Select Committee on European Scrutiny Thirty-First Report


16 Financial Instrument for the Environment (LIFE)

(a)

(26004)

13071/04

COM(04) 621

+ ADD1


Draft Regulation concerning the Financial Instrument for the Environment (LIFE+)

Commission Staff Working Document on a draft Regulation concerning the Financial Instrument for the Environment (LIFE+)

(b)

(27554)

9941/06

COM(04) 621


Amended draft Regulation concerning the Financial Instrument for the Environment (LIFE+)

Legal baseArticle 175(1)EC; co-decision; QMV
Document originated(b) 24 May 2006
Deposited in Parliament(b) 6 June 2006
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 9 June 2006
Previous Committee Report(a) HC 42-xxxiv (2003-04), para 6 (27 October 2004) and HC 34-xi (2005-06), para 3 (23 November 2005)
To be discussed in Council27 June 2006
Committee's assessmentPolitically important
Committee's decision(Both) Cleared

Background

16.1 The Commission's Environment Directorate runs a number of programmes, one of which — the Financial Instrument for the Environment (LIFE) — currently has three strands (Environment, Nature and Third Countries). The current Regulation runs until the end of 2006, and, in September 2004, the Commission put forward a proposal (document (a)), which would establish a new Financial Instrument for the Environment (LIFE+) for the period 1 January 2007 to 31 December 2013.

16.2 The new Programme would have two components — Implementation and Governance (which will receive 75-80% of the proposed financial allocation) and Information and Communication (which will receive the remaining 20-25% allocation) — and would be established on a multi-annual basis, with detailed annual programmes open to public and private bodies, including national, regional and local authorities and non-governmental organisations. To that extent, it would continue the basic objectives and scope of the present LIFE Programme, but there would be two important differences. First, many of the activities under LIFE Environment will in future be integrated into the Community's competitiveness framework programme, whilst activities under LIFE+ Third Countries will be funded under the external assistance instrument. Likewise, although LIFE+ would continue to be applicable to certain actions related to Natura 2000, it is proposed that active management of the Natura 2000 sites should in future be eligible for co-funding from structural and rural funds. Secondly, many of the Environment Directorate's current programmes would in future be merged within the single LIFE+ instrument.

16.3 This proposal was considered by our predecessors on 27 October 2004, and was first drawn to our attention by letters of 17 and 20 November 2005 we had received from the then Minister of State (Environment and Agri-Environment) at the Department for Environment, Food and Rural Affairs (Mr Elliot Morley). These indicated that the UK Presidency was hoping to secure a partial political agreement at the Environment Council on 2 December 2005 on the text of the proposal, but not the budgetary provision, and asked us to clear the content of the proposal, on the basis that the Government would present it for further scrutiny once the new Financial Perspectives have been agreed, and a budget for LIFE+ has been set. We duly commented in our Report of 23 November 2005 that we saw no reason why the Government should not agree to the text now before the Council, subject to the proviso that formal scrutiny clearance would have to await further information on the budget.

The current proposal

16.4 The Commission has now produced a further proposal (document (b)) setting out a budget for LIFE+ of €2,098 million (in current prices) for the period 1 January 2007-31 December 2013, a figure which is marginally below the €2,100 million originally proposed by the Commission, and which the Government believes is "appropriate" for the measures to be financed.

Conclusion

16.5 In light of this information, we are now clearing both documents.


 
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