Meeting Summary
The Committee looks at the significance of EU proposals and decides whether to clear the document from scrutiny or withhold clearance and ask questions of the Government. The Committee also has the power to recommend documents for debate.
Brexit-related issues
The Committee is now looking at documents in the light of the UK decision to withdraw from the EU. Issues are explored in greater detail in report chapters and, where appropriate, in the summaries below. The Committee notes that in the current week the following issues and questions have arisen in documents or in correspondence with Ministers:
Anti-microbial resistance
- The implications of Brexit for the UK’s approach to anti-microbial resistance.
Agriculture and sustainable water management
- Whether there are any aspects of the Commission’s analysis of agriculture and water management which might underpin post-Brexit agriculture policy in the UK.
Fisheries
- Whether the UK intends to engage in discussions on future EU fisheries control rules, and the Government’s view on the UK’s future relationship with the European Fisheries Control Agency.
- The Fisheries Minister expresses satisfaction with the regional (North Sea for example) approach to fisheries decision-making under the EU’s fisheries policy, so the Committee asks about its future post-Brexit, including arrangements for stakeholder involvement in decisions.
Migration—A renewed Action Plan on Return
- The Government is asked to identify the EU Readmission Agreements which will lapse on the UK’s exit from the EU and to explain what action it intends to take to put alternative arrangements in place.
Migration—Managing the Schengen external borders
The Government is asked:
- Whether it is content with the restrictive conditions governing third country access to immigration data to be included in the new EU Entry/Exit System (expected to be operational in 2020);
- Whether the Government intends to seek more favourable access as part of a bespoke UK-EU data-sharing model;
- Whether data sharing arrangements for law enforcement purposes (including data held in the in the new EU Entry/Exit System) would form part of the wider “strategic agreement” for security, law enforcement and criminal justice cooperation mooted in the Government’s future partnership paper, Security, law enforcement and criminal justice;
- Whether this or any other bespoke agreement dealing with cross-border data sharing and transfers would take precedence over incompatible provisions in EU secondary legislation, such as the Regulations establishing the EU Entry/Exit System; and
- Whether the Government is satisfied that there are adequate safeguards for personal data held in the Entry/Exit System, as well as effective means for obtaining redress, given the potential impact on UK nationals post-Brexit?
Migration—Fingerprinting of asylum applicants and irregular migrants: the Eurodac system
The Government is asked:
- Whether it has already sought (or intends to seek) changes to the provisions on third country access to Eurodac data to make it easier for the UK to secure access once it leaves the EU;
- Whether it intends to seek continued participation in or access to the Eurodac system post-Brexit and how such participation or access could be achieved; and
- What steps it is taking to mitigate or eliminate the risk that UK law enforcement and immigration control authorities may lose access to Eurodac data following the UK’s exit from the EU?
Security—Security Union: protecting public spaces and strengthening resilience to terrorism
The Government is asked:
- Whether the UK may be at risk of losing funding for measures to enhance the protection of public spaces and address CBRN threats as a result of its withdrawal from the EU and relevant EU funding instruments—notably, research funds under the Horizon 2020 programme and regional funds under the European Regional Development Fund;
- Whether the Government wishes to remain part of the policy and practitioner networks described in the EU Action Plans on protecting public spaces and on enhancing preparedness against chemical, biological, radiological and nuclear (CBRN) security risks post-Brexit and whether there is any precedent for third country participation; and
- Whether the Government also wishes to continue to participate post-Brexit in secure information-sharing platforms, such as the European Bomb Data System managed by Europol, and have access to the CBRN “knowledge hub” hosted in the European Counter-Terrorism Centre, and what precedents there are for third country access/participation?
Parental and Carers’ Leave Directive
- The Committee considers of the proposed new EU Directive on parental and carers’ leave (also called the Work-Life Balance Directive). The leave entitlements proposed in the Directive, in many cases, go significantly beyond what workers in the UK are currently entitled to. The Committee notes that the Directive, if it is agreed by the Member States and the European Parliament next year, could have force of law in the UK during the “implementation period” after Brexit.
Pillar of Social Rights
- The EU institutions, with the UK Government’s support, in November 2017 issued the European Pillar of Social Rights. It is a declaration of twenty guiding principles for both EU and national social and employment policy, covering issues as varied as pay, housing and social assistance. The Committee assesses the importance of the Pillar in the context of Brexit, noting that any legislative proposals that flow from it may be implemented in the UK during the post-Brexit “implementation period”.
Import of cultural goods
- The Committee puts a number of questions to the Department for Digital, Culture, Media and Sport in response to a new EU proposal to tackle the trade in stolen artworks. The new Regulation could have implications for the UK art market (the world’s second-largest) after Brexit, as cultural goods exported from the UK to any EU country would face additional customs checks, adding delays and costs.
EU budget: fight against fraud
- The Committee asks for further information from the Treasury about the latest EU report on the fight against fraud, which highlights allegations that HM Revenue and Customs allowed substantial volumes of undervalued Chinese imports into the EU, resulting in nearly €2 billion in customs duties being evaded. The findings may also complicate the Article 50 negotiations, as the Government is seeking a “close association” with the EU customs union after Brexit, while other Member States may have concerns about the UK’s ability to detect and prevent customs fraud.
Free flow of non-personal data:
- The Government is asked to what extent it shares the Committee’s assessment that the proposal does not reduce the need to secure a sound legal basis for ongoing personal data transfers between the UK and the EU.
Digital Single Market: Tackling illegal content online:
- The Government is asked what are the implications for UK rightsholders, in terms of the Government’s ability to tackle large-scale online copyright-infringement, of the UK leaving the European Union.
Summary
A renewed Action Plan on Return
Despite increased migratory pressures at the EU’s external borders, the rate at which irregular migrants who do not qualify for international protection within the EU are returned to their countries of origin remains stubbornly low—only around 40% of those required to leave actually do so. In his latest update, the Immigration Minister (Brandon Lewis) explains that “more radical options on return” mooted by the UK in 2015 have made no headway but adds that the UK continues to engage actively with the EU in exploring ways of reducing flows into Europe. EU Readmission Agreements establish procedures for the return to their countries of origin of third country (non-EU) nationals who are not entitled to enter or stay in an EU Member State. The Committee asks the Minister to identify the EU Readmission Agreements which will lapse on the UK’s exit from the EU and to explain what action the Government intends to take to put alternative arrangements in place.
Cleared from scrutiny; further information requested; drawn to the attention of the Home Affairs Committee.
Managing the Schengen external borders
The EU has agreed to establish an Entry/Exit System to record details (including biometric data) of third country nationals entering and leaving the Schengen area (or being refused entry). The purpose of the Entry/Exit System is to improve external border controls and enhance security within the EU. It is expected to be operational by 2020. The Entry/Exit System builds on parts of the Schengen rule book in which the UK does not participate and so will not apply to the UK. The Government is keen, nonetheless, for law enforcement authorities in the UK to be able to access data held in the Entry/Exit System. The conditions of access for third countries are highly restrictive. The Committee asks the Government whether it intends to seek more favourable access as part of a bespoke post-Brexit UK-EU data-sharing model. It also seeks an assurance that there are adequate safeguards for personal data held in the Entry/Exit System, as well as effective means for obtaining redress, given the potential impact on UK nationals post-Brexit.
Not cleared from scrutiny; further information requested; drawn to the attention of the Home Affairs Committee and the Committee on Exiting the European Union.
Security Union: protecting public spaces and strengthening resilience to terrorism
Each of these Commission Communications contains an Action Plan setting out a variety of measures to reduce the vulnerability of public spaces to terrorist attack and enhance cooperation in addressing the threat posed by chemical, biological, radiological and nuclear (CBRN) materials. The Government is generally supportive of the various actions proposed by the Commission but does not explain whether the type of cooperation envisaged in the Action Plans would remain open to the UK following its departure from the EU. The Committee requests further information on the Brexit implications.
Not cleared from scrutiny; further information requested; drawn to the attention of the Home Affairs Committee.
Fingerprinting of asylum applicants and irregular migrants: the Eurodac system
Eurodac is a database used to help establish the Member State responsible for examining an asylum application made within the EU. The Commission has proposed changes which would develop Eurodac into a broader migration management tool. The UK has opted into the proposal. The Committee seeks further information on the provisions governing access by law enforcement authorities and third countries to Eurodac data and their likely impact on the UK’s ability to participate in EU information sharing mechanisms post-Brexit.
Not cleared from scrutiny; further information requested; drawn to the attention of the Home Affairs Committee and the Committee on Exiting the European Union.
Agriculture and sustainable water management
The European Commission paper considered by the Committee sets out the challenges of tackling the impacts of agriculture on water, identifying four areas where increased co-operation could improve the sustainability of water management and agricultural production: policy implementation; governance; investment; and effective use of existing knowledge. The Committee considers the identified themes to be relevant in the design of a post-Brexit agriculture policy and asks the Minister (George Eustice) to identify any particularly welcome recommendations, which might underpin future UK policy. The Committee asks the Minister whether he agrees that a strong research and knowledge transfer policy is an essential component of tackling the impact of agriculture on water.
Cleared; further information requested; drawn to the attention of the Environment, Food and Rural Affairs Committee and the Environmental Audit Committee.
Fisheries Control
Weaknesses in the EU’s fisheries control and enforcement rules have been identified. These included examples in Scotland, where sanctions were found to be less dissuasive than in other Member States. The Committee notes that the EU’s control rules will remain applicable to UK vessels fishing in EU waters post-Brexit and will therefore remain of interest to the UK. The Committee invites the Minister to confirm that the UK will engage in discussions on future EU fisheries control policy. Furthermore, the Committee asks about the benefits derived from co-ordination and co-operation through the European Fisheries Control Agency and whether these might be safeguarded post-Brexit. Finally, the Committee invites the Minister to respond to the weaknesses identified in Scotland.
Not cleared; further information requested; drawn to the attention of the Environment, Food and Rural Affairs Committee.
Fisheries discard plans and regional decision-making
Revised plans have been agreed for how to deliver the ban on the discarding of fish species subject to EU quotas. These have been developed at regional level (i.e. North Sea for example) by the concerned Member States and through close consultation with industry and environmental stakeholders via the regional Advisory Councils set up for that purpose. The Committee considers the plans to be controversial but, noting the Minister’s support for the regional approach to decision-making, asks about its future post-Brexit, including arrangements for stakeholder involvement in decisions.
Cleared; further information requested; drawn to the attention of the Environment, Food and Rural Affairs Committee.
Fisheries catch quotas for 2018
The Commission has proposed the fishing quotas for 2018 ahead of the annual December Fisheries Council on 11-12 December. The Committee notes that the general backbench fisheries debate on fisheries on 7 December will be an opportunity for the House to be updated on the UK’s position and on negotiation of stocks shared with third countries. The Committee also highlights a number of points of detail which might be raised in that debate, such as alignment of quotas with the discard ban and the response to any issues arising relating to Brexit. The Committee has decided to retain the proposal under scrutiny, but to waive the scrutiny reserve for the Fisheries Council meeting.
Not cleared; scrutiny waiver granted; further information requested; drawn to the attention of the Environment, Food and Rural Affairs Committee.
Anti-microbial resistance (AMR)
The excessive or inappropriate use of antimicrobials, such as antibiotics, has caused bacteria to become increasingly resistant to those antimicrobials to which they were previously susceptible. The Commission has developed an Action Plan to tackle the issue, including a range of uncontentious actions. The Committee reports the document to the House because of the Minister’s acknowledgement that continued EU engagement on AMR is in the UK interest and that AMR will form part of the Brexit negotiations. The Committee seeks further detail on post-Brexit cooperation between the UK and the EU on AMR.
Not cleared; further information requested; drawn to the attention of the Health Committee.
Regulation and funding of EU Political Parties and Foundations
The aim of this proposed Regulation is to make targeted changes to the existing Regulation (No 1141/2014) on EU political parties (EUPPs) and their affiliated foundations (EUPFs) (the 2014 Regulation). The Commission intends that it should be adopted and applicable in Member States before the next EP elections. These are expected to take place in June 2019. Broadly, the proposal envisages changes to limit who can sponsor EUPPs/EUPFs, to reduce the proportion of funding that EUPPs/EUPFs must raise themselves to access EU funding (co-financing), to increase powers for the Authority to deregister non-compliant EUPPs/EUPFs and to improve recover of funding unduly paid to them. It would also increase transparency of links between national parties and EUPPs and EUPFs. The proposal is likely only to have a minimal impact on the UK before Brexit as it would not be participating in the elections, and only so far as the transparency requirements on national parties are concerned. The conclusions do probe this position though in relation to the form of any implementation or transition period. The Committee retains the document under scrutiny until it is clearer how the proposal is progressing but takes the opportunity to ask the Minister whether he has any updates on the state of play of a previous proposal to reform the EP elections.
Not cleared from scrutiny; further information requested.
Review of Privacy Shield
This report is the first annual review of the EU-US Privacy Shield. This is a Commission adequacy decision approving the transfer of data for commercial purposes between the EU and the US. It was needed following the invalidation of Safe Harbor in the CJEU judgment in Schrems for incompatibility with the Charter of Fundamental Rights. The Commission finds Privacy Shield to be satisfactory overall but makes further recommendations for its improvement. Given how important this mechanism is for UK companies currently, the Committee asks the Government to comment on how data will continue to be shared during an implementation period and after Brexit with third countries who have EU adequacy decisions.
Not cleared from scrutiny; further information requested; drawn to the attention of the Digital, Culture, Media and sport committee and the Science and Technology Committee.
Parental and Carers’ Leave Directive
The proposal for a Directive on paid leave for working parents and carers would establish minimum statutory entitlements to paid paternity, parental and carers’ leave for workers throughout the EU. The Minister for Small Business (Margot James) told the Committee that the entitlement to paid carers’ leave would be a “completely new entitlement in the UK”, and also create a new category of paid parental leave. While acknowledging the Directive would give workers the “additional choice of being able to take leave in order to spend time with a child or dependent person, and receive compensation in the form of statutory pay”, she estimates the cost of the proposal to both the Exchequer and businesses to exceed hundreds of millions of pounds annually. The transposition date of the Directive will fall after March 2019, the likely date of the UK’s exit. There is a strong possibility that parts of the EU employment law may apply in the UK beyond March 2019 during a transitional arrangement to a new UK-EU trading relationship. The Committee has asked the Minister to set out the Government’s position on the new leave entitlements; and assess the likelihood that the new Directive could have force of law in the UK, even after Brexit.
Not cleared from scrutiny; further information requested; drawn to the attention of the Business, Energy & Industrial Strategy Committee, the Work & Pensions Committee and the Women & Equalities Committee.
EU budget: fight against fraud
The Committee retains under scrutiny the European Commission’s annual report on the fight against fraud relating to the EU budget, because it highlights a potentially serious flaw in HM Revenue and Custom’s processes for detecting and preventing customs fraud. The Commission, supported by several Member States, alleges that HMRC allowed undervalued Chinese imports into the EU, with the result that over £1.5 billion in customs duties were evaded (representing a direct loss to the EU budget, to which 80 per cent of customs duties collected by Member States are transferred). The UK Government and HMRC dispute the findings, but it is unclear if this relates only to the total amount of duties evaded, or also to the nature and scale of the weaknesses in HMRC’s processes for preventing such fraud from occurring. The dispute could also have implications for the Brexit negotiations. The Government wants to maintain a “close association” with the EU’s Customs Union for an interim period after March 2019, effectively requiring the UK to continue applying EU customs legislation. Such an arrangement could run into opposition from the Commission and other Member States if there are doubts about HMRC’s ability to prevent customs fraud.
Not cleared from scrutiny; further information requested; drawn to the attention of the Public Accounts Committee and Treasury Committee.
Screening of Foreign Direct Investment
Foreign direct investment (FDI) and control of EU companies in strategic sectors such as technology, energy, communications and financial infrastructure has aroused concerns among EU Member States. The Commission is also concerned that while the EU has one of the world’s most open investment regimes, many of its major economic partners impose significant regulatory barriers to foreign investors. The Commission has proposed an EU-level legal framework to ensure better information sharing and coordination on investment screening activities among Member States and with the Commission. The proposal does not restrict the ability of Member States to operate FDI screening mechanisms. It sets a requirement for Member States to share potentially sensitive commercial or security information relating to proposed FDI, sets timelines for comments from Member States or the Commission on issues of concern in other Member States, and gives the Commission power to operate its own FDI screening process in relation to specific projects of “Union interest”. The Committee agrees with the strong reservations expressed by the Government over the apparent lack of safeguards on the protection of sensitive commercial or security-related information, as well as the risk that the timelines for receiving comments on live cases from the Commission or Member States could delay and discourage foreign investment into the UK.
Not cleared from scrutiny.
Free flow of non-personal data
The European Commission’s long-awaited proposal governing non-personal data flows is a liberalising measure which prohibits protectionist “data localisation” laws (which require firms to locate servers on their territory) and requires Member States to repeal them. The “right of porting” which was proposed in an earlier communication has been watered down and replaced with a self-regulatory code of conduct. The Government supports the proposed approach. As regards Brexit, contrary to the Committee’s previously expressed concerns, the proposed Regulation appears not to create new barriers to trade for businesses established in third countries. This Regulation is without respect to the EU personal data protection regime, meaning that the UK will still require an EU adequacy decision (or equivalent arrangement) in order to maintain uninterrupted UK-EU data flows. The Committee seeks further clarification of related Brexit issues.
Not cleared from scrutiny; further information requested; drawn to the attention of the Digital, Culture, Media and Sport Select Committee and the Committee for Exiting the European Union.
Digital Single Market: Tackling illegal content online
This non-legislative Communication provides detailed guidance regarding the types of measures that platforms can and should engage in to detect and remove illegal content without becoming liable for the content that they host, bringing greater clarity to the provisions of the Electronic Commerce Directive (ECD). The Commission recommends that: businesses should follow the rules outlined in the ECD’s liability provisions; platforms should cooperate with law enforcement to alert them to any illegal activity on their networks; platforms should give priority to removal of illegal content that is notified by “Trusted Flaggers”; illegal content that could cause serious harm (e.g. incitement to terrorism material) should be removed more quickly than other types of illegal content; and recommends actions to prevent the re-appearance of illegal material on platforms. The Government supports the approach that has been taken. The Committee seeks further clarification of related Brexit issues.
Not cleared from scrutiny; further information requested.
Documents drawn to the attention of select committees:
(‘NC’ indicates document is ‘not cleared’ from scrutiny; ‘C’ indicates document is ‘cleared’)
Business, Energy and Industrial Strategy Committee: Security of gas supply [Proposed Regulation (C)]; Working Time Directive: Implementation [Commission Report (C)]; European Pillar of Social Rights [(a) Commission Communication (C), (b) Proposed Proclamation (C), (c) Reflection Paper (C)]; Parental and Carers’ Leave Directive [(a) Proposed Directive (NC), (b) Commission Communication (C)]
Digital, Culture, Media and Sport: Free flow of non-personal data [Proposed Regulation (NC)]; EU-US commercial data transfers: review of Privacy Shield [Commission Report (NC)]; Import of cultural goods [Proposed Regulation (NC)]
Environmental Audit Committee: Agriculture and Water Management [Commission Staff Working Document (C)]
Environment, Food and Rural Affairs Committee: Agriculture and Water Management [Commission Staff Working Document (C)]; EU Fisheries Control [(a) Commission Report (NC), (b) ECA Special Report (NC)]; Fisheries Discard Plans [(a) and (b) Commission Delegated Regulations (C)]; Fisheries catch quotas for 2018 [Proposed Council Regulation (NC)]
Exiting the European Union Committee: Free flow of non-personal data [Proposed Regulation (NC)]; EU-US commercial data transfers: review of Privacy Shield [Commission Report (NC)]; Managing the Schengen external borders [(a) and (b) Proposed Regulations (NC)]; Fingerprinting of asylum applicants and irregular migrants: the Eurodac system [Proposed Regulation (NC)]
Foreign Affairs Committee: EU Assistance Mission in Iraq [(a) and (b) Council Decisions (C)]; EU Stabilisation Action in Mali [Council Decision (C)]; EU Strategy for Afghanistan [Joint Communication (C)]; Restrictive measures against Iran [(a) Council Decision (C), (b) Council Implementing Regulation (C), (c) Council Decision (C), (d) Council Implementing Regulation (C)]; Visa liberalisation for Turkey [Proposed Regulation (C)]
Health Committee: EU Antimicrobial Resistance (AMR) Action Plan [Commission Communication (NC)]
Home Affairs Committee: Import of cultural goods [Proposed Regulation (NC)]; Cash Control Regulation [Proposed Regulation (C)]; Visa liberalisation for Turkey [Proposed Regulation (C)]; EU asylum reform [(a), (b) and (c) Proposed Regulation (NC), (d) Proposed Directive (NC)]; A renewed Action Plan on Return [Commission Communication (C)]; A uniform residence permit for third country nationals [Proposed Regulation (NC)]; Managing the Schengen external borders [(a) and (b) Proposed Regulations (NC)]; Security Union: protecting public spaces and strengthening resilience to terrorism [(a) and (b) Commission Communications (NC)]; Fingerprinting of asylum applicants and irregular migrants: the Eurodac system [Proposed Regulation (NC)]; Delivering the EU’s Agenda on Migration [Commission Communication (NC)]
International Development Committee: EU Strategy for Afghanistan [Joint Communication (C)]; Delivering the EU’s Agenda on Migration [Commission Communication (NC)]
International Trade Committee: Trade and Investment Barriers [Commission Report (C)]; Screening of foreign direct investment [(a) Commission Communication (C), (b) Proposed Regulation (NC)]; Restrictive measures against Iran [(a) Council Decision (C), (b) Council Implementing Regulation (C), (c) Council Decision (C), (d) Council Implementing Regulation (C)]
Public Accounts Committee: EU budget: fight against fraud [Commission Report (NC)]
Science and Technology Committee: EU-US commercial data transfers: review of Privacy Shield [Commission Report (NC)]
Treasury Committee: Restrictive measures against Iran [(a) Council Decision (C), (b) Council Implementing Regulation (C), (c) Council Decision (C), (d) Council Implementing Regulation (C)]; Cash Control Regulation [Proposed Regulation (C)]; EU budget: fight against fraud [Commission Report (NC)]; Pan-European Personal Pension Product (PEEPP) [(a) Proposed Regulation (NC), (b) Commission Recommendation (C)]
Women and Equalities Committee: Parental and Carers’ Leave Directive [(a) Proposed Directive (NC), (b) Commission Communication (C)]
Work and Pensions Committee: Working Time Directive: Implementation [Commission Report (C)]; European Pillar of Social Rights [(a) Commission Communication (C), (b) Proposed Proclamation (C), (c) Reflection Paper (C)]; Parental and Carers’ Leave Directive [(a) Proposed Directive (NC), (b) Commission Communication (C)]; Pan-European Personal Pension Product (PEEPP) [(a) Proposed Regulation (NC), (b) Commission Recommendation (C)]
1 December 2017