§ Sir Roger MoateTo ask the President of the Board of Trade what representations he has received about the cost to British companies caused by the application to contracting for services of the Transfer of Undertakings (Protection of Employment) Regulations 1981 and the acquired rights directive; what is the policy of Her Majesty's Government in this matter; what progress is being made in securing changes to the directive; and if he will make a statement. [23589]
Mr. John M. TaylorMy Department has received a great many representations concerning the financial and practical implications of the application of the EC acquired rights directive to contracting for services. The Government do not believe that the directive was generally intended to apply to the contracting out of a service or to the transfer from one provider to another of a contract to supply services, nor is it suitable for such circumstances.
Despite several rulings by the European Court of Justice, uncertainty still exists about the application of the directive. The Government believe that such uncertainty can be resolved only by amendment of the directive itself, and have sought, with the support of several other member states, changes to it. The European Commission brought froward a proposal in September 1994 to amend the directive in a number of respects. It has not been possible to reach agreement on the basis of that text but the Government will continue to press for changes to the directive. We expect the Commission to bring forward a revised proposal shortly.