Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I thank the members for the opportunity to appear before the joint committee today to discuss the forthcoming Telecommunications and Energy Councils on 5 and 12 December, respectively.

I will start by dealing with the Telecommunications Council. I understand the committee already has a copy of the draft agenda. The Lithuanian Presidency will provide the Council with progress reports on two dossiers, first, the proposed network and information security directive and, second, the proposed regulation on broadband cost reduction. Both these files are an important part of the EU's digital agenda.

There will also be an orientation debate on the recent Commission proposals on the single telecoms market, also known as the connected continent initiative. The primary purpose of this debate is to provide some guidance and direction to the incoming Greek Presidency in terms of how best to manage this important and detailed file when it assumes the Council chair in January next.

Under the any other business part of the agenda, the Presidency will provide the Council with information on the files relating to trans-European telecommunications networks, and electronic identification and trust services for electronic transactions. It is not anticipated that there will be any discussion on either of those two issues.

The forthcoming Council should be viewed in the context of the recent European Council, which had a specific digital theme. The conclusions of that Council meeting stated, inter alia, that the Heads of State wanted to see the completion of the digital single market by 2015. The European Council welcomed the presentation of the Commission's connected continent package and encouraged the legislature to carry out an intensive examination with a view to its timely adoption.

The draft network and information security directive relates to cyber security and proposes that member states be required to adopt national network information security strategies, designate national competent authorities and establish computer emergency response teams. It sets out standardised procedures for dealing with the increasingly sensitive area of cyber security and proposes an enabling power for the Commission to specify mandatory reporting obligations in regard to security breaches on public administrations and on critical infrastructure operators.

In general terms, Ireland welcomes the proposal although it is seeking clarifications on the precise scope of the directive. A number of member states are of the opinion that the proposed obligations on market operators and public administrations to assess and report risks posed to their information systems, as well as taking the necessary steps to deal with such risks, are too onerous. Striking the balance between commercial sensitivity and mitigating risks through information sharing will be an important feature of the final text on this directive. I expect discussions on the detail of this file to continue through next year's Greek and Italian Presidencies. I am conscious that the joint committee has expressed a wish to hold a meeting with my officials on this particular proposal and I have asked my colleagues to contact the joint committee with a view to arranging such a briefing as early as possible.

In respect of the progress report on the broadband cost reduction proposals, I understand the committee has already had an opportunity to discuss the detail of this file with my officials a couple of months ago. In common with most other member states, Ireland's primary concern in this regard is with the proposed legal instrument. While the Commission is proposing a regulation, the majority of member states would favour the greater flexibility a directive gives when taking into account existing national mechanisms for dealing with the issues and aims of the proposal. Subsequent to last year's publication of both the next generation broadband task force report and the national broadband plan itself, my officials have been working with fellow Departments and local authorities and agencies with a view to streamlining and introducing greater consistencies into the consent and planning processes around the installation of telecommunications and broadband infrastructure. I am very conscious of the extent to which civil engineering contributes to the costs of these investments and I hope that our initiatives in this area can have a positive impact on reducing overall capital investment requirements for telecommunications operators. My Department is also continuing to work to ensure that it leverages, as much as possible, the existing State-owned infrastructure, again with a view to reducing the overall investment burden.

Much of this territory is covered in the Commission's draft regulation and the Government's aim is to ensure the measures being proposed are as effective as can be and as has been achieved to date in Ireland and do not cause additional complexity. In the Government's view, a directive would be a preferable legal instrument that would allow member states such as Ireland to adapt legal principles to suit local circumstances. A number of member states have expressed concerns about the impact of the proposed regulation on property rights, a concern which Ireland shares. It will be important to resolve these issues as this proposal moves forward to ensure the proposals are effective and workable. Much scrutiny work remains to be done on this proposal at working group level and I therefore expect no discussion or debate on the subject at Council next week.

The final substantive item on the Council agenda is the proposal on the single telecommunications market. I understand the joint committee recently engaged with my officials on this matter and has issued a considered opinion on the subsidiarity aspects of the Commission's proposals. The concerns raised by my officials during their appearance before this joint committee a few weeks ago have been echoed by a number of member states at recent meetings in Brussels. The European Council, in its October conclusions, noted the need for intensive scrutiny of the proposal, which will assist in ensuring proportionate and effective outcomes from this measure. The Lithuanian Presidency will chair an orientation debate on this issue at next week's Council. This proposal is relatively new, having only been published in September. I expect that member states will reiterate their support for a digital single market during the debate but will also signal the need for time to consider this new proposal in detail. It is worth reminding members that during the previous Transport, Telecommunications and Energy Council on telecommunications held in June last, which I chaired in Luxembourg, Ireland facilitated a policy debate on the concept of a single telecommunications market. Although this debate was prompted before the Commission had published its proposals, it provided an opportunity for member states to signal any issues that were likely to be of concern.

Two key perspectives on policy emerged from that ministerial discussion, the first being that market consolidation across Europe may not be in the long-term interests of competition or consumers and the second being that spectrum is a national strategic asset and must be safeguarded for economic and other reasons. I believe Ministers are very likely to hear a repeat of these key messages when they gather in Brussels again next week. I am glad that the Lithuanian Presidency has devoted much of the agenda to a debate on this topic, as the Government has consistently underlined the need for in-depth and intense debate on it. The Commission always has been proactive in promoting a seamless digital single market and this initiative seeks to accelerate progress towards this end. Additional consumer protections, the elimination of roaming and other regulatory measures are all welcome ambitions and the Commission has a strong track record of delivery in these areas. It is important, however, to have a measured and considered debate on this proposal to ensure the goal of a single European digital market is achieved as effectively as possible and to continue to support vital investments in telecommunications infrastructure and services.

At the Council next week, Ireland will highlight the continued need for the Union to maintain a stable and pro-investment regulatory framework, while continuing to progress the various elements of the digital agenda targets. I am pleased to note that files which were prioritised during the Irish Presidency have been progressed by the Lithuanians, in particular the file on electronic identification, which will be the subject of a report under any other business. Clearly, it is in the interest of Ireland and Europe to have a fully functioning, seamless digital market across Europe. All of these measures contribute to that goal, which aims to increase Europe’s competitiveness and ensure an more inclusive society for all of its citizens.

In respect of energy matters, the Council will deal with one legislative file, which is the draft directive on indirect land use change and Ministers are expected to adopt a common Council position on this file. As for non-legislative activities, the Council will consider two reports, one on the internal energy market and the other on external energy relations. These reports are being presented by way of follow-up to the European Council of 22 May 2013.

With regard to the fuel mix in the transport sector, the 2009 renewable energy directive set a target of 10% of transport fuels from renewable sources by 2020. This target is binding on all member states. The directive also requires that all biofuels used to meet the 10% target must comply with certain sustainability criteria, that is, they must not be made from feedstocks sourced from certain categories of land and must achieve certain greenhouse gas emissions reductions. In October 2012, the Commission proposed a set of amendments to this directive and to the fuel quality directive to mitigate the potential effects of indirect land use change, ILUC, occurring as a result of the use of certain biofuels, sending a clear message to the market that second generation biofuels were preferable to biofuels made from food crops. One amendment proposed was to limit the contribution that certain crop-based biofuels can make towards renewable energy targets for transport in European Union member states. I share the concerns that biofuel production and its use, unless properly regulated, could have a negative impact on food production and on food prices. Moreover, first generation biofuels also could lead to increases in greenhouse gas emissions, which would be contrary to the objectives of the renewable energy directive. In this regard, Ireland has argued for a restriction on first generation biofuels and for incentives to encourage the development of advanced biofuels that do not affect food production. Ireland’s preference is to see as low a cap as realistically achievable to mitigate the potential conflict between biofuel use in the EU and land use in the developing world, and the potential for higher greenhouse gas emissions from certain categories of biofuels.

This has been a complex file with views expressed across a broad spectrum, from arguments that it does not adequately address the risk of ILUC emissions to concerns about its impact on investment and jobs. However, I understand that the Lithuanian Presidency is confident of securing a qualified majority at Council with respect to its text, which includes a cap of 7% on biofuels from food crops and the requirement that member states report to the Commission on the feed stocks used in making biofuels. Ireland has supported the Lithuanian Presidency's efforts to reach agreement on this proposal and although, regrettably, a lower target is proposed, Ireland can agree to the overall text as a package in the context of a negotiation with the Parliament in 2014, and we will indicate that next week.

The Presidency will present a report on completion of the EU internal energy market by 2014, as a follow-up to the 2013 European Council's conclusions on energy. The report is to be adopted at the Energy Council on 12 December and submitted to the European Council in March 2014.

The Presidency's report covers a range of issues concerning the completion of the internal energy market, IEM, including demand side issues; further empowerment of the energy consumer and protection of vulnerable consumers; the need for further discussion on generation adequacy and capacity mechanisms; and the importance of joint solutions to problems and of information exchange between member states, particularly on matters with potential implications for other member state. In addition, the five energy policy priorities identified by the European Council, namely, the single energy market, investments, diversification of energy sources, energy efficiency and competitiveness, are also addressed in the Presidency's report.

The report highlights the importance of the TEN-E Regulation 347/2013 on guidelines for trans-European energy infrastructure adopted in April to end energy isolation, and states that the first list of projects of common interest, covering 248 projects spread over 12 priority corridors and areas, marks an important milestone for the implementation of a fully interconnected trans-European energy network.

With regard to investor certainty, the report states that a clear framework for climate and energy policies for 2030 is required. In March 2014, the European Council will discuss policy options for the 2030 framework, having regard to the Commission's 2013 Green Paper, A 2030 Framework for Climate and Energy Policies.

The Presidency's report also notes the ongoing discussions on the Commission's proposed directive on the deployment of alternative fuels infrastructure; the Commission's plans to adopt guidelines on state aid for energy and environmental protection in 2014 so as to ensure that subsidies do not unduly distort the internal energy market; the updates on a number of programmes which will fund energy related measures; and the development by member states and the Commission of an action plan to implement the integrated roadmap which will prioritise the development of innovative solutions for the European energy systems in the future by mid-2014.

With regard to diversification, energy efficiency and pricing, the Presidency's report refers to the work being done by the Commission on an environment, climate and energy assessment framework to enable safe and secure unconventional hydrocarbon extraction, which is expected to be published before the end of this year.

The draft report contains updates about progress made by member states on the implementation of the energy efficiency directive and on the rate of transposition of the 2010 directive on the energy performance of buildings. It urges member states to define and clarify the relevant regulatory and policy framework for nearly-zero energy buildings.

The report also lists the actions being taken to address the impact of high energy prices and costs, in the context of the EU competitiveness, including reviewing whether a new approach is needed on long-term contracts in the EU wholesale gas market. In addition, the report looks forward to the presentation by the Commission of its analysis of the composition and drivers of energy prices and costs, as requested by the European Council. That analysis will form the basis of further discussion on the factors underlying increasing energy prices and costs.

The report concludes by stating that sustained efforts are needed to achieve the 2014 goal set for completion of the internal energy market. It identifies three priorities for attention: harmonisation through implementation of the third energy package; development of energy infrastructure without delay; and effective application and enforcement of EU rules on market integration and energy efficiency for a level playing field for companies operating in the EU.

In May 2013, the European Council called on energy ministers to follow up on their 2011 conclusions on the Commission's 2011 communication on security of energy supply and international co-operation, entitled The EU Energy Policy: Engaging with Partners Beyond our Borders. Following the Commission's review in September 2013, and discussions with member states, the Lithuanian Presidency prepared a draft report dealing with the main elements in the global energy landscape since 2011.

The report identifies the most significant issues since the adoption of the conclusions in November 2011 as the continued growth of unconventional oil and gas production in the US, increased exports of US coal to the European Union leading to increased use of coal in electricity generation and reduced use of gas-fired plants in the EU - the competitiveness of European energy intensive industries has been affected; the potential for shale gas exploitation in the EU has become a significant issue in terms of security of supply and competitiveness; and new sources of fossil fuels are emerging, most significantly in the eastern Mediterranean.

Competitiveness continues to be a significant issue in Europe and energy prices are a major contributor to the debates. The Commission is working on an analysis of the composition of energy prices and costs and will present this in January 2014 as part of the climate and energy 2030 framework package. The topic for discussion at February European Council is competitiveness.

During the discussion at the September 2013 ministerial meeting in Vilnius, Ministers noted the significant progress on the energy community treaty, which will be the model framework for developing energy relationships with other countries and regions. For example, there is a possibility that a similar energy community will develop from the Union for the Mediterranean.

Work on modernising the energy charter continues and membership has increased. Russia has still not ratified the treaty. However, it has paid its outstanding dues up to 2009 and continues to engage with the charter. The aim of the ministerial session on 5 December is to assess the last 15 years of practice and theory in energy investment promotion and protection under the treaty. The Lithuanian Presidency's text on the energy charter will be approved at COREPER on 29 November and presented to the Energy Ministers' December Council for endorsement.

Under any other business, there will be a presentation on the work programme of the incoming Greek Presidency and an update on recent development in the nuclear energy field.

It is expected that the Greek Presidency will deal with only one legislative measure, namely the ILUC file, which will inevitably be affected by the European Parliament elections. The priority issue for the Greek Presidency is likely to be progress on the climate and energy 2030 framework. The European Councils in February and March will discuss competitiveness and the 2030 framework, respectively. The Greek Presidency will have input into both European Councils. The March Energy Council is also likely to discuss the 2030 framework. The other priority issue for the Greek Presidency will be the protection of vulnerable energy consumers.