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Chamber and committees

European Committee, 23 Nov 1999

Meeting date: Tuesday, November 23, 1999


Contents


Priorities

The Convener:

The first item on the agenda is a presentation from the Convention of Scottish Local Authorities. Councillor Christine May, who is the COSLA spokesperson on European issues, is here with Adrian Colwell and Jon Jordan. We invited COSLA to give the committee its thoughts on the development of the Scottish Parliament's European agenda and, possibly, to indicate how it would like the future relationship between Scottish local government and the Scottish Parliament to develop.

From my previous activity—I am perhaps slightly biased—I think COSLA is probably at the leading edge of European work, at both political and officer levels. It has helped to shape much of the European dimension in Scotland. Many of us are appreciative of the work that COSLA has done and will, doubtless, continue to do. Without further ado, I hand over to Councillor May.

Councillor Christine May (Convention of Scottish Local Authorities):

At the outset, I wish to thank you, convener, for inviting me to make this presentation to the European Committee. My firm belief, which is based on 11 years' experience of dealing with European issues in local government, is that a successful relationship in European terms is firmly based on a successful partnership with all those involved. That includes all politicians, individual members of the community, the business community and the academic community, and is the basis of my approach to working on European issues.

I will outline the growing partnership that Scottish local government has with the institutions of the European Union. Members will be aware that COSLA has produced a paper on its relations with the European Union, the structure of which largely follows the framework proposed in the questionnaire circulated by the committee to partner organisations.

It must be emphasised that the European Union has a great influence on the Scottish domestic policy agenda and a major effect on the policy competences where responsibilities lie with the Scottish Parliament and local government. Most local government services have a European dimension and each treaty seems to include more competences at a European level in which Scottish local government has an interest. For example, the Amsterdam treaty was ratified earlier this year and included new competences in employment creation and social inclusion. It also extended competences in the area of equal opportunities.

There is a proud record of innovation in Scotland in these policy areas, which are important for local government. As I have said before, there is a growing recognition that complex policy problems need action from all spheres of Government. Problems such as the fight against unemployment and against drugs and the need for greater social inclusion are in that category, and all spheres of Government must work closely to produce effective solutions.

Scottish local government's involvement with the European Community goes back to the early 1980s, when local government began to use the structural fund programmes to fund capital projects aimed at economic development and training projects. By the time that local government reorganisation was proposed, most of the regional councils and the larger district councils had teams of European officers. The Single European Act 1986 and the Maastricht treaty extended European competences so that many new competences were shared with local government. The Single European Act 1986 produced the single European market 1992 campaign, and over half the 200 measures proposed had an effect on Scottish local government. The importance of local and regional government was recognised in the Maastricht treaty, through the creation of the Committee of the Regions. I have the great pleasure of serving on that committee with the convener, Hugh Henry, and Irene Oldfather.

The Committee of the Regions is an advisory body with 222 members drawn from the 15 member states. It must be consulted on a wide range of issues, including regional development, education, training, transport, public health and social policy. Not only has it been successful in outlining the role of local and regional government in the European Union, it has served as a valuable forum to exchange views with local and regional government politicians from the 15 member states.

I turn to the four distinct areas of European interest for Scottish local government. They are co-funding of projects with the European Union; the implementation of European legislation; the influence of the European Union on local communities and the business community; and the exchange of experience and best practice between European, local and regional government. I will discuss each of those areas briefly.

Since the European Committee began its work in July, it has spent a significant amount of time considering the future of the structural funds. That has also been an important issue for COSLA and for Scottish local government. We have played a strong role in the partnerships that were created after the 1988 reforms and we are major users of the funds to help to deliver our economic development strategies. In many respects, the structural fund partnerships have been extremely effective in Scotland and have promoted partnership working across many other areas of the public sector. They are important in terms of local government and the Scottish public sector generally. They greatly assisted the diversification of the economy and are helping to create a modern economy.

While the mainstream funds are important, there are grants for European projects in a wide range of policy areas; for example, the community initiatives project, which provides for jobs in spatial planning, training, equal opportunities and urban projects. There is also co-financing of local authority projects available in education, culture, youth work and environmental projects. Those projects are transnational in nature and thus promote greater co-operation between communities across the European Union.

The second area of interest is the implementation of legislation. Scottish local government is the enforcing agency for environmental legislation, particularly environmental health, and consumer protection and trading standards. It is also bound by directives such as the landfill directive and other waste disposal and environmental regulation.

Collectively, Scottish local government is the largest employer in Scotland and therefore an enormous amount of health and safety, employment and equal opportunities legislation affects the way in which member authorities operate. Recent examples are the working time directive and the parental leave directive, which comes into effect, I think, on 15 December. COSLA currently holds the presidency of the employers platform of the Council of European Municipalities and Regions, which was formed to represent local government as employers and which has developed an effective dialogue with the Commission and with the European Public Services Union.

The third area of interest is the way in which the European Union affects local communities and local businesses. That became most noticeable under the Single European Act 1986 and the 1992 single market campaign, which stressed the freedom of movement of people, goods, services and capital. That has a major impact on many areas of council work: as education providers, where we must provide our children with skills so that they can work and live in Europe; and in terms of business support, where we advise businesses of the greater trade opportunities associated with our membership of the European Union.

The exchange of experience and best practice is an important aspect of our relationship with our European counterparts in local and regional government. Diversification in rural areas, for example, is a problem shared with other rural areas of the European Union. The restructuring of traditional industrial areas is equally shared with our partner states. We must work closely with colleagues throughout Europe to devise new solutions and exchange best practice. The European Union makes money available for transnational projects to stimulate the exchange of experience.

As well as taking part in and leading transnational projects, Scottish local government has taken a leading role in European organisations such as the Assembly of European Regions and the Conference of Peripheral Maritime Regions of Europe. My own council is an active member of the Assembly of European Regions and of the European Regions of Industrial Technology. We are closely involved with the North Sea Commission, which, as I am sure many committee members will be aware, was largely responsible for getting the INTERREG IIC programme up and running. That has brought benefits to maritime and northern dimension areas.

At your previous meeting, politicians from Saxony-Anhalt spoke to the committee on the 10th anniversary of the removal of the Berlin wall. The former Strathclyde Regional Council devised and operated one of the first major exchange of experience programmes to central and eastern Europe, through the ECOS-Ouverture programme.

You can see from what I have said that Scottish local government has a successful record of partnership with European institutions and of co-operation with local and regional government across the European Union and into the wider Europe—as we must not forget the applicant states, which are important. That partnership and co-operation has helped to develop best practice and strengthens the local government voice. That helps when local government across Europe agrees a common position, which it does frequently through the Committee of the Regions.

Through COSLA, we have had an effective dialogue with the European Community for many years. In the 1980s, COSLA helped to establish the Local Government International Bureau with colleagues from English local authority associations and joined with other associations across Europe to promote and share the common interests of local government. COSLA's activity in structural funds began in 1989, when it established a structure to administer the local authority European social fund programmes.

In 1993, COSLA established an office in Brussels, which was located in the Scotland Europa centre. It worked with business to help to promote Scotland. COSLA feels that membership of Scotland Europa has been successful and that Scotland Europa has provided a strong focus for Scottish activities in Brussels. COSLA has worked closely with partner organisations in Scotland Europa to ensure that there is one voice speaking for Scotland. We look forward to the new opportunities to do that, together with the Parliament, in Scotland House.

There are five officers working on European policy in COSLA's Edinburgh and Brussels offices. COSLA consults with member councils on forthcoming proposals from Brussels, influences European institutions through its advocacy strategies and informs member councils of European funding programmes and legislation. We have a European members network, which meets quarterly and each council nominates a member, who, I am pleased to say, is usually the leader or a senior member of the administration.

COSLA provides the secretariat for the four Scottish members of the Committee of the Regions and, with the Local Government International Bureau, it provides the secretariat to the UK delegation, so we speak with a common voice for the UK when that is agreed. COSLA and LGIB also provide the secretariat to the United Kingdom local authority delegation to the Council of Europe. That is another partnership link which is important for getting a coherent strategy for Scotland in Europe.

The Brussels office has been important in providing information and intelligence in both directions. It promotes greater contact between the European institutions and Scottish local government and allows us to work more closely with other associations. It plays a key role in our relationship with the Council of European Municipalities and Regions and with the European local authority network.

I will now discuss the relationship between local government and the Scottish Parliament and its importance for producing a Scottish strategy. We must be aware of the challenges that Europe faces. Enlargement to the east is essential to preserve peace and prosperity but will change the nature of the Union. We must have a debate in Scotland to discuss enlargement and the opportunities that it will bring. With the discussions about the intergovernmental conference beginning next year, it is important that there is a Scottish view on enlargement. The Committee of the Regions last week adopted a resolution on enlargement following a successful conference. That demonstrates a good way of discussing an issue, then taking a position.

Another area where the public and democratic sector of Scotland needs to work closely together will be economic and monetary union. Whether we go into the single currency or not, it will have an impact on business, particularly on Scottish companies that export or supply to multinationals. We must work closely together to ensure that Scottish companies are ready for this challenge. This has begun through the Scottish Euro Forum; the public sector, together, now needs to build on the work of that forum.

The EU is trying to promote the information society. Many of the projects promoted by the Commission establish regional and local networks to examine the effects on economic structures, on society and on Government.

One of the Scottish Parliament's key objectives is to bring government closer to the citizen, which is an important consideration, particularly in relation to matters about Europe and the European Union.

It can be seen from what I have said that relations with the European Union are extremely important for local government. Local government has a successful track record, but we must emphasise the need to work with the Scottish Parliament to pursue the collective interests of the Scottish people. The public sector in Scotland must work together if Scotland is to continue to have the good relationship with the European Union that it has enjoyed until now. A key part of that will be partnership between the Scottish Parliament, COSLA and Scottish local government.

I am happy to answer questions, convener.

You have given us a comprehensive overview of COSLA's work. I am happy to throw the discussion open to members, but do either of the officers want to say something first?

Adrian Colwell (Convention of Scottish Local Authorities):

We will take questions during the discussion.

Bruce Crawford (Mid Scotland and Fife) (SNP):

Thank you, Christine, for your in-depth evidence. I, like the convener, am a former leader of a council. I am, therefore, a bit disappointed in the number of responses that we have received to our questionnaire: we have received four and four are yet to come, which is a low number. At this stage, that could be as much to do with the perception of this committee's role in the debate on Europe as anything, but how does COSLA think that we can increase the level of response for future consultation processes and ensure that we hear the real voice of Scottish local government? That is not meant to be disparaging to COSLA, but there are distinct voices out there that need to be heard.

Enlargement and the euro are two of the big issues that will affect Scotland in the future. At a time when the number of member states of the European Union is set to increase, how does COSLA believe that we can broaden the perspective of the European Union while deepening the Union to ensure that it lasts? It would also be useful to have a bigger steer on COSLA's view of the euro. How does local government see the euro?

Do you want all that answered at one meeting, Bruce?

I am sorry. I realise that I have asked a lot. I apologise if I have hogged things somewhat.

Councillor May:

I will invite the officers to comment on those questions also. I am pleased to say that Fife Council is one of the councils that have responded to the questionnaire. I am not aware which others have responded. It may well be that the response that COSLA submitted encapsulated the views of many of the others. We must recognise that many local authorities are relatively small in size and do not have dedicated European officers. As a result, the service that COSLA provides as part of its role of core donation, pulling together and advising on European matters, is quite adequate for the purposes of many councils.

Bruce Crawford:

I probably put you at a bit of a disadvantage by not telling you which councils had responded. Dumfries and Galloway, Fife, Perth and Kinross and Stirling Councils have all responded, as one might have expected. However, I expected the city councils, in particular, to become involved in the discussion.

Adrian Colwell:

In addition to lodging a response to the questionnaire, COSLA sent a copy of our European and international affairs work plan priorities for 1999-2000. There was extensive consultation on that document with officers and politicians of the 32 councils. That may reinforce what Councillor May has said about why more councils have not responded. That is a point that we wish to raise with our council members directly as well as encouraging individual responses.

Ms Margo MacDonald (Lothians) (SNP):

Is there anything that we as a committee can do to reach your members? We would all complain if there were too many bureaucrats, but how can we make sure that a European attitude permeates all of a council's operations? How much time is given in COSLA's annual conference this year to the consideration of European matters?

The Convener:

A number of Bruce's questions are still outstanding. On the question of the response from the councils, we should bear in mind that if every local authority in Scotland wanted to engage with us directly, we would find it hard to cope. It is useful to have COSLA to co-ordinate the response of Scottish local authorities and it gives a clear Scottish line that most, if not all, local authorities sign up to. I would not want to encourage anything that would detract from that; it is to everyone's benefit to have thorough debate in COSLA.

Councillor May:

European issues often permeate councils through service committees, and frequently you find European matters being dealt with in varying ways. Of greatest importance is that local authorities play their part in developing the programmes that broaden local knowledge of European funding, institutions and opportunities.

I referred earlier to the work that COSLA has done on the structural and social funds and in developing partnerships on those. That is an area where it is more difficult to pull out responses to specific questions put in the committee's paper, but is, none the less, a very important part of the work of all Scottish local authorities. In terms of representing the collective Scottish view in Brussels, my experience of local authorities across the political spectrum is that they feel that they can all sign up to the COSLA position, once agreed, and they feel that their broad interests are represented by it.

On Mr Crawford's question on enlargement and the euro, again there are specific things that COSLA has done and can continue to do. It has perhaps not done as much yet on enlargement as remains to be done. When Irene Oldfather was in local government, she did a significant amount of work on the euro, producing a handbook and convening a number of seminars on it that formed the basis of many local authorities' work with their economic development partners, to give information to businesses.

It is through that kind of work, beginning in a policy paper at COSLA and going on to work in individual authorities, that we can broaden and deepen the interest. This committee and the Scottish Parliament can usefully sign up to the partnership that existed before the Parliament with our political colleagues in the UK and across Europe. Dissemination of information, sharing of good practice and bringing the European ideals to bear on day-to-day policy planning underline how important membership of the European Union is to the Scottish economy, the Scottish way of life and the future development of Scotland.

I referred to the work that COSLA has already done on the euro. We have received a number of presentations from the Treasury on where the national information campaign and the national changeover plan are headed. Those presentations were very useful, and the information from them has gone out to local authorities. The Parliament might want to liaise formally with COSLA and local government on preparation for the euro. That would mean that when you have set your priorities—not just on the euro, but on other things—we will go forward with a work programme that involves us all pulling in the same direction.

Mr Jon Jordan (Convention of Scottish Local Authorities):

COSLA does not have a view on when the single currency should be introduced; that is a matter for the UK Government. However, it is important that local government and business are prepared for the single currency, which already exists and affects our relationship with the euro zone. We must make our economic development services aware of the impact of the euro on exporters, so that they can prepare for it. Exporters will have to take strategic decisions when doing business with the euro zone.

We also need to be prepared for the impact that the UK's joining the euro would have on local government services. We run very complex information technology systems in our finance departments and have vast amounts of machinery that would need adaptation. The earlier we plan for the single currency, the more cost effectively we can carry out our preparations. We have tried to make that clear through the handbook that we have issued to member councils. We are not taking a view on the single currency but, as sensible and far-sighted public servants, we are preparing for any eventuality.

Could you answer Margo's question, before I bring in Dennis Canavan and Irene Oldfather?

It was on the specifics of the information campaign that is being directed at business. I am also a member of—

No, I was referring to the question that you had already asked. You are not getting a second bite of the cherry.

I asked another question because I could see that I was not going to get an answer to my first one.

Councillor May:

I would be delighted to answer Ms MacDonald's question. I am sure that she will recall that this year's COSLA conference was on the theme of the establishment of the Scottish Parliament and its impact on political life in Scotland. Europe will be on the agenda for the conference that is scheduled for this year.

Can I come?

Councillor May:

We would be delighted to see you.

Dennis Canavan (Falkirk West):

Could you explain the role of COSLA in determining the membership of certain European bodies, such as the Committee of the Regions and the consortia? I am referring to the East of Scotland European Consortium and the West of Scotland European Consortium, which scrutinise applications for European funding and have a considerable say in deciding whether a project satisfies the criteria and how much money it should be awarded. Is COSLA consulted about the membership of those important bodies? Is there a case for their membership being decided by a more democratic process?

Councillor May:

I can respond to your question with regard to the Committee of the Regions, because I am very familiar with that. I will come back to the other matters that you raised in a moment.

The current mandate of the Committee of the Regions was agreed before the establishment of the Scottish Parliament. For that reason, its UK contingent was made up of representatives of local government. In Scotland, COSLA made nominations to those positions to the Secretary of State for Scotland at one of its full meetings. The secretary of state agreed the nominations and forwarded them to the UK Government for approval.

Given that the Scottish Parliament now exists, we do not know what will happen in the next mandate. In our submission to McIntosh, who consulted on European matters, I expressed the view that there should be parity: half of the places should be allotted to the Scottish Parliament, and the other half to local government. However, as far as I am aware, it has been agreed that the current representation will remain until the end of its four-year term.

I think that you may be confusing the east of Scotland European partnership and the west of Scotland European partnership with the consortia that you mentioned, which are different organisations. I will ask one of the officers to comment in detail on the selection process for the partnerships, but I was pleased to note that Jack McConnell, the Minister for Finance, recently agreed that their membership should be extended to democratically elected political representatives.

Adrian Colwell:

At present, local authorities in the east and west of Scotland and in the Highlands and Islands are directly involved in the regional programme partnerships, which both develop the strategies that will be implemented up to the end of this year and have a say in deciding which projects should be funded. The partnerships include local enterprise companies, colleges, universities, the voluntary sector and so on.

In a press release of 12 October, Mr McConnell announced that in the next phase of programming, starting in January 2000, the programme monitoring committee—the strategic body of the partnerships—would be opened up to elected members. The Executive has started a process of consultation about how that should be implemented. Like you, we are formulating ideas about how we would like the new system to operate, while retaining the essential principle of the programmes—partnership between different sectors—and ensuring that the projects are directly relevant both to the programme and to the needs of the area.

Dennis Canavan:

Would not some of your councillor colleagues feel annoyed about members of the Scottish Parliament becoming members of the Committee of the Regions, given that a separate body, consisting of representatives of devolved parliaments and legislative assemblies in member states of the European Union, is likely to be established? That would mean that it would be possible for members of this Parliament to be members of two European bodies, whereas councillors could be members only of one.

Councillor May:

I would love to think that we could say to the Scottish Parliament, "Go away. You are not having any of our places". I doubt that that would be right or even desirable. We must not confuse the body to which Dennis Canavan refers, which would be made up of representatives of directly elected local and regional governments, with the Committee of the Regions. The COR was established under the Maastricht treaty and has the statutory right to be consulted in a number of areas by both the Parliament and the Commission; its functions were extended by the Treaty of Amsterdam. The other body that was mentioned may make its views known, but does not have the same statutory rights of consultation.

Elected members of regional governments from right across the European Union are represented on the Committee of the Regions. Much as I would like to keep membership to ourselves in local government, it is almost inevitable—and quite right—that the Scottish Parliament would wish to be represented on that committee, and I believe that it should be.

The Convener:

Historically, the UK has been the sole country with only local government representation on the Committee of the Regions, as every other country has both regional and local government representation. It would be helpful for this committee if we could obtain a glossary of all the relevant bodies in Scotland, the UK and Europe, with a description of what they do and how we might influence them. We could use that as a starting point for a future discussion and for an examination of some of the local bodies that make decisions about funding, such as those that Dennis Canavan spoke about.

We will also want to take the opportunity to have a discussion on the future composition and role of the steering committee headed by Lex Gold. I do not know whether we can have that discussion at the next meeting, but we will try to get some input on that process at a future meeting, Dennis. The clerk has a note of that.

Councillor May:

Dennis Canavan raised two interesting points, one of which was on the work of the programme monitoring committees and the partnerships. We must be clear that this is likely to be the last time that we receive European funding at the present level; the outcomes of what we do with that funding must be tangible, accountable and measurable. It is important that the Scottish Parliament sets out its key policy areas early as that will enable us to be absolutely clear that the programmes that are to be put in place are in line with the priorities of this Parliament and the UK Government, so that we get the maximum value from all the public resources.

On the second point, we should become members of those organisations across Europe that assist elected Governments, at whatever level, in the achievement of their objectives. The Assembly of the European Regions can be a useful body as long as its priorities and objectives agree with one's own priorities and objectives, which also applies to the North Sea Commission, the Committee of the Regions and the new organisation that Dennis spoke of. I see nothing wrong with multiple memberships of these organisations, as long as we benefit from them.

It will be useful for us to increase our monitoring role in the work of the programme management committees. We will need to build that into our work load.

Ms Irene Oldfather (Cunninghame South) (Lab):

I had originally intended to pick up the point on local authority responses to the consultation exercise, but a few points have been raised since then. On my original point, many local authorities see Europe as a specialist area and subscribe to the expert experience of organisations such as COSLA. I note that the West of Scotland European Consortium and the East of Scotland European Consortium both responded to the consultation process. They bring an additional regional representation that some local authorities feel is necessary. Therefore, I can understand why some local authorities may not have responded to our questionnaire.

COSLA brings a wealth of experience, particularly on the euro, and it is important that we do not try to reinvent the wheel on that issue. Can we explore with COSLA how to bring a distinctive political aspect to that debate? As Jon outlined, COSLA does not have a view on whether we should go in or stay out of the euro, but it has a fundamental role on the ground, liaising with local authorities throughout Scotland. It would be useful to explore the added value that the European Committee and the Scottish Parliament could bring to that debate without reinventing and going over the good work that has been done. We should capitalise on existing experience.

Adrian Colwell:

I want to respond to Ms Oldfather's first point. It is fair to say that European affairs in local government tend to seen in terms of particular funding issues, international liaison and so on. However, it is worth bearing in mind the fact that Jon Jordan and I, with our other colleagues in Brussels and at Rosebery House in Edinburgh, are in contact with a range of offices across local government—equal opportunities, trading standards, environmental services and so on. There is an extensive two-way process on what draft proposals mean for local government, which in turn feeds views into the Scottish Executive, the European Commission and the European Parliament.

We have been trying, particularly since reorganisation in 1996, to mainstream the approach so that the EU is seen not as separate and distant but as integral to service delivery. We still have a lot more to do to encourage that view but it is fair to say that we are well on the way.

Let us move on.

Can I just raise my second point about the euro?

Councillor May:

I entirely take on board Irene's point about the work that has been done on the euro. In areas where we are trying to get a common Scottish position, within a UK position, the question is not which body should take the lead, but what we can do at our level to take forward the agenda. It is important that we have co-operation across levels of government and between officers within the various organisations.

Dr Winnie Ewing (Highlands and Islands) (SNP):

I am impressed by the paper and the work that is being done in co-operation. I have always found COSLA a bit of a mystery, because I was only once invited to anything that it organised, despite my long political career—maybe that is because I am not acceptable politically. That is why I asked whether we could all go to COSLA's next conference on Europe.

On the Committee of the Regions, I will make a parallel and avoid nice phrases such as "taking forward together". When I first joined the European Parliament, members were all nominated—we were elected as members of parliaments but nominated to the European Parliament. I was part of the successful movement for direct elections to the European Parliament. I was president of the European Free Alliance, which contained members from 17 democratic parties from all parts of Europe. We fought hard for the Committee of the Regions, but realised that people might want it to contain an outstanding person who had been elected to local government—that person would be nominated to the committee. Do you foresee that the committee will be directly elected?

I was on the Committee on Economic and Monetary Affairs, which I found difficult as I am not an economist. We struggled to come to a view on the euro. I find it strange that COSLA does not have a view, but just uses phrases like "go forward together", "co-operate", "discuss". Have you no view on whether the euro is a good thing or a bad thing? There is too much political speech and not enough clarity. COSLA should take a view, as it consists of elected politicians. Is it trying to please the Government, which has a muddled view? At least that muddled view is better than the Opposition's—the Conservatives seem to have closed the door to the euro.

My final question—

No, hold on.

Okay, that is enough.

Councillor May:

Direct elections to the Committee of the Regions may come. The Committee of the Regions is in its second mandate and is only now beginning to clarify its direction and work programme and to establish itself on a basis of agreed cross-party political priorities. That is a great advance on the first mandate. As with all things, there will be evolution. There may be direct elections, but that may be in the context of the process of establishing regional chambers across the rest of the United Kingdom. We will need to consider how the representation is gathered.

Winnie Ewing asks why COSLA does not take a view on the euro. Entry into the euro is a matter for the Government of the day—it must decide when the economic criteria are right. If local government takes a party political view, I am not sure that that will advance the debate. Within my region, there is a divergence of opinion among small and large employers and manufacturers about whether entry to the euro would be a good thing. Most of them agree that what the Government is doing, in setting out the changeover framework, is an acceptable way of planning. They also agree that we should not go in when the economic conditions are wrong, as happened when we joined the exchange rate mechanism. I have not heard many businesses—and they will be the ones most directly affected—saying that the Government approach is wrong for them.

What about fish exporters?

We must not get into a two-person debate. A number of members want to speak.

Allan Wilson (Cunninghame North) (Lab):

My comment is not on fish exporters, but on jobs, a subject that I am sure members will agree is fundamental to why we are here. My remarks touch on a point that Dennis Canavan raised and that Christine May mentioned in relation to the finite nature of structural funds. I am concerned that the outcomes should not only match the criteria that Christine outlined but be sustainable in the longer term. This committee, like COSLA, has spent much of the past three months in discussions with the Executive on the content of the structural funds plan. That is now away; whether it comes back in the form in which it went is anybody's guess.

As I believe that job creation is a key element of the output from the structural programme and as we are about to embark on a new phase in the national employment action plan, I share the view that current programmes do not place sufficient emphasis on regional and local levels. The plan should have greater emphasis on regional and local employment policy initiatives. How will COSLA work with the Parliament to finalise those objectives in terms of the structural funds and the draft employment plan?

Councillor May:

COSLA will work with the Executive to establish the vision that it wants to see at the end of the process. It is important that jobs are sustainable. Not only must jobs be created, but potential employees must be trained and given the skills to take those jobs. Employers need to be encouraged—or legislation needs to oblige them—to train their employees and to make training and lifelong learning an on-going part of their business development.

In those areas that have transitional funding—areas that have now fallen out of objective 2 status, for example—we understand that we are more likely to get infrastructure capital programme support. Those are the areas in which we must concentrate our efforts in using infrastructure support; we must use the support given for the other areas for non-infrastructure matters and capacity building.

What is the optimum means by which that process can be influenced? That is what Dennis Canavan was getting at. How can the Scottish Parliament and COSLA develop those strategic objectives at a local level?

Jon Jordan:

The European Commission wants much more local and regional involvement in the next series of national employment action plans. We must work closely with the Commission to ensure that that happens. At a European level, we can join the CEMR campaign "Act locally for employment", which promotes local and regional action. One of the major initiatives is to show the flexibility of working at local and regional level. The UK labour market is not unified; we have regional and local labour markets. If we are to be successful, our policies must be tailored to those local and regional variations. We need to give strong examples of where action at local and regional level has been extremely effective.

Ms MacDonald:

I want to ask about the information coming through local authorities to businesses about preparation for the euro. Does COSLA have primary responsibility for that? Does COSLA have a partnership with the local enterprise companies? As a member of the Enterprise and Lifelong Learning Committee, I am interested in how that information is being passed on and who fits in where, because so many businesses report that they are not ready for the euro and do not understand a lot of what is happening.

Jon Jordan:

The Scottish Euro Forum, which has private and public sector partners—including Scottish Enterprise, the LECs, COSLA and the Confederation of British Industry business forums—has been very successful. Businesses can get in touch with the Scottish Euro Forum via a freephone line to get specialist advice on working in euros.

I find that the relationship with LECs differs from local authority to local authority. In some cases, the local authority works closely with the LECs, but the LECs take the lead on euro issues. In others, the local authority has a group of clients and the LEC has another group of clients, but both sides work together closely on trade development centres. There is great local variation in how economic development services are organised in Scotland, but the important thing is to put out the euro forum information through economic development services and the LECs.

On that point—

Hold on, Irene. We are running over time. Christine, did you want to add something?

Councillor May:

The Scottish Council Development and Industry is doing a significant amount of work to gather information on business preparedness for the euro and to give information back to business. SCDI has produced some very useful documentation.

David Mundell (South of Scotland) (Con):

I was interested in what Adrian Colwell said about mainstreaming. Mainstreaming is important, but we are a long way from it. The man in the street does not see local government as having a role in European issues. Despite what everyone has said today, I am concerned that local authorities are passing responsibility for dealing with European issues to COSLA. The individual councillors of all persuasions that I have met do not perceive European issues as being in the main stream.

Councillor May:

I am not sure that that is the case. If you ask councils about European issues, they will probably say that they leave them to X or Y, who is the European expert. However, if you ask them to tell you about the projects in their ward that have received European funding, they will often be able to name not only the projects, but the individuals who have been involved in them and—if they have been a councillor for some time—the extent of their own involvement.

That goes back to what Adrian Colwell said about mainstreaming; it means not that the councillor is seen as the sad anorak who knows everything about all aspects of European legislation, but that membership of the European Union and the benefits and opportunities flowing from it are seen as part of everyday life. When one asks people, "What do you think of the Government?" they will tell you that politicians are all rubbish. If one asks them, "What do you think of x service or y service?" they will tell you how good those services are. We must ensure that people think not in terms of European issues, but in terms of the benefits and opportunities that come from membership of the European Union.

The Convener:

That is a good note on which to finish this item. In some of our early meetings—and this will apply when we come to discuss our future work programme—we have been keen to ensure that our relationship with Europe is seen not only in terms of the money that we receive from the structural funds programme, but in terms of the broader European agenda that we can engage in, be influenced by and learn from. Councillor May makes a good point.

On behalf of the committee, I thank Councillor May and her colleagues from COSLA for coming along. I expect that this will not be the last time that we hear from you. I hope that, as we develop our future work programme, we can engage with you as one of the important partners in Scottish civic life. Thank you once again.

Councillor May:

Thank you, convener. I will leave you a copy of our work programme and hope that, in drawing up your own, you might refer to it.

I will ask Bruce Crawford for a synopsis by 9 o'clock tomorrow morning.

He will multiply it by nine.