Select Committee on European Scrutiny Thirty-Second Report


14 Nominal quantities for pre-packed products

(27447)

8680/06

COM(06) 171

Draft Directive laying down rules on nominal quantities for pre-packed products, repealing Council Directives 75/106/EEC and 80/232/EEC, and amending Council Directive 76/211/EEC

Legal baseArticle 95EC; co-decision; QMV
Document originated12 April 2006
Deposited in Parliament2 May 2006
DepartmentTrade and Industry
Basis of considerationEM of 13 June 2006
Previous Committee ReportNone, but see footnotes
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionCleared

Background

14.1 According to the Commission, the different national rules on nominal quantities of pre-packed products which existed in the 1960s were a major barrier to the free movement of goods between the Member States. Despite this, concerns about the impact which new Community rules would have on companies operating only on their national market led to the adoption of an optional approach, whereby Member States would be allowed to maintain existing national rules, with only products conforming with the Community rules benefiting from free circulation.

14.2 The one main exception to this approach was that Council Directive 75/106/EEC made Community sizes mandatory for products such as wines and spirits, but, as our predecessors noted in their Report of 26 January 2005, a review by the Commission had shown that free (as opposed to fixed) sizes would be the most favourable option.[47] At the same time, the Commission also pointed out that there might be sectors for which regulation on the basis of total harmonisation should be maintained, for example, in order to offset disproportionate buyer pressure from large distributors. It accordingly proposed in October 2004[48] that all existing optional pack sizes should be repealed, but that total harmonisation should for the next 20 years be maintained for wine, spirits, soluble coffee and white sugar.

14.3 This would mean that, with the exception of these four sectors, all those products currently subject to specified quantities in the UK (including milk, bread, cereal, flour, jam, pasta, potatoes and tea) could be packaged in any size, and that there would in future be no scope for Member States to legislate for their own pack sizes. Our predecessors were told that the Government is broadly in favour of deregulation of most products covered by the Commission's proposals. However, there were concerns that the need in future to rely on checking quantity statements and unit pricing information could be particularly detrimental to certain groups, such as the blind and those who have difficulty reading, and that there was a risk of packers seeking to maintain price points by marginally reducing quantity to the detriment of the inattentive consumer. In view of this, the UK would be seeking to retain specified quantities for a limited number of staple products of particular importance, namely milk (other than sterilised or speciality milks), tea, bread, butter and margarine. It was also in favour of a further review of the working of the new Directive after a suitable period, rather than the eventual automatic removal of the provision for all specified quantities after 20 years.

14.4 These considerations, and in particular the potential impact of the proposal on certain vulnerable groups of consumers, led our predecessors to recommend it for debate in a European Standing Committee. We endorsed that decision at our first meeting on 4 July 2005,[49] and the debate duly took place on 7 November 2005.

The current proposal

14.5 The proposal has since been considered by both the Council and European Parliament, and, following in particular the latter's first reading on 2 February 2006, the Commission has now brought forward this amended proposal. However, although the Parliament had supported fixed sizes for the four sectors proposed, it had also sought to extend these to a number of areas (milk, butter, dried pasta, rice, ground and unground coffee, and brown sugar) and retain the ability of Member States to set specified quantities for tea, spreadable fats and pre-packed bread, whereas the Commission has now withdrawn its proposal that harmonisation should apply to soluble coffee and white sugar, and has instead proposed that such an approach should be confined to wines and spirits. (It has also maintained that Member States should no longer be able to legislate for their own pack sizes.)

The Government's view

14.6 In his Explanatory Memorandum of 13 June 2006, the Minister for Trade, Investment and Foreign Affairs at the Department of Trade and Industry (Mr Ian McCartney) reiterates that the UK supports deregulation in principle, and therefore supports the Commission's proposal. However, he also says that the Government is aware that fixed sizes are popular with consumer groups and with particular producers, and that it would therefore be content for the proposals to be amended on the lines proposed by the European Parliament.

Conclusion

14.7 As with the proposal put forward by the Commission in October 2004 and considered by our predecessors, the issue here remains the balance to be struck between deregulation and consumer protection, where it would appear that the Government intends to continue to adopt an essentially pragmatic approach. In view of this, and bearing in mind the various considerations involved were explored fully in the debate held in a European Standing Committee on 7 November 2005, we see no reason to withhold clearance of this document, given also that the Commission has made only marginal changes to its original proposal.


47   In that it would allow full competition for industry and freedom of choice for consumers, and that national legislation increases confusion in the internal market. Back

48   (26187) 15570/04; see HC 38-v (2004-05), para 3 (26 January 2005) and HC 38-xv (2004-05), para 1 (6 April 2005). Back

49   HC 34-i. Back


 
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