as this area forms part as the LEADER axis, it would not only contribute to the priorities established under the other axes, but also aim to improve governance and mobilise the development potential of rural areas. More particularly, this would involve building local partnership capacity, promoting private-public partnership, promoting cooperation and innovation, and improving local governance.

Translating priorities into programmes

The Commission observes that the resources devoted to rural development will depend on the specific situation, strengths and weaknesses of each programme area, and that in many cases there will be national or regional priorities for specific problems. However, it suggests that Member States should ensure that synergies between and within the axes are maximised and potential contradictions avoided, having regard also to other Community strategies in areas such as organic farming and renewable energy. It also points out that technical assistance can be used to build up European and national networks for rural development in order to facilitate best practice, and the importance of information and publicity to ensure early involvement of the different parties involved.

Complementarity between Community institutions

The Commission stresses the need to encourage the synergy between structural, employment and rural development policies, and for Member States to ensure coherence between the actions to be funded by the ERDF, Cohesion Fund, ESF, EFF and EAFRD in a given area or field of activity, with any decisions on the demarcation between the different Funds being defined within the context of national strategic plans.

The Government's view

26.3 In his Explanatory Memorandum of 8 August 2005, the Parliamentary Under-Secretary (Rural Affairs, Landscape and Biodiversity) at the Department for Environment, Food and Rural Affairs (Mr Jim Knight) says that the establishment of a Community strategic framework document is designed to achieve effective rural development spending with a strong sense of purpose, and that these guidelines bring rural development policy into line with the Community's priorities during the programming period 2007-2013, both in those areas outlined within the Lisbon Agenda and in terms of environmental policy, notably as regards water quality and biodiversity.

Conclusion

26.4 Although these guidelines deal with an important policy area, they are couched in fairly general terms, and moreover cover ground similar to that contained in the proposal which our predecessors considered in October 2004 (and which was subsequently debated in European Standing Committee A). Consequently, whilst we think it right to draw this document to the attention of the House, we see no need to withhold clearance.


79   (25832) 11557/04 and (25841) 11495/04; see HC 42-xxxii (2003-04), para 1 (13 October 2004). Back


 
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