The
Committee consisted of the following
Members:
Chair:
Mr Graham
Brady
Ainsworth,
Mr Bob (Coventry North East)
(Lab)
†
Baron,
Mr John (Basildon and Billericay)
(Con)
†
Bruce,
Fiona (Congleton)
(Con)
†
Connarty,
Michael (Linlithgow and East Falkirk)
(Lab)
Donaldson,
Mr Jeffrey M. (Lagan Valley)
(DUP)
†
Duddridge,
James (Lord Commissioner of Her Majesty's
Treasury)
†
Hamilton,
Mr David (Midlothian)
(Lab)
†
Holloway,
Mr Adam (Gravesham)
(Con)
Hopkins,
Kelvin (Luton North)
(Lab)
†
Horwood,
Martin (Cheltenham)
(LD)
†
Kelly,
Chris (Dudley South)
(Con)
†
Lidington,
Mr David (Minister for
Europe)
†
Reynolds,
Emma (Wolverhampton North East)
(Lab)
Alison Groves, Committee
Clerk
† attended the
Committee
The following also attended,
pursuant to Standing Order No.
119(6):
Cash,
Mr William (Stone) (Con)
European
Committee B
Tuesday 17
May
2011
[Mr
Graham
Brady
in the
Chair]
Commission’s
Exercise of Implementing
Powers
[
Relevant
Document: European Scrutiny Committee,
19th Report of
Session 2010-12, HC 428-xvii,
c
hapter
3].
4.30
pm
The
Chair:
Does a member of the European Scrutiny Committee
wish to make a brief explanatory statement about the decision to refer
the relevant document to this
Committee?
Chris
Kelly (Dudley South) (Con):
It might be helpful to the
Committee if I take a few moments to explain the background to the
regulation and the reasons why the European Scrutiny Committee
recommended a debate on
it.
Under
the pre-Lisbon rules, article 202 of the European Community treaty
authorised the Council to confer on the Commission powers to
make rules on the implementation of legislation that had been adopted
by the Council. The Commission’s exercise of such powers was
subject to a complicated procedure known as comitology. In exercising
these powers, the Commission was assisted by four types of committees
composed of representatives of the member
states.
The
treaty on the functioning of the European Union contains provisions for
procedures that have replaced the present comitology procedure. Article
291 of that treaty requires that, where uniform conditions for
implementing such acts are necessary, the acts should include provision
to confer implementing powers on the Commission. It also states that
the European Parliament and the Council are required, by regulation, to
lay down the rules and general principles for the mechanism by which
the Commission’s exercise of its implementing powers will be
subject to control by the member states. It is this
regulation, adopted by the Council on 14 February this year, that is
the subject of today’s
debate.
The
regulation provides for the Commission’s drafts of implementing
acts to be subject to either an examination procedure or an advisory
procedure. The examination procedure applies to implementing acts of
general scope, to those relating to large spending programmes,
to the common agriculture and fisheries policies, to the
environment and consumer health, to taxation, and to trade. Trade
includes anti-dumping and countervailing measures, and had not
previously been subject to comitology, so this represents a significant
increase in Commission power. The advisory procedure applies to
all other implementing
measures.
The
regulation establishes advisory and examination committees, which are
composed of representatives of the member states and chaired by a
representative of the Commission. Under the examination procedure, an
examination committee delivers its opinion by qualified majority
voting. If the committee delivers a positive opinion, the Commission
can then adopt the implementing act. If the
committee delivers a negative opinion, the
Commission would be prohibited from adopting the
implementing act, but the chairman could either circulate an amended
draft to the committee within two months of the negative opinion, or
within a month submit the draft implementing act to the appeal
committee for further deliberation. Where the examination committee
cannot agree an opinion, the Commission can adopt the implementing act
unless that act concerns taxation, financial services, protection of
the health or safety of humans, animals or plants, or definitive
multilateral safeguard measures; the basic act provides that the draft
implementing act may not be adopted where no opinion is delivered; or a
simple majority of the committee opposes
it.
Under
the advisory procedure, an advisory committee delivers its opinion,
whether positive or negative, by a simple majority of its members. The
Commission then decides on the draft implementing act, as article
4(2)
states,
“taking
the utmost account of the conclusions drawn from the discussions within
the committee and of the opinion
delivered.”
When
the European Scrutiny Committee reviewed the draft regulation on 8
September, it agreed with the Minister for Europe that it would give
the Commission excessive freedom from member state control in the
exercise of its implementing powers, so it asked to be kept informed of
progress in the negotiations. Unfortunately, due to a worrying lapse in
scrutiny procedures in the Foreign and Commonwealth Office, the
Committee did not see any further revisions of the draft regulation
until after political agreement on it had been reached. When the
Minister next wrote to the Committee, on 3 February, he set out
how the proposal had, in the Government’s view, been
improved.
The
most significant improvement was the establishment of an appeal
committee, composed of member state representatives and chaired by the
Commission. This provides an additional layer of scrutiny over the
Commission’s exercise of implementing powers. The Government
also secured the inclusion of a recital which checks the
Commission’s exercise of its discretion to adopt implementing
acts in the field of taxation, consumer health, food safety and
protection of the environment, when the appeal committee is unable to
agree a positive or a negative opinion. He also provided detail on how
implementing acts for anti-dumping and countervailing measures will be
scrutinised by member states. Overall, the Minister said that the UK
had made significant progress in securing a regulation that ensures
comprehensive and timely oversight of draft Commission implementing
acts by member states, while resisting changes that would have
significantly affected management of several key sectors—notably
financial services, taxation and trade—at EU
level.
In
recommending the regulation for debate, the European Scrutiny Committee
asked the Minister to explain how he sees the appeal committee
operating in practice, including the circumstances in which a referral
from the examination committee will be made. It also asked him to
explain how he sees the additional safeguards for taxation,
environmental and consumer health, and definitive anti-dumping,
countervailing and safeguard measures operating in practice. It should
be noted that after 1 September 2012, the new rules that
will apply to anti-dumping and countervailing measures under this
regulation will mean that such measures cannot be blocked by a simple
majority.
Additionally,
we would be grateful if the Minister could explain a little of the
background to article 11, which gives a scrutiny role, but not a veto,
to the Council and European Parliament. We suspect that the discussions
in the examination or advisory committees will be mirrored in the
Council, with the consequence that the Council is unlikely to invoke
article 11. But this is not true of the European Parliament. So it
would be interesting to have the Minister’s views on how
article 11 might be invoked by the European
Parliament.
There
is one final point on which the Committee would be grateful for the
Minister’s views. Exercise of implementing and delegated powers
is invariably conditional upon an enabling provision in the superior
legislation, or “basic act” as it is more commonly known.
The Committee thinks that it would be sensible, when EU legislation
contains such an enabling provision, for this to be highlighted and
explained under a separate heading in the explanatory memorandum. That
would clearly signal to the Scrutiny Committee when a European document
proposes to delegate powers to the Commission, and it may also help to
focus attention on the issue in the Department
concerned.
The
Chair:
I call the Minister to make the opening
statement.
4.36
pm
The
Minister for Europe (Mr David Lidington):
As always, Mr
Brady, it is a pleasure to serve under your chairmanship. I thank the
Scrutiny Committee for instigating the debate on this subject which,
while technical, is also genuinely important in terms of the powers
that, in certain circumstances, are given to the Commission to take
forward implementing
legislation.
The
regulation lays down the rules for control by member states of powers
to implement legislation that have been conferred on the Commission. It
may help the Committee if I make it clear that in the European Union
legal order, the treaties are regarded as primary law; regulations,
directives and decisions are secondary legislation and often referred
to as basic acts; and implementing acts, along with delegated acts, are
tertiary legislation.
This debate
concerns implementing acts, and the power to adopt an implementing act
is conferred on the Commission by the EU legislator when uniform
conditions are needed to implement a legally binding act. To illustrate
when an implementing power may be needed, let us say that a regulation
imposes an obligation on member states to provide the Commission with
statistical information. The Commission may be given the enabling power
in that regulation to establish, by implementing act, a common format
for member states to use for submitting that
information.
The
ability to confer implementing powers on the Commission does not affect
the general principle that implementation is primarily—as laid
down in the treaties—a matter for member states which bear legal
responsibility for ensuring that European Union legislation is
implemented within their territories. The principle of conferring such
powers on the Commission is not new. Since the 1960s, it has been
possible for the Commission to bring forward detailed implementing
acts. As my hon. Friend the Member for Dudley South pointed out,
previously the
member states have supervised those acts through a system of committees
of experts—a process commonly known as
comitology.
The
key point to remember is that the conferral of power on the Commission
is only for the purpose of implementing legislation already
agreed by the legislator—by the Council and the European
Parliament acting through the normal legislative arrangements set out
in the treaty. It is helpful to have such implementing legislation
because it avoids the need for the Council and the European Parliament
to engage in very detailed or technical rule-making and, when the power
is used correctly, it helpfully streamlines the EU decision-making
process. But that has to be balanced against the recognition that in
seeking to limit excessive bureaucracy, it is vital that we do not lose
sight of the need for strict oversight and scrutiny of the
Commission’s work by member states and their
Parliaments. What we are debating today are new arrangements for
comitology—for implementing legislation—that derive from
the new treaty provisions set out, in particular, in articles 290 and
291 of the treaty on the functioning of the European Union.
I shall not
rehearse my views about the Lisbon treaty, although I know that they
are shared by other members of the Committee. The treaty is a fact of
life, within which we have to work. When the Government came into
office, our main objective in the negotiations on a new comitology
regulation was to limit any damage that might arise to the powers of
oversight exercised by member states from the changes wrought by the
new treaty. It might be helpful if I outline the changes brought about
by the Lisbon treaty. In essence, the old system of comitology is
replaced by two new articles in the TFEU. Article 290 establishes
delegated acts, which are acts to amend or supplement non-essential
elements of secondary legislation. Examples might include detailed
rules of general application on eligibility for aid, rules governing
the issuing of licences or rules governing guarantees and deposits.
Article 290 sets out the roles of the Council and the European
Parliament with respect to delegated
acts.
However,
we are dealing this afternoon with a different category of tertiary
legislation—implementing acts, which under article 291 are acts
to ensure the uniform implementation of legally binding Union acts made
by the legislator. Examples would include amendments to forms or
deadlines, the fixing of amounts or thresholds, rules concerning the
frequency of physical controls, communication obligations, the approval
of programmes and the content of
reports.
A
key change brought about by article 291 was the removal of a formal
role for the Council as an institution, while retaining the role of
individual member states. Following the ratification of the Lisbon
treaty, the Commission brought forward a regulation, the final version
of which we are debating today, to give effect to the new treaty
provisions.
I
felt that the Commission’s original proposals gave it too much
freedom from member state control. The Government’s objective in
the negotiations was therefore to rebalance things in favour of greater
member state control. We had to negotiate hard to ensure that we
achieved a satisfactory outcome. The resulting regulation provides for
two types of mechanism for the adoption of and control over an
implementing act. Those are the advisory procedure, whereby the
Commission has to
take account of the views of a committee of the
member states, although ultimately it is the Commission that decides
whether to act on that advice, and the examination procedure, whereby a
qualified majority of member states in committee can block proposals
from the
Commission.
It
is important to remain mindful of the fact that the power to adopt
implementing acts has to be conferred on the Commission in the basic
act—the directive or regulation from the Council and the
European Parliament or perhaps, in the case of the common foreign and
security policy, the Council alone. Therefore it is
essential—the Scrutiny Committee was right to highlight
this—that as we negotiate on all future proposals for new EU
legislation, we pay close attention to the provisions conferring
implementing powers in the basic act. It is important also that United
Kingdom experts who attend the committees supervising the tertiary
legislation continue to exercise strict scrutiny of how the Commission
exercises its implementing powers. My colleagues in other Departments
are well aware of the issue, and it is worth noting that UK experts
often exercise significant influence in the
committees.
We
succeeded in securing a number of improvements during the negotiation
period. I hope that by listing those, I may go some way towards
addressing the questions posed by the Scrutiny Committee, although I am
happy to respond to them in further detail. The first main improvement
was the introduction of an appeal committee comprised of senior member
state representatives. The appeal committee provides an additional
layer of political scrutiny over the Commission and establishes a forum
in which member states can try to resolve any deadlock reached in the
initial examination committee. I have recently written to the Chairman
of the Scrutiny Committee, enclosing the rules of procedure for the
appeal committee, which were published some time after agreement on the
regulation. I hope that that provides the Scrutiny Committee with the
more detailed information it sought.
The
Commission can opt to refer a proposal to the appeal committee. Member
states in the examination committee might block a proposal. In certain
cases concerning important subjects such as taxation, financial
services or the health and safety of human beings, the initial
examination committee of member states might fail to reach an opinion
by a qualified majority in either direction. In those conditions, the
Commission can go to the appeal committee and ask for its
verdict.
Secondly,
we secured the inclusion of a recital to the regulation, which says
that the Commission should avoid going against a predominant position
in the appeal committee when the implementing act relates to key
sectors, notably taxation, consumer health, food safety and protection
of the
environment.
Thirdly,
we have limited the European Parliament’s right of scrutiny over
implementing powers in line with the EU treaties. During the
negotiations, we discussed the role of the European Parliament and the
Council. The European Parliament pushed for a wide-ranging right of
scrutiny before adoption of an implementing act. We felt, however, that
that would be outwith the scope of the powers given to the Parliament
by the treaties. The final text therefore provides that when a basic
act is adopted by both the European Parliament and the Council, the
European Parliament may notify
the Commission if it considers that the Commission’s draft
implementing act exceeds the Commission’s powers. That is
consistent with the powers granted to the European Parliament under the
treaties and, under the regulation, the Council is granted exactly the
same right, which is sometimes referred to as the droit de
regard.
Fourthly, we
have made amendments to member state controls of the
Commission’s exercise of trade instruments. Under the
regulation, all implementing acts relating to trade have been adopted
into the comitology regime for the first time. Voting rules for the
adoption of definitive anti-dumping, countervailing and safeguard
measures would all have been changed, but we secured our objective of
ensuring that the most sensitive of the trade
instruments—multilateral safeguard measures—enjoy the
same voting rules for adoption as under the previous comitology regime.
The sensitivity and seriousness of consequences for EU relations with
third countries mean that it is appropriate that the EU impose
safeguard measures only if a qualified majority of member states
agrees.
In
the interest of time, Mr Brady, I shall bring my remarks to a
conclusion. We take seriously the Scrutiny Committee’s request
for the Government to highlight any case when a basic act confers power
on the Commission to introduce implementing legislation. That will need
discussion across Whitehall, but I shall report for my hon. Friend the
Member for Stone (Mr Cash) as soon as we have reached a
decision.
The
Chair:
We now have until 5.30 pm for brief questions to
the Minister and, subject to my discretion, supplementary questions may
be taken.
Emma
Reynolds (Wolverhampton North East) (Lab):
It is a great
pleasure to serve under your chairmanship, Mr Brady, for the second
time today. I am grateful to the hon. Member for Dudley South for
setting out in detail the background to the regulation.
Will the
Minister explain why there was a breakdown in communication and
engagement between the Government and the very important Scrutiny
Committee during the negotiation period? Will he say, in particular,
what happened before political agreement was reached on 1 December 2010
and before the final agreement was signed off on 14
February?
Mr
Lidington:
A mess up was made in the Foreign and
Commonwealth Office, for which I have apologised both in writing and
personally to the European Scrutiny Committee. That is something that
ought not to have happened, and I take full and personal responsibility
for that failure. We have taken steps to ensure that, so far as is
humanly possible, such an oversight does not occur again. What happened
was that a letter from my hon. Friend the Member for Stone (Mr Cash)
went astray, and the action that ought to have been taken to keep the
Committee abreast was regrettably not
taken.
Emma
Reynolds:
Did the fact that the Committee did not have the
chance to debate the draft regulation properly and clear the Government
position have any bearing on the Government’s decision to
abstain on 14 February? Is that not an easy way out of getting
the European Scrutiny Committee procedure right in the first
place?
Mr
Lidington:
No, we abstained because the Scrutiny Committee
had not given the document scrutiny clearance. We tried hard to secure
a postponement of the date of the Council that would agree to the
negotiated final text. Those negotiations were fast moving, and
different departmental interests were involved. The negotiations came
to a stage at which all my colleagues around Whitehall felt that there
was a compromise available that protected the key interests of the
United Kingdom, which we have been seeking to defend throughout the
negotiations. At that stage, the draft regulation included a deadline
of 1 March, by which time both the Council and the European Parliament
had to give agreement. We sought to get the deadline for Council
agreement extended, so that the Committee would have
time—despite the delay caused by the mistakes that I have
alluded to—to consider the regulation properly. Although it was
sympathetic to what we were trying to do, the presidency said that it
was unable to help us, because the European Parliament required, under
its rules, to approve the measure in plenary session. The only way that
the Parliament and the Council could both approve the final text in
time for the 1 March deadline was to do it on the date previously set,
which was before the Scrutiny Committee was able to give clearance. For
that reason, we abstained, and we made it clear that that was on
scrutiny grounds and not because we disagreed with the
policy.
Abstaining
is something that this and previous Governments have done on a fair
number of occasions with European legislation. When it comes to a
Council meeting, we have basically supported the policy, but, quite
properly, we have defended the position that parliamentary scrutiny
should be lifted before we can vote in favour of
something—unless there is a formal
override.
Emma
Reynolds:
Do the enhanced procedures in recital 14 apply
to the common commercial policy? If not, why
not?
Mr
Lidington:
If the hon. Lady will allow me, I would like to
check the detail and come back to that in my concluding
remarks.
Martin
Horwood (Cheltenham) (LD):
The Minister has made an
important point about the appeal committee being one of the checks on
the power of the Commission to bring forward implementing acts, which
the British Government pressed for. Will he give us a little more
detail on how that appeal committee will actually operate in practice?
For instance, who would actually be on that committee? Who is it likely
to be on it from our side? How would he like it to operate in
practice?
Mr
Lidington:
The appeal committee adopted its rules of
procedure at its first meeting on 29 March this year, following
intensive discussions between the Commission and member-state
representatives over previous weeks. The rules of procedure closely
follow those set down in the comitology regulation, and they cover
rules for convening meetings, including time scales, the level of
representation, quorum, documentation to be submitted, how the opinion
should be delivered and special arrangements for anti-dumping and
countervailing measures. I must stress that the appeal committee has
not yet met for ordinary business. It has only had the initial meeting
to decide on its procedural rules, and, as with any newly formed body,
it is almost certain that its procedures will need ironing out in the
light of
experience.
For
a referral to the appeal committee to be made under article 5(3) of the
regulation, the following conditions need to be fulfilled. A committee
must have delivered a negative opinion under the examination procedure.
The chair, as a Commission representative, can deem that there is a
real imperative for the implementing act to come into force quickly,
and choose not to submit an amended version to the committee that
delivered the negative opinion. So instead of there being a
renegotiation of the act’s return to the main committee, a
request is made to the appeal committee to accept the original text and
override the initial examination committee.
However, the
proposed implementing act must not be covered by article 7. Article 7
gives the Commission power to take implementing measures immediately,
on one of two specific grounds—to avoid creating a significant
disruption of the market in the area of agriculture, or to remove a
risk to the financial interests of the Union. If either of those two
imperatives applies, the Commission must immediately submit its adopted
act—the act after the Commission has adopted it and brought it
into force—to the appeal committee, and if that emergency
procedure has been invoked, the appeal committee then has the power to
insist that the Commission revoke the act that it has
introduced.
Mr
John Baron (Basildon and Billericay) (Con):
May I
congratulate my right hon. Friend on his obvious grasp of the details?
Before I came to this Committee, my knowledge of comitology was
somewhat limited, but I am learning as we go
along.
I
want to ask two quick questions, following on from the question asked
by my hon. Friend the Member for Cheltenham. The appeal committee
provides an additional layer of security over the Commission’s
exercise of the implementing powers. My understanding is that we
secured agreement that member states would be able to determine who
would represent them at the appeal committee. The mistake that this
country has made in the past is that we have not regarded such
opportunities well enough to ensure that the country’s
objectives within the EU, and hopefully in harmony with the EU, were
being pursued. What importance does the Minister attach to this, and
when, for example—I understand that member states can decide who
represents them on the appeal committee—would he envisage a
Government Minister representing
us?
Mr
Lidington:
I would hope that it would not normally be
necessary for a Minister to sit on the appeal committee because
implementing measures ought, by definition, to be very technical in
scope. The political input should take place when the initial
act—decision or directive—is framed that contains within
it the enabling power, and the politicians are responsible in the
Council and in the European Parliament for deciding whether to
confer on the Commission those powers to bring forward
implementing legislation, or to determine that the directive be
implemented by member states but not give the Commission the power to
bring forward any tertiary legislation.
I do not rule
out the idea that we might dispatch a Minister, particularly if we were
to decide that a specific implementing measure was an abuse of
power—was taking us into an area of competence creep. Normally,
though, I would expect a senior technical expert—an
official—to represent the United Kingdom, and indeed other
member states, at the appeal committee and the examination committee.
It is important that the representative is a person with the expertise
to deal with the matter under discussion.
To take an
obvious example, let us say that there is a plant health threat; a
plant disease is spreading through Europe, so implementing measures are
brought in to impose controls to check the spread of that disease. It
would be right for member states to be represented by plant scientists
or epidemiologists who could take a considered view and would
understand the evidence. If we were talking about a tax measure, I
would expect there to be tax experts from the Treasury; and if we were
talking about a trade matter, I would expect the right official from
BIS to be
present.
Mr
Baron:
The Commission is able to adopt an implementing act
in exceptional circumstances, despite the Committee’s negative
opinion, to avoid creating significant disruption to financial and,
say, agricultural markets. At the UK’s request the Commission
has prepared a statement explaining the limited circumstances in which
that power would be used. Is the statement available now, and will
Parliament be able to consider and scrutinise it? As we have asked for
the statement, it could be relatively
important.
Mr
Lidington:
If it is not in the papers before the
Committee, we will ensure that it is supplied to all Committee members.
The statement says that the powers are to be exercised only in
accordance with article 325 of the treaty on the functioning of the
European Union. Financial interest is defined in terms of that article,
which addresses fraud. The article does not cover things such as
bailouts or financial
instruments.
I
will take advice. If I need to correct what I have said to my hon.
Friend, I will come back to him. The key point is that the power is
related to the treaty’s fraud
article.
Michael
Connarty (Linlithgow and East Falkirk) (Lab):
I am pleased
to be here under your chairmanship, Mr
Brady.
I
have a more overarching question. I am impressed by the people who are
delving into the regulation in such detail. Members of Parliament have
been found gibbering in corners, tied up by the rules of comitology
before
now.
Did
the Minister say that he had written to the Chairman of the European
Scrutiny Committee to explain the terms of reference of the appeal
committee? It would have helped everyone if the bundle had included
that detailed information, because we would not have to keep asking
these questions to tease out from the Minister how the appeal committee
will work. His various scenarios are interesting, but are the terms of
reference available? Why are they not in the
bundle?
Mr
Lidington:
I have signed a letter to my hon.
Friend the Member for Stone on that subject within the past week, and I
presume that it has reached him. If the terms of reference are not on
the table today, I agree that they should have been. We will try to
remedy
that.
Mr
William Cash (Stone) (Con):
I am sure the Minister
understands that the question asked by my hon. Friend the Member for
Basildon and Billericay is highly relevant. We expected to have the
statement, not least because the European Scrutiny Committee’s
report says
that
“the
Commission has prepared a
statement”.
The
regulation is a matter not only for the Minister and his Department,
but for the Commission. It is astonishing, therefore, that we do not
have the
statement.
The
regulation allows the adoption of measures in exceptional
circumstances, and those exceptional circumstances are a kind of
let-out provision. Irrespective of whether there is a statement
explaining those limited circumstances, it is no more than an
explanation. Given the overriding and overarching powers contained
within this significant regulation, we are concerned, as a European
Scrutiny Committee, about whether there is any substantive reason why
it should amount to enabling the adoption of measures to which, as a
matter of substance, we would otherwise
object.
Would
it be possible for the Committee to be informed in advance by a warning
letter, along the lines of the Lidington letters, the memorandum and
the written statements on opt-ins, on what is going to happen? Would it
also be possible for us to be involved in some way in the mechanism of
the advisory role that the Minister has described? In other words, we
would be made party to assessing, through our Clerk advisers, whether
we were, in this procedure and in relation to the appeal committee, to
be involved in giving some warning in
advance.
Mr
Lidington:
My hon. Friend invites me to comment on the
urgency procedures in the regulation and on the broader issue of
scrutiny. If you will forgive me, Mr Brady, I will try to
reply briefly to both points.
I cannot rule
out the hypothetical risk that somebody, at some stage, might try to
use the comitology process to extend competence in a way that we do not
believe is intended or authorised by the treaties or the legislation.
However, it is important to say that the implementing measures must
involve matters that are the subject of the parent, basic legislation.
It would not be possible for the Commission to invent some piece of
implementing legislation on tax on the back of enabling powers in a
directive relating to agriculture, for example. However, Ministers and
the scrutiny Committees will need to be on the alert when we look at
the detailed wording of the parent acts—the directives or
regulations. We will need to look closely at the words used to confer
enabling powers on the Commission to bring forward tertiary legislation
in due course to make sure that those powers are as tightly defined as
possible.
There are two
areas in which the regulation allow for some kind of urgency procedure.
There is article 7. I have described circumstances in which there is
significant disruption in agricultural markets or a risk to the
Union’s financial interests within the meaning of article 325 of
the TFEU. The Commission can adopt the act straight away, but it must
then go straight to the appeal committee
of the member states, and if the committee says that it must repeal the
act, the Commission must repeal it straight away. Article 8 provides
for an urgency procedure on what are described as “duly
justified imperative grounds”. Those place a time limit of six
months on the period for which the implementing measure can be in
force. Under this procedure, the Commission must submit the
implementing act to the Member State Committee within 14 days of
adopting it. If the committee then gives a negative opinion, the
Commission must repeal the act straight away and not wait for the six
months to elapse.
It is worth
having some kind of urgency procedure, and the issue of epidemics
affecting animal, plant or human health are an obvious case. There may
be a genuine need for very quick action and for detailed debate and
arguments to take place subsequently. On balance, we therefore think it
was right to have the measures, but it was also important to have the
safeguards.
On the
general issue of scrutiny, I am looking seriously, as I said, at the
request that the Government flag up to the scrutiny Committees any case
in which a piece of EU legislation includes such an enabling power, and
the point raised by my hon. Friend the Member for Stone has force in
that respect. I am more hesitant about promising that every item of
implementing legislation should be given to a Committee. My hon. Friend
and his Committees have an insatiable appetite for work, but in the
past four years for which I have figures, the number of items of
tertiary legislation varied from 1,808 at the lowest to 2,862 at the
highest. A lot of those measures were incredibly technical. I am
certainly willing to look at whether we can agree on some broad terms
of reference under which the Government would undertake to flag up an
implementing measure that we considered of political significance,
which the European Scrutiny Committee might want to look at. For the
Committee to go into each one item by item would probably distract it
from its important other work.
Mr
Cash:
I am grateful for that detailed response. Of course,
the Minister will understand that I may not be wholly satisfied with
every aspect of the answer, but he covered a lot of the ground. He also
briefly mentioned bail-outs. These matters are all in the nature of
what we in the House tend to refer to as Henry VIII clauses. It is the
implementation of legislation within a framework, but without the
degree of scrutiny that we would expect and want. It says in the
document
pack,
“Article
7 allows for the Commission to adopt an implementing act in exceptional
circumstances despite a negative opinion by the committee in order to
avoid creating significant disruption to financial and agricultural
markets.”
The
Minister mentioned plants on a number of occasions, but that also
refers to financial
markets.
Does
the Minister agree that, in the context of the Portuguese bail-out, for
example, that the financial markets and the circumstances in which the
bail-out took place, were in contravention of article 122, just as the
Minister described in his answer to me just now? That is why I have put
down a question asking not only for the legal advice but why we did not
take the matter to the European Court of Justice. That question
intrigues me. Does the Minister believe that the provision under
article 7 in exceptional circumstances would preclude a proper
challenge to the European Court of Justice in these
circumstances?
Mr
Lidington:
I am looking at the text of article 7. It is
true that the title of article 7 refers to the adoption of implementing
acts in exceptional cases. Exceptional cases are then defined, in the
wording of article 7, as the Commission having power
to
“adopt
a draft implementing act where it needs to be adopted without delay in
order to avoid creating a significant disruption of the markets in the
area of agriculture or a risk for the financial interests of the Union
within the meaning of Article 325
TFEU.”
It
does not give the Commission power to define exceptional cases in any
circumstance other than those two. I know my hon. Friend is
ever-vigilant, but, on my reading of article 7, I do not think it would
give the Commission the powers to venture into the areas where he fears
it might and to use emergency procedures in those
areas.
Martin
Horwood:
Forgive me, Mr Brady, I, too, should have
welcomed the opportunity to serve under your enlightened and
increasingly tolerant chairmanship. I should also pay tribute to the
Minister for his expertise: he is in danger of becoming the UK’s
foremost comitologist. He gave a very good answer to my first question.
I had another about the exceptional circumstances in which some of
these procedures might not apply. He has given a full, satisfactory and
clear answer on how exceptional and limited those circumstances can be,
which I welcome.
My last
question is about the balance between scrutiny and effectiveness. Does
the Minister take the view that in any legislative
arrangement—at national or European level—there is a need
to strike a balance between scrutiny and control powers, however
welcome they may be, and the effectiveness of bodies to deliver the
necessary legislation required? I know I may incur the wrath of the
hon. Member for Stone, but there is even a balance between the
involvement of scrutiny Committees at national level and the ability of
national Governments to do the job. I recognise that he thinks there
could never be enough scrutiny. That is especially true given that we
are talking about potentially thousands of detailed technical documents
that in some cases relate to the changing of deadlines or the redesign
of forms. In broader European terms, that may be increasingly relevant
in an enlarging Union. The 27 current members pose enough of a
challenge, but we may be looking at an even greater number in the
future. Does the Minister believe that the arrangements under
consideration strike the right balance between those two important and
competing demands on the process, and should that be the end of the
debate on the level of scrutiny required?
Mr
Lidington:
I suspect that we shall never reach the end of
the debate about the level of scrutiny required. The short answer to my
hon. Friend’s question is yes, we must achieve such a balance.
To be fair, the scrutiny Committees are vigilant about the need for
scrutiny, and jealous of the right of Parliament to scrutinise
legislation that is binding on this country and can sometimes involve
imposing penalties on organisations or individuals in the United
Kingdom. I do not blame them at all for that.
In my
experience over the past 12 months, however, the Committees have been
sympathetic when we have been able to persuade them of a genuine need
for urgency. For example, they accepted with good grace the scrutiny
overrides on some of the sanctions measures that had to be taken at
short notice to ensure that the
funds we sought to freeze could be frozen rather than taken out of
United Kingdom jurisdiction. It is almost inevitable that the
Government and a parliamentary Committee will not strike the balance in
exactly the same place. We need a creative and fruitful tension between
Parliament and Government to strike the correct balance in the national
interest.
Emma
Reynolds:
There is a risk that the move from common
commercial policy, in which a qualified majority is needed to block a
measure rather than a simple majority, will strengthen protectionism in
the European Union. How will the Government guard against that under
the new
framework?
Mr
Lidington:
The hon. Lady is right; that risk certainly
exists. If I were to rewrite history—I am gently chiding the
hon. Lady and her party, but until the treaty of Lisbon, such
commercial policy decisions were not subject to the comitology process.
We have to come to terms with that as a consequence of that treaty. My
officials, and those in the Department for Business, Innovation and
Skills who report to my hon. Friend the Member for Kingston and
Surbiton (Mr Davey), have done a good job in considering the regulation
line by line and working out how to safeguard the free-trade position
that this country has always supported.
Perhaps I can
provide the hon. Lady with a little detail. Working with other
like-minded member states, we secured provisions in the regulation for
additional consultation by the Commission with member states on
anti-dumping and countervailing measures, as well as a transitional
period of 18 months until the qualified majority vote applies in the
appeal committee. At the moment, non-standard rules apply in decisions
on anti-dumping and countervailing duties, notably simple majority
voting. As part of the process of moving to QMV, it is appropriate to
maintain existing requirements for the Commission to consult with
member states—that is in article 5.5—and that a
transitional period is foreseen until QMV applies from September
2012.
To be quite
honest with the hon. Lady, we would have preferred a longer transition
period, but many other member states wanted no transition period, and
wanted to move straight from simple majority to QMV, and 18
months was the best compromise that we could achieve. It was not
something that was achieved easily, but we maintained a blocking
minority to defend the free trade interest and eventually other member
states that had opposed our position were prepared to move towards
it.
As
for safeguard measures, the UK, along with other member states, was
successful in retaining the status quo on how the Commission can adopt
multilateral safeguard measures. The Commission can only adopt an
implementing act if a qualified majority vote is in favour either in
the examination or in the appeal committee. It might be helpful if I
deal with the question that the hon. Member for Wolverhampton North
East asked about why the common commercial policy is not included on
the list of sensitive matters in recital 14. It is a bit like the issue
involving the transitional period for voting methods. We would have
liked it to be included in recital 14, but there was not sufficient
support from other
member states, although it is included in the list of subjects to which
the examination procedure, not the advisory procedure, applies. We
managed to get trade dealt with entirely under the examination
procedure that gives the member states a greater power than the
advisory
procedure.
Mr
Baron:
May ask my right hon. Friend to return briefly to
article 7 and the exceptional circumstances in the statement? In
complimenting him on his expertise, I find it slightly strange that
what could be an important statement—after all, it was made at
the behest of the UK—in explaining the limited circumstances in
which the power will be used has not been included in the documents
that have been sent to us, although apparently a statement has been
produced. Will he ensure that the statement is sent to us and, more
importantly, can he assure us that it will be subject to parliamentary
scrutiny somewhere in the system because, to my knowledge if only
because of the absence of the papers in the information that we have
been sent, that has not been the case to
date?
Mr
Lidington:
I will try to respond to my hon. Friend when
the debate
concludes.
The
Chair:
As no more hon. Members wish to ask questions, we
will now proceed to the debate on the
motion.
Motion
made, and Question proposed,
That the
Committee takes note of European Union Document No. PE-CONS 64/10,
relating to a Draft Regulation laying down the rules and general
principles concerning mechanisms for control by Member States of the
Commission’s exercise of implementing powers, which was agreed
by the Council and Parliament at First Reading and formally adopted by
the European Council on 14 February 2011; and supports the
Government’s approach to ensure Member States can examine and
scrutinise fully implementing acts before they are adopted by the
Commission.—(Mr.
Lidington.)
5.23
pm
Emma
Reynolds:
I want to pay tribute to the work of the
European Scrutiny Committee on the draft regulation and for referring
it to this Committee. The European Scrutiny Committee plays an
essential role in ensuring that there is democratic accountability of
the Government’s position in negotiating draft EU legislation.
Some critics of the European Union argue that there is a democratic
deficit in the European Union. However, if the system works as it
should, with the European Council and the European Parliament jointly
deciding on legislation as co-legislators with equal power, the
democratic processes of the European Parliament, which is elected, and
the European Council, which is made up of Ministers from elected
Governments, should not comply with or fulfil the criticism that there
is a democratic
deficit.
Additionally,
the scrutiny process of the House provides a further democratic check
on the process. However, our worry is that the lack of engagement from
the Government with such an important regulation has weakened their
democratic accountability, so the scrutiny function of the House must
be taken seriously in future. I welcome the Minister’s
reassurances in that
regard.
Turning
to the substance of the regulation, as set out by the hon. Member for
Dudley South, the pre-Lisbon arrangements that are in place until the
regulation
comes into force involve many different procedures
in many different comitology committees in many different cases. The
intention of articles 290 and 291 of the treaty on the functioning of
the European Union and the regulation aim to simplify the existing
comitology procedure. The regulation establishes two procedures: the
advisory procedure and the examination procedure. However, it will be a
welcome change only if it does not weaken the power of member states to
influence decision making when implementing powers are being conferred
by member states to the European Commission.
The
Government claim to have achieved a victory by insisting on the
establishment of an appeal committee. I welcome the clarifications that
the Minister has provided, and the Opposition believe that if that
committee works properly it will provide an additional check and
balance. Some might argue that the new appeal committee is not an
additional layer of scrutiny but it could be used to get around a
negative opinion on the examination procedure. I hope that that will
prove not to be the
case.
The
European Union’s common commercial policy is now within the
scope of article 291, as I have mentioned, and as such it moves from a
procedure in which those opposing any change need a qualified majority
instead of a simple majority. It will be of concern to Members in all
parts of the House if the policy results in a strengthening of EU
protectionism, although it is hard to know before the regulation comes
into force whether that will be the case. The Opposition will watch
developments carefully in this area. We are at one with the Government
in strongly believing that one of the strengths of the European Union
is its ability to negotiate trade agreements with countries beyond the
EU. Increased trade should be in the interests of all countries and
their peoples, provided that it is in the spirit of the rules that have
been set out by the World Trade Organisation.
To sum up,
the test for this regulation is whether it leaves intact the influence
of member states in comitology. An indication of failure would be that
the regulation would result in a weakening of member states’
influence and in a strengthening of the Commission’s power. We
will be watching to ensure that the regulation passes that test. Even
though there have been mistakes in the scrutiny process and some
delays, having heard the Minister’s explanations and
reassurances I confirm that the Opposition support the
motion.
5.27
pm
Mr
Cash:
I will be brief, because we have had a lot of
questions and the matter is incredibly complicated. I have concerns
about these sorts of procedures. As Maine said in “Ancient
Law”, justice is to be found in the interstices of procedure.
This is a procedural provision, and unfortunately a lot of injustice
can come about as a result of opaque procedures. I have alluded to
the tyrant Henry VIII, and we call such provisions Henry
VIII clauses because they are enabling provisions within a framework.
It is a kind of world within a world and the deeper one gets into that
world, the nearer one gets to obfuscation and to problems.
I do not
believe that any reasonable person, even if they were a qualified
lawyer, could reasonably be expected to identify the impact that the
proposal will have on people’s daily lives. That is the problem,
and in a direct way it is an infringement of our democratic procedures.
There was a serious lapse in the scrutiny process, and I
had to write to the Foreign Secretary and demand
that he appear before the Committee. The Minister for Europe is here
because the Foreign Secretary said:
“I
would like to thank the committee for inviting me to discuss this
important issue but feel it is more appropriate for the Minister for
Europe, as lead Minister on this dossier and also as Parliamentary
Relations Champion for the FCO, to take the opportunity of the European
Committee debate not only to discuss the overall Comitology Regulation,
but also to outline what action is being taken within the FCO to ensure
proper Parliamentary scrutiny can be undertaken. We are working
hard”—
blah,
blah, blah. I say this with absolute deliberation, because we had an
exchange on article 7. As the questioning was coming to an
end—and I just missed the opportunity to return in time—I
took the opportunity to check with the European Scrutiny Committee
advisers whether, as the UK requested, the statement explaining the
limited circumstances in which this power will be used was
available. We are told that the statement was prepared by the
Commission. I am afraid to say that I was advised, as Chairman of the
European Scrutiny Committee, that we have no such document. That is a
very serious omission.
Although the
Foreign Secretary and the Minister have informed us that they will
ensure that proper parliamentary scrutiny will be undertaken, it is
understandable that I am concerned, if not disturbed. This is basically
a let-out provision—I quote: “exceptional
circumstances”. I have concerns about Henry VIII clause-type
operations and things of that kind. I have concerns in relation to its
giving rise, as I said in my remarks, to significant disruptions in
financial markets, given its importance to the current crisis in the
European Union and the complete failure of its economic regime, though
this is not the time to debate that. This is a provision for
implementing power that engages and interconnects with the operations
of financial markets and their disruption.
Article 122
was used unlawfully, of that I have no doubt whatever. The European
Scrutiny Committee said that it was legally unsound, and no attempt was
made by the Government to challenge the unlawfulness—as I put
it—of that provision before the European Court. The two-month
period expired before that Committee was convened, and before I became
Chairman. What I am trying to say, in a nutshell, is that I think that
there has been, and continues to be, an attempt to prescribe a
regulation that provides for procedures—I will now quote from
our
conclusion—
“where
the basic act, be it a Regulation or a Directive, states that uniform
implementation is
necessary.”
That
has all the ingredients of a Henry VIII provision. People say that
something is necessary, and it then becomes, effectively, a binding
provision.
I
always try to be generous as far as possible, but I think that the
Government are trapped by the Lisbon arrangements and by the process of
integration as it has evolved. They are doing their best with things
such as proposing fall-back positions and all the things that we have
discussed already, which I do not need to rehearse; but unfortunately,
that does not stop the process. Some parts of that process, like the
curate’s egg, are bad and are not prevented. Our citizens, the
people we represent, will be inflicted with arrangements that will have
a significant impact. Some of it may be very damaging, by virtue of
inadequate procedures that we assume would not have gone through if we
were running our own affairs. We would say to the Minister, “You
cannot do that,” and we would vote it
down.
I
have made my general point; I am concerned about this. I would not have
come today, as I am not, strictly speaking, a member of the Committee.
I am, however, Chairman of the Scrutiny Committee, so I came because
these procedural arrangements—these devices to provide for
subordinate arrangements to go through on the process of comitology,
wrapped up in language that is opaque and sometimes deliberately
obfuscating—take us further and further away from the citizen. I
think that this is just such a provision, and it is an accident waiting
to happen. We have every reason to be deeply concerned, even at this
late stage, despite the letter that I received on 13 February and the
follow-up from the Foreign Secretary on 1 March. No, I beg your
pardon—anyway, it is the letter that I received on 28
February.
Despite all
that, I remain concerned. On the Government’s part, some of this
was not deliberate. Some of it is an omission and some of it is the
fault of the previous Government in allowing the Lisbon treaty to go
through to create the circumstances in which all this can happen. I
regard the matter with concern. We will be watching the whole thing
like a hawk. In the current circumstances, the fact that we do not have
the statement, which my hon. Friend the Member for Basildon and
Billericay adroitly picked up on and which I was going to raise myself,
is just another illustration of the lack of the tenacity and persistent
analysis that would have enabled this Committee to have that important
bit of additional information. So there we are. I feel concerned and
disappointed by the way this has
gone.
5.36
pm
Martin
Horwood:
I will be reasonably brief as I can already hear
the all-party parliamentary jazz appreciation group meeting, which I
hope to attend later, starting below us. I think the hon. Member for
Stone should worry less about Henry VIII and look more to the example
of Henry II and his great wife Eleanor of Aquitaine. They did not sit
in London worrying about what was happening in Europe; they got out
there and got involved, albeit in a slightly more militaristic way than
might be advisable
today.
Mr
Cash:
They are both buried out there in France at
Fontevraud, which the hon. Gentleman may
know.
Martin
Horwood:
I do know Fontevraud. It is a very lovely
place and an inspiration to all good Europeans.
I do not
detect in this regulation a great radical shift in power between the
European Union and the member states, including the United Kingdom. I
think it represents a practical improvement in the working relations,
most of all between the Commission and the Council of Ministers, and
including the very important checks and balances very
effectively negotiated by the British
Government.
The
only one of those checks and balances that seems slightly strange and
which I would question a little, is the one that seems to have
effectively limited the scrutiny role of the European Parliament. The
European Parliament is our Parliament too, and when we address the
democratic deficit we should not always respond to that by trying to
claw more powers back from the European level or by overlaying more and
more scrutiny in ever more
complicated ways at national level; we should sometimes try to tackle it
by empowering the democratic European Parliament and allowing it to
exercise its proper scrutiny role as well. With that one caveat I would
nevertheless welcome the regulation as a whole.
The
Government should play a leading role in Europe. We are a leading
European nation and we should concentrate on how to play that leading
role in Europe and not collect spanners to throw into the works of the
European Union. It is important for all of us that the EU works
effectively and I was reassured in that respect by the
Minister’s comments about the balance between scrutiny and
effectiveness. We are getting to the point where through a process of
iteration we have struck the right kind of balance between scrutiny and
effectiveness. I hope that in future we will not devote too many hours
of this Parliament’s time to the hows, but devote more to
carrying out that scrutiny on matters of real
substance.
5.39
pm
Mr
Lidington:
I am grateful to all members of the Committee
for their participation in the debate. I remember saying to a former UK
permanent representative to the European Union that I was immersing
myself in the new comitology regulation and he groaned and said,
“That is a most unwise thing to do, Minister.” I think it
is important that we look in some detail at these enabling powers and
the quality of the safeguards for member states embodied in the
regulation. I should like to deal first with two issues raised about
the absence of documents.
My hon.
Friends the Members for Basildon and Billericay and for Stone both
asked me about the statement by the Commission. The Commission agreed
during the course of negotiations that it would issue a statement to
describe how it would exercise the powers given to it. That statement
has still not been published by the Commission. Not only the UK
Government, but a number of other member state Governments are saying
very clearly to the Commission that they need to hurry up and deliver
this. The undertaking has been given and I have no reason to believe
that the Commission is reneguing on that pledge. Obviously, as soon as
the final version of the statement is published we will ensure that it
goes to the Scrutiny Committee and I suspect that it might be helpful
if, when that time comes, I ensure that it is also circulated to
Members who have served on the Committee this
afternoon.
Mr
Cash:
Given the circumstances that have emerged—the
fact that the Minister probably thought there was such a statement
although there is not, and that it refers to limited circumstances and
we do not know what those are—would he be good enough not only
to let our Committee have the statement, which I am sure is a
requirement, but at the same time to make sure, if there is anything in
it that, on reflection, he thinks we would be concerned about, that he
gets on to the Commission tomorrow, as it were, and explains to them
that it is not good enough if the limited circumstances that they are
describing simply do not pass
muster?
Mr
Lidington:
We would certainly make vigorous
representations to the Commission if we felt that they had not
delivered on what they pledged, but I want to come on to the substance
of article 7 and to the fears expressed by my hon. Friend a little
later in my remarks.
I want to put
on record a response to the question posed by the hon. Member for
Linlithgow and East Falkirk. I regret that he is no longer in his
place, but he asked about the rules of procedure for the appeal
committee. There was a straightforward technical reason why they were
not included in the pack. The rules of procedure were not made
available to the UK Government until 5 May and my understanding
is that the document pack has to be submitted two weeks before the
debate takes place. I regret that the rules were not included in the
pack today. Clearly, it is within the power of the Scrutiny Committee
to seek a further occasion either to take evidence or have a debate on
those appeal committee rules if it chooses to do
so.
Moving
on to some of the points of substance made in the debate, I say first
to my hon. Friend the Member for Cheltenham that I do not share his
fears about the exclusion of the European Parliament from the process
of oversight. I think the treaty position is clear that the new
articles under Lisbon exclude both the Council and the Parliament from
any role in the oversight of the Commission’s proposals for
implementing acts. The role of the Council and the Parliament is
different. Their role is to frame the parent legislation that confers
those implementing powers upon the Commission and to include in such a
parent act whatever conditions for the exercise of those powers they
deem appropriate. We felt that that arrangement respected the
competencies of Parliament, Council and member states as set out in the
relevant clauses of the
treaties.
The
hon. Member for Wolverhampton North East asked whether the appeal
committee might not, paradoxically, provide a means to allow the
Commission to find a route by which to overrule a block imposed by the
examination committee. Clearly that is possible, but for that to happen
a number of member states would have to change their votes. The
assumption would be that the Commission would receive a qualified
majority vote in the examination committee blocking the measure that it
had brought forward. The measure would then go before the appeal
committee and it would decide to change its mind. The chances of that
happening are slim. In the case of there being no opinion in the
examination committee, it is more likely that the Commission would then
go to the appeal committee. If the examination committee was finely
balanced, and was perhaps one country short of a qualified majority in
favour of the Commission proposal, I could imagine circumstances in
which that country was reassured in the intervening period before the
matter reached the appeal committee.
The
advantages of having the appeal committee are greater than any possible
problem; in particular it provides an essential safeguard, because in
the case of what I consider to be worthwhile and justifiable
provisions, the Commission should be allowed the right, in certain
defined circumstances, to bring forward implementing measures urgently
to deal with a particular crisis.
Mr
Cash:
The Minister will understand that there has been
some enthusiasm, as it were, to have an appeal committee and questions
of rules of procedure and so on. I dare say that he understands too,
does he not, that to have an appeal committee, but not to know its
exact composition and what kind of decisions it is liable to take, does
possibly lead to an exclusion of the normal
practices for challenging failures of administrative
arrangements of the type that would go to the Administrative Court, for
judicial review and the like. Does he have any comment on that, because
an appeal committee that is essentially political in nature may end up
overlapping, if not conflicting, with the kind of judicial review that
one might have hoped
for?
Mr
Lidington:
The option of judicial review, in the sense of
going to the European Court of Justice, is clearly there if any member
state or EU institution considers that powers have been exercised in a
manner that is not authorised by the treaties or is not authorised by
the piece of legislation on which the implementing act has been based.
The appeal committee serves a different purpose: it is to provide a
means for member states to exercise scrutiny and supervision of
implementing measures brought forward by the Commission on the basis of
powers properly conferred on them through basic acts. By definition,
they are those that have been agreed by the member states as the
Council and by the European Parliament.
Mr
Cash
rose—
Mr
Lidington:
If I may just complete my sentence, I will
happily give way again.
My hon.
Friend asked about the membership of the appeal committee. It is up to
member states to decide who should represent them on the examination
committee and the appeal committee. We envisage that the appeal
committee should be staffed by senior officials. We think that the
normal rule should be that the people on the appeal committee, like
those on the examination committee, should be expert in the subject
matter under discussion, since by definition they are almost certain to
be dealing with the implementation of technical
legislation.
Mr
Cash:
I was only going to say that it can be a circular
argument, because what is decided in terms of the legal instrument that
is part of the implementing procedure itself becomes by definition the
legal means whereby the issue will be resolved. The Minister may
understand that within the framework of providing for comitology and
enabling legislation, there comes a point where the fall-back position
of the Commission is to say, “Oh well, this is actually a legal
instrument, and therefore it does contain within it the necessary power
of implementation.” It gets complicated, but that is part of my
earlier argument, because I think this process has the potential to be
extremely opaque and difficult to deal
with.
Mr
Lidington:
That brings me to the questions that my hon.
Friend asked about article 7. A general point applies to all
implementing acts, not only those subject to the article, which is that
any implementing act can be brought forward by the Commission only on
the basis of a parent, basic act. Implementing powers exist only in
relation to specific pieces of legislation that have gone through the
proper EU legislative
process.
My
hon. Friend, as is often the case, has taken us into realms of
constitutional and legal principle, and it is always good to be
reminded of the quotation from Sir Henry Maine with which he
introduced his remarks. I shall resist the temptation to engage with
him on the concept of Henry VIII clauses, which I have always
believed are based on a fundamental misinterpretation of the Statute of
Proclamations 1539, but perhaps he and I can argue that one out on
another occasion, outside your Committee, Mr Brady.
What I will
say to reassure my hon. Friend is that although we are dealing with a
new system of comitology, the principle of comitology and tertiary
legislation had been established in the EU for years before the UK
became a member and has been there throughout our membership, so it is
not new. Concerns about competence creep are perfectly valid, and he
knows that I share his concern that we resist the extension of the
competencies of EU institutions beyond those in the treaties, but that
risk or creep comes from the framing of EU directives and regulations
rather than from anything that derives from
comitology.
Article
7 is a derogation from normal processes. It can be applied only as an
exception to what would otherwise be the standard rules, and that
exception is available to the Commission only in the specific cases
described in article 7, namely, disruption to agricultural markets or a
threat to EU finances in the context of
article 325 of the TFEU, which deals explicitly with the risk of fraud.
It is simply not open to the Commission to bring forward a measure
under article 7 on the basis of article 122 of the treaty. It can be
used only in respect of article 325 and it is a derogation that must be
applied as an exception to the normal rule.
I am grateful
to all members of the Committee who have spoken. I hope that after
hearing my response the Committee is prepared to endorse the
Government’s motion.
Question
put and agreed
to.
Resolved,
That the
Committee takes note of European Union Document No. PE-CONS 64/10,
relating to a Draft Regulation laying down the rules and general
principles concerning mechanisms for control by Member States of the
Commission’s exercise of implementing powers, which was agreed
by the Council and Parliament at First Reading and formally adopted by
the European Council on 14 February 2011; and supports the
Government’s approach to ensure Member States can examine and
scrutinise fully implementing acts before they are adopted by the
Commission.
5.54
pm
Committee
rose.