Seán Sherlock (Cork East, Labour) | Oireachtas source

I thank members for giving me the opportunity to provide a summary of the outcome of the previous Competitiveness Council and discuss the agendas for the meetings in Luxembourg on 10 and 11 October. I will also briefly apprise the joint committee of my Department's priorities for the EU Presidency in 2013. I am accompanied by Mr. Tommy Murray and Mr. Pat Kelly from my Department and Mr. Tim Cullinane from the Department of Education and Skills.

I will begin by dealing with the outcome of the previous Council in May. It was a two day meeting attended by my colleagues, the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, who dealt with Internal Market and industry issues and the Minister of State at the Department of Jobs, Enterprise and Innovation, Deputy John Perry, who dealt with research and space issues on the second day. A ministerial informal lunch attended by Commissioner Geoghegan-Quinn and Commissioner Vassiliou provided an opportunity to review the achievements of the European Institute of Innovation and Technology, EIT, to draw lessons for the future, as well as to engage in an exchange of views.

Among the main decisions reached at the Council on research issues were: the Horizon 2020 framework programme for research and innovation; the EIT; and Council conclusions on European innovation partnerships. In respect of the Internal Market, decisions were reached on the competitiveness and SME programme, COSME, for the period 2014-20, the Single Market Act and the governance of the Single Market and the Digital Single Market. The Council agreed to the main elements of the COSME programme.

I now turn to the forthcoming Council meeting which will take place on 10 and 11 October.

The first day will deal with the research items and the second day will deal with the industry and Internal Market issues. My colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, will attend the Council on 11 October to deal with issues relating to the internal market and industry. I will deal with the research items.

On the research side, the main issues are a proposal for an amending regulation establishing the European Institute of Innovation and Technology. The debate during the ministerial lunch will consider the European Strategy Forum on Research Infrastructures, a proposal for a regulation of the European Parliament and of the Council on the rules for participation and dissemination in Horizon 2020 - the Framework Programme for Research and Innovation 2014-2020, and a communication from the Commission, A Reinforced European Research Area Partnership for Excellence and Growth. The European Commission will present its communication and associated recommendation on better access to scientific information.

On the Internal Market and industry side the main issues are: adoption of a Council regulation on a communication from the Commission, A European Consumer Agenda - Boosting Confidence and Growth; a presentation by the Commission of its mid-term review findings on the implementation of the EU flagship on industrial policy; a ministerial discussion devoted to the proposed improvements to the operation of the competitiveness council; another presentation by the European Commission on the cultural and creative sectors for creative growth in the EU; adoption of Council conclusions on key enabling technologies and the European innovation partnership on raw materials; and a debate on the state of play in relation to the Single Market Act I, initiated by the Cypriot Presidency.

I will deal initially and briefly with the Internal Market and industry issues. In terms of the consumer agenda, the European Commission published its communication A European Consumer Agenda - Boosting Confidence and Growth on 22 May 2012. The agenda is intended to support consumer interests in the areas identified by the consumer markets scoreboard as being most problematic for consumers, namely food, energy, financial services, transport services and digital services. The communication identifies four main objectives for the agenda: reinforcing consumer safety, enhancing consumer knowledge, improving enforcement and redress and aligning rights and key policies to economic and societal change. It also identifies key measures needed to empower consumers, boost their trust and put consumers at the heart of all EU policies as a means to achieve the Europe 2020 goals. The Presidency is seeking the endorsement of the communication by way of the draft resolution which it has tabled on the agenda.

Ireland endorses the agenda's four key objectives and acknowledges the significance of the consumer agenda in terms of its potential contribution to the Europe 2020 strategy for smart, sustainable and inclusive growth. Accordingly, Ireland is happy to support the draft resolution on the consumer agenda as proposed by the Presidency and is committed to working with other member states and the European institutions to ensure the timely achievement of the agenda's objectives.

Under the agenda item of the Commission's communication on industrial policy review, the Commission will present its mid-term review findings on the implementation of the EU flagship on industrial policy. This flagship, which was launched by the Commission in October 2010 under the Europe 2020 strategy, aims to boost growth and jobs by maintaining and supporting a strong, diversified and competitive industrial base in Europe offering well-paid jobs, while becoming more resource-efficient. The mid-term review of the industrial policy flagship will be published as a communication by the Commission in October 2012 and will review progress on implementing the flagship. I believe it will focus on developing a limited number of further initiatives to tackle the consequences of the economic crisis and that it can deliver sustainable results in the short to medium term. In general, as a priority, the review must deal with new instruments to address access to finance, especially for SMEs, and to promote SMEs and their inherent added value to a competitive industrial Europe. Strengthening the Single Market must also be of paramount importance.

The European Commission's communication on the strategy for sustainable competitiveness of the construction sector and its enterprises sets out a number of initiatives that are aimed at taking action to support jobs and provide opportunities in the sector. While we will never see a return to pre-recession levels of employment in the construction sector, we need an economy that plays to our strengths across a variety of sectors. Construction, therefore, still has an important role to play in helping to rebuild our economy. The communication notes that there are new opportunities for the sector that support the EU's objectives in moving to a low-carbon economy to take advantage of the emerging opportunities.

The European Commission will present its communication on cultural and creative sectors for creative growth in the EU. Ireland welcomes the initiative and looks forward to working with the Commission in developing programmes under the multi-annual financial framework, MFF, that will assist in the recovery of both the Irish economy and the European economy. It will be a difficult challenge but one to which the cultural and creative sectors can contribute strongly in a positive way.

On 26 June the European Commission tabled its strategy to boost the industrial production of key enabling technology-based products such as innovative products and applications of the future. The Council of Ministers will be asked to adopt the current conclusions and to welcome the Commission's communication entitled Making Raw Materials Available for Europe's Future Well-being - Proposal for a European Innovation Partnership on Raw Materials; call on the Commission to launch the European innovation partnership, EIP, on raw materials and to develop and finalise the strategic implementation plan by the end of 2013; and invite the Commission to report to the Council by the end of July 2013 on progress achieved in the raw materials EIP, particularly with regard to the strategic implementation plan.

Ireland supports the adoption of the Council conclusions. While we, with some other member states, remain sceptical about the added value of EIPs, we are prepared to support this initiative. Ireland's main concern has been to ensure that member states through the Council retain the right to approve EIPs and that EIPs are not a means to determine research priorities outside institutional procedures. These issues have been addressed satisfactorily from our point of view.

The Presidency will present a state of play report on the implementation of the 12 priorities under the Single Market Act I package. In the context of my Department's Presidency competitiveness agenda, there will be a particular focus on finalising those priorities in the Single Market Act I which have not yet been completed. My Department, through the interdepartmental committee on the Single Market and services directive, will co-ordinate with other relevant Departments on how the Cypriot Presidency proposes to deal with the Single Market Act II package and any individual files emanating from the Commissioner's proposals with a view to finalising agendas for relevant working groups during the Irish Presidency. We are looking forward to working collaboratively with the Council and Commission to ensure we finalise those measures that are not concluded by the end of the year and we are looking forward to the challenge of instigating work on the new measures announced by Commissioner Barnier in the next phase of the Single Market.

In regard to research issues, in November 2011 the Commission submitted to the European Parliament and to the Council its proposal for a regulation amending the original regulation which established the European Institute of Innovation and Technology. This has been intensively examined in the research working party and delegations have generally welcomed the Commission's proposal.

As the EIT will be an integral part of Horizon 2020, and implemented in accordance with its rules for participation and dissemination, an amendment to the existing regulation is needed to align EIT within Horizon 2020.

I shall comment further on Horizon 2020 - the Framework Programme for Research and Innovation 2014-2020. In the context of the negotiations on Horizon 2020, the EU's next funding programme for research and development, the Cypriot Presidency will propose a compromise text of the rules for participation and dissemination for approval by the Council of Ministers. As the proposal requires co-decision with the European Parliament, I expect trilogue negotiations between the Council, Parliament and Commission to be commenced under Ireland's Presidency. It will be a priority for me to complete these trilogue negotiations and secure agreement on Horizon 2020 during the Presidency.

With regard to European research areas or ERAs, the European Commission will make a presentation on a reinforced European research area partnership for excellence and growth. The overarching objective of the European Commission is to open up and connect EU research systems, thus leading to a significant improvement in Europe's research performance to promote growth and job creation. More joined up and smarter specialisation across member states will be a significant milestone en routeto a fully developed European research area and will avoid costly overlaps and unnecessary duplication of activities. The Irish Presidency will highlight the importance of joint programming in addressing the fragmentation of research in Europe and its role in contributing to the achievement of the European research area. On research careers, the Irish Presidency will provide an opportunity to assess progress and map out outstanding issues in the area.

With regard to better access to scientific information, the concept of open access to publicly-funded scientific data has been around for some time, having first been put forward by the Commission and endorsed by the Council. Progress on open access to scientific data has been slow due to a number of barriers identified in the Commission communication. In brief, these are: the potential of the Internet for improving access to scientific information has not been fully exploited; the low level of investment in the scientific dissemination system; the uneven and unco-ordinated actions by the different member states; the costs associated with the process of selecting, reviewing and publishing articles; and the lack of financing for rapidly emerging e-infrastructures and thematic data infrastructures for storing and providing access to data. In addition, funding has tended to be short lived and fragmented. It is often related to specific projects only and has not provided long-term solutions.

The Commission communication encourages all member states to intensify their efforts to implement open access and follows up the communication with a recommendation for endorsement by the European Parliament and the Council. It calls on the member states to implement open access and to report back to the Council on progress 18 months after the recommendation and every two years, thereafter. In order to give effect to this, each member state is instructed to designate by the end of 2012 a national point of reference whose tasks will be as follows: to co-ordinate the measures listed in the recommendation; to act as interlocutor with the European Commission on questions pertaining to access to and preservation of scientific information; and to report on the follow-up to the recommendation.

Ireland is supportive of the proposal to implement open access to scientific information and allows for the protection of legitimate commercial interests. We are conscious that there may be significant cost factors involved in establishing the necessary e-infrastructures for data storage. There may also be legal barriers to implementation across the EU which must be addressed.

There are a small number of "any other business" items on the agenda. Of significance are the items that relate to communication on enhancing and focusing international co-operation in research and the Single Market Act II, as mentioned earlier. I shall comment on the communication on enhancing and focusing international co-operation in research. The European Commission will present its communication dated 14 September entitled Enhancing EU International Co-operation in Research and Innovation. The communication sets out a new strategy to help the European Union maximise the opportunities presented by globalisation of research and innovation. Obviously the Single Market Act II is the second phase of the Single Market Act and comprises a new set of 12 priority actions. The Single Market Act II will be presented in the form of a Commission communication by Commissioner Barnier, as indicated earlier.

I shall now discuss the Department's priorities for the EU Presidency 2013. My Department will play a central role in driving the EU policy agenda embodied in the overarching policy theme of “Promoting sustainable economic growth and jobs and building Europe's competitive advantage".During its Presidency, Ireland will focus on measures to promote growth and employment in accordance with the compact for growth and jobs as agreed by Heads of State and Government in June 2012.

Research and development will be of major importance in highlighting the Department's innovation theme given its potential in contributing to economic recovery, competitiveness and growth in Ireland and across the Union. The Presidency will work with member states and the European Parliament to finalise the Horizon 2020 package and to promote further actions towards the completion of the European research area. The package includes support for European leadership in industrial development, developing the innovation capacity of SMEs and addressing grand challenges affecting society.

Further deepening of the Internal Market is required including identifying new opportunities as stated under the Single Market Act, improvements in Single Market governance and the operation of the services directive across Government and the economy. The ongoing implementation of Single Market Act measures that add greatest value to jobs, growth, competitiveness and investment will be key to the Department's Presidency competitiveness agenda.

During the Presidency, Ireland will seek to stimulate growth and job creation by bringing forward measures proposed by the Commission to reduce the regulatory burden on SMEs, by advancing the entrepreneurship agenda in Europe and by promoting smart regulation. In addition, the Commission's programme for competitiveness and SMEs, COSME, has been developed to facilitate access to financing for SMEs and should be significantly advanced during the Presidency. Proposals on the state aid modernisation will also be a prominent issue on the agenda. Ireland welcomes the initiative in light of post-crisis structural reforms and industrial restructuring and the alignment of state aid with Europe 2020 objectives.

Ireland attaches great importance to promoting the external trade agenda during its Presidency, underscoring the case for the Union leveraging its position as a major trading bloc in international negotiations. Ireland's aim is to support deeper transatlantic trade and investment ties, in particular, and to give an important impetus to EU-US trade negotiations, as well as economic, trade and investment relations with other strategic partners including India, China and Japan.

Working in the EPSCO formation with ministerial colleagues, we will follow-up on the Commission's communication on a job-rich recovery and work to secure adoption of the proposed new instruments on the youth guarantee and the quality framework on traineeships. We will also carry forward the EU's 2020 flagship initiatives called new skills, new jobs and youth opportunities initiative. We will manage the semester process resulting in country specific recommendations on employment and take forward an array of dossiers, most notably, posting of workers, the European Social Fund regulation and portability of pensions.

Throughout the summary I have tried to capture the key agenda items. Given the diverse nature of the agenda and that it is still being developed through the various preparatory groups in Brussels it is not possible to cover all of the detail at this stage. Ireland, in its EU Presidency role, will provide opportunities to manage and progress the EU agenda. I have outlined my Department's priorities that aim to advance and contribute to improving Europe's global competitiveness and promote economic growth and to create jobs.