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:
EU budget for 2018
- The Committee takes note of the draft Article 50 agreement, which includes the parameters for the UK’s financial settlement of EU budgetary obligations undertaken during its EU membership. We recommend that the EU budget for 2018, adopted on 30 November, should be debated in Committee in light of its implications for the overall financial settlement, estimated to exceed £35 billion.
Permanent Structured Cooperation
- The EU has launched Permanent Structured Cooperation (PESCO) in the field of defence, with the 25 participating EU countries committing to joint projects to develop and enhance their military capabilities. The Government has ensured that the UK, after Brexit, could voluntarily seek participation in specific PESCO projects, but any such participation would have to be agreed by the EU and the specific conditions for “third country” involvement are yet to be defined. In view of the political significance of the launch of PESCO, the Committee recommends that the Council Decision launching this new framework for defence cooperation should be debated on the Floor of the House.
European standardisation work programme 2018
- The Government provided helpful clarification of its position on European standards-making processes: UK industry appears to support the current approach to standardisation, and the Government does not currently have any plans to diverge from the status quo.
Public procurement
- What would be the effect on levels of UK access to EU27 procurement markets of a shift from being an EU Member State to accessing these markets solely on the basis of the WTO Agreement on Government Procurement (GPA)?
International Vine and Wine Organisation
- Government confirms that post-Brexit UK membership of the International Vine and Wine Organisation is under active consideration by the Government.
Linkage of EU and Swiss Emissions Trading Systems
- What lessons can be learned for the future EU-UK relationship from the seven-year negotiation to link the EU and Swiss Emissions Trading Systems?
Common rules for EU internal gas market
- How will the UK be able to diverge from common EU gas market rules under a new Commission proposal to extend EU rules to pipelines with third countries?
Traceability of tobacco products
- Brexit may allow detailed rules on the traceability of cigars, cigarillos, pipe tobacco and snuff to be amended and delayed, while still respecting the UK’s international commitments.
Law enforcement cooperation—Exchanging information on criminal convictions
- Does the Government intend the European Criminal Records Information System—ECRIS—to be amongst the measures included in a future EU/UK agreement on security, law enforcement and criminal justice cooperation?
Summary
Coordination of insolvency proceedings across the EU
The Committee reports on the Government’s decision to opt into this technical Regulation. The proposal simply amends the annexes of the main 2015 Insolvency Proceedings Coordination Regulation to reflect changes to the national insolvency laws of Belgium, Bulgaria, Latvia and Portugal, as well as Croatia (as originally proposed). The UK already participates in the 2015 Regulation. A Written Ministerial Statement has been issued to that effect.
Cleared from scrutiny; request for further information on Brexit-related questions from our chapter of 13 November.
Digital Single Market: Free flow of data
The Commission has proposed a regulation to liberalise non-personal data flows within the EU, by prohibiting data localisation requirements other than on grounds of public security. The Minister (Matt Hancock MP) wrote to the Committee to explain that the Estonian Presidency is seeking an “informal negotiating mandate” from COREPER (the Committee of Permanent Representatives to the European Union) to start trilogue negotiations with the European Parliament, in order to speed up adoption of the proposal. This is concerning because the Government has provided almost no information about the proposed mandate based on its involvement in Council working parties, and significant disagreements exist on key aspects of the text – notably the exemptions from the principle of the free movement of non-personal data. Furthermore, if the informal mandate is agreed, the scrutiny reserve will have no purchase on any part of the procedure until the concluding vote in the Ministerial Council, when there is little scope to influence the outcome, rendering scrutiny irrelevant. The Committee requests that the Government ask the Permanent Representation to ensure that an informal mandate is not agreed in COREPER to request that a decision be taken in Ministerial Council instead, when parliamentary scrutiny has concluded.
Not cleared from scrutiny; further information requested.
Public procurement
As part of its Single Market Strategy, the Commission has proposed a procurement package which consists of light touch non-legislative measures, which is focused on improving implementation of existing rules. The Government supports the proposals. The wider implications of Brexit for public procurement are important - cross-border intra-EU procurement accounts for approximately 2.5% of UK GDP - but not addressed by the Government in any of its three explanatory memoranda regarding the proposals. We retain the file under scrutiny and seek further information about current UK-EU procurement trade flows and the extent to which the WTO Agreement on Government Procurement (GPA) provides a substitute for current EU access, as well as other routes to EU procurement markets.
Not cleared from scrutiny; further information requested; drawn to the attention of the Business, Energy and Industrial Strategy and Exiting the European Union Committees.
European standardisation work programme 2018
The Committee is using the annual EU Standardisation Work Programme to scrutinise the implications of Brexit for standards making. Standards differ from regulation in that conformity with them is voluntary, and they are developed by industry, experts and stakeholders from national standards bodies. In response to the Committee’s questions, the Minister (Margot James) emphasises that standards are not the same as EU regulations and UK industry appears to support the current approach to standardisation. She states that the Government does not currently have any plans to diverge from the status quo. The Minister adds that it is up to the BSI to negotiate with the members of CEN and CENELEC to secure the statute changes necessary for its membership to continue.
Cleared from scrutiny; drawn to the attention of the Business, Energy and Industrial Strategy Committee and the Committee for Exiting the European Union.
Permanent Structured Cooperation
Twenty-five of the EU’s Member States have launched Permanent Structured Cooperation (PESCO) in the field of defence, committing to joint development of their military capabilities and making resulting improvements available for use by EU military missions. The Government has not joined PESCO, but it has sought to ensure that the UK, after Brexit, could seek to participate in PESCO projects on a case-by-case basis. The modalities for such “third country” participation are to be adopted by the participating EU countries next year.
In view of the political significance of the launch of PESCO, the Committee recommends that the Council Decision launching this new framework for defence cooperation should be debated on the Floor of the House. It has, in parallel, recommended for debate an EU decision to establish a Military Planning and Conduct Capability (MPCC) unit for the EU’s advisory military missions. The Committee considers this new unit could be the first stage of an EU operational headquarters for its military activities after the UK loses its veto over such matters post-Brexit.
Not cleared from scrutiny; recommended for debate on the Floor of the House; drawn to the attention of the Defence Committee and the Foreign Affairs Committee.
Common rules for EU internal gas market
The proposal extends existing EU law on the gas market to pipelines from third countries, which would include the UK post-Brexit. Noting the Minister’s welcome for the proposal as it will require the EU to apply EU rules to pipelines with the UK, the Committee asks whether third countries, such as the UK, would be consulted on changes to EU rules that would effectively be applicable to them; and how far the proposal will allow the UK to diverge from EU rules in the future, particularly in order to meet the commitments made in respect of the island of Ireland.
Not cleared; further information requested; drawn to the attention of the Business, Energy and Industrial Strategy Committee.
Linkage of EU and Swiss Emissions Trading Systems
After several years of negotiations, the EU and Switzerland have agreed to link their Emissions Trading Systems – the main policies in place to cut greenhouse gas emissions. Noting that negotiations stalled as a result of the Swiss referendum in 2014 introducing quotas for EU workers in Switzerland, the Committee asks the Government why it took seven years to negotiate this agreement and asks if any lessons can be learned for the future relationship between the UK and the EU ETS.
Not cleared; further information requested; drawn to the attention of the Business, Energy and Industrial Strategy Committee.
Tobacco product traceability and security
The EU has adopted detailed rules to put in place a track and trace system to tackle the illicit trade in tobacco products. The rules—which are in line with an international agreement—need to be implemented by 2019 for cigarettes and hand-rolling tobacco and by 2024 for other tobacco products (OTPs), such as cigars, cigarillos, pipe tobacco and snuff. Following receipt of a number of submissions from the OTP sector highlighting the sector’s concern that the rules are disproportionately burdensome, the Committee draws the concerns to the attention of the Government. The Committee also notes that, post-Brexit, the UK may have the opportunity to amend the rules and extend the implementation deadline, while respecting the UK’s international commitments.
Cleared; drawn to the attention of the Treasury and Health Committees.
Exchanging information on criminal convictions
The European Criminal Records Information System—ECRIS—was established in 2012. It enables Member States to exchange information on the previous convictions of EU citizens so they cannot escape their criminal past by offending in a different Member State. The UK has participated fully in ECRIS since it became operational in April 2012 and is one of the most active users. The Commission has put forward two legislative proposals (a Directive and a Regulation) to make ECRIS a more efficient tool for exchanging information on the previous convictions of third country (non-EU) offenders in the EU. The UK has opted into both proposals. A general approach was agreed at the Justice and Home Affairs Council on 7/8 December before the Committee had the opportunity to consider the new texts. The Committee asks the Government why it was not informed sooner of the Presidency’s intention to seek an agreement; to provide an assessment of changes to the provisions on third country access to criminal records information and how they are likely to affect the UK once it leaves the EU; to indicate whether the longer timeframe for implementing changes to ECRIS and developing ECRIS-TCN (around three years) will affect the UK’s preparations for implementing the proposed legislation; and to clarify whether the Government intends to produce an Impact Assessment.
Not cleared from scrutiny; further information requested; drawn to the attention of the Home Affairs Committee, Justice Committee and Committee on Exiting the European Union.
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: Common Rules for EU Internal Gas Market [Proposed Directive (NC)]; Linkage of EU and Swiss Emissions Trading Systems [(a) and (b) Proposed Council Decisions (NC)]; European standardisation work programme 2018 [Commission Communication (C)]; Public procurement [(a) Commission Communication (NC), (b) Commission Communication (C) and (c) Commission Recommendation (C)]
Defence Committee: Military mobility in the EU [Joint Communication (C)]; EU defence: Permanent Structured Cooperation [Council Decisions (NC)]
Environmental, Food and Rural Affairs Committee: International Vine and Wine Organisation [Proposed Council Decision (C)]
Environmental Audit Committee: Linkage of EU and Swiss Emissions Trading Systems [(a) and (b) Proposed Council Decisions (NC)]
Exiting the European Union Committee: European standardisation work programme 2018 [Commission Communication (C)]; Public procurement [(a) Commission Communication (NC), (b) Commission Communication (C) and (c) Commission Recommendation (C)]; Managing EU migration and security databases [Proposed Regulation (NC)]; Exchanging information on criminal convictions [(a) Proposed Directive (NC), (b) Proposed Regulation (NC)]
Health Committee: Tobacco product traceability and security [(a) Commission Implementing Regulation (C), (b) Commission Delegated Regulation (C) and (c) Commission Implementing Decision (C)]
Home Affairs Committee: Managing EU migration and security databases [Proposed Regulation (NC)]; Exchanging information on criminal convictions [(a) Proposed Directive (NC), (b) Proposed Regulation (NC)]
Justice Committee: Exchanging information on criminal convictions [(a) Proposed Directive (NC), (b) Proposed Regulation (NC)]
Treasury Committee: Tobacco product traceability and security [(a) Commission Implementing Regulation (C), (b) Commission Delegated Regulation (C) and (c) Commission Implementing Decision (C)]
22 December 2017