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Competitiveness Council

Volume 406: debated on Tuesday 3 June 2003

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To ask the Secretary of State for Trade and Industry what the outcome was of the Competitiveness Council held on 19 May 2003; what the Governments stance was on the issues discussed, including its voting record; and if she will make a statement. [115280]

I represented the United Kingdom at the Competitiveness Council on 19 May 2003.There was a presentation of the Commissions three-year Internal Market Strategy. For the UK, I welcomed the Strategy warmly whilst emphasising the relevance of improving competitiveness, the importance of better regulation, and member states role on enforcement.The Commission presented its latest Single Market scoreboard, focusing on the increase in the transposition deficit, the rising number of infringement cases against the member states, and also warning that enlargement will exacerbate these difficulties. The UK maintained its satisfactory record.The Council adopted the directive revising standards for the essential requirements of metrological instruments.There was agreement on the regulation on drug precursors, which lay down reporting requirements by companies on movements of precursor chemicals for illicit drugs.There was agreement on the amendment of the directive on sweeteners for use in foodstuffs.The Council adopted the proposed detergents regulation, setting harmonised rules and testing conditions for the biodegradability of surfactants. I secured key UK objectives of reducing implementation costs for SMEs and ensuring commitment to reduce animal testing.Agreement was reached on the 26th amendment to the dangerous substances directive laying down harmonised market restrictions on nonylphenol and chromium VI in cement.There was a discussion on the sales promotion regulation. It concluded that in its present form agreement could not be reached, and work will therefore be taken forward under the Italian Presidency. I spoke, with strong support from the Commission, supporting the principle of mutual recognition.There was a discussion based on a Presidency questionnaire covering the consumer credit directive. This resulted in broad agreement on the Commissions objectives of a single market in consumer credit, a high level of consumer protection and the need to maintain progress on this revision of existing EU laws. Additionally, there was general agreement that flexibility was needed so as not to erode existing consumer protection measures indigenous to national markets. I spoke on the need to remove secured lending from the scope, due to the different. risks associated with this far more complex form of lending.

Agreement was not reached on the Takeovers directive, with four options being discussed; the directive has been passed back to officials for further work.

There was a report of the informal meeting on tourism (Crete, 6 May 2003), from which a report will be published on the European tourism sector, to be presented to the Competitiveness Council in November.

There was also a report from the informal meeting on consumer policy (Eretria, 8 May 2003). Conclusions on developing a knowledge base for consumer policy and the forthcoming Commission proposals on enforcement co-operation and unfair commercial practices, were noted without discussion.

I spoke for the UK, with the support of France, warning of the impacts upon competitiveness of the proposed environmental liability directive.

The Council also noted the Presidency's progress report on the Community Patent.