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Thirty-Third Report of Session 2002-03 House of Commons European Scrutiny Committee Thirty-third Report of Session 2002-03 Documents considered by the Committee on 15 October 2003, including: Reduced rates of VAT Quality and safety of human tissues and cells Activities of OLAF and the fight against fraud HC 63-xxxiii House of Commons European Scrutiny Committee Thirty-third Report of Session 2002-03 Documents considered by the Committee on 15 October 2003, including: Reduced rates of VAT Quality and safety of human tissues and cells Activities of OLAF and the fight against fraud Report, together with formal minutes Ordered by the House of Commons to be printed 15 October 2003 HC 63-xxxiii Published on 30 October 2003 by authority of the House of Commons London: The Stationery Office Limited £0.00 Notes Numbering of documents Three separate numbering systems are used in this Report for European Union documents: Numbers in brackets are the Committee’s own reference numbers. Numbers in the form ‘5467/03’ are Council of Ministers reference numbers. This system is also used by UK Government Departments, by the House of Commons Vote Office and for proceedings in the House. Numbers preceded by the letters COM or SEC are Commission reference numbers. Where only a Committee number is given, this usually indicates that no official text is available and the Government has submitted an ‘unnumbered Explanatory Memorandum’ discussing what is likely to be included in the document or covering an unofficial text. Abbreviations used in the headnotes and footnotes EC (in ‘Legal base’) Treaty establishing the European Community EM Explanatory Memorandum (submitted by the Government to the Committee) EP European Parliament EU (in ‘Legal base’) Treaty on European Union GAERC General Affairs and External Relations Council JHA Justice and Home Affairs OJ Official Journal of the European Communities QMV Qualified majority voting RIA Regulatory Impact Assessment SEM Supplementary Explanatory Memorandum Euros Where figures in euros have been converted to pounds sterling, this is normally at the market rate for the last working day of the previous month. Further information Documents recommended by the Committee for debate, together with the times of forthcoming debates (where known), are listed in the European Union Documents list, which is in the House of Commons Vote Bundle on Mondays and is also available on the parliamentary web–site. Documents awaiting consideration by the Committee are listed in ‘Remaining Business’: www.parliament.uk/parliamentary_committees/european_scrutiny.cfm. The web–site also contains the Committee’s Reports. Contacts All correspondence should be addressed to the Clerk of the European Scrutiny Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 3292/5465. The Committee’s e-mail address is [email protected] ESC, 33rd Report, 2002-03 1 Contents Report Page Documents for debate 1 C&E (24783) Reduced rates of VAT 5 2 DOH (24598) Quality and safety of human tissues and cells 6 3 HMT (24811) (21814) Activities of OLAF and the fight against fraud 9 Documents not cleared 4 CA/SEJD (24782) Law applicable to non-contractual obligations 14 5 DEFRA (24189) Emissions of volatile organic compounds from solvents used in paints 20 6 DEFRA (24788) Incidental catches of dolphins and porpoises 23 7 DEFRA (24841) Atmospheric emissions from sea-going ships 25 8 DEFRA (24846) Controls on fluorinated greenhouse gases 27 9 DFT (24767) Motor vehicle type approval 29 10 DFT (24831) Global navigation satellite system 32 11 DFT (24840) European Maritime Safety Agency 35 12 DFT/HO (24535) (24480) Pollution from ships 38 13 DOH (24835) Establishment of a European Centre for Disease Prevention and Control 42 14 DTI (24786) Cross-border enforcement of consumer protection 44 15 DTI (24800) Implementation of the Directive on the posting of workers 47 16 DWP (24821) Social security schemes for people moving within the Community 49 17 FCO (24682) Promotion of “active European citizenship” 52 18 FSA (24763) Nutrition and health claims made on foods 55 19 HMT/DFT (24818) Road user charging 58 20 HO (24366) (24860) Minimum standards for procedures for granting and withdrawing refugee status 62 21 HO (24819) Access to Schengen Information System by vehicle registration authorities 67 2 ESC, 33rd Report, 2002-03 22 HO (24826) Assistance in the removal of third country nationals through the territory of other Member States 69 Documents cleared 23 DEFRA (24244) Descriptions of organic produce 71 24 DEFRA (24844) Use in stockfeeding of substances having a hormonal or thyrostatic action and beta-agonists 73 25 DEFRA (24867) Community accession to the International Plant Protection Convention 76 26 DEFRA (24886) Protection of deep-water coral reefs 77 27 DFID (24336) PHARE pre-accession assistance programme 79 28 DFID (24385) Food security policy in developing countries 81 29 DFID (24623) Environmental projects in the candidate countries 84 30 DFID (24651) Pre-accession assistance in 2001 86 31 DFID (24660) Supporting institution-building in the candidate countries through Twinning 88 32 DFID (24685) Assistance to the Democratic Republic of Congo 91 33 DFT (24187) Safety of road tunnels 93 34 DFT (24864) Single European Sky 95 35 DOH (22514) Advertising and sponsorship of tobacco products 97 36 DOH (24719) Medical devices 99 37 DTI (24776) Liability in the field of nuclear energy 102 38 DTI (24809) Information on investment in the nuclear sector 105 39 FCO (24891) (24917) EU Police Mission in Macedonia 107 40 HMT (24834) Annual activity reports of the Commission’s Directorates-General and Services 109 41 HO (24630) EU policy against corruption 111 42 HO (24825) Joint flights for the removal of illegally-resident third country nationals 114 43 IR (24850) Undeclared work 115 44 IR/C&E (24805) Taxation: mutual assistance 117 ESC, 33rd Report, 2002-03 3 Documents not raising questions of sufficient legal or political importance to warrant a substantive report to the House 45 List of documents 120 Appendix 1: reports on Council meetings held during a recess 127 Formal minutes 138 Standing order and membership 139 ESC, 33rd Report, 2002-03 5 1 Reduced rates of VAT (24783) Draft Directive amending Directive 77/388/EEC as regards reduced 11817/03 rates of Value Added Tax. COM(03) 397 Legal base Article 93 EC; consultation; QMV Department HM Customs and Excise Basis of consideration Minister’s letter of 17 September 2003 Previous Committee Report HC 63-xxxi (2002-03), paragraph 1 (10 September 2003 To be discussed in Council Not known Committee’s assessment Politically important Committee’s decision For debate in European Standing Committee B (decision reported on 10 September 2003) Background 1.1 On 10 September 2003 we recommended this draft Directive rationalising the present system of reduced rates of Value Added Tax (VAT) for debate in European Standing Committee B.1 The Minister’s letter 1.2 The Paymaster General (Dawn Primarolo) writes to inform us of developments since our recommendation for a debate. She says: “I thought it would also be useful to provide you with a quick update following the informal ECOFIN on 13 September, when the Commission proposal was discussed. We made clear that the proposal is unacceptable as it stands, and we have been insisting on the retention of our VAT rate derogations. In addition we have continued to pursue our long-standing proposals for reduced rates on church repairs and on energy saving materials for DIY installation. Other Member States also raised concerns about the Commission proposal. Some are in a similar position to the UK in that the proposal also challenges their politically sensitive zero rates (eg children’s clothes in Ireland). For others, the proposed changes to Annex H either go too far or not far enough. However, we think there is now a good possibility that Member States could reach consensus on the retention of Member States’ derogations and limited extensions to the Commission’s proposed Annex H. “The exact timing and handling of this dossier in Brussels is difficult to predict, but the Presidency remains keen to see swift progress and has proposed a high-level 1 See headnote. 6 ESC, 33rd Report, 2002-03 working party meeting of officials on 22 September, to work towards a compromise solution by the 7 October ECOFIN.” 1.3 The Minister also answers an enquiry we had made separately about the Government’s attitude to a reduced rate of VAT for labour-intensive services. Conclusion 1.4 The Minister’s update on discussions on the draft Directive and her response on the labour-intensive services issue are both relevant to the debate we have recommended. 1.5 We presume that in the continuing negotiation of the draft Directive the Government has emphasised that the document is still undergoing scrutiny in the UK Parliament. 2 Quality and safety of human tissues and cells (24598) Amended draft Directive on setting standards of quality and safety 10122/03 for the donation, procurement, testing, processing, storage and COM(03) 340 distribution of human tissues and cells. Legal base Article 152(4)(a)EC; co-decision; QMV Department Health Basis of consideration Minister’s letter of 2 October 2003 Previous Committee Report HC 63-xxvii (2002-03), paragraph 1 (25 June 2003) To be discussed in Council 2 December 2003 Committee’s assessment Politically important Committee’s decision For debate in European Standing Committee C Background 2.1 The Commission believes that, in view of the health and ethical considerations2 arising from the increasingly widespread use of human tissues and cells3 from living or deceased donors, and in order to increase public confidence, there should be Community provisions to ensure quality and safety, and to reduce the considerable discrepancies which exist in the coverage of existing regulations of Member States in this area.
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