Correspondence with Ministers October 2006 to April 2007 - European Union Committee Contents


FINANCIAL INSTRUMENT FOR THE ENVIRONMENT (LIFE+) (13071/04)

Letter from Ian Pearson MP, Minister of State for Climate Change and Environment, Department for Environment, Food and Rural Affairs

  I am writing to update you on the European Parliament's second reading of the proposed Regulation on the Financial Instrument for the Environment (LIFE+).

  During the debate in plenary on 23 October 2006 the rapporteur presented a report containing 31 amendments to the Council's Common Position. All amendments were adopted by a large majority together with an additional amendment asking the Commission to ensure that provisional measures were put into place to avoid a financing gap for current activities.

  The main issue of contention with the Council is the delegation of administration of 80% of the funds to Member States. The European Parliament rejected this approach and wish the Commission to take the leading role in the instrument's administration. Other important issues are the European Parliament's wish to increase the overall budget by €50 million (£33.5 million) to €1.911 billion (£1.278 billion) and to increase the proportion of the budget allocated to nature and biodiversity from 40% to 55%. There are several minor amendments which are acceptable as written, or in principle, to both the Council and the Commission.

  The Commission, Council and European Parliament will now enter into discussions in trialogue to make progress on the outstanding issues. At present no timetable has been set for these discussions.

  I will, of course, inform the Committee once we have new lines for the negotiation.

21 November 2006

Letter from Ian Pearson MP to the Chairman

  I am writing to update you on the conciliation process for the proposed Regulation on the Financial Instrument for the Environment (LIFE+).

  Following informal discussions between the Presidency and the European Parliament a formal conciliation meeting took place on 27 March 2007 and agreement was reached on the LIFE+ Regulation.

  The main points agreed which are different from the Council's Common Position are:

    —  The overall budget is increased by €40 million to €1.894 billion (2004 prices). The European Parliament wanted an extra €50 million allocated to the programme but agreed to leaving €10 million in the margin for the budget heading.

    —  The Commission will now administer the programme instead of delegating 80% of the budget to Member States to administer through National Agencies.

    —  At least 78% of the budget shall be used for project action grants. The remaining 22% will be spent by the Commission on cross-cutting measures and the administration of the programme. This is essentially the same as the Common Position where 80% was to be delegated to Member States of which 2% was allowed towards the administration costs. The Commission will now use 2% of the budget for administration leaving 78% for project action grants.

    —  At least 50% of the budgetary resources dedicated to project action grants shall be allocated to support the conservation of nature and biodiversity. This is similar to the Common Position where 40% of the total budget was to be used for nature and biodiversity.

    —  The Commission shall endeavour to ensure that at least 15% of the budget for project action grants is allocated to transnational projects.

  Overall, this was a good outcome for the UK with the final agreements on the main issues being within our negotiating lines.

26 April 2007



 
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