Select Committee on Delegated Powers and Regulatory Reform Seventh Report


APPENDIX 1: EUROPEAN UNION (AMENDMENT) BILL


Memorandum by the Foreign and Commonwealth Office

1.  This Memorandum describes the purpose and content of the European Union (Amendment) Bill, and explains why powers have been included to make delegated legislation and the nature of, and reason for, the procedure selected for the exercise of these powers.

Background and purpose of the Bill

2.  The Bill will amend the European Communities Act 1972 and thereby enable the United Kingdom to ratify the Lisbon Treaty amending the Treaty on European Union and the Treaty Establishing the European Community ("the Lisbon Treaty"). The Lisbon Treaty was signed on behalf of the United Kingdom on 13 December 2007. The main provisions of the Bill will -

  • amend section 1 of the European Communities Act 1972, by adding the Lisbon Treaty to the list of treaties set out in section 1(2), with the exception of those provisions of the Treaty that concern the European Union's Common Foreign and Security Policy;
  • make, and provide power to make, changes in Acts and instruments made under an Act in consequence of the changes made by the Lisbon Treaty affecting terminology;
  • record Parliament's approval of the increase in the powers of the European Parliament, as provided for in section 12 of the European Parliamentary Elections Act 2002;
  • provide that any future treaty amending the principal EU Treaties must be approved by Act of Parliament before the United Kingdom may ratify it;
  • provide that, where a draft EU decision is proposed under certain listed Treaty provisions, the vote of the United Kingdom may not be cast in favour of adopting the decision, unless Parliamentary approval has first been given.

3.  The Bill includes one power to make subordinate legislation, in subsections (4) and (5) of clause 3.

Clause 2: Changes of terminology

4.  Article 1(2)(b) of the Lisbon Treaty inserts in Article 1 of the Treaty on the European Union (TEU) a new third paragraph as follows:

The [European] Union shall be founded on the present Treaty and on the Treaty on the Functioning of the European Union (hereinafter referred to as "the Treaties"). Those two Treaties shall have the same legal value. The Union shall replace and succeed the European Community.

5.  The Lisbon Treaty amends other provisions of the TEU and of the Treaty establishing the European Community, which it renames as the Treaty on the Functioning of the European Union (TFEU).

6.  The Lisbon Treaty also makes large-scale changes in the numbering of the articles in the TEU and the TFEU. Article 5 of the Treaty and the Annex to which it refers provide for the renumbering in accordance with a table of equivalences.

7.  Clause 2 makes general provision to reflect the consequent changes in terminology.

  • A definition of "the EU" is added in the European Communities Act 1972 (subsection (1)).
  • References to the EU in an Act or an instrument made under an Act are to include reference to the European Atomic Energy Community (Euratom) where the context either permits or requires such an interpretation (subsection (2)).
  • References in an Act, or an instrument made under an Act, to the original Communities - the European Community, the European Coal and Steel Community or Euratom - or to those European Communities collectively, are to be treated as referring to the EU, or as including a reference to the EU, as the case may require (subsection (6)).
  • The Schedule, which sets out substitutions of terminology in the European Communities Act 1972 and the Interpretation Act 1978, is introduced by subsection (3).

Power to make other amendments as to terminology

Powers conferred on: the Secretary of State or the Treasury

Power exercisable by: order

Parliamentary procedure: negative resolution

8.  Subsections 3(4) and (5) enable the Secretary of State or Treasury to modify Acts or instruments made under Actsto "reflect changes in terminology or numbering" arising from the provisions of the Lisbon Treaty. This power is included since it would be impracticable to seek to include in the Bill all the modifications which may be necessary to adapt legislation to take account of changes in terminology and the numbering of articles in the Treaties.

9.  The scope of the power is limited to making amendments in order to reflect changes, that arise from the Lisbon Treaty, in terminology or numbering - ie. not to make changes of substance. The reference in clause 2(4) to "other amendments" relates back to subsection (3) and the Schedule which sets out amendments of terminology in the European Communities Act 1972 and in the Interpretation Act 1978.

10.  It was possible to include the amendments in subsection (3) and the Schedule in the Bill. They illustrate the type of amendment contemplated by the order-making power.

11.  An order made under the power may include incidental provision - clause 2(5)(a). The ambit of that aspect of the power is limited by the general limitation as to scope.

12.  The Department considers that the Negative Resolution procedure is appropriate, notwithstanding the fact that the power may be used to amend primary legislation, having regard to the limited scope of the power. Parliament's ability to scrutinise the provisions made under the power is not removed, but the power is to deal with matters with which the Department considers Parliament would not expect to be burdened, other than exceptionally.

Power to make provision for entry into force of Clause 3 (and Schedule)

Powers conferred on: Secretary of State

Power exercisable by: order

Parliamentary procedure: none

13.  Subsection (1) of Clause 8 enables the Secretary of State to provide by order made by statutory instrument for Section 3 (and the Schedule) to come into force. Under subsection (3), the other provisions of the Act come into force on Royal Assent. It would not however be appropriate for provisions amending existing United Kingdom legislation to reflect changes in terminology made by the Lisbon Treaty to come into force prior to entry into force of the Lisbon Treaty itself. This power will enable these provisions to be brought into force at the same time as the Lisbon Treaty.

14.  Subsection (2) of Clause 8 provides that an order made under subsection (1) may make provision generally or for specified purposes only; may different provision for different purposes; and may include incidental, transitional and consequential provision.

15.  This flexibility may needed were it necessary, for example, to bring into force the order-making power in subsection 4 of Clause 3 earlier than the other provisions of that Clause. It might also be necessary, for example, to make different provision for different purposes where the legislation to which Clause 3 is to be applied contains different texts for different purposes.

Foreign and Commonwealth Office

March 2008


 
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