14 Consumer Programme 2014-20
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16795/11
+ ADDs 1-2
COM(11) 707
| Draft Regulation of the European Parliament and of 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 11 November 2013
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| Previous Committee Reports | HC 83-iv (2013-14), chapter 3 (5 June 2013);
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 | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background and further scrutiny
14.1 The draft Regulation would establish an EU programme
in the field of consumer policy for the period 2014-20. The Commission's
original proposal included a budget of €197 million to support
a variety of actions which promote product safety, consumer information
and education, 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.[65]
14.2 The Council agreed a partial general approach
on the non-budgetary elements of the draft Regulation in June
2012 followed, shortly afterwards, by the opening of informal
"trilogue" discussions between the Council, European
Parliament and Commission with a view to securing a First Reading
agreement. In May 2013, the Minister for Employment Relations
and Consumer Affairs (Jo Swinson) reported that agreement had
been reached on all aspects of the Consumer Programme except the
budget (which would be subject to the outcome of negotiations
on the EU's Multiannual Financial Framework for 2014-20) and the
use of implementing and delegated acts. We asked for a further
progress report once there was greater clarity on the size of
the budget and retained the draft Regulation under scrutiny.
The Minister's letter of 11 November 2013
14.3 In her latest letter, the Minister (Jo Swinson)
informs us that agreement has been reached on a compromise text
and asks us to release the draft Regulation from scrutiny so that
the Government may support its adoption within the coming weeks.[66]
She addresses the two issues — comitology arrangements
and the budget for the Consumer Programme — which were unresolved
when we last considered the draft Regulation in June. Turning
first to comitology arrangements, the Minister tells us:
14.4 "I am pleased to report that after
a 9-month deadlock the UK along with several other Member States
were able to secure a very favourable compromise on the final
comitology point of contention which is aligned with the overall
Government position on the use of implementing and delegated acts."
14.5 With regard to the budget, the Minister
notes that the figure included in the compromise text remains
"conditional" pending formal agreement of the EU Multiannual
Financial Framework for 2014-20 (expected later this month), but
adds:
14.6 "I am pleased to confirm that we can
most likely expect a real terms cut to the budget contained in
the Commission's initial proposal. This represents a proportionate
cut to the overall financial envelope of this comparatively small
MFF programme, when compared to the previous programme, which
the Commission is confident can be managed without renegotiation
of the substance. The Commission have indicated on an informal
basis that the cuts will be applied to the information and education
objective of the programme with funding levels being maintained
for the more essential activity under the product safety and enforcement
objectives. This is a good result for the UK. Within this programme,
the Government supports the Commission giving priority to activities
such as the monitoring of dangerous consumer products through
effective market surveillance and the efficient enforcement of
consumer rights across the EU. In the Government's view the information
and education objective is of least added value and throughout
negotiations has pushed for cuts in this area."
14.7 The Minister expects adoption of the draft
Regulation establishing the Consumer Programme to "proceed
at pace" once the Multiannual Financial Framework for 2014-20
has been formally approved by the European Parliament and Council
and asks us to clear the draft Regulation from scrutiny in good
time to enable the Government to support its adoption. She undertakes
to write again to confirm the final budget figure for the Consumer
Programme.
Conclusion
14.8 We thank the Minister for her letter.
Whilst she is unable to confirm the final budget for the Consumer
Programme, pending formal approval by the Council and European
Parliament of the EU Multiannual Financial Framework for 2014-20,
we note that it is likely to represent "a real terms cut"
to the budget initially proposed by the Commission. As the budget
outcome is in line with the Government's objective of reducing
expenditure, and the substance of the draft Regulation is broadly
consistent with the Government's domestic consumer policy goals,
we are now content to clear the proposal from scrutiny.
65 See head note. Back
66
The Minister encloses a copy of the compromise text. As it is
marked limité, its contents may not be made public
but may be used to inform our scrutiny of the draft Regulation. Back
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