42 Statistics
| Committee's assessment
| (a)-(b) Politically important |
| Committee's decision | (a)-(b) Not cleared from scrutiny; further information requested
|
| Document details | (a) Draft Regulation concerning harmonised indices of consumer prices (b) European Central Bank Opinion on document (a)
|
| Legal base | (a) Article 338 TFEU; co-decision; QMV; (b) —
|
| Department
Document numbers
| Office for National Statistics
(a) (36570), 16612/14 + ADD 1, COM(14) 724
(b) (36804), 6651/15, —
|
Summary and Committee's conclusions
42.1 The Harmonised Index of Consumer Prices provides a measure
of inflation used for effective economic policy-making, and particularly
in the area of monetary policy. The aim of this draft Regulation
is to rationalise the existing legal framework and implement some
new provisions to reflect developments in consumer prices statistics.
Our predecessor Committee, whilst acknowledging the Government's
favourable view of the proposal, noted concern about delegated
acts aspects of the draft Regulation. Accordingly, the document
remained under scrutiny.
42.2 In this Opinion the European Central Bank, which
is a key user of the index, sets out its views on the draft Regulation.
42.3 The Government tells us that the Opinion largely
reflects its own position, that in negotiations of the draft Regulation
it will take into account the Opinion, but only in so far as UK
overall objectives are not undermined, that these negotiations
are continuing and that further timetabling issues are still to
be determined by the Presidency.
42.4 The Government has also told us that at the
end of June a compromise Council text was to be agreed for negotiation
with the European Parliament. The Government comments that this
text addresses a number of UK concerns, in particular the use
of delegated acts.
42.5 We note the present situation in relation
to this proposal. When the Government next reports to us on the
progress of negotiations, particularly in relation to delegated
acts, we should also like to hear how the Opinion is playing into
those negotiations. Meanwhile the documents remain under scrutiny.
Full
details of the documents: (a) Draft Regulation
on harmonised indices of consumer prices and repealing Council
Regulation (EC) No. 2494/95: (36570), 16612/14 + ADD 1, COM(14)
724; (b) European Central Bank Opinion of 13 March 2015 on a draft
Regulation on harmonised indices of consumer prices and repealing
Council Regulation (EC) No. 2494/95: (36804), 6651/15, —.
Background
42.6 The Harmonised Index of Consumer Prices (HICP),
otherwise known as the Consumer Prices Index, provides a measure
of inflation used for effective economic policy-making, and particularly
in the area of monetary policy. The aim of this draft Regulation,
document (a), is to rationalise the existing legal framework and
implement some new provisions to reflect developments in consumer
prices statistics and the EU legal framework over the last 20
years.
42.7 Our predecessor Committee, whilst acknowledging
the Government's favourable view of the proposal, noted concern
about delegated acts aspects of the draft Regulation. In March
it heard that, although there had so far been no significant developments,
it was possible that discussions would be completed and the proposal
brought to the Council before we were to first meet in the present
Parliament. Accordingly, it reminded the Government that if this
occurred it would have to explain the circumstances.
The new document
42.8 In this Opinion, document (b), the European
Central Bank (ECB), which is a key user of the HICP, sets out
its views on the draft Regulation, as requested by the Council
and the European Parliament.
42.9 In its Opinion the ECB:
· is
supportive of the review and modernisation of the EU framework
for compilation of HICP statistics, which it considers to be of
crucial importance to the maintenance of price stability in the
eurozone;
· agrees
with the Commission view that the quality and consistency of the
HICP should not fall behind current requirements; and
· highlights
that in the process of adopting implementing and delegated acts
and in considering any future changes to the regulatory framework,
the Commission should continue to consult the ECB (as it is obliged
to do).
42.10 The ECB also makes 15 recommendations for amendment
of the draft Regulation and, where it has done so, sets out specific
drafting proposals.
The Government's view of the new document
42.11 In his Explanatory Memorandum of 9 June 2015
the Minister for Civil Society, Cabinet Office (Mr Rob Wilson),
says that:
· the
ECB Opinion supports the Commission's efforts to review and modernise
the HICP legal framework and largely reflects the Government position;
· the
ECB assertion that it should be consulted on implementing and
delegated acts is a reasonable one, as such consultation can help
ensure the statistics are fit for purpose; and
· in negotiations
the Government will take into account the Opinion, but only in
so far as UK overall objectives are not undermined.
42.12 The Minister mentions also that the Council
Working Party on Statistics had a first substantive discussion
of the draft Regulation on 22 January, that negotiations are continuing
and that further timetabling issues are still to be determined
by the Presidency.
The Minister's letter of 23 June 2015
42.13 The Minister writes further to his last letter
to the predecessor Committee informing us of recent developments
on the proposal. He says that the Latvian Presidency had now indicated
that it considered initial negotiations on the proposal to be
concluded and had proposed that the matter be put to Coreper on
29 June to agree a general approach for negotiations with the
European Parliament. He elaborates that:
· the
final Presidency proposal for a Council negotiating position,
as agreed by Member States at Council Working Party level, addressed
the concerns expressed by the UK and other Member States related
to the issue of delegated acts;
· the
Government had sought a text that provided adequate safeguards
to ensure that when preparing delegated acts the Commission would
be obliged to consult experts from Member States and should carry
out an assessment of the burdens on respondents and on production
costs;
· the
compromise proposal explicitly provided those safeguards and further
limited the use of delegated acts to changes to specific non-essential
elements and also provided assurance that such acts should not
impose significant additional burdens on Member States; and
· the
compromise also fully retained those measures which provide for
improved efficiencies and quality in price statistics.
Previous Committee Reports
Twenty-ninth Report HC 219-xxviii (2014-15), chapter
9 (14 January 2015) and Thirty-seventh Report HC 219-xxxvi (2014-15),
chapter 19 (18 March 2015).
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