Ninth Report - European Scrutiny Committee Contents


12 European aid to the most deprived

Committee's assessment Politically important
Committee's decisionNot cleared from scrutiny; further information requested

Document details(a) Draft Regulation on the Fund for European Aid to the Most Deprived (34394), 15865/12 + ADDs 1-2, COM(12) 617

(b) Commission delegated Regulation laying down the content of the annual and final implementation reports, including the list of common indicators (36240), 11741/14 + ADD 1, C(14) 4988

Legal base(a) Article 175(3) TFEU; co-decision; QMV;

(b) Article 13(6) of Regulation (EU) No 223/2014 on the Fund for European Aid to the Most Deprived

DepartmentWork and Pensions

Summary and Committee's conclusions

12.1 A Regulation establishing a Fund for European Aid to the Most Deprived was adopted in March 2014. The Fund forms an integral part of EU Structural and Investment Funds for the period 2014-20 and is intended to contribute to the Europe 2020 poverty reduction target which seeks to lift at least 20 million people out of the risk of poverty and social exclusion by 2020. The objectives of the Fund are to alleviate poverty through the provision of food, clothing and other essential consumer goods and to support activities promoting the social integration of the most deprived. Participation in the Fund is mandatory for all Member States.

12.2 The UK voted against the draft Regulation — document (a) — on the grounds that the proposed Fund was inconsistent with the principle of subsidiarity. In a subsequent Written Ministerial Statement to the House, the Government noted that both Houses had issued Reasoned Opinions and that the distribution of food and consumer goods to deprived people was "better and more efficiently delivered by individual Member States and their local authorities, rather than through EU programmes".[44] The Government has requested the minimum allocation available from the Fund — €3.5 million[45] for the period 2014-20 — in order to mitigate the impact of the Fund on the remainder of the UK's allocation of EU Structural and Investment Funds. We have asked the Government to explain how it intends to use the UK's allocation of funding and, in particular, whether it proposes to provide direct material assistance to those in need (for example, through food banks) or to support broader social inclusion measures (and, if the latter, what type of measures are envisaged).[46] Pending a response, the draft Regulation remains under scrutiny.

12.3 Document (b) is a Commission delegated Regulation establishing the information to be included by Member States in their annual reports on the implementation of the Fund, based on a list of common indicators. Although we do not routinely examine delegated legislation, we asked the Government to deposit the draft Commission Regulation for scrutiny as it provides a useful indication of the type of assistance that may be made available under the Fund and the categories of beneficiaries.

12.4 The Regulation establishing the Fund for European Aid to the Most Deprived entered into force on 12 March 2014. It requires each Member State to submit an operational programme specifying how it proposes to implement the Fund within six months of that date.[47] Given the imminence of the deadline for submitting the UK's operational programme, it is disappointing that the Government is still unable to provide any indication of how it proposes to utilise the available funding. Document (a) will remain under scrutiny until the Government is able to do so. We ask the Government to tell us whether it is on track to submit its operational programme on time.

12.5 With regard to document (b), we ask the Government:

·  whether it is satisfied that the draft Commission delegated Regulation only concerns "non-essential elements" of the Regulation establishing the Fund for European Aid to the Most Deprived; and

·  whether it considers there are any grounds on which the Council or European Parliament might wish to raise an objection to prevent its entry into force.

12.6 Meanwhile, document (b) also remains under scrutiny.

Full details of the documents: (a) Draft Regulation of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived: (34394), 15865/12 + ADDs 1-2; COM(12) 617; (b) Commission Delegated Regulation supplementing Regulation (EU) No. 223/2014 on the Fund for European Aid to the Most Deprived by laying down the content of the annual and final implementation reports, including the list of common indicators: (36240), 11741/14 + ADD 1, C(14) 4988.

Background

12.7 Our earlier Reports, listed at the end of this chapter, provide a detailed overview of document (a), the Government's position, and the content of the Reasoned Opinion agreed by the House on 18 December 2012. As the UK was unable to oppose the adoption of the draft Regulation and will be required to implement the Fund, we have pressed the Government for an explanation of how it intends to use its allocation of funding.

12.8 Under the Regulation agreed in March 2014, Member States may use their allocation of funding to support national schemes for the distribution of food and other basic consumer goods (such as clothing, footwear, hygiene products, school equipment and sleeping bags) and/or to support broader social inclusion activities.

The Commission delegated Regulation — document (b)

12.9 The Regulation establishing the Fund for European Aid to the Most Deprived authorises the Commission to adopt a delegated act setting out the content of the annual implementation reports to be submitted by each Member State (as well as a final implementation report in 2024), based on a list of common indicators. The common indicators require Member States to identify the amount of funding dedicated to the provision of food and to the provision of other basic material assistance, as well as the types and quantities of food or other assistance provided. National implementation reports must also identify the number of people receiving assistance from the Fund and, amongst these, the number falling into the following categories: children under the age of 16; adults over 65; women; migrants and ethnic minorities; disabled people; and the homeless.

12.10 In addition to this information, the final implementation report submitted by each Member State, and the annual reports submitted in 2017 and 2022, must include an assessment of the contribution the Fund has made towards promoting social cohesion, enhancing social inclusion, and alleviating poverty.

12.11 The draft Commission Regulation is dated 17 July 2014. It will enter into force within two months of that date unless the European Parliament or Council raise an objection or seek a further two-month extension.

The Minister's Explanatory Memorandum of 11 August

12.12 The Minister for Employment (Esther McVey) says that the Government "is still considering the best way" to use the UK's allocation of funding and adds that the draft Commission delegated Regulation "will be taken into account" in developing the UK's Operational Programme to implement the Fund.[48]

Previous Committee Reports

Twenty-second Report HC 86-xxii (2012-13), chapter 3 (5 December 2012); Fourteenth Report HC 83-xiv (2013-14), chapter 10 (11 September 2013); Twentieth Report HC 83-xix (2013-14), chapter 3 (30 October 2013); Twenty-ninth Report HC 83-xxvi (2013-14), chapter 8 (8 January 2014).




44   HC Deb, 18 March 2014, 58WS. Back

45   The figure given is in 2011 prices.  Back

46   Letter of 30 April 2014 from the Chair of the European Scrutiny Committee to the Minister for Employment (Esther McVey). Back

47   Article 7 of Regulation (EU) No. 223/2014, OJ No. L 72, 12.03.2014.  Back

48   See para 9 of the Government's Explanatory Memorandum.  Back


 
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