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


SERVICES DIRECTIVE (8143/06)

Letter from the Chairman to Rt Hon Ian McCartney MP, Minister for Trade, Investment and Foreign Affairs, Department of Trade and Industry/Foreign and Commonwealth Office

  Thank you for your letter of 24 July 2006.[43] Sub-Committee B considered your letter at its meeting on 9 October.

  We are grateful to you for your update on the progress of the Services Directive through the European Parliament, and look forward to a further update in advance of the Second Reading. We also look forward to receiving your response to our report, The Services Directive Revisited,[44] which was published on 24 July.

10 October 2006


Letter from Rt Hon Ian McCartney MP to the Chairman

  Thank you for your letter of 10 October, concerning my letter on preparation for the Second Reading in the European Parliament. By now you will have already received my response to the points made in your report entitled "Services Directive Revisited".

  Regarding the Second Reading, it appears, by gauging opinion from my meetings with key MEPs, that the majority of MEPs wish to avoid re-opening the debate on the Services Directive, in recognition of the compromises made by the Council in order to achieve an acceptable result. I will continue to urge MEPs against amending the Directive, so that we do not lose vital substance at the final hurdle. The European Parliament's Internal Market and Consumer Protection Committee, which leads on the directive, made the welcome decision not to propose any changes to the text at its vote on 23 October.

  I now expect the second reading vote to take place on 15 November and will write again then to inform you of the outcome.

31 October 2006

Leter from Rt Hon Ian McCartney MP to the Chairman

  Further to my letter of 19 October 2006[45] responding to the EU Internal Market Sub-Committee's report on EM 8413/06, and my letter of 31 October, I am writing to update you on the outcome of the European Parliament's vote on the second reading of the Services Directive, which took place on 15 November 2006.

  The Parliament voted through three technical amendments (related to comitology—which are attached)—which means that the political agreement reached at the 29 May Council, which the UK strongly supported, has been preserved. The Directive continues to achieve a good balance between opening up EU markets to service providers whilst ensuring standards are maintained in important areas such as health and safety and employment law. Pressure to dilute the liberalising elements of the Directive were resisted and the scope remains unchanged. I am sure that the Committee will agree that this is an excellent result.

  We expect the Directive incorporating the European Parliament's three second reading amendments to be formally adopted by the Council in the very near future, possibly at the 4 December 2006 Competitiveness Council and published soon thereafter. There will be three years to transpose the Directive.

  As the Committee recognised, implementation will be key to reaping the huge benefits offered by the Services Directive and my officials have begun working with government departments, the Commission and other Member States to try to ensure there is EU-wide consistency in the approach and effective transposition. I should like to take this opportunity to respond to Lord Grenfell's question in his letter of 3 November 2006. The implementation period was extended in recognition of the large task ahead. The UK is well advanced in its implementation planning and we are, with the Commission, encouraging other Member States to start the process now and build on the current momentum. We have already begun working with some Member States and expect to work closely with all in the coming year.

  The Committee is well aware that negotiations on this Directive were turbulent. We are now at the stage where formal adoption is imminent, and although all Member States made compromises, I am pleased that we have achieved a text which is genuinely beneficial to the EU, and particularly to the UK, service sector.

  I am very grateful to the Committee for their swift and thorough examination of the draft Directive and I will of course ensure that the Committee is alerted to any future developments including the publication of the final text.

24 November 2006

Letter from the Chairman to Rt Hon Ian McCartney MP

  Thank you for your letter of 24 November 2006 which Sub-Committee B considered at its meeting on 4 December.

  We were grateful to you for your updates following the European Parliament's second reading of the Directive, and pleased that only technical amendments were made. As you will have gathered from our report, we share your assessment that "implementation will be key" to the success or failure of the Directive in delivering genuine progress on the liberalisation of the EU's services sector.

  We are therefore reassured by your promise to work closely with the Commission and with other Member States to ensure that the Directive is evenly and thoroughly implemented across the EU. In particular, it is vital that Member States are not rewarded for reluctance or half-measures in establishing the points of single contact for service providers established in other Member States. Unless these are set up properly, the Directive will not provide for a single market in any meaningful sense.

  We would like to extend our thanks to you, and through you your Department, which has kept the Committee informed with the "turbulent" progress of the Services Directive in exemplary fashion,

  We share your hope that this Directive will constitute a genuine step forward, and although we regret some of the revisions which the current text embodies, we recognise that compromise was necessary.

  We would be grateful to you if you could write to us further after the December Competitiveness Council.

6 December 2006

Letter from Rt Hon Ian McCartney MP to the Chairman

  Thank you for your letter of 6 December 2006. I note with gratitude your appreciative remarks.

  You will be pleased to learn that the Directive was officially published on 27 December 2006. We can provide a copy of the final text to the Clerk of Sub-Committee B.

  The implementation project is now underway and the DTI will be consulting relevant government departments, competent authorities and interested parties throughout the duration of the project to ensure we implement effectively.

  The Committee may wish to be aware that the European Commission are planning a series of workshops for Member States on specific aspects relating to implementation. The first workshop, is scheduled for mid-February on the "points of single contact". The UK will be one of the lead speakers. These workshops will be a good opportunity to exchange experience between Member States on the requirements and challenges associated with the implementation of points of single contact and to encourage the development of best practice.

  The DTI will shortly be launching a study involving a wide spectrum of UK and European businesses on what the Directive's requirements mean in practical terms and what our users would find most useful from both the UK Points of Single Contact and those elsewhere. The results will help us to develop an effective and useful website and will be used in our regular contacts with the Commission, other Member States and stakeholders at UK and EU level. We shall also be encouraging other Member States to undertake some similar work with their stakeholders and potential users.

  The Department will continue to update you on developments at key stages of the project.

15 January 2007

Letter from the Chairman to Rt Hon Ian McCartney MP

  Thank you for your letter of 15 January 2007, replying to my letter of 6 December 2006. Sub-Committee B considered your letter at its meeting on 5 February.

  We were very grateful to you for your update on the Services Directive, which we have followed particularly closely as you are aware. As we have noted before in our follow-up report, The Services Directive Revisited, as well as in our corespondence with you, the implementation of the Directive by Member States, particularly of the points of single contact, will be key to its success or failure.

  We look forward to hearing updates from you on the progress of the cooperation between the Commission and interested parties, and will liaise with the House of Lords Select Committee on the Merits of Statutory Instruments as and when secondary legislation arises in the UK.

7 February 2007



43   Correspondence with Ministers, 40th Report of Session 2006-07, HL Paper 187, pp 135-136. Back

44   38th Report of Session 2005-06, HL Paper 215. Back

45   Remaining Government Responses Session 2004-05; Government Responses Session 2005-06, HL Paper 182, pp 141-143. Back


 
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