EUROPEAN COMMITTEE Tuesday 11 February 2003 (Afternoon) Session 1 £5.00 Parliamentary copyright. Scottish Parliamentary Corporate Body 2003. Applications for reproduction should be made in writing to the Licensing Division, Her Majesty’s Stationery Office, St Clements House, 2-16 Colegate, Norwich NR3 1BQ Fax 01603 723000, which is administering the copyright on behalf of the Scottish Parliamentary Corporate Body. Produced and published in Scotland on behalf of the Scottish Parliamentary Corporate Body by The Stationery Office Ltd. Her Majesty’s Stationery Office is independent of and separate from the company now trading as The Stationery Office Ltd, which is responsible for printing and publishing Scottish Parliamentary Corporate Body publications. CONTENTS Tuesday 11 February 2003 Col. EMPLOYMENT AND CORPORATE SOCIAL RESPONSIBILITY INQUIRY .............................................................. 1877 REPRESENTATION IN THE EUROPEAN UNION ........................................................................................... 1899 EMPLOYMENT AND CORPORATE SOCIAL RESPONSIBILITY INQUIRY .............................................................. 1904 SCOTTISH EXECUTIVE (SCRUTINY) ......................................................................................................... 1915 CONVENER’S REPORT .......................................................................................................................... 1918 SIFT .................................................................................................................................................. 1922 EUROPEAN COMMITTEE 3rd Meeting 2003, Session 1 CONVENER *Irene Oldfather (Cunninghame South) (Lab) DEPU TY CONVENER *Mr John Home Robertson (East Lothian) (Lab) COMMI TTEE MEMBERS *Sarah Boyack (Edinburgh Central) (Lab) *Colin Campbell ( West of Scotland) (SNP) *Dennis Canavan (Falkirk West) *Helen Eadie (Dunfermline East) (Lab) *Mr Lloyd Quinan (West of Scotland) (SNP) Nora Radcliffe (Gordon) (LD) Ben Wallace (North-East Scotland) (Con) COMMI TTEE SUBSTITU TES Dr Winnie Ewing (Highlands and Islands) (SNP) Tavish Scott (Shetland) (LD) *attended WITNESSES Dominique Bé (European Commission) Kevin Doran (Scottish Executive Enterprise and Lifelong Learning Department) Iain Gray (Minister for Enterprise, Transport and Lifelong Learning) Antonis Kastrissianakis (European Commiss ion) CLERK TO THE COMMITTE E Stephen Imrie ASSISTANT CLERK Dav id Simpson LOC ATION The Chamber 1877 11 FEBRUARY 2003 1878 Scottish Parliament outline the EC’s proposals for the new European employment strategy up to 2010, with a particular focus on governance and how relevant actors can European Committee be better involved in the process. Finally, I will say a few words from a Commission perspective on Tuesday 11 February 2003 the perceived involvement of Scotland in the European employment strategy. (Afternoon) The employment strategy is a relatively new and pathbreaking method of European Union policy [THE CONVENER opened the meeting at 14:03] making that has pioneered the open method of co- ordination. The process began as a result of the Luxembourg jobs summit in 1997, and its initial Employment and Corporate aim was to strengthen policy co-ordination among Social Responsibility Inquiry member states in the fight against unemployment. The European employment strategy was later embedded in the Lisbon strategy, which has a The Convener (Irene Oldfather): Good broader and ambitious focus to deliver full afternoon, colleagues. I welcome members to the employment and produce a knowledge-based third meeting of the European Committee in 2003. society. It gradually moved from a strategy that I would welcome members of the public, but I do would combat unemployment to one whose aim not think that we have any this afternoon. was full employment with more and better jobs. The first item on the agenda is an evidence- The strategy is based on the employment title of taking session on Europe’s employment strategy the Treaty of Amsterdam, which implies that the and corporate social responsibility. Before we member states agreed to give the EU a certain continue, I should note that we have received competence in the field of employment. They have apologies from Nora Radcliffe, who is attending a conceded that employment is a common concern meeting of the Rural Development Committee. and have committed themselves to implementing Furthermore, John Home Robertson has to give employment policies in a co-ordinated way that evidence to the Finance Committee this afternoon, promotes competitiveness, equal opportunity and which means that he has to leave a little bit early. welfare in the EU as a whole. That is particularly I am pleased that our witnesses from the crucial in the context of economic and monetary European Commission have been able to travel to union. give evidence to us and I welcome them to the The open method of co-ordination is an meeting. First, I introduce Antonis innovative way of achieving such an aim and Kastrissianakis—I think that I pronounced that combines the action of communities, institutions better last time—and Jim Allen, from the and member states and, beyond that, the employment strategy unit of the EC’s employment contributions of the various other actors to the and social affairs directorate-general. We would process. A key element is benchmarking. Through be happy for you to take a few minutes to make that and peer review, the member states, with the some introductory comments, after which we will Commission’s co-operation, examine the ask you some questions. effectiveness of policies and exchange best Antonis Ka strissianakis (European practice. Commission): Thank you. This is an appropriate As for the process itself, the Commission and time for such a discussion and for the committee the Council of the European Union present an to be holding such an inquiry, as we are in the annual joint employment report to the spring process of reviewing and refocusing the European European Council. The report illustrates the main employment strategy in order to meet the achievements in reforming labour markets, details employment challenges that face Europe. In the strengths and weaknesses of member states’ January, the EC published its initial views on employment policies and sets out the priorities for revising the strategy, which will be hotly debated reform. Based on those priorities, the Council’s among member states and lead to new guidelines conclusions and a proposal from the Commission, that should be adopted in June or July. the Council agrees a series of commitments for I want to cover three issues by way of action, which are otherwise known as the introduction. First, I will give the committee a brief employment guidelines for the member states. historical outline to show how far we have come. Moreover, on another proposal from the Within that, I will highlight the aims, objectives and Commission, the Council decides by qualified operation of the employment strategy and the majority to issue country-specific open method of co-ordination. Secondly, I will recommendations. Every member state then highlight the reasons why we need change and draws up a national action plan that describes how 1879 11 FEBRUARY 2003 1880 the guidelines will be put into practice. That should growth across Europe. Arresting that decline in involve a wide range of partners at member state productivity growth demands significant level—unions, employers, devolved investment in human capital and more priority to Administrations, local and regional authorities and, be given to improving work organisation and often, the national Parliaments. The Commission quality at work. then examines the action plans with a view to Significant qualitative changes have also taken drawing up a Commission draft for the joint place in national employment policies, with a clear employment report for the following year. That is convergence towards the priorities that are laid how the cycle continues. down in the employment guidelines. That is most I shall say a few words about the strategy for the notable for activation and prevention of long-term period 1997-2002. Since the start, the employment unemployment; more employment-friendly tax and guidelines have committed member states to benefit systems; the adaptation of education and undertaking concrete action in four priority areas, training systems; the introduction of more flexible or pillars, for the European labour market: working patterns; and gender equality employability, entrepreneurship, adaptability and mainstreaming. The European employment equal opportunities. strategy has also proven its value in terms of working methods. National polices have become The employability pillar deals with increasing better integrated and articulated. The access to the labour market for the unemployed, management-by-objective approach and the open ensuring that they have the right skills and method of co-ordination have fostered new ways incentives and promoting an inclusive labour of working, both at EU and national levels. market. The entrepreneurship pillar addresses the creation of an entrepreneurial culture by making it I now turn to the need for change based on the easier to start and run a business and to employ evaluation that we have conducted. Both people in it. The adaptability pillar tackles the evaluation and past experience have confirmed issue of making employed people and the the positive role of the strategy in supporting organisation