Internal Market Council (Hansard, 21 June 1991)

§ Mr. Redwood

I attended the Internal Market Council on 18 June, the last of the Luxembourg Presidency. My right hon. Friend the Member for Norfolk, South-West (Mrs. Shephard) attended for the item on baggage regulation. A number of measures were agreed, and in particular, significant progress was made in two single market priority areas for the United Kingdom—public procurement and insurance.

356W

In public procurement, there was agreement in principle to a common position on the directive on legal remedies in the utilities sector. This will ensure compliance with the directive agreed in 1990 on public procurement in this key sector (in the same way as a similar directive will ensure compliance with the earlier supplies and works directive).

The two insurance items agreed will pave the way for further progress towards the single market in insurance. Agreement on the directive on insurance company annual accounts provides a common framework of accounting rules for insurance undertakings, including Lloyd's. The second measure provides for an insurance committee to give expert assistance to the Commission in the exercise of implementing powers conferred by insurance directives, and to advise the Commission on the preparation of new proposals in insurance.

The Council also reached a common position on the draft regulation concerning checks on baggage of persons travelling on intra-Community flights or sea crossings. The Government successfully negotiated to retain essential United Kingdom frontier checks against drugs and other items. However, the United Kingdom still had significant objections relating to the infrastructural costs for airports and potential inconvenience to passengers; and to the proposed operative date of the regulation (1 January 1993). The Government therefore voted against.

The Council agreed to a common position on the regulation on the collection of intra-Community trade statistics. United Kingdom concerns that the proposed system would be burdensome to business were reflected in a Commission statement for the minutes.

The Council also adopted measures previously agreed at Council as common positions. These included the weapons directive (on which a common position was reached at the December Internal Market Council); two amendments to the directive restricting the marketing and use of dangerous substances (the 10th amendment adding cadmium, and the 11th amendment adding Ugilec 121, Ugilec 141 and DBBT); and the Council decision to release an additional 25 million ecu (£17.5 million) for the Community budget for small and medium-sized enterprises for 1990–93.

There were policy debates (without a vote taken) on a number of issues: the proposed second directive on diplomas; the proposed directive on sweeteners in foodstuffs; and the location of a Community trade marks office. The Council revisited the draft council resolution on trans-European networks, but Spain continued to seek additional finance for the proposal, preventing agreement to the draft resolution as it stands. The Presidency made progress reports on the draft regulation to create a supplementary protection certificate for medicinal products; and on the draft regulation to create a European company statute. All these subjects are likely to be considered again at future Councils.

Finally, the Commission presented its sixth annual report on implementation of single market measures, and the Luxembourg Presidency made a report on progress over the last six months towards completion of the single market. The United Kingdom, along with France and Denmark, were congratulated on their good implementation record for single market measures.