Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 200-219)

SIR CHRISTOPHER BELLAMY, MR CHARLES DHANOWA

6 DECEMBER 2006

  Q200  Chairman: As a matter of interest, if you do appoint them at a lower level to a subordinate court, are you going to get as good judges as if they were at the CFI level and, if you are not, is that not rather a pity?

  Sir Christopher Bellamy: I was astonished by the quality of the applications that we had for the Civil Service Tribunal, both by the depth and skill of the applications we had from this country, which were most impressive, but also generally. We had several Supreme Court judges apply from various Member States—I say several, I think three from memory—and at Court of Appeal level and other similar levels, so there was no shortage of people who were interested in participating judicially in what the Community is doing at even what might be seen as a fairly modest level.

  Q201  Chairman: How very surprising.

  Sir Christopher Bellamy: I would not for one moment be thought to think that I have any problems with the existing quality of the CFI judges, I do not at all. It is just that I am not sure we can carry on indefinitely like this given the kinds of considerations that Lord Mance mentioned with new responsibilities and life getting more complicated every day.

  Q202  Lord Mance: I wondered whether the several Supreme Court judges came from the eastern part of Europe?

  Sir Christopher Bellamy: There was one from Germany, one from the Czech Republic and the third one escapes me now, I forget which country was the third one.

  Q203  Chairman: Could we go back to the question of language for a moment. I know how politically sensitive it is, but it does seem to be the single, most obvious blockage to any real progress towards a speedier process.

  Sir Christopher Bellamy: It is.

  Q204  Chairman: As a matter of interest, roughly what proportion of the entire Luxembourg enterprise is translation costs?

  Sir Christopher Bellamy: I cannot give you a precise figure without checking, but it must be far and away a major proportion. We have now got 20 language divisions, I think, so there must be 800 or 900 translators.

  Q205  Chairman: If you could have some measure of flexibility there and you did not have to do it, you could afford to appoint new panels.

  Sir Christopher Bellamy: Yes. It is something with which the Member States need to grapple, it is a very sensitive issue. If you were in a position where you could at least do, let us be frank and say, English language cases in English, so you cut out all those stages I referred to earlier, that would cut a major proportion of the merger cases, which are to a large extent in English, in terms of time very dramatically. You would probably halve it.

  Q206  Chairman: How many merger cases a year roughly are there now? We have been given the overall statistics of the situation.

  Sir Christopher Bellamy: I would have to refer back, my Lord Chairman. I am not entirely sure.

  Q207  Chairman: Assuming there are three or four a year, I doubt there are any more, at least to reconcile any more with the overall figures we have, roughly how many of them would be in English?

  Sir Christopher Bellamy: Again, we would need to check historically, but I would have thought three-quarters probably.

  Q208  Chairman: The bulk?

  Sir Christopher Bellamy: Yes, the vast bulk would be in English, which is often the preferred language for other countries, such as Finland or even countries from the Iberian Peninsula. That is partly because this competition law area is an area where English is the vehicular language and, therefore, the lawyers work in English, therefore the Commission's decision is in English and therefore the proceedings are in English.

  Q209  Chairman: I think we have already touched, Sir Christopher, on the question of the CFI's lack of autonomy in relation to its rules. You have said you have some sympathy with what Sir David Edward says but it is a bit patchy, he rather over-emphasises the extent of that particular problem, you could work within the existing rules you feel.

  Sir Christopher Bellamy: On the whole, yes.

  Q210  Chairman: On the whole. If you had to single out any particular rule that you would like to have relaxed to enable a greater degree of case management, language aside, what would it be?

  Sir Christopher Bellamy: I would need to go back to the rules, my Lord Chairman, and have a good look.

  Q211  Chairman: If there are to be either new panels or new chambers, in either event what should their jurisdiction be? Should it be all competition cases or, within that, just mergers or everything but state aid? How do you see it?

  Sir Christopher Bellamy: I would doubt on either main scenario whether it could be done just for merger cases.

  Q212  Chairman: It would not be enough?

  Sir Christopher Bellamy: It probably would not quite have the caseload to do it just for those, so I would have thought competition cases generally in terms of appeals from decisions of the Commission would be the right solution and I would not do state aid, not yet.

  Q213  Chairman: Why not?

  Sir Christopher Bellamy: State aid is more politically sensitive and I would see how it went first, wait for this, whatever it was, to get some more experience under its belt before doing it.

  Q214  Chairman: Again, whether they are new powers or new chambers, should the Court have the power in the first place to conduct some re-hearing, in other words to go with a more intensive review process? Secondly, at the end of the process if it does not agree with the Commission should it be able to adopt a decision itself?

  Sir Christopher Bellamy: I would favour that. We have that power in the CAT, though exactly how we exercise it is fiercely debated and not yet ruled on by the Court of Appeal. I think this would, however, require a treaty change. It does exist in the trademark regulation, as you have probably been told, but no-one has dared use it, un pouvoir de re«formulation, I think it is called, a power to change it basically, or re-take the decision rather than send it back.

  Q215  Chairman: Sorry to interrupt but in trademarks you have not got a shifting scene whereas presumably in merger cases you possibly have. Is there a development of the facts?

  Sir Christopher Bellamy: Yes.

  Q216  Chairman: You do have a shift in the scene? Is that an additional problem here that would arise in trademark cases?

  Sir Christopher Bellamy: Yes. No, it is a highly desirable power particularly in merger cases but also in other cases that avoids the obvious ping-pong of sending it back and forwards. The only other unknown factor which is difficult to estimate is that, although there is a small number of merger appeals a year, nobody quite knows which cases are not appealed because people are so gloomy about the prospects and think the system is so inefficient, hopeless and time-consuming that they just do not bother. I think there is at least some element of that; I would be surprised if there was not. Perhaps it is also worth mentioning that the Commission is likely, understandably, to be sceptical about the advantages of reform in this area, not least because it might mean a slightly closer look at some of the things that they do, which is not always something that is attractive to the administrative authority.

  Q217  Chairman: We were told by Dr Bishop who, as you know, preceded you in the chair this evening that since your time in 2002 they lost three cases and that has, I do not know whether the right word is "shamed", but certainly stimulated them into a substantial revision and improvement of their own processes.

  Sir Christopher Bellamy: Certainly at least one of those cases, the Airtours case, would never have been brought if it was not for the sheer bloody-mindedness of the company whose merger had been killed off, and could just as easily have commercially justified walking away from it but decided, "Up with this I will not put" and, therefore, brought the case as a matter of principle. It was only because someone was brave enough to do that that some of the ways in which these cases were being decided were scrutinised by the Court.

  Q218  Baroness Kingsmill: Sir Christopher, this whole process has been motivated by the desire to speed up things in Europe and that is the basis of the CBI's contention. From the evidence that you have given us so far, it would seem—my assessment of what you have said anyway is—that the language difficulties are as far as you can see at the moment the most difficult. Do you think if you could overcome that and could impose the kind of fixed timetables that you and I have both been accustomed to doing, would that solve the problem with the existing process? Is the Competition Court proposal taking a sledgehammer to crack a nut?

  Sir Christopher Bellamy: I think my answer is that it is going to be quite difficult to solve either of those problems in the existing structure and easier to tackle them on a clean-sheet basis with a new body or institution.

  Q219  Baroness Kingsmill: Because of the constitutional and political overtones of making these changes which sound simple but which would be fundamentally very difficult?

  Sir Christopher Bellamy: Yes, the sheer difficulty of doing it within the existing institution, changing mindsets and ways of thinking and the hearings.


 
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