Select Committee on European Union Fortieth Report


Letter from the Chairman to Stephen Ladyman MP, Minister of State for Transport, Department for Transport

  The proposed Directive was considered by Sub-Committee E (Law and Institutions) at its meeting on 22 March. We are grateful for your Explanatory Memorandum of 18 February identifying a number of concerns to which the Directive gives rise. We agree that the most careful consideration is needed of the implications of the proposal both for the United Kingdom in the context of its external relations including its involvement in the IMO and also for the implications the proposal may have for levels of compensation and for the marine insurance and reinsurance markets.

  We note that in your Explanatory Memorandum of 10 March covering the whole Third Maritime Safety Package you say that the United Kingdom and a number of other Member States see no need for this piece of Community legislation and that it has the potential for undermining existing international liability arrangements as well as not probably working in practice. We agree that it is for the Commission to show there would be clear benefits flowing from the proposed Directive and we look forward to reconsidering the matter when we have sight of their impact assessment as well as the Government's own regulatory impact assessment.

  The Committee decided to retain the proposal under scrutiny.

23 March 2006

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