7 Common organisation of agricultural
markets
(28197)
16715/06
COM(06) 822
| Draft Council Regulation establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products
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| Legal base | Articles 33 and 36EC; consultation; QMV
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| Department | Environment, Food and Rural Affairs
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| Basis of consideration | Minister's letter of 1 March 2007
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| Previous Committee Report | HC 41-vii (2006-07), para 1 (24 January 2007)
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| To be discussed in Council | June 2006
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
7.1 As the Common Agricultural Policy (CAP) has evolved over the
years, the Council has adopted numerous Regulations establishing
a common organisation of the market for individual commodities.
These have tended to follow a similar structure, with provisions
to support the internal market, corresponding provisions relating
to trade with third countries, and rules on competition, including
state aids. However, they often contain as well different approaches
to comparable questions, which have been developed to address
sector-specific issues, or which simply reflect the particular
policy background at the time of their adoption.
7.2 With the reforms of the CAP introduced in 1992,
there has been a decline in the emphasis placed on these traditional
market support measures, with a correspondingly greater reliance
on direct support payments to producers. The Commission therefore
proposed in December 2006 that the plethora of Regulations relating
to individual commodities should be repealed and replaced by a
single instrument establishing a common organisation of agricultural
markets. However, it also appeared to introduce a new element,
in that it pointed out that, in a number of cases, the Council
may currently adopt legal acts without consulting the European
Parliament, and said that "in accordance with the institutional
balance laid down in the third indent of Article 202 of the Treaty,
it is proposed to either adopt such acts in accordance with the
procedure laid down in Article 37 of the Treaty, ie after consulting
the Parliament, or to confer the relevant powers on the Commission."
7.3 In our Report of 24 January 2007, we noted that,
although the proposal would result in an extremely long and complex
Regulation, the underlying aim appeared to be sound, and was supported
by the UK. In general, therefore, we did not see that the document
gave rise to major issues, but, before taking a final view on
it, we said that we would welcome the Government's comments on
the potential significance of steps which the Commission proposes
to take in relation to the current locus of the European Parliament,
and in particular the suggestion that it should itself assume
some of the relevant powers.
Minister's letter of 1 March 2007
7.4 We have now received a letter of 1 March 2007
from the Minister for Sustainable Farming and Food at the Department
of Environment, Food and Rural Affairs (Lord Rooker), in which
he says:
"The UK requested the Commission to provide
greater detail on the specific provisions for which it proposes
a transfer of powers. The Commission responded with details of
individual provisions during discussions in Working Groups. Officials
have examined each case in turn, and have concluded that the things
for which the Commission propose to assume powers are of a technical
nature, address inconsistencies of approach between existing regulations
and are suitable for Commission implementing measures.
"What is proposed is in line with how the Common
Agricultural Policy has been developed over recent years; that
is the Council makes Regulations after consulting the European
Parliament (under Article 37 of the EC Treaty). The Council Regulation
gives power to the Commission to make detailed implementing rules
in accordance with the general procedures laid down in Council
Decision 1999/468. This is also in line with the presumption in
Article 202 of the EC Treaty that implementation powers will be
conferred on the Commission and not the Council. Accordingly we
do not consider what is proposed in this case sets a new precedent."
Conclusion
7.5 We are grateful to the Minister for this clarification,
and now clear the document.
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