17 Statistics
| (27299)
6374/06
COM(06) 39
| Draft Regulation establishing the statistical classification of economic activities NACE Rev. 2 and amending Regulation (EEC) No. 3037/90 and certain EC Regulations on specific statistical domains
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| Legal base | Article 285(1) EC; co-decision; QMV
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| Department | Office for National Statistics
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| Basis of consideration | Minister's letter of 26 April 2006
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| Previous Committee Report | HC 34-xxii (2005-06), para 7 (15 March 2006)
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| To be discussed in Council | Not known
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
17.1 Regulation (EEC) No 3037/90 established a common statistical
classification of economic activities within the European Community
in order to ensure comparability between national and Community
classifications and hence national and Community statistics. This
common statistical classification is known as NACE (from "Nomenclature
générale des activités économiques
dans le communautés européennes" —
that is "General nomenclature of economic activities in the
European Communities"). In order to ensure the international
compatibility of economic statistics NACE classifications of economic
activities are directly linked to the United Nations International
Standard Industrial Classification (ISIC). In the UK the classification
of economic activities is commonly known as the industrial classification
and the UK version of the NACE classification is the Standard
Industrial Classification (SIC).
17.2 This draft Regulation is intended to establish
a new common statistical classification, NACE Rev 2. (In the original
legislation the classification is referred to as NACE Rev. 1.)
The Commission says that this revision is necessary to take account
of the development of the economy during the last 15 years and
major revisions to other classifications of activities.
17.3 When we saw this document in March 2006 we noted
Government reservations about a subsidiarity issue — a Commission
claim of exclusive Community competence, about the implementation
date in relation to short-term statistics and about the significant
cost for the Office for National Statistics and other departments
in moving to the new NACE. We said that before considering the
document further we should like to know of progress towards resolving
these issues and to what extent, if they remain unresolved, they
would undermine the Government's support for the measure —
meanwhile the proposal remained uncleared.
The Government's view
17.4 The Financial Secretary to the Treasury (John
Healey) tells us that:
- in relation to the subsidiarity
issue, following Council Legal Service advice that there is not
an exclusive competence a new clarificatory recital has been added
to the draft which meets the needs of the many concerned Member
States. Although the Commission has a reservation on the recital
the Government says that the level for support for leads to the
expectation that the Commission reservation will be dropped;
- in relation to implementation in the domain of
short-term statistics, the Government has been unable to gain
sufficient support to make it likely that there will be a delay
from the start of 2009 until the start of 2010. So the Government
is arranging to continue with figures based on NACE Rev1.1 and
revise them subsequently; and
- in relation to increased costs for government
departments, there will be benefits from improvements in the range
and quality of statistics published.
17.5 The Minister says the subsidiarity issue is
one on which the Government would place a reservation, but it
appears now to have been resolved satisfactorily. He adds that
the other two issues do not undermine the Government's support
for the proposal.
Conclusion
17.6 We are grateful to the Minister for this
information. We have no further questions and clear the document.
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