Select Committee on European Scrutiny Thirty-Eighth Report


12 European Transparency

(27508)

9412/06

COM(06) 194

Green Paper on the European Transparency Initiative

Legal base
DepartmentForeign and Commonwealth Office
Basis of considerationMinister's letter of 14 September 2006
Previous Committee ReportHC 34-xxxii (2005-06), para 4 (21 June 2006) and HC 34-xxxvi (2005-06), para 11 (19 July 2006)
To be discussed in CouncilTo be determined
Committee's assessmentPolitically important
Committee's decisionRelevant to the debate on "A Citizen's Agenda — Delivering results for Europe (reported on 19 July). Cleared.

Background

12.1 In the introduction to the Green Paper, which we considered on 21 June 2006, the Commission says that, with a commitment to widen opportunities for stakeholders to participate actively in EU policy-shaping as one of the "Strategic Objectives 2005-2009", it launched a "Partnership for European Renewal".[35] This emphasised that "inherent in the idea of partnership is consultation and participation" and stressed the importance of a "high level of transparency" to ensure that the Union is "open to public scrutiny and accountable for its work". The Commission says "high standards of transparency are part of the legitimacy of any modern administration" and that "the European public is entitled to expect efficient, accountable and service-minded public institutions and that the power and resources entrusted to political and public bodies are handled with care and never abused for personal gain". Against this background, the Commission launched the "European Transparency Initiative" (ETI) in November 2005.[36]

The Green Paper

12.2 The report calls for a more structured framework for the activities of "interest representatives" (i.e., lobbyists); feedback on the Commission's minimum standards for consultation; and the mandatory disclosure of information about the beneficiaries of EU funds under shared management. The Commission proposes:

—  a voluntary registration system: run by the Commission, with clear incentives for lobbyists to register; compulsory registration not appropriate, though a review should be conducted to examine whether self-regulation has worked;

—  a common code of conduct: to be developed by the lobbying profession; and

—  a system of monitoring and sanctions: The report proposes that they should be applied in all cases of incorrect registration and/or breach of the code of conduct.

12.3 The report also outlined the need to raise awareness of the use of EU money, notably by explaining better what Europe does and why it matters. The CAP and fisheries policies, the Structural and Cohesion Funds and the European Refugees Fund make up 75.7% of the EU budget (€86.6 billion a year). The shared management formula means that, when EU citizens ask the Commission for information on the use of the EU budget, it either does not have the information or does not have the right to hand it out without the prior agreement of the Member State concerned. In order to promote transparency, the report proposes a new EU legal framework, directly applicable in all Member States, to ensure a consistent approach to all beneficiaries of EU funds.

12.4 A consultation began on 6 May, and ended on 31 August.

12.5 When we considered the Minister for Europe's 15 June Explanatory Memorandum, we concluded that expressing support for "the broad thrust of this Green Paper" was inadequate, and asked him to say what he thought of the proposals, and what reply the Government planned to offer.[37]

The Minister's first letter

12.6 In his 12 July letter, the Minister for Europe (Mr Geoffrey Hoon) undertook to send the detailed Government response as it was submitted to the Commission; but, conscious that this would be during the Parliamentary recess, sought to provide some information before the House rose. After caveats about these being initial thoughts and the inappropriateness of further comment before completing a formal consultation exercise involving other Government Departments, the Devolved Administrations and relevant stakeholders, the Minister said that he believed lobbying "should be as transparent as circumstances allow". Setting up a publicly available register of lobbyists would be likely to result in a more transparent system, which he supported. Consolidating the existing codes of conduct would clarify lobbying procedures for both EU citizens and lobbyists, and was therefore a sensible suggestion. Further discussion was required on the composition of a new external watchdog to monitor compliance; he would want to avoid creating another agency requiring extensive funding; however, this body would be needed. He would need to consider the details of any proposed scheme regarding sanctions for breaches of a voluntary code of conduct before reaching a view. He supported mandatory disclosure of information about the beneficiaries of EU funding, but would have to take into account the financial and administrative implications of gathering this information.

12.7 We looked forward to hearing the Minister's considered views, once the consultation to which he referred had been concluded, and continued to keep the document under scrutiny.[38]

The Minister's further letter

12.8 Under cover of his further letter of 14 September the Minister has now provided the Government's detailed response, which is annexed to this Report. It covers:

—  "Minimum Standards for Consultation: a review of the current situation and detailed comments on suggested reforms under the headings of:

  • "Raising Awareness";
  • "Clarifying scope of applicability of minimum standards";
  • "Duration of consultation exercises";
  • "When and how often to consult"; and
  • "Hearing a diverse range of views and, in particular, engaging with SMEs".

—  A voluntary registration system for lobbyists (which the Government support)

—  A common code of conduct (ditto)

—  A system of monitoring and sanctions (a danger that a mandatory system may mean that organisations with a legitimate interest are excluded from taking part in the decision-making process)

—  Compulsory Disclosure of Beneficiaries of EU Funding under Shared Management (which the Government continues to welcome, it being "important that EU citizens are aware who receives their tax money"

—  Review of the "access to documents" legislation (a reasonably sensible compromise).

Conclusion

12.9 We continue to consider the Green Paper relevant to the debate we have already recommended on the Commission Communication on "A Citizens' Agenda — delivering results for Europe", which will take place on 26 October and which should now be better informed by having the Minister's considered views on this major Commission initiative on participation and transparency.

12.10 We now clear the document.


35   COM(2005) 12. Back

36   SEC(2005) 1300. Back

37   HC 34-xxxii (2005-06), para 4 (21 June 2006). Back

38   HC 34-xxxvi (2005-06), para 11 (19 July 2006). 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 30 October 2006