3 Consumer Programme 2014-20
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16795/11
+ ADDs 1-2
COM(11) 707
| Draft Regulation of the European Parliament and the Council on a consumer programme for 2014-20
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| Legal base | Article 169 TFEU; co-decision; QMV
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| Department | Business, Innovation and Skills
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| Basis of consideration | Minister's letter of 18 May 2013
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| Previous Committee Reports | HC 86-xi (2012-13), chapter 3 (5 September 2012);
HC 86-iii (2012-13), chapter 4 (23 May 2012);
HC 428-lii (2010-12), chapter 5 (29 February 2012); HC 428-xlviii (2010-12), chapter 4 (25 January 2012); HC 428-xlv (2010-12), chapter 4 (20 December 2011)
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| Discussion in Council | Partial general approach agreed in June 2012
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information requested
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Background and previous scrutiny
3.1 The draft Regulation would establish an EU programme in
the field of consumer policy for the period 2014-20. The Commission
has proposed a budget of €197 million for 2014-20 to support
a variety of actions which promote product safety, consumer information
and education, consumer rights and redress, and the enforcement
of consumer rights. Our earlier Reports provide a more detailed
overview of the content of the draft Regulation and the Government's
position.[6]
3.2 The Council agreed a partial general approach
on the draft Regulation in June 2012. Whilst acknowledging that
the UK and other Member States had proposed few changes to the
Commission's original proposal and broadly supported its choice
of objectives, we were unwilling to grant a scrutiny waiver to
enable the Government to endorse the partial general approach
for two reasons. First, it preceded publication of a new Consumer
Agenda setting out a strategic vision for future EU consumer policy.
Although the Government expected the Agenda to reflect the objectives
set out in the Consumer Programme, we could see no good reason
why (in the Minister's words) agreement to the Programme should
be based on "assumptions about how expenditure will fit into
policy priorities."[7]
Second, we accepted that agreement to a partial general approach
on the Consumer Programme was unlikely to pre-empt or prejudice
ongoing negotiations on the overall size of the EU budget for
2014-20, but thought nevertheless that it might affect discussions
on the level of funding needed for this Programme, or potentially
distort the balance of funding for each of the Programme objectives.
The Minister's letter of 18 May 2013
3.3 The Minister for Employment Relations and
Consumer Affairs (Jo Swinson) provides an update on the outcome
of trialogue discussions between the Council, European Parliament
and Commission and on the overall budget for the Consumer Programme.
She confirms that the Government abstained from the vote in Council
on the partial general approach last June in order to avoid overriding
our scrutiny reserve, and continues:
"As the consumer programme comes under the Multiannual
Financial Framework (MFF) the overall budget detail cannot be
agreed until the MFF deal is finalised. HM Treasury are leading
on these negotiations. Trialogues commenced in September 2012
on an informal basis only and as with the Partial General Approach,
they covered only the policy aspects and not the financial elements
of the proposal. As you will be aware, [the] February European
Council agreed conclusions on the next MFF, including a real-terms
cut in the payment appropriations ceiling to €908.4bn. The
European Parliament must now give consent to the MFF Regulation.
Agreement on the budget for individual programmes will follow
confirmation of the overall package.
"During trialogue discussions there were no
controversial amendments tabled by either the Council or the Parliament.
The Government did however successfully seek the removal of several
references put forward by the Parliament on collective redress,
as we had concerns that the wording used could influence future,
expected proposals on the subject.
"An agreement has now been reached on all aspects
of the consumer programme except for the financial detail and
the use of implementing and delegated acts. This is essentially
an inter-institutional, comitology issue of contention between
the European Parliament and the Commission, which exists on a
number of different European dossiers. I will seek to ensure
the most appropriate use of Act [sic] in relation to the consumer
programme.
"It is accepted that as a result of the MFF
agreement and any reduction in the Programme's budget that the
substance of the agreement may be subject to change, although
it is not yet clear how significant any changes are likely to
be. Please be assured I will ensure that the Government's position
continues to be reflected and, if the MFF conclusions require
further negotiation of the Consumer Programme, I will push for
cuts in the areas which in the Government's view, are of least
value (such as awareness-raising campaigns and the development
of education materials where these may not reflect national consumer
policy and strategies).
"I will write to the Committee again once the
full impact of the MFF negotiations is understood."
Conclusion
3.4 We thank the Minister for her letter.
We note that the budget for the Consumer Programme remains in
doubt, pending further negotiation between the Council and European
Parliament on the EU Multiannual Financial Framework for 2014-20,
and that, if further reductions are proposed, it may be necessary
to re-open the substance of the agreement reached on the content
of the Consumer Programme. We welcome the Minister's undertaking
to write again once the implications of the outcome of negotiations
on the Multiannual Financial Framework for the Consumer Programme
are clearer. Meanwhile, the draft Regulation remains under scrutiny.
6 See head note. Back
7
The Minister's letter of 21 February 2012. Back
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