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Chamber and committees

Finance Committee, 22 Feb 2000

Meeting date: Tuesday, February 22, 2000


Contents


European Union Funding

The Convener:

We now move on to item 2 on the agenda. Before the meeting, members were given a copy of a letter written to me by Andrew Wilson and Bruce Crawford. This morning, I also received a letter from Keith Raffan, asking me to put the item on the agenda. That is why we are discussing the subject.

Members may be aware that, this afternoon, the European Committee is taking evidence from two members of the European Commission directorate general for regional policy. It might be interesting to sit in on part of that meeting. Andrew and Bruce requested a joint meeting of the two committees. I understand that the general presumption is that committees will not hold joint meetings. That is not to say that such meetings are impossible. It would be possible to hold a joint evidence session on a particular subject, but that would have to be sanctioned by the Parliamentary Bureau. Whether the bureau would sanction such a meeting remains to be seen.

As joint signatory of the letter, perhaps Andrew would like to outline the reasons for discussing the subject.

Andrew Wilson:

Given the debates of the past fortnight—of which members will be well aware—and the requests from Keith Raffan, David Davidson's colleagues, and the three smaller parties, there seems to be consensus on the need for an inquiry. We requested a joint meeting because the Finance Committee has a specific focus on the financial aspects and the European Committee has a close handle on structural funding and allocation issues—it has already spent some time considering the matter. The subject usefully dovetails with the interests of both committees.

I am not sure what you meant by "presumption", convener. I have not seen that term in the standing orders. Provision for joint meetings is made in standing orders, if the bureau is approached accordingly. I do not see any reason why we should not hold a joint inquiry. The matter is of enough substance to support a joint approach.

The only other issue is timing. The matter was brought so quickly to the attention of both conveners because three issues came to a head at once, putting it at the top of the public agenda: the publication of the Welsh Affairs Committee report, the publication of a year-long study by the Institute of Welsh Affairs in Cardiff and recent events in the Welsh Assembly. All of those issues require us to consider the matter of structural funding timeously.

Mr Raffan:

I thought it would be useful to hold an inquiry, although I take a different tack from Andrew in that I do not think that we have to do it jointly with the European Committee. In my letter, I suggest that we co-ordinate with the European Committee because the remit overlaps and we do not want to offend another committee. However, it is clear that the specific areas that I outlined—additionality rules and matched funding—fall within the remit of the Finance Committee, rather than within that of the European Committee. It is perfectly legitimate for us to examine the matter.

This area has been a running sore—if I can put it that way—for as long as I have been involved in politics. The matter was raised constantly when I was at Westminster. It has arisen recently in an unhelpful party political context, but I shall try to be non-partisan about it.

The Welsh experience is relevant, as there could be a knock-on effect. The situation in Wales is very different: objective 1 funding there has greatly increased, whereas we have lost objective 1 funding for the Highlands and Islands and the funding is now transitional. The committee should consider the Welsh Affairs Committee report and John Osmond's Institute of Welsh Affairs report, to clarify the situation and ensure that the rules are being operated transparently.

That is fair. We can draw too close a parallel with Wales—there is no parallel with objective 1 and objective 2 funding there. The difference has been highlighted during the past two or three weeks.

Mr Davidson:

I have some sympathy with Keith Raffan's view. The two committees should be involved, but their involvement should be different. We need to satisfy ourselves that the European context in the block grant is being thoroughly explored. That could be part of a projected look at the Barnett set-up, quite apart from our examination of the general use of finance. The European Committee comes at the issue from a slightly different angle. Its view—which you have heard from its convener—concerns the connections with Europe. We are considering how resourcing is applied in Scotland, how we access it, and whether it is distributed correctly. That is the remit of this committee. We do not need a joint inquiry. We should run separate inquiries, but have constant contact with the other committee.

That point makes an important distinction.

Rhoda Grant:

If the European Committee is carrying out an inquiry at the moment, would it not be wise for us to wait until it has reported before we begin our own inquiry? We are taking informal briefings on the Barnett formula. We may want to take some informal briefings on this issue as well while we are at it, as the two are closely related. After the European Committee has reported, and depending on its findings, we can decide how to proceed with our own inquiry. We do not want to duplicate the work of the European Committee.

The Convener:

I understand that the European Committee is currently carrying out an inquiry. I have a copy of the agenda for today's meeting. It is headed:

"Review of the European Structural Fund Management Executives and their relationship with the Scottish Executive".

It is taking evidence on that subject today.

Elaine Thomson:

Committee resources are quite tight. We must be careful not to duplicate the work of another committee. It would be useful for us to allow the European Committee to complete its inquiry and await the outcome. Two weeks ago, we agreed to proceed with briefings on the Barnett formula as a priority issue. David Davidson's suggestion was helpful: within those briefings we can perhaps consider some of the European issues.

Yes, there is a fairly obvious connection with the Barnett formula.

Andrew Wilson:

The European Committee is addressing an entirely separate issue—the management of the funding programmes. The words are the same, but the content is quite different. We will have a meeting with the convener of the European Committee on Wednesday morning. As that committee is likely to have a similar discussion this afternoon, and as this is a finance issue rather than a European one, should we not take soundings from the European Committee on its views and return from the meeting with coherent suggestions? We cannot decide on a course of action in isolation, given the fact that the letter has been sent to the European Committee as well.

That is a sensible suggestion. We need not make a decision today on what work the committees should undertake jointly.

Perhaps a suggestion could be made at the meeting on Wednesday that could be taken back to both committees next Tuesday.

Mr Raffan:

It is important that we co-ordinate. Additionality rules and matched funding are, as David Davidson said, separate issues in our remit. I want this committee to focus on those issues.

I agree with Andrew Wilson that the European Committee is pursuing a completely different inquiry, judging from what you just read out, convener. That committee has a different focus altogether. We cannot keep waiting to find out what other committees do.

I was not suggesting that the European Committee's inquiry is the same as ours.

Mr Raffan:

I never said that you were, convener, but that is what one or two other committee members are suggesting. These are major issues. We cannot keep putting off discussion of them or adjoining them to briefings on other issues. Sooner or later, we must tackle them. We are undertaking a specific inquiry at the moment, and there is the question of time, but I am happy with Andrew's proposal that you co-ordinate with the European Committee. That is important for our good relations with that committee.

The Convener:

Is anyone not of the view that that is how we should proceed? The European Committee meets today and there will be discussions with the convener of that committee tomorrow. Should we await the outcome of both those meetings and return to this matter next week?

Members indicated agreement.

Thank you for your attendance.

Meeting closed at 11:36.