Documents considered by the Committee on 24 March 2015 - European Scrutiny Contents


17 European aid to the most deprived

Committee's assessment Legally important
Committee's decisionCleared from scrutiny
Document detailsCommission delegated Regulation laying down the content of the annual and final implementation reports, including the list of common indicators
Legal baseArticle 13(6) of Regulation (EU) No. 223/2014 on the Fund for European Aid to the Most Deprived
Department

Document numbers

Work and Pensions

(36240), 11741/14 + ADD 1, C(14) 4988

Summary and Committee's conclusions

17.1 A Regulation establishing a Fund for European Aid to the Most Deprived ("the Fund") 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. It is intended to complement action taken at national level to eradicate poverty and promote social inclusion.

17.2 The UK voted against the draft Regulation 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".[65]

17.3 Participation in the Fund is mandatory for all Member States, but the Government made clear that it would seek the minimum allocation possible — €3.5 million[66] 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.

17.4 Following repeated questioning, the Minister for Employment (Esther McVey) finally confirmed in February that the UK's allocation from the Fund would be used to provide additional support for school breakfast clubs in England.

17.5 In July 2014, the Commission published a 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 this one 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.

17.6 The EU Treaties specify that the delegation of powers to the Commission may only extend to measures supplementing or amending non-essential elements of the parent legislation, in this case the Regulation establishing the Fund.[67] We asked the Minister whether she was satisfied that the draft Commission delegated Regulation only concerned non-essential elements of the parent Regulation and whether she considered there were any grounds on which the Council or European Parliament might wish to raise an objection to prevent its entry into force. In her response, she told us that it "covers both essential and non-essential elements" of the parent Regulation and that the Government had raised "strong objections about the level of detail required and the administrative burden this would place on providers".[68] We asked the Minister to identify the "essential elements" and, in light of her concerns, invited her to explain why the Government had not challenged the validity of the Commission delegated Regulation.

17.7 The Minister now tells us that the Commission delegated Regulation does not exceed the powers conferred by the parent Regulation, only contains non-essential elements, and apologises if her earlier letter was "open to misinterpretation".

17.8 We do not accept that we misinterpreted the Minister's earlier letter, which stated categorically that the Commission delegated Regulation "covers both essential and non-essential elements" of the parent Regulation. We nevertheless accept the Minister's apology and now clear the delegated Regulation from scrutiny.

Full details of the documents: 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

17.9 Our earlier Reports, listed at the end of this chapter, provide a detailed overview of the Regulation establishing the Fund, as well as the common indicators for Member States' annual implementation reports which are set out in the Commission delegated Regulation. The delegated Regulation entered into force on 26 November 2014, following the expiry of a two-month period in which either the European Parliament or the Council (by a qualified majority) were able to raise an objection.

The Minister's letter of 17 March 2015

17.10 The Minister first explains the purpose of the Commission delegated Regulation:

    "The delegated Regulation provides further legislative details that supplement the provisions of the parent Regulation; they detail the type of data to be maintained by managing authorities and to be included in their annual reports, rules regarding the use of such data, and provide audit trail rules to ensure that sufficient records are maintained. Such matters are non-essential elements, when using the term in the legal sense, and in the context of interpreting the relevant Treaty provision."

17.11 The Minister makes clear that the delegated Regulation only supplements non-essential elements of the parent Regulation (referred to by the Minister as the FEAD Regulation):

    "The delegated Regulation does not go beyond its enabling powers as it prescribes requirements that are within the scope of matters delegated in the FEAD Regulation i.e. non-essential elements. Further, the matters contained in the delegated Regulation are within the scope of Article 290 of the TFEU, given that they cover general measures supplementing or amending non-essential elements of the parent legislation. There was therefore no reason for me to challenge the validity of the Regulation when it was being discussed in draft.

    "However, in my response to the Committee dated 9 February 2015 I referred to both essential and non-essential elements covered by the delegated Regulation; I should clarify that I did not intend to imply that the Regulation went beyond its enabling powers, but rather that some of the detail appeared to us to be more useful than other aspects.

    "I am sorry that this part of my letter was open to misinterpretation."

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); Ninth Report HC 219-ix (2014-15), chapter 12 (3 September 2014); Thirty-fourth Report HC 219-xxxiii (2014-15), chapter 3 (25 February 2015).





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

66   The figure given is in 2011 prices. Back

67   See Article 290 of the Treaty on the Functioning of the European Union (TFEU). Back

68   See the Minister's letter of 9 February 2015 to the Chair of the European Scrutiny Committee. Back


 
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