Select Committee on European Scrutiny Thirty-Third Report


3 Health and consumer protection 2007-13

(a)

(26750)

8064/05

COM(05) 115


+ ADD 1

(b)

(27539)

9905/06

COM(06) 234

(c)

(27540)

9909/06

COM(06) 235


Commission Communication: Healthier, safer, more confident citizens: a health and consumer protection strategy

and

Draft Decision establishing a programme of Community action in the field of health and consumer protection 2007-13

Commission staff working paper: extended impact statement

Amended draft Decision establishing a second programme of Community action in the field of Health (2007-13)


Amended draft Decision establishing a programme of Community action in the field of consumer protection (2007-13)

Legal base(a) Articles 152 and 153 EC; co-decision; QMV

(b) Article 152 EC; co-decision; QMV

(c) Article 153 EC; co-decision; QMV

Document originated(b) and (c) 24 May 2006
Deposited in Parliament(b) and (c) 1 June 2006
Department(b) Health

(c) Trade and Industry

Basis of consideration(b) EM of 21 June 2006

(c) EM of 14 June 2006

Previous Committee Report(a) HC 34-vii (2005-06), para 2 (26 October 2005)

(b) and (c) None

To be discussed in Council(b) December 2006

(c) No date set

Committee's assessmentPolitically important
Committee's decision(a) Cleared and recommendation for debate withdrawn

(b) and (c) Not cleared; further information requested

Previous scrutiny of document (a)

3.1 The document comprises:

  • a Communication from the Commission explaining the proposals in:
    • the draft of a Decision to establish a Community health and consumer protection programme for 2007-13; and
    • an impact assessment of the proposal.

3.2 The Communication explained why the Commission proposed that Community action on health and consumer protection, each of which currently has its own programme, should be combined in one new programme for 2007-13. The Commission believed the combination to be desirable because, in its view, health and consumer protection have many objectives in common and bringing them together would lead to greater policy coherence and administrative savings.

3.3 The draft Decision contained common objectives for health and consumer protection and specific objectives for each of them. Its Annexes listed actions to give effect to the objectives.

3.4 The Commission proposed that the new programme's budget for 2007-13 should be €1.2 billion, more than double the rate of expenditure of the two current programmes, taken together.

3.5 When we considered document (a) in October 2005,[6] the Government told us that Member States had indicated broad support for the general direction proposed for the new health and consumer protection programme. But some had voiced concern about bringing the two together and had questioned some of the specific proposals in the draft Decision.

3.6 We recommended document (a) for debate in a European Standing Committee. We considered that among the key issues for debate were:

  • the merits of combining the health and consumer protection programmes;
  • what action on health and consumer protection can be taken satisfactorily by each Member State and what cannot be sufficiently achieved by the Member States and can be better achieved by the Community; and
  • the size of the proposed budget for the new programme.

3.7 The Minister of State at the Department of Health (Ms Rosie Winterton) wrote to us in November 2005 and in May to tell us that, at first reading, the European Parliament had voted to split the new programme in two so as to establish separate programmes for health and consumer protection. She suggested that it might be productive to defer the debate in the European Standing Committee until the Commission had produced a revised proposal in the light of the views of the European Parliament and the EU's total budget for 2007-13 had been settled. We agreed that this would be sensible.

Document (b)

3.8 Document (b) is the draft of a Decision to establish a Community health programme for 2007-13. The Commission has made extensive changes to the health provisions of the draft in document (a). The changes reflect the amendments proposed by the European Parliament at its first reading of document (a) and the settlement of the EU's total budget.

3.9 The new programme's budget for 2007-13 would be €365.6 million. This is hugely less than the budget of €969 million proposed in document (a). Because of the reduction, the Commission has cut back both the objectives it proposes for the health programme and the actions to be taken.

3.10 The programme's objectives would be to :

  • "Improve citizens' health security
  • Promote health to improve prosperity and solidarity
  • Generate and disseminate health knowledge".

3.11 The actions to give effect to the objectives would include, for example, promoting:

  • risk assessment;
  • the development and procurement of vaccines;
  • planning for health emergencies and the response to them;
  • the safety and quality of human organs and blood;
  • healthy ageing;
  • the reduction of health inequalities within and between Member States;
  • healthy life-styles;
  • health education;
  • identification and dissemination of good practice in health care; and
  • the collection, analysis and publication of statistical and other information.

3.12 The draft Decision proposes maxima for financial contributions from the programme. For example, it proposes that the Community should not contribute more than 60% of the cost of action to help achieve the programme's objectives, although "in cases of exceptional utility" it could contribute up to 80%. The Commission would be required to publish its criteria for assessing claims of "exceptional utility".

3.13 The Commission would also be required :

  • to present a report by an external and independent body on the implementation of the programme after three years;
  • to present a Communication on the continuation of the programme after no more than four years; and
  • to present, no later than the end of 2015, an assessment of the programme by an external and independent body.

3.14 Section 6 of the Legislative Financial Statement attached to the draft Decision proposes the indicators the Commission would use to monitor the achievement of the programme's objectives. They are measures of activity (such as the number of projects or number of publications), not measures of the effect of the programme on public health.

The Government's view on document (b)

3.15 The Minister of State at the Department of Health (Ms Rosie Winterton) tells us that the Government supports the draft Decision. It welcomes many aspects of it, including the omission of provision for EU-wide awareness campaigns (a feature of the draft Decision in document (a)); and the greater emphasis on disease prevention, health promotion and dealing with health inequalities. The Government also welcomes the strengthened requirements for the evaluation of the programme. The Minister adds, however, that:

    "the impact indicators … are still largely quantitative, and we will seek support from other Member States … for a stronger focus on monitoring outcomes and the impact of individual projects.

    "The UK will also seek a reference in the text to the areas which the UK considers to be a priority for exchange of good practice between health systems, in particular patient safety."

3.16 The Minister says that she will be sending us an Initial Regulatory Impact Assessment of the draft Decision.

Document (c)

3.17 Document (c) is the draft of a Decision to establish a Community consumer protection programme for 2007-13. It reflects the view of the European Parliament that there should be separate programmes for consumer protection and health. It also reflects amendments proposed by the European Parliament at its first reading of document (a) and the settlement of the EU's overall budget for the next Financial Perspective.

3.18 The draft Decision provides that the new programme's budget for 2007-13 should be €156.8 million. Document (a) proposed that the budget for consumer protection should be €234 million. Because of the reduction, the Commission proposes that the programme should have two objectives rather than four and that there should be 11 actions to help achieve the objectives rather than 20.

3.19 Document (c) proposes that the aim of the programme should be to:

    "complement, support and monitor the policies of the Member States and ... contribute to protecting the health, safety and economic interests of consumers as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests".

3.20 This aim is to be pursued through the following objectives:

  • "to ensure a high level of consumer protection, notably through improved evidence [for the development of consumer policy], better consultation and better representation of consumers' interests"; and
  • "to ensure the effective application of consumer protection rules notably through enforcement co-operation, information, education and redress".

3.21 The actions to help achieve these objectives would include, for example:

  • conducting surveys of markets, products, prices, consumers and consumer complaints;
  • collecting, analysing and disseminating statistical and other relevant information;
  • developing tools to assess the safety of consumer goods and services;
  • making financial contributions to the functioning of European consumer organisations;
  • improving the enforcement of consumer protection rules through co-operation between consumer protection authorities, joint surveillance operations, conferences of experts, and exchanges of and training for enforcement staff;
  • assessing the effect of alternative dispute resolution schemes;
  • providing consumer protection information for the public, particularly in the new Member States; and
  • making financial contributions to the cost of developing European Masters degree courses in consumer protection.

3.22 The draft Decision provides that the Commission's financial contribution to actions jointly financed with Member States should not exceed 50% of the costs, although "in cases of exceptional utility" the Community could contribute up to 70%. Similarly, the Community contribution should not exceed 50% of the cost of "the functioning of European consumer organisations", although it could meet 95% of the cost of European consumer organisations representing consumer interests in the development of European standards for products and services. Provision is also made for scholarship grants from the programme for the mobility of teachers and students and for contributions of up to 85% of the costs of developing Masters degree courses in consumer protection.

3.23 Document (c) proposes that the Commission should be required to ensure that the programme is evaluated three years after its start and after it ends and to report the conclusions to the Council and the European Parliament.

3.24 The fifth Recital to the draft Decision says that the Commission intends to extend the role of its Public Health Executive Agency to include assistance with the implementation of the consumer protection programme.

The Government's view on document (c)

3.25 The Minister for Trade, Investment and Foreign Affairs at the Department of Trade and Industry (Mr Ian McCartney) tells us that the Government was never convinced by the arguments for combining the consumer protection and health programmes. It sees consumer protection policy as a part of the competitiveness agenda and the improvement of the internal market.

3.26 The Minister says that the Government will seek assurances that the proposed new objectives will not lessen the Commission's commitment to better regulation and policy-making. He adds that the Government welcomes both the focus on enforcement in the second new objective and the strengthened provisions on the evaluation of the programme. It will seek clarification of the Commission's plan to involve the Public Health Executive Agency in the implementation of the consumer protection programme and the proposal for the development of Masters degree courses on consumer matters.

3.27 The Minister has provided us with his Initial Regulatory Impact Assessment of the draft Decision. It suggests that the actions to achieve the programme's objectives would make calls on the Community's budget but would not impose costs on business or consumers, who would be likely to benefit from, for example, better information and enforcement.

3.28 Finally, the Minister tells us that his Department is consulting consumer organisations, business and others about the draft Decision.

Conclusion

3.29 We welcome the separation of the proposals for Community action on health and consumer protection into two separate programmes. It appears to us that this, together with the reduction in the budgets for the action, has led to greater clarity in the drafting of the objectives and the activities to receive financial support from the programmes.

3.30 We note that, because the Commission has accepted so many of the European Parliament's amendments, the Recitals to the draft Decision on the health programme now occupy almost seven pages. We doubt the value of such extensive Recitals. In our view, legislation is not the proper place for rhetoric. It is our impression that there is a general tendency for longer, more discursive Recitals. We ask the Government to encourage the Commission to confine them to what is essential.

3.31 We note the points in both draft Decisions on which the Government will seek clarification. We ask the Government to stress the importance of ensuring that the performance indicators for both programmes measure impacts rather than activities.

3.32 We withdraw our recommendation for debate of document (a) because it has been superseded by documents (b) and (c). For the same reason, we clear document (a) from scrutiny.

3.33 We ask the Government:

  • to tell us the clarification it receives from the Commission in answer to its queries;
  • to tells us the outcome of its consultations on the draft Decision on consumer protection;
  • to provide us with its Regulatory Impact Assessment of the draft Decision on the health programme; and
  • to send us progress reports on the negotiations.

Meanwhile, we shall keep documents (b) and (c) under scrutiny.


6   See headnote. Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2006
Prepared 7 July 2006