§ Mr. HoodTo ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held on 19 March; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [104559]
§ Dawn PrimaroloI attended the ECOFIN meeting on 19 March in my capacity as Chair of the Code of Conduct Group. The UK Permanent Representative and Jon Cunliffe represented the UK.
ECOFIN considered the tax package and all member states but one reached political agreement on the text of the Savings Directive, the text of the Interest and Royalties Directive and the results of the Code of Conduct Group. ECOFIN reaffirmed their commitment formally to adopt the tax package as soon as possible.
At ECOFIN all delegations except Austria reached political agreement or the taxation of energy, based on proposals for an energy products directive put to the council to the 11 December 2002 ECOFIN meeting. At an informal Finance Ministers meeting on 20 March in the margins of the European Council, Austria agreed to lift their reservation. ECOFIN will adopt the energy products directive once consultation with the European Parliament and with accession countries has been completed. The energy products directive will, from 1 January 2004, increase the existing Community minimum rates of duty on oils (with a second increase in the minimum rate of duty on diesel from 1 January 2010), and provide a Community framework, with minimum rates of duty, for the taxation of other energy products: electricity, natural gas, coal and other solid fuels.
253WThe directive meets all of the UK's main interests. In particular, the directive preserves the UK's right to exempt domestic and charity non-business use of energy from the climate change levy.
The Council heard a request from the Italian delegation concerning the application of article 88(2) to measures to compensate farmers for milk quotas fines in Italy.
No votes were taken at the meeting.