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EUROPEAN AND EXTERNAL RELATIONS COMMITTEE

AGENDA

9th Meeting, 2005 (Session 2)

Tuesday 10 May 2005

The Committee will meet at 2pm in Committee Room 1. 1. Item in private: The Committee will consider whether to take Item 7 in

private. 2. Inquiry into the Scottish Executive’s Fresh Talent initiative: The

Committee will take evidence from— As a panel Professor Robert Wright, The University of Stirling Professor Joan Stringer, Universities Scotland As a panel Michael Cannon, Senior Director, International Operations, Scottish Enterprise Charlie Woods, Chief Economist and Senior Director of Knowledge Management, Scottish Enterprise Alex Paterson, Director of Developing Skills, Highlands and Islands Enterprise Alastair Nicolson, Head of Strategic Research and Planning, Highlands and Islands Enterprise

3. Promoting Scotland worldwide: An inquiry into the external relations

policy, strategy and activities of the Scottish Executive: The Committee will consider the response to its inquiry report from the Scottish Executive.

4. Pre- and post-EU Council scrutiny: The Committee will discuss the

agendas and information received from the Scottish Executive on the following meetings of the Council of the EU—

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Forthcoming Councils Education, Youth and Culture Council, 23-24 May General Affairs and External Relations Council, 23-24 May Agriculture and Fisheries Council, 30 May Previous Councils Environment Council, 10 March Agriculture and Fisheries Council, 14 March ECOFIN Council, 12 April Justice and Home Affairs Council, 14 April Competitiveness (Internal Market, Industry and Research) Council, 18 April

5. Sift of EC/EU documents and draft legislation: The Committee will

consider the latest list of EC/EU documents and draft legislative proposals received for this meeting.

6. Convener’s report: The Convener will update the Committee on the—

Monthly report from the Clerk/Chief Executive and the External Liaison Unit on the external relations activities of the Parliament Letter from the Minister for Environment and Rural Development, Ross Finnie MSP, concerning progress on the implementation of the Waste Electrical and Electronic Equipment (WEEE) Directive Letter from the Scottish Executive concerning matters arising from the Committee meeting of 12th April 2005.

7. Inquiry into Scotland’s preparations for and contribution to the G8 Summit and the UK Presidency of the EU 2005: The Committee will consider a further draft of its inquiry report.

Alasdair Rankin Clerk to the Committee

Tel: 0131 348 5234 Email: europe@scottish.parliament.uk

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The following papers are attached for this meeting: Agenda Item 1 There are no papers for this item Agenda Item 2 BRIEFING PAPER “Inquiry into the Scottish Executive’s Fresh Talent initiative - Written Submissions from Witnesses giving oral evidence” Agenda Item 3 BRIEFING PAPER: “Promoting Scotland worldwide: An Inquiry into the external relations policy, strategy and activities of the Scottish Executive” A response from the Scottish Executive Agenda Item 4 BRIEFING PAPER: “Pre- and post-Council of the EU analysis and scrutiny” Agenda Item 5 Sift of EC/EU documents and draft legislation Agenda Item 6 Convener’s Report Agenda Item 7 PRIVATE BRIEFING PAPER “Scotland’s contribution to the G8 Summit and the UK Presidency of the EU 2005: draft report”

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BRIEFING PAPER

Inquiry into the Scottish Executive’s Fresh Talent initiative

Submissions of Written Evidence from Witnesses appearing before the Committee on 10th May 2005

Michael Cannon, Senior Director, International Operations, Scottish Enterprise Charlie Woods, Chief Economist and Senior Director of Knowledge Management, Scottish Enterprise 1. Scottish Enterprise’s Role and Focus 1.1 Scottish Enterprise (SE) is the Scottish Executive’s economic

development agency for lowland Scotland. Our purpose is to make a sustainable and measurable impact on the Scottish economy. Our operations are driven by ‘A Smart, Successful Scotland’1, the Executive’s enterprise strategy for Scotland.

1.2 A Smart, Successful Scotland focuses on three strategic themes:

Growing Businesses, Global Connections, and Skills & Learning and two cross cutting themes: Sustainable Development and Closing the Opportunity Gap. The recent refresh of the strategy puts greater emphasis on the importance of effective partnership working to achieve success. Our focal customers are businesses that have the potential to have a disproportionately positive impact on the Scottish economy. We aim to share risk with customers and partners using the finance and knowledge at our disposal to act as a catalyst for more, better and/or faster investment in the Scottish economy than would otherwise take place. This investment is in a range of activities, including skills, technology, innovation, business infrastructure and regeneration.

1.2 SE’s main contribution to retaining and attracting talent to Scotland is in

contributing to economic performance, which in turn boosts the quantity and quality of employment and business opportunities. Scottish Enterprise’s activities on talent attraction and retention have focussed on specific issues constraining development (see below). A Smart,

1 A Smart Successful Scotland, Scottish Executive, 2004

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Successful Scotland will, in large part, result from a business base and the population that is enterprising, innovative and open to opportunities and perspectives.

1.3 Fresh Talent is an important foundation in achieving an even more

vibrant and enterprising economy and society in Scotland. Scottish Enterprise contributed to the development of Fresh Talent through participation on the Fresh Talent Steering Group. Scottish Enterprise has subsequently seconded a member of staff to the Scottish Executive to work with the Fresh Talent team. We continue to work closely with the Executive on aspects of Fresh Talent including the international promotion of Scotland as a place to live and work.

2. Raising Scotland’s Profile: the Scottish Enterprise Contribution 2.1 SE’s main initiative in this area, Talent Scotland, works with businesses

in microelectronics and life sciences to boost their capacity to recruit internationally by raising the profile of Scotland’s strengths in these sectors. It promotes Scotland’s microelectronics and life science sectors to more than 30,000 people out-with Scotland. The project provides subscribers with details of these sectors in Scotland, company profiles as well as job vacancies from companies and recruitment consultants. It aims to increase the size of the active database by another 6,000 per year over the next three years so that some 50,000 worldwide will be receiving positive messages about the sectors. According to recent research by Talent Scotland2, there is increasing demand for international recruitment to maintain the growth of businesses in these sectors: 50% of companies interviewed said they intended to recruit from outside of Scotland in the next three years.

2.2 As well as providing an environment in which companies find it easier

to recruit the best, regardless of origin, evidence suggests a more open society and labour market may help to address the other challenges identified as potential contributors to boosting Scottish productivity. For example: • the Global Entrepreneurship Monitor3 demonstrates the greater

propensity of in-migrants to start a business, relative to indigenous Scots;

• evidence from business4 and from other locations5 points to the role played by the interaction of people from different backgrounds in sparking higher levels of innovation; and

• an OECD study into Scotland’s position in international knowledge flows6 pointed to the importance of migration diasporas in

2 Talent Scotland Research, Parallel 56 for Scottish Enterprise, 2005 3 Global Entrepreneurship Monitor Scotland, Hunter Centre for Entrepreneurship, University of Strathclyde, 2004 4 Diversity - Who Needs It?, presentation by Euan Baird, member of Scottish Enterprise’s International Advisory Board and CEO of Schlumberger at the time, 2001 “In our long-term quest for world-class technology, we have come to understand that no continent or culture has a monopoly of creativity. In addition, allowing this diversity to interact can produce the most surprising results.” 5 Silicon Valley’s New Immigrant Entrepreneurs, Anna Lee Saxeninan, 1999 6 Global Knowledge Flows and Economic Development, OECD, 2004

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promoting research and business connections between host and origin countries.

2.3 Fresh Talent has helped develop an environment and infrastructure

that support efforts to strengthen Scotland’s ability to attract people to work here. SE initiatives such as Talent Scotland complement the advice and promotional activity of Fresh Talent with in depth intelligence and targeted promotion of Scotland’s strengths in specific industry sectors.

3. How valid do you consider the assumptions underlying the demographic forecasts to be? 3.1 The Government Actuary Department and the General Register Office

(Scotland) (GRO(S)) are the experts in this field. The difficulties in making population projections are considerable. Births and deaths can be projected with some confidence. However, migration is very difficult to forecast since it is the outcome of the interplay of a complex range of factors.

3.2 All of the recent projections by GRO(S) present a consistent message:

the population will fall and the average age will rise. GRO(S) has based these projections on the best available information. However, population projections are not ‘facts waiting to happen’, something GRO(S) recognises7. Recent changes to the projections illustrate this point. The 2003-based projections forecast a higher population level than the 2002-based projections and put back by eight years the point at which the population is expected to fall below five million. These changes were due to unanticipated rises in net in-migration in Scotland and the birth rate.

3.3 Recently published data on Scotland’s population8 also illustrate this

point, with the total rising by 21,000 in the year to mid-2004. 3.4 In short, there is little dispute that the trend in the size of the population

will be downwards and that the average age will continue to rise. However, neither is inevitable and neither is beyond some influence.

4. What problems, if any, do you perceive arising from the demographic trends projected by the Registrar General? 4.1 An ageing and declining population may give rise to economic

challenges but will not necessarily be an impediment to growth. We agree with the Framework for Economic Development in Scotland that: “Ageing does not pose a fundamental problem to economic development if workers and employers seize the opportunities to meet

7 http://www.gro-scotland.gov.uk/files/02population-projections-scottishareas-appendixe.pdf8 http://www.gro-scotland.gov.uk/files/04mype-cahb-booklet.pdf

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this challenge. The responsibility to deal with this … primarily lies with the private sector.”9

4.2 Four points are important here. 4.2.1 There is a significant role for people and employers in meeting any

challenges. In many respects, these are human resource management and employee-relations challenges. For example, if the proportion of people in work aged over 50 rises, what are the implications for: • pay systems that reward seniority. Will they tend to push up wage

costs? • managing young talent in an organisation in which progression

prospects may be more limited because older workers have lower labour turnover rates and, therefore, fewer opportunities for progression may arise?

• managing a workforce in which more people may suffer age-related illness?

4.2.2 Secondly, the economy grows either because productivity rises and/or

because the quantity of inputs – labour, capital etc. – increases. There are currently around 630,000 working age people who are not in work of whom 300,000 want to work10. While many jobless people may need assistance to compete for jobs, there is no imminent prospect that the volume of people available for work will in itself constrain growth. In fact, population decline offers an opportunity to boost the employment rate.

4.2.3 Thirdly, the market may adjust to changes in the size and age structure

of the population. This may already be happening with a notable increase in the employment rate of workers aged over 50 in the recent past. For example, comparing 2003-04 with 1994-95:

• the proportion of working age people in work was five per cent

higher; • the proportion of people aged 16-49 in work was four per cent

higher; and • the proportion of people between 50 and retirement age was 14 per

cent higher. It is not clear why this change has taken place or whether it will be sustained. Reasons for the change may include: • economic growth leading to rising labour demand and increased job

opportunities; and • a reduction in age discrimination by employers and changes in the

attitudes of this age group to work11.

9 Scottish Executive (2004), Framework for Economic Development :p36 10 Labour Force Survey, Spring 2004. The figures exclude full-time students. 11 For example, research by Futureskills Scotland has shown that employers are positively disposed to the idea of recruiting people above the age of 50. See: http://www.futureskillsscotland.org.uk/uploadedreports/Skills_in_Scotland_2003.pdf

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4.2.4 Finally, it is important to focus on GDP per person in considering the

effects on growth. If there are fewer people in work, total output will tend to be lower. However, neither output per person nor output per worker will necessarily be lower.

4.3 These points notwithstanding, the economic risk is three-fold. First,

some industries rely on the domestic market and a smaller domestic market means lower demand for their products. Secondly, some industries reap economies of scale – the more they produce, the lower the average cost of production – and lower domestic demand could push up their costs and make it more difficult for them to compete with imports and in export markets.

Thirdly, there is a risk that population decline becomes self-reinforcing: that a falling population reduces growth and economic opportunities, making Scotland less attractive to people born here and to potential migrants. It is very difficult to assess the scale of this risk. 5. Conclusions 5.1 SE has supported the development and implementation of the Fresh

Talent Initiative as part of our contribution to the Scottish Executive’s economic development strategy. Our direct contribution focuses on Talent Scotland and staff support to the Fresh Talent team.

5.2 There is a clear consensus that Scotland’s population will fall and age,

but the scale of these changes and the rate at which they take place are not inevitable. They are amenable to some influence and Fresh Talent may exert that type of influence. However, the contribution of Fresh Talent extends beyond the number of people in Scotland and emphasises the benefits that can accrue from diversity and different perspectives in the country.

5.3 Population decline may give rise to economic problems, but that is not

inevitable. It is possible that markets – people and their employers – will adjust to the changes.

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Alex Patterson, Director of Developing skills. Highlands and Islands Enterprise Alastair Nicolson, Head of Strategic research and Planning, Highlands and Islands Enterprise Introduction Highlands and Islands Enterprise (HIE) is the Scottish Executive’s development agency for an area which covers more than half of Scotland. In addition to Careers Scotland and a network of 10 Local Enterprise Companies (LECs), HIE has wide-ranging responsibilities in the economic, skills, environment and social development fields. HIE welcomes the opportunity to contribute towards the Committee’s Inquiry into the Fresh Talent Initiative, and associated population matters. This document is a summary submission in advance of the oral evidence session on 10th May 2005. The comments which follow take as a starting point, the demographic forecasts prepared by the General Register Office for Scotland (GROS). While the change assumptions which underpin the GROS projections are fair, they represent the base case scenario, i.e. what may happen without policy intervention. This paper reinforces the importance of population growth to the Highlands and Islands (H&I) and of action to address population issues. Demographic Trends After a long period of decline, the population of the Highlands and Islands, since the mid 1960s, has steadily increased. The 2001 census indicates that the population of the H&I rose by 0.8% between 1991 and 2001, compared to a fall of 0.4% across Scotland as a whole. The census also shows that overall population growth hides significant variation across the region. The general pattern of change is one of concentration of population around larger settlements while the remote and fragile areas are continuing to suffer from out-migration. GROS mid-2004 population estimates indicate continued population growth in all but one Local Authority area in the H&I. The largest percentage increase occurred in Highland (1.1%) and in Orkney (1%). This compares with 0.4% growth in Scotland as a whole.

The population of the H&I is slightly older than the Scottish average, with a trend towards an ageing population.

The percentage of the population aged 44 years or less has decreased in the H&I from 67.1% in 1991 to 56% in 2001. This is slightly lower than for Scotland which was 59.7% in 2001.

The percentage of the population aged 65 years or older in the H&I has increased slightly, from 15.9% in 1991 to 17.2% in 2001. This compares to 16% for Scotland in 2001.

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Thus the H&I has an older population than in Scotland and there is a trend towards an ageing population.

Of immense significance the H&I has an under-representation of young people aged 18-30 years. This is as much as 10,000 people.

The population concerns of Scotland as a whole are mirrored in the H&I. The small increase in population, while welcome, is insufficient if the region is to continue to prosper in the future. Implications of Demographic Trends The H&I has traditionally lost young people who leave the region to find

employment and to undertake higher education at Scottish or UK universities. While some return, most do not. The creation of the University of the Highlands & Islands, important for many reasons, will be a significant development in allowing University level education to be undertaken within the H&I and attractive not only to the local population, but as a magnet for attracting students into the region to study.

Research suggests that job vacancies are harder to fill in the H&I than in

Scotland as a whole (53% in H&I compared to 46% nationally). These vacancies are more likely to be due to non skills issues in the H&I compared to the rest of Scotland. While the actual number of these vacancies as a proportion of all jobs is still relatively small, there is a suggestion that lack of applicants and low numbers of job seekers generally is an important factor. Research into tight labour markets in the H&I undertaken by Futureskills Scotland suggests that many areas of the H&I are experiencing greater labour market pressures than the Scottish average. Action taken by employers, particularly in relation to sourcing migrant workers from outwith the UK, may be addressing this to some extent.

Demographic changes not only impact the labour market. Particularly in

fragile areas declining population can have an adverse effect on community confidence and public service sustainability. The irony is that the ability to attract population to remote areas is strongly dependent on the provision of these services.

Addressing Demographic Trends Population stability or growth is seen as an indicator of an area’s wellbeing and lies at the heart of the future prosperity of the H&I. This has been underlined by HIE’s recent strategy consultation and by the growing focus on this matter by public agencies in the region. For example, HIE together with other public sector partners, has commissioned research into the migrant worker population aiming to understand the dynamics of this market, the views of employers, the needs of workers themselves and the current and future requirements of support services.

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Population growth is not just a short term issue, nor solely focused on labour market needs. It requires a medium to long term perspective and the building of a progressive, tolerant society that appeals to people from faraway places as well as those closer to home. Success will be evidenced by more people living, working and studying in the region, the continued growth of Inverness as a city gateway and of towns and villages around the region. Crucially, it will mean increased rural population in the smallest communities where their very viability relies on attracting more residents to create demand for, and sustain, local service provision. Achieving this requires a multi-faceted approach to population growth (and in particular workforce growth) incorporating the following:

Increased inflow of population from the rest of the UK; More people coming to the H&I from outwith the UK; Increasing the opportunities for young people within the H&I, thereby

reducing out-migration; Through Welfare to Work changes, addressing the latent, but currently

inactive, workforce; Positive recruitment and workforce policies towards older workers.

Successful population growth also requires the necessary conditions to be cultivated and the potential constraints to be considered. These relate to planning, availability of housing and the associated investment in utilities and related services such as transport, health etc. The population challenge is not simply about attracting more people – it is about ensuring that the wide range of services required is being developed simultaneously. Initiatives such as Fresh Talent are therefore welcomed within the above context as Scotland seeks to operate in a highly competitive world market for people. HIE is fostering closer links with Fresh Talent, supports the proactive activities and the need for a segmented approach in recognition of the varied aspirations and needs of the different groups of people who may come or be attracted to Scotland and the Highlands and Islands. Highlands and Islands Enterprise 4 May 2005

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EUROPEAN AND EXTERNAL RELATIONS

COMMITTEE

BRIEFING PAPER

“Promoting Scotland worldwide - an Inquiry into the external relations policy, strategy and activities of the Scottish Executive”

Introduction 1 On 24 February 2005, the Committee published a Report entitled “An Inquiry

into the Promotion of Scotland Worldwide: the Strategy, Policy and Activities of the Scottish Executive”. A copy of this Report can be found at:

http://www.scottish.parliament.uk/business/committees/europe/reports-05/eur05-01-01.htm 2 The Scottish Executive has now published its response. This is set out in

Annex A. Recommendation 3 I recommend that, in considering the response from the Scottish Executive,

members agree what follow-up, if any, might be made to it. 4 Members will also wish to be aware that a 1¼hr Committee business debate

on the report and the Executive’s response will be held in the Chamber on the afternoon of Wednesday, 18th May 2005. It will be immediately preceded by an Enterprise and Culture Committee debate on that Committee’s inquiry into the restructuring of Scotland’s tourism industry which will run from 2:30 to 3:45pm.

John Swinney MSP Convener

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ANNEX A SCOTTISH EXECUTIVE’S RESPONSE TO THE REPORT Minister’s covering letter With this letter I am enclosing the Executive’s response to the recommendations in the Committee’s Report on its Inquiry into the Promotion of Scotland Worldwide. The Report states that the Inquiry was conducted in a spirit of constructive criticism. I recognise and welcome that spirit. As I said when I gave evidence to the Committee, we need to be open about what works and what – as a result of experience – is seen to be less effective. I see the Inquiry as part of that process, as one of the ways to add to what we can do together to promote Scotland worldwide. The attachment to this letter gives detailed responses to the Committee’s recommendations. We can accept many of them: some are already in hand. Where we cannot take action immediately, it is in some cases a matter of timing, where we would aim to take up the recommendation at a later stage. The Report states that the Executive should aim to achieve higher ambitions in promoting Scotland. I think the Committee would agree that our ambition has become higher, and more sharply defined, during the period in which the Inquiry took place. We are now working hard to achieve the ambitions we have set for ourselves, but we will continue to raise the bar. The work of promoting Scotland is not a project we can ever regard as complete. We will break new ground, learn from what other countries have done, and ensure that we get as much benefit as possible for Scotland from our international activity. I look forward to continuing to work with the Committee in doing that.

TOM MCCABE

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INQUIRY BY THE EUROPEAN AND EXTERNAL RELATIONS COMMITTEE INTO THE PROMOTION OF SCOTLAND WORLDWIDE RESPONSE BY SCOTTISH MINISTERS The Scottish Executive’s International Strategy We recommend that the Scottish Executive reviews its International Strategy, after consultation with relevant bodies, to give greater emphasis to co-ordination between agencies, to strengthen the delivery of initiatives and achieve higher ambitions. We recommend that a revised strategy should be published before the summer recess. 1. We note the Committee’s welcome for the progress made by the Executive, including

through publication of the International Strategy. As the Committee notes, the Strategy is a framework document, within which initiatives are being taken forward to promote Scottish interests, and to ensure Scotland plays its part in the international community.

2. We disagree with the recommendation to review the Strategy now. There is no lack of

ambition in Ministers’ view of international activity, which has already produced a sustained intensification and diversification since 2003. The Scottish government is continuing to strengthen the emphasis it places on coordination between agencies and in strengthening the delivery of initiatives. We aim to establish multi-year delivery plans for international activity to ensure that agencies are well informed about Executive intentions and that their plans can be coordinated with the Executive’s where opportunities allow. We believe that these plans are the best way to take forward implementation of the International Strategy. We have undertaken to review performance against the aims in the Strategy regularly. We will consider future revisions to the Strategy itself in the light of those reviews.

Scottish International Forum We recommend that the Scottish Executive reviews the remit and membership of the Scottish International Forum, which has become unwieldy and publishes its revised proposals before the summer recess. We recommend that the Scottish Executive appoints, from within the membership of the Scottish International Forum, a management board to oversee the review, development and implementation of the Scottish Executive’s International Strategy. We recommend that this International Strategy Board should be chaired by a Minister of the Scottish Executive, should include in its membership the Chief Executives of VisitScotland and EventScotland and should have a membership of no more than eight individuals drawn from appropriate public and private sector bodies with a shared interest in international initiatives. 3. We agree with the Committee’s assessment that coordination between agencies is

important to getting maximum benefit to Scotland from international activities. The Executive already consults regularly with public bodies most closely involved, including the Chief Executive of VisitScotland. It is essential to bring involved agencies and

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organisations together and so we will continue to encourage such bodies to participate in the Forum’s work.

4. We agree, having had two years’ experience of the Forum, that there is scope for making

it more effective, and in particular that it would be valuable to streamline the Forum’s work, to provide more opportunities for bodies to participate in planning for specific overseas programmes as well as to discuss plans for international engagement at a strategic level. We aim to discuss these options with Forum members before the summer recess, and will ensure they are communicated to the Committee. We agree that a Minister should chair the Forum: the Minister for Finance and Public Service Reform will continue to do so.

Ministerial structures and responsibilities We recommend that, without increasing the number of Ministers in the Scottish Executive but with the objective of improving the co-ordination and delivery of policy, the responsibilities of existing Ministers should be re-allocated to enable the appointment of one Minister with responsibility for all European and External Relations issues. 5. Disagree. It is widely recognised that it is the job of all Scottish Ministers to promote

Scotland to the wider world, and of course it is normal that the First Minister, and Deputy First Minister play key parts in these roles. The First Minister keeps allocation of ministerial responsibilities under regular review. The existing allocation of responsibilities allows for broader engagement with international issues. There are already two Ministers specifically responsible for European and External Relations: the Minister for Finance and Public Service Reform and his Deputy. But other Ministers also have particular responsibilities in their policy areas, including particularly the Minister for Tourism, Culture and Sport who in addition to supporting the First Minister and Deputy First Minister with the promotion of Scotland also has responsibility for international development issues’.

The role of the civil service and its organisation We recommend that Ministers undertake a review of civil service and agency structures to ensure that the planning, co-ordination and implementation of policy on Europe and external affairs is improved. We recommend that this review should be completed before the summer recess. 6. Disagree. Reviews have already been undertaken and much work is already in hand to

strengthen planning and co-ordination. A review of internal structures dealing with European and international relations was undertaken in the second half of 2004. Changes made as a result of the review aimed to ensure closer coordination between the Executive’s Europe Division in Edinburgh and our EU Office in Brussels. A new Division (International Projects Division) was also established to take forward work on the Executive’s Fresh Talent and Scotland’s International Image initiatives. Other more recent changes are designed to ensure that the Scottish government takes full advantage of the opportunities presented by the G8 Summit in Gleneagles in July 2005, and to implement the Executive’s international development policy statement. These changes are now being implemented and will take time to bed in. We will keep under review their effectiveness and the need for further restructuring.

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7. A further example of steps already underway to improve co-ordination is the recent

merger of the two Glasgow-based Scottish Development International divisions dealing with trade and inward investment issues. This will make it easier for customers to access services and for partners to collaborate with SDI.

Overseas representation We recommend that the Executive requests that the Foreign Office ensure UK embassies are fully aware of their responsibility to promote Scotland overseas. 8. Ongoing. The Executive has found the FCO and its overseas Posts to be cooperative and

supportive in promoting Scotland and its interests overseas. In January 2005, the First Minister was invited to address an audience of British ambassadors from around the world. He underlined that both Scotland and the wider UK benefit from cooperation between Scotland’s devolved government and the FCO. The Executive is a full member of the UK Public Diplomacy Strategy Board, which is chaired by the FCO, and takes an active part in the Board’s work. Executive officials have also recently attended conferences of Press and Public Affairs Officers from FCO overseas Posts in Europe and South Asia, at which they have described ways in which Posts can help to promote Scotland, and emphasising that this supports the objective of the UK public diplomacy strategy to promote UK diversity. Officials will continue to work closely with the FCO in this and other ways to ensure that the Executive’s role, and opportunities to promote Scotland, are well understood. Ministers will also look into any specific problems the Committee or others may wish to raise.

We recommend that, over a two-year period, the Scottish Executive reviews all of the current overseas offices and representations operating on its behalf in order to create a structure which is more inclusive, enables greater co-ordination amongst them to promote a common, identifiable brand for Scotland. 9. Agree. We will review all current overseas offices and representations. The work carried

out under the Scotland’s International Image initiative, described below, is providing the common identifiable brand for Scotland which we agree needs to be a central part of the work of these offices. The role of the posts in Washington and Beijing is to represent and develop Scotland’s profile and interests in the USA and China. The postholders have a key role in coordinating activity with Scottish public sector stakeholders to maintain and strengthen relationships with the USA and China and to assist the Scottish private sector in these countries. The Scottish Executive Office in Brussels has a key role in representing Scottish interests in EU policy issues, providing intelligence and support to Scottish ministers on EU matters, raising Scotland’s profile in Europe at national and regional level, maintaining strong links with other Scottish representatives and organisations in Brussels and working closely with the UK Permanent Representation to the EU.

10. Scottish Development International operates the main overseas office network

undertaking international economic development work. This representation is subject to regular and ongoing review. As part of the Executive's review of overseas offices and representation, the SDI Supervisory Board chaired by the Deputy First Minister and Minister for Enterprise & Lifelong Learning will consider what changes, if any, might be

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appropriate in the light of progress in implementing the recent review of global field offices highlighted in the next paragraph.

11. Building up business networks in key markets takes time and so it is important to

maintain a commitment to this pattern of global representation that has been established. SDI also continues to develop the network, and further analysis was recently undertaken as a basis for the increase in overseas staffing announced by the Deputy First Minister in March 2005. Moving forward to implement these further changes, SDI offices are adopting the Executive’s common branding for Scotland and will be exploring how other public and private sector partners can be helped and encouraged to make use of SDI office facilities overseas.

12. We note (paragraphs 92 to 93) that the Committee wishes to see closer working

relationships between key agencies and indicated some unease about the extent to which there is a close and effective working relationship between SDI and VisitScotland. It concludes that one option for closer working would be to explore the scope for co-location of overseas staff.

13. VisitScotland is the lead agency for business tourism and there are clear respective roles,

with agreed processes for ‘handing over’ any opportunities SDI identifies. SDI and VisitScotland meet regularly to compare plans and activities, and make full use of opportunities to ‘cross market’, for example to business delegates at conferences where appropriate. As noted earlier, SDI and VisitScotland have a standing agreement that accommodation could be made available within SDI offices for any overseas posts VisitScotland decided to establish, wherever the locations were suitable.

We recommend, with due regard to the use of Scottish Executive resources and the UK Government’s wider foreign policy objectives, that where additional representative offices can add value and be a cost-effective means of implementing the International, European and economic development strategies, consideration should be given to putting them in place. 14. Agree. Representation overseas can be an effective investment, particularly when, in

implementing the economic development strategy, there is clearly an improved return to be gained from the additional resources. This rationale is the basis for the recently announced decisions to establish a Scottish Affairs Office in Beijing and to increase overseas SDI staff numbers.

15. SDI also seeks to achieve cost-effective benefits for Scotland by operating a flexible

model where the cost of representation in emerging markets can be shared with other partners – for example, in Brazil SDI is part-funding a representative in partnership with the private sector Energy Industry Council and UK Trade & Investment. SDI can also access a wide range of UK Trade & Investment services and personnel across the world for Scottish companies and makes every effort to use this resource to the full.

16. The Executive will maintain and develop the cross-sectoral representative offices it has

already established and announced in Brussels, Washington and Beijing. Although there are no plans to open further such offices, we will consider opportunities on a case by case basis, where these would represent a value for money means of promoting Scottish interests.

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Scotland’s Image We recommend that the Scottish Executive publishes, as a matter of urgency, the delayed findings of the “First Impressions” review conducted by Councillor Eric Milligan and, at the same time, publishes the work programme and the costs incurred. 17. The report and the Ministers’ response will be published in the near future. We recommend that, as a matter of urgency, the Scottish Executive should finalise its work on Scotland’s image overseas. 18. Ongoing. The Scotland’s International Image initiative is a long-term project to help

ensure accurate perceptions of modern Scotland by international audiences. The work to determine Scotland’s means of differentiation in the international arena has been completed. The initiative will continue, and will include overseas targeted marketing campaigns and events, use of universally available material such as the scotlandistheplace.com website, and visits to Scotland by teams of influential journalists.

We recommend the use of a logo to identify and promote Scotland which should consist of the Saltire or incorporate it in a contemporary way. 19. Agree. A Saltire marque has been developed, part of a package of measures, to ensure

that Scotland is promoted in a contemporary way. This Saltire marque will be used in all marketing and promotional materials produced by the Scottish Executive. The Saltire marque will also be incorporated within the marketing and promotional materials used by Scottish Development International and VisitScotland. The use of this marque will visually tie together our key agencies and assist our efforts to position Scotland as a great small country in which to live, learn, visit, do business and invest. A copy of a graphic is attached to this response to give an example of how the marque is being used in materials now in production.

We recommend that the Executive insist on a common approach to the promotion of Scotland by all its agencies, blending the historic with the contemporary. 20. Agree. The Scotland’s International Image initiative is developing and implementing a

common approach to the promotion of Scotland by public sector agencies, focusing on a core message for Scotland which can be expressed as a general theme as well as in specific sectoral areas such as tourism or business promotion. Use of such a common approach by Scottish bodies is potentially a powerful tool in improving overall perceptions of Scotland. As noted above, the initiative has also established a new version of the Saltire for use by public agencies as a means of establishing a common identity for marketing materials produced for Scotland.

21. The draft brand guidelines are being discussed with key partners, including Scottish

Development International, VisitScotland and EventScotland, to ensure that the brand for Scotland is integrated within their marketing and promotional activities. There will be a greater alignment of activities and joint working, and more consistent communications and reinforcement of key messages about Scotland. SDI, for example, is working to adopt common branding across the full range of images and messages and to ensure that activity to promote Scotland’s business strengths reinforces the international work of other

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Scottish organisations. This needs to be seen alongside the task of promoting specific Scottish offerings to a wide range of different audiences - from consumer markets such as tourism to industrial markets such as potential inward investors.

Sectoral recommendations Economic development and trade We recommend that Ministers take further steps to build on the improvements in the Executive over the course of our inquiry and coordinate more trade and cultural missions alongside Ministerial overseas visits. 22. Agree. Ministers are committed to using overseas visits to promote trade and investment.

The First Minister includes a focus on supporting Scottish business interests in his major overseas visits. With his lead responsibility for enterprise, the Deputy First Minister has undertaken four major programmes in 2004-05 focused on international business, including accompanying trade missions to Slovenia and China. We will continue to seek to link forward visit plans to missions wherever we can.

23. UK Trade & Investment activities including missions and exhibitions also provide

important support to Scottish businesses and we will look to ensure that UK and Scottish programmes are fully co-ordinated. Scottish Development International liaises closely with UKTI to ensure that Scottish companies can access the services of commercial sections in over 200 UK embassies and consulates worldwide. These staff already offer substantial support for market development activities including conducting market research and organising overseas visit programmes. We will continue to work in partnership with UKTI to ensure that UK programmes reflect the needs of Scottish businesses and industry sectors.

24. The Committee indicated in paragraph 87 that it had in general been impressed by the

work of SDI. However, it had some concerns regarding SDI’s ability, and that of the Executive as a whole, to focus on the opportunities provided by developing and emerging markets, including the prospects provided by enlargement of the EU.

25. We believe that SDI’s ability to identify emerging markets and act quickly to capture

early mover advantage is demonstrated by its track record. Among the major newly industrialising economies of Brazil, India, Russia and China, for example, SDI and its predecessors have had offices in China since 1994, India since 1997 and Russia since 1991 and representation in these countries continues to be strengthened as opportunities increase. In 2004 SDI also decided to establish representation in Brazil. As part of a drive to highlight the opportunities in a range of emerging markets, SDI will be running a programme of awareness-raising events in 2005 about China’s potential for Scottish companies. There is also steadily growing interest in the new EU member states and SDI has significantly increased staff numbers in Europe with a view to providing enhanced services, including in Eastern Europe.

26. In addition, all SDI senior management are charged with exploring new market

opportunities. In recent years, investigation of opportunities in the new EU member countries, Mexico, Brazil and Libya have led to a significant ramping up of SDI activity in these markets. Other locations visited within the last year with a view to prospecting

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future opportunities include the Czech Republic, Slovenia, Poland, and the Indian cities of Bangalore and Mumbai. In the coming months, senior staff are also due to undertake investigative work in Slovakia, Hungary, Argentina and New Zealand, over and above the areas where SDI has already established interests.

27. The overall quality of SDI’s work, which encompasses its ability to spot and act on new

and emerging opportunities, has been validated recently by two external awards. FDI Magazine, part of the Financial Times Group, recognised Scotland as “European Region of the Future 2005” based on SDI’s submissions, and in February 2005 the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and GDP Global Development’s survey of 178 of the world’s investment promotion agencies assessed SDI as the world’s most consistently high-performing investment promotion agency.

We recommend that the Executive continues to develop the Route Development Fund, which has brought benefits to the Scottish economy and that it seeks to identify new opportunities to expand this initiative. 28. Agree. Scottish Ministers wish to improve Scotland’s international connectivity in

keeping with our Smart, Successful Scotland strategy. Before the establishment of the Executive’s Route Development Fund was announced by the First Minister in November 2002 – Scotland was poorly served in terms of direct international links. The aims of the Fund are to improve business and inward investment links and encouraging inbound tourism – key areas if Scotland is to compete in the global market place.

29. 19 new routes have been established with Fund investment and Scottish Ministers wish to

enhance and build on this initial success. Spending Review 2004 doubled funding with the objective of expanding direct air links with existing European partners and developing links with new markets within Europe – including the new EU accession stated – and further afield; and building on and developing our intercontinental links.

Tourism We recommend that Ministers direct VisitScotland to give greater priority to building up its operations and posts in key overseas markets and that they review the extent to which these operations can be co-located with the offices of other government agencies including Scottish Development International. We recommend that Ministers review the relationship between VisitScotland and VisitBritain and the agreement on their respective roles in the promotion of Scotland overseas. 30. We agree that VisitScotland should maximise the effectiveness of its marketing in key

overseas markets. The tourism revenue return on marketing spend in these markets is high, which is why Ministers increased VisitScotland’s marketing budget by 28% last year, and will sustain that record level of funding through to 2008. Along with our encouragement of new air services, the additional marketing is working well, with the latest figures from overseas markets showing very strong growth. The International Passenger Survey for 2004 shows that EU and non-EU visitor numbers have increased by 13% more than the UK average. Over the same comparative period, visitor numbers from North America and from other countries to Scotland are also higher. The total number of

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international visitors to Scotland in 2004 was up 20% on 2003 figures, compared with 12% for the UK.

31. As far as the physical presence in overseas markets of VisitScotland marketing staff is

concerned, VisitScotland has agreed new arrangements with VisitBritain which will maximise the effectiveness of these staff in key markets in both Europe and the US. The new arrangements were agreed by UK Tourism Ministers in March, and came into effect on 1 April.

32. As a result, VisitBritain is now changing its marketing approach from promoting the

Britain brand in every overseas tourism market to promoting it more strongly in emerging long haul markets, such as China and India, while in developed markets such as Germany, France and the Netherlands, VisitScotland and the Wales and London Tourist Boards now lead in promoting their own brands using VisitBritain logistical support in these areas. This approach enables VisitScotland to make more impact in developed markets where the Scotland brand is very well recognised, and frees up VisitBritain resources to make a greater impact on emerging long haul markets where the Scotland brand is not yet well recognised. VisitScotland keeps under review its representation in overseas markets and works closely with SDI where that makes sense. However the location of SDI offices is not always optimal from a tourism market perspective.

33. The Chairman of VisitScotland sits on the VisitBritain Board, and there is close co-

operation between VisitBritain and VisitScotland marketing experts. VisitScotland, in full consultation with the Executive, has agreed new co-operation arrangements with VisitBritain which will maximise the effectiveness of VisitScotland overseas marketing staff in key markets in both Europe and the US. These changes, which were agreed by UK Tourism Ministers in March, came into effect on 1 April.. VisitScotland has signed a Memorandum of Understanding with VisitBritain to underpin the new working relationships.

We recommend that the Scottish Executive focuses its support for the tourism sector with the aim of improving quality standards, encouraging better training and investment in employees and increasing language skills. 34. Agree. We agree that consistently high product quality right across the visitor experience

is crucial to achieving Ministers’ ambition to increase tourism revenues by 50% by 2015. That is why the Executive made available an additional £3m to VisitScotland to broaden and strengthen the current suite of VisitScotland quality assurance schemes. The objective is for the participation rate in the accommodation scheme to increase from its current very high level of 80% to 90% participation in the next 3 years. VisitScotland are also strengthening or introducing new QA schemes covering retail, transport and food. The Executive is currently refreshing its tourism strategy, and the Committee’s recommendation on skills and training will be taken fully into account in that process.

Showcasing Scottish produce in the Parliament We recommend that the Scottish Parliamentary Corporate Body examine how the Parliament can become a showcase for Scottish produce and for Scottish talent in areas such as catering.

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35. Agree. We welcome this recommendation, which parallels efforts made by the Executive. The Executive’s caterers are committed to the use, whenever possible, of Scottish produce. The Executive also showcases Scottish produce and talent overseas – for example through overseas events. In 2004, for example, the Executive organised a series of events in the Netherlands culminating in an evening of Scottish culture at which Scottish produce was served, prepared by a team of Scottish chefs and including fish and seafood, lamb, fruit and vegetables, and cheeses.

Arts and culture We recommend that the Scottish Executive encourages the Scottish Arts Council or any successor to give greater priority to facilitating inward/outward arts and cultural tours. 36. Like the Committee, the Executive welcomes the establishment by the Scottish Arts

Council and the British Council of a jointly funded post of International Officer. The Scottish Arts Council is developing a comprehensive strategy to guide the development of its international work, which should be positioned within the strategic framework of the Executive’s International Strategy.

37. The Scottish Arts Council is rightly concerned to assist the Executive and Scottish artists

in the promotion and showcasing of Scottish culture abroad; and to foster the cultural development of Scotland’s artists, through partnership with the arts community elsewhere in the UK and overseas. Such partnership exposes them to different cultures and new work and helps develop their practice. Ministers are eager to promote the excellence of Scotland’s cultural output; the SAC plays its part in that endeavour which helps to present a highly positive image of Scotland.

38. The SAC’s primary role in bolstering the promotion of Scotland is through its expertise,

to facilitate access by those agencies which are responsible for the promotion of Scotland to the best Scottish artists who can contribute to that end; and to ensure that such artists are appropriately remunerated. It is to those cultural ends that the Scottish Executive’s Tourism, Culture and Sport portfolio provides funds to the SAC. Synergies which allow a contribution to be made to the promotion of Scotland are an additional benefit, which the Executive welcomes and encourages, of the SAC’s fundamental role in artistic development.

39. We note the Committee’s criticism in paragraph 107 that the initial idea for the

Smithsonian exhibition came from the Smithsonian Institution itself, and its comment that the Executive should do more to initiate promotion of Scottish culture overseas. It is worth noting that all invitations to countries to be featured in the Smithsonian Folklife Festival must emanate in the first instance from the Smithsonian Institution itself. More generally, while more can always be done, given enough resources, the Executive has taken many initiatives to promote Scottish culture overseas, such as during the 2004 Entente Cordiale celebrations and Scotland in the Netherlands season and most recently during Tartan Week 2005, during which the Executive funded events promoting Scottish dance, fine art and music, and two theatre productions were shown in New York, to much acclaim.

We recommend that the Executive provides more resources to promoting Scotland both as a film location and for the promotion of Scottish films with the aim of delivering an

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economic return. We recognise that certain elements of any plan would cover reserved issues and recommend that the Executive takes this up with the UK Government as a matter of urgency. 40. Disagree. The Executive believes that it provides adequate resources to Scottish Screen.

It is for Scottish Screen, through its corporate planning process, to determine the appropriate balance of expenditure between indigenous film production on the one hand and promotional expenditure on the other. The Executive agrees with the Committee that the aim of promotional spending must be to deliver an economic return, whether through the use of Scotland as a production location or through the wider distribution of Scottish films. We have seen no evidence to suggest that greater marketing effort would lead to increased returns. Neither do we see any scope for offering greater financial incentives or tax breaks for film production in Scotland than are available in other parts of the United Kingdom. The promotion of Scotland in this field is best achieved through the commissioning and distribution of material conveying a positive image of Scotland, as well as through the role of Scotland’s film festivals in attracting an audience from overseas.

41. Scottish Enterprise also plays a major part in developing the creative industries in

Scotland, including film. For example, it is involved in skills development through its membership of the Audiovisual Industries Skills Panel and investment through its partnership with Glasgow Film Finance Limited, Scotland's only commercial film investment vehicle.

Education We recommend that the British Council in Scotland reports annually to the Committee on its work and, in particular, reviews the work of its EducationUKScotland initiative. 42. It is for the British Council to respond to this recommendation. However, the Executive

has a long-standing and constructive relationship with British Council Scotland. Through our dialogue with them, we understand that they welcome this recommendation and will be arranging for the Committee to receive the first annual report on its activities within the next 6 months. We also have a continuing and positive engagement with EducationUKScotland. We support the work of EducationUKScotland financially and through the Executive’s membership of its Committee. Both the detailed work and the strategic direction of EducationUKScotland are defined in partnership with the independent, further and higher education sectors. Arrangements are under way to hold an Awayday in mid June to review the work of EducationUKScotland and set the future strategic direction for the team. This event will involve a wide range of stakeholders and representatives from the education sectors, including the Executive, the Scottish Further and Higher Education Councils and British Council staff. The event will provide an opportunity to reflect on the findings of this inquiry, as they apply to the work of EducationUKScotland.

We recommend that the Executive focus on the high quality of our education as an effective method of attracting overseas students and bringing people to Scotland. 43. Agree. We welcome the Committee’s recognition of the quality reputation which

Scottish education enjoys. The devolved Scottish government will continue to work with

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the education sectors and British Council Scotland to use the strengths of our education system to attract more overseas students to Scotland. The number of international students at Scottish institutions has increased significantly in recent years, suggesting that our efforts to promote the attractiveness of Scottish education are making an impact. As well as our work with EducationUKScotland, we are in regular dialogue with groups such as the Scottish University’s International Officers Group, to identify opportunities for collaborative approaches to the promotion of Scottish education overseas. To take this work further, we are arranging a work shop session in conjunction with Universities Scotland and the University of Glasgow for university senior managers and international recruitment officers. Plans are also at an early stage to arrange a parallel work shop session for the further education sector. Both these events will include discussion about how to maximise the benefits for the Scottish further and higher education sectors from the Executive’s Fresh Talent Initiative. In addition, the Further and Higher Education Bill, which is currently in its final stages of consideration by the Scottish Parliament, will give the newly merged Funding Council a duty to have regard to international context in which our universities and colleges operate. This will provide further opportunities to promote the high quality of Scottish education overseas.

Sports We recommend a greater use of Scotland’s current and emerging sporting stars for promotion of Scotland activities, especially when they are in receipt of public funds. 44. Agree. We periodically use a small number of prominent sportsmen and women to

promote Scotland abroad. However, to be more structured and to obtain maximum benefit, we will identify and invite a small number of international athletes, coaches and other sports figures to become ‘ambassadors’: it would be essential to ensure that they were given the appropriate training and support to assist them in fulfilling this role.

45. We were delighted to take two of our young talented athletes – Robert Russell and Sara

Stevenson - to New York in April to take part in our Tartan Week activities. They competed in the 10km Scotland Run in Central Park coming in first and second out of some 4,000 competitors and attended various functions as Scottish ambassadors.

46. This proposal should not necessarily be restricted to those sportsmen and women in

receipt of lottery funding. Similarly, we will consider coaches and others in sport if they have the correct profile and image, as some of our best known professional sports people do not receive support through the lottery. At the same time, we must ensure that sportsmen and women are not over burdened with promotional work, bearing in mind that some are already involved in promoting other Executive initiatives such as the Sporting Champions scheme. Furthermore, their involvement needs to be carefully planned to ensure it fits into training and competition commitments.

International development We recommend that the Scottish Executive reviews the specialist skills and competences that will be needed in its departments to maximise our contribution to international development.

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47. Agree. We will keep these needs under constant review and prioritise them as we recruit staff to our teams dealing with international development issues.

Political links and paradiplomacy We recommend that, in relation to its bilateral links with other regions and nations, the Executive publish suitable criteria to define the governments with which it chooses to have political ties and that it produces clear action plans when co-operation agreements are signed. We recommend that the Executive report to the Committee annually on these links. 48. Agree. The Scottish Executive currently has four formal co-operation partnerships -

sometimes termed “bilateral links” - with partner regions in Europe. In considering these partnerships and others, a wide variety of criteria are taken into account which are not standard for each partnership but depend on the particular aims and objectives of the partnership in question, and indeed those of the partner. It is therefore not possible to create one one-size-fits-all list or to draw direct comparisons between different options available. Ministers do, however, recognise the importance of being open and transparent about co-operation partnership, of defining clear action plans and committing sufficient resource to enable proposed activity to be sustained and commitments fulfilled, and of ensuring that the Committee receives regular updates on progress, while noting that such progress is also defined by conditions in the partner administration.

We recommend that, in relation to networks of European organisations, Ministers steer them towards becoming effective lobbying organisations and not just talking shops and in so doing evaluate the merits of membership. 49. Agree. It is vitally important to ensure that membership of regional networks is in line

with Ministers’ objectives and is adding value. We agree that it is important that these organisations should have clear aims and objectives and deliver clear benefits.

Fresh Talent We recommend that the Executive considers the evidence the Committee has gathered suggesting how the Fresh Talent initiative can be improved based on the approaches used elsewhere and reports to the Committee. 50. Agree. The Executive has studied with interest the evidence submitted to the enquiry on

the issue of Fresh Talent. The Fresh Talent Initiative is a long term initiative to address long term problems and we are constantly reviewing how it can be developed. We look forward to discussing this further with the Committee during the course of its forthcoming inquiry into the Fresh Talent Initiative.

Scotland’s Role in the EU and the Engagement of the Executive We recommend that the Scottish Executive continues its work to enable better identification of the medium- to long-term policy challenges in the EU as they affect Scotland, in addition to focusing on the immediate legislative workload from the EU.

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51. Agree. The Executive’s European Strategy recognises that Europe is of massive importance to Scotland. Ministers fully agree that the better identification of longer term EU policy issues of importance to Scotland is a key element in seeking to achieve the best possible outcomes for Scotland. Work is continuing to ascertain how best we can increase the effectiveness and impact of Executive efforts in this direction.

We recommend that the Executive takes an active role in making the expertise in Scotland available to assist with the management of regional development funds and infrastructure projects in the new member states of the EU and those soon to join. 52. Agree. Ministers are already committed to sharing the Executive’s expertise on Structural

Funds with the new Member States. We have participated in twinning covenants with both the Czech Republic and Estonia. These partnerships have helped to foster closer links between Scotland and these states. We have also received visitors with an interest in the Structural Funds from Poland (2001), Slovakia (2003), Estonia (2003), and the Czech Republic (2004). Representatives of these states have come to Scotland to learn about how we deliver Structural Funds programmes.

53. The Minister for Finance and Public Service Reform addressed a Global PPP summit in

Prague last November, and a delegation from Prague has been invited to attend the Scottish Executive’s IIP conference in May 2005.

Links with North America We recommend that the Scottish Executive, its agencies and the Parliament, seek to establish a political network in the USA to support Scottish interests by establishing specific links in key states in the USA and through affiliation to bodies such as the National Conference of State Legislatures and the National Governors’ Association. 54. Agree. The Executive, through its Scottish Affairs Office based in Washington DC, will

continue to develop its existing relationship with organisations such as the National Council for State Legislatures and the National Governors’ Association. This work will help identify a number of key states in the US where Scotland could benefit from developing closer relationships. Our aim will be to take Scottish knowledge, skill and ideas to legislators and officials of these States and exchange ideas of best policy practice with the purpose of developing key alliances and strategic partnerships.

55. In support of this the Scottish Affairs Office has agreed to participate in the National

Council for State Legislatures’ conference in Seattle later this year and the National Governors’ Association’s summer meeting.

56. In addition the Scottish Affairs Office will continue to work with other Scottish

organisations, the Scottish Diaspora and the FCO consulate network in the US to promote Scotland as place to live, study, work, visit and do business with. Progress was made on this during Tartan Week 2005, the most extensive and ambitious programme to date. More Scottish organisations than ever before were involved, through events such as the Scotland Village and Scotland Run in New York and the Life Sciences seminar in Boston. Progress was also made in developing a more focused engagement by the Scottish Executive in the US through meetings with members of Congress, the National Conference of State Legislatures and others in Washington.

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Overseas networks In paragraph 175 the Committee acknowledges the good work of various networking initiatives but also its view that there is potential for duplication of effort and that more can be done to co-ordinate the work of GlobalScot, Global Friends of Scotland and the activities in the universities and British Council Scotland to connect with alumni from Scottish universities and colleges. The Committee comments that perhaps these efforts should be brought together or at least the different agencies urged to work together and share information. 57. The Global Friends of Scotland and globalscot initiatives have distinct roles and the

teams running them work closely together to avoid duplication. Globalscot is a network of senior business contacts overseas, established some years ago by Scottish Enterprise, whose members are committed specifically to assisting Scottish business interests, while Global Friends of Scotland promotes many facets of contemporary Scotland and positions the country as a great place to live, learn, work and visit. Frequent meetings between the teams ensure that potential members who may want to join both networks are clear about the distinctions, that potential members are referred from one network to another, and that materials of interest to members of both networks are shared.

58. Globalscot is in contact with the Scottish universities to explore ways in which the

universities can gain access to globalscot members and in which alumni in relevant disciplines or jobs who may be interested in joining the globalscot network can be approached to consider membership. The British Council Scotland focuses on promoting Scotland’s educational strengths internationally. Opportunities for collaboration have been identified between the globalscot network and the Scottish Networks International initiative, such as, for example, globalscot members helping to find high quality work placements for international postgraduate students in Scotland.

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EUROPEAN AND EXTERNAL RELATIONS

COMMITTEE

BRIEFING PAPER

“Pre- and post-Council of the EU analysis and scrutiny” Introduction 1 One of the Committee’s core scrutiny tasks is the analysis of information

received from the Scottish Executive on meetings of the various Council of the EU formations (formerly known as the Council of Ministers).

2 Two types of information are shared with the Committee under the agreement

between the previous Committee and the Executive. Firstly, a few weeks in advance of a Council meeting, the Committee receives an annotated agenda of the Council. This sets out the nature of the agenda and the Executive’s views on the items where it has a competence. The Executive’s views tend to be italicised so as to stand out for the reader. Members will wish to know that the agenda is often a ‘best guess’ and that the views provided are designed not to prejudice the UK’s negotiating position whilst nevertheless providing sufficient information to provide an insight into the subject.

3 Secondly, within a few weeks after a Council meeting the Executive provides

the Committee with a post-Council report, detailing attendance and the discussions that took place.

4 These two types of information are referred to as ‘pre- and post-Council

scrutiny’. In scrutinising the material, the Committee has several options:

- To note the material, having placed it in the public domain for others to use

- To ask for further written information from the Executive - To invite the relevant Minister to attend the next committee meeting for

further discussions 5 Scrutiny focuses on two distinct areas. As a first priority, the Committee will

wish to focus on the Council agenda items that refer to early, formative discussions (such as on Green Papers, White Papers, Commission Communications, orientation debates etc.) in the Council. This is an indication that the decision-making process for these agenda items in the Council is at

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an early stage. It is here that the Committee may be most able to have an early influence on a Minister’s thinking.

6 As a second priority, to be used perhaps only occasionally, the Committee

may choose to focus on agenda items nearing final decisions. 7 From the beginning of Session 2 of the Parliament, sectoral information is

sent directly by the Minister to the relevant subject committees. The most practical arrangement, therefore, would be to co-ordinate any further dialogue with the Executive with that any other committee may undertake. This does not preclude this Committee from engaging with all the material and information received. Also, on occasion, a subject committee may have little time to engage with a pressing issue and therefore this Committee may be in the best position to tackle it. The Convener and Clerks will co-ordinate with the committees concerned as necessary.

This briefing paper 8 The papers considered below are in two sections. Annex A is a summary

table, with Convener’s recommendation(s) for each Council agenda/report. Annex B gives the full information from the Executive for each of the Councils to be considered at today’s meeting.

Action 9 Members are invited to consider for agreement the recommendations in

the table in Annex A in light of the information provided by the Executive, set out in Annex B.

John Swinney MSP Convener

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ANNEX A SUMMARY TABLE OF CONVENER’S RECOMMENDATIONS

Council

Did Executive meet deadline

for sending information?

Notes and recommendation

Pre-Council agendas Education, Youth and Culture Council, 23-24 May

No Awaiting information from the Scottish Executive.

General Affairs and External Relations Council, 23-24 May

Yes To thank the Scottish Executive for the information provided.

Agriculture and Fisheries Council, 30 May

No Awaiting information from the Scottish Executive.

Post-Council reports Environment Council, 10 March

No This has now been sent to the Committee but note that this report was received over a month late.

Agriculture and Fisheries Council, 14 March

Yes To thank the Scottish Executive for the information provided. Note that the Council reports a unanimous agreement to establish the Fisheries Control Agency and expects it to be operating formally within a year.

ECOFIN Council, 12 April

Yes To thank the Scottish Executive for the information provided.

Justice and Home Affairs Council, 14 April

Yes To thank the Scottish Executive for the information provided.

Competitiveness (Internal Market, Industry and Research) Council, 18 April

No Awaiting information from the Scottish Executive.

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ANNEX B Pre-Council Agenda: Education, Youth and Culture Council 23-24 May Awaiting information from the Scottish Executive

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Pre-Council Agenda: General Affairs and External Relations Council 23-24 May

Session on General Affairs 1. Resolutions, decisions and opinions adopted by the European Parliament at its part-

sessions held in Brussels on 27 and 28 April and in Strasbourg from 9 to 12 May 2005. 2. (poss.) European External Action Service This is only a possible item – the background to this is given below – at the moment it is unclear what aspect of the proposed service is likely to be discussed.

Creating the post of Minister for Foreign Affairs was one of the main innovations of the draft Constitution. The purpose of introducing such a role was to make the European Union's external action more effective and coherent, the Minister for Foreign Affairs becoming in effect the voice of the Union's common foreign and security policy (CFSP).

The Foreign Affairs Minister would be in charge of a diplomatic service with delegations in almost 125 countries. The draft Constitution provides for a European External Action Service to be set up to assist the Minister in his or her functions.

This joint service will be established by an agreement between the Council of Ministers and the Commission (without prejudice to the rights of the European Parliament) and placed under the authority of the Foreign Affairs Minister. It will be composed of officials from relevant departments of the General Secretariat of the Council of Ministers and of the Commission and staff seconded from national diplomatic services.

According to the Declaration on the creation of a European External Action Service, the necessary arrangements for establishing this service should be made within the first year of entry into force of the Treaty establishing a Constitution for Europe. 3. Preparation for the European Council (Brussels, 16 and 17 June 2005) As usual the Council will briefly consider the main issues to be discussed at the June European Council. The agenda items to be discussed have not yet been issued. 4. Financial framework 2007 - 2013 The next version of the Presidency’s “negotiating box” on future financing will be discussed.

Session on External Relations This section relates to reserved issues. 1. ESDP items 2. Western Balkans 3. Barcelona Process 4. Middle East

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5. (poss.) Terrorism 6. (poss.) Afghanistan 7. Latin America -EU-Latin America ministerial preparation (probably as an "A" item)

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Pre-Council Agenda: Agriculture and Fisheries Council 30 May Awaiting information from the Scottish Executive

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Post-Council Report: Environment Council 10 March 1. The main outcome of the Council was the adoption of two sets of conclusions. One set formed a contribution from the Environment Council to the Spring European Council (scheduled for the 22nd and 23rd March 2005) and was a response to four Commission communications:

• the Mid-Term Review of the Lisbon Strategy, • the Commission’s 2004 Environmental Policy Review, • an initial review of the EU Sustainable Development Strategy and • a report on implementation of the Environmental Technologies Action Plan.

The second set of conclusions represented the Environment Council’s recommendations to the Spring European Council on climate change, specifically medium to long term emission reduction strategies and targets.

2. Council conclusions on the Environment Council’s contribution to the Spring European Council were adopted after a full discussion. Almost all delegations supported the Presidency text and emphasised the Lisbon Strategy requirement that environmental protection and economic growth went hand in hand. In this context, UK referred Council to the recently published UK Sustainable Development Strategy, an executive summary of which was circulated to delegations. 3. Council conclusions on climate change were adopted following a debate. The conclusions reaffirmed the December 2004 Environment Council conclusions, referring to the global nature of climate change and the requirement for international cooperation, and to recent scientific research under the Intergovernmental Panel on Climate Change on the stabilisation of greenhouse gas concentrations required to meet the 2 degrees centigrade objective. Drawing on this research, the conclusions suggested the consideration of pathways to 2020 and 2050 for greenhouse gas emission reduction in developed countries. The agreed text made clear that the EU wished to explore the future framework with others and that the language on emissions reductions was an evidence-based assessment rather than a prescriptive call for action. The conclusions also invited the European Commission to continue its analysis of costs and benefits of reduction strategies, including the costs of inaction.

4. Council adopted a Decision on a negotiating mandate for the second Meeting of the Parties to the Aarhus Convention on access to information, public participation in decision-making and access to justice in environmental matters, which is scheduled for 25-27 May 2005 in Almaty, Kazakhstan. 5. Council also adopted a negotiating mandate in preparation for the second meeting of the parties to the Cartagena Protocol on Biosafety, scheduled for 30 May – 3 June 2005 in Montreal. The negotiating mandate was adopted under qualified majority voting procedures, following a Presidency compromise which included the addition of UK-proposed wording. 6. Council conclusions were adopted in preparation for the first conference of the parties to the Stockholm Convention on persistent organic pollutants, scheduled for 2-6 May 2005 in Punta del Este, Uruguay. The Presidency thanked the UK for chairing the

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preparatory work for this conference on its behalf. Council conclusions were agreed unanimously following a small amendment to reflect the concerns of two delegations. 7. Minister John Ashe (Antigua and Barbuda), Chair of the 13th Session of the United Nations Commission for Sustainable Development (CSD 13), briefed the Council on preparations for the next session which was to take place in New York on 11-22 April 2005. An exchange of views followed, in which Member States and the Commission stressed the importance of links between CSD 13 and the Millennium Review Summit to be held in September. 8. Under Other Business,

• the Presidency gave an update on negotiations on the REACH chemicals strategy (the proposed EU regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals)

• Belgium presented items on the import of wild birds and illegal logging. • Germany raised the proposed Services Directive, arguing that country of origin

rules presented a threat to national environmental standards, and should not result in levelling down, a view which was supported by some other Member States. The Commission referred ministers to the recent statements to the Competitiveness Council and European Parliament on this issue, and other delegations took the view it was too early for Environment Council to discuss the scope of this measure.

• Austria, with support from a number of member states, raised an issue concerning the Commission’s approach to national safeguard actions in relation to GM maize variety MON 810.

• The Netherlands set out concerns about the possible dilution of EU standards in a current review of the automotive industry (‘CARS 21’) and

• the Czech Republic announced a forthcoming conference on Acid Deposition.

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Post-Council Report: Agriculture and Fisheries Council 14 March The main item for discussion at this Council was Rural Development. The Presidency focussed discussion on a small number of issues in the current proposal to revise the Rural Development Regulation, principally focussing on financial matters including the minimum spend per axis and the LEADER reserve. The UK reiterated the importance we attach to devoting at least half of the financial resources under the Regulation to Axis 2; we expressed some doubt as to the level of the LEADER reserve proposed; and we supported others in giving a general welcome to the likely shape of the strategy framework. On fisheries, the Council reached unanimous agreement on the proposal to establish the Community Fisheries Control Agency. The remaining issue of the scale of Commission representation on the Agency's Administrative Board was resolved. A compromise was reached on six members (with a total of six votes) for the Commission, in addition to one for each Member State. A joint Council and Commission statement makes it clear that this high degree of Commission representation is not a precedent for other any other possible Agencies. The Community Fisheries Control Agency is intended to co-ordinate fisheries enforcement operations, known as joint deployment plans, to help provide equality of inspection standards across the Community. All the major Scottish negotiating objectives for the Agency were achieved, including a number of significant reforms to the Commission’s original proposal. The Agency will be based in Vigo and is scheduled to begin work formally within a year. On agriculture, the Commission presented proposals for EU measures to address market crises through risk management measures funded through modulation. This was a brief presentation, with substantial discussion planned for later in the year. The Commission made it clear that it opposed extending any kind of generalised safety net provision such as that found in the current beef regime. It also indicated that the use of any modulated funds would only be possible in the context of rural development programmes and measures that were compatible with the WTO Green Box. The Commission reported progress in negotiations with the Russian Federation to agree certain plant and animal health controls. While the UK has not so far been among the member states most affected by Russian requirements, it was encouraging that progress was being made to resolve the remaining differences. The Commission also presented a progress report on implementation of the EU forestry strategy. Member States took note. Under other business, Portugal drew attention to the difficulties that prolonged drought had caused in its rural areas.

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Post-Council Report: ECOFIN Council 12 April UK Participant: Mr Jon Cuncliffe, Director ITEMS DEBATED 1. BROAD ECONOMIC POLICY GUIDELINES FOR 2005 The Commission gave a presentation on the main recommendations proposed for the broad economic policy guidelines (BEPG). On the 7 June 2005, the Council should adopt a report on the BEPG. 2. IMPLEMENTATION OF THE STABILITY AND GROWTH PACT Following the submission from Greece on 21 March 2005 of a revised update of its stability programme 2004-2007, the Council commended the Greek Government on its progress and concluded that no further steps in the excessive deficit procedure were needed. 3. BUSINESS – REDUCTION OF ADMINISTRATIVE BURDENS In October 2004 the council asked the Commission to set up pilot projects aimed at assessing the administrative burden resulting from EU legislation and rules. The Council took note of its progress. 4. EU FINANCIAL FRAMEWORK 2007 - 2013 The Presidency gave a presentation describing a “negotiating box” designed to facilitate the preparation of the EU’s financial perspective for the period 2007-2013. 5. DEVELOPMENT AID – OPTIONS FOR FUNDING The Commission submitted a document containing fiscal and non-fiscal options for increasing the volume of development aid to meet the Millennium Development Goals laid down in 2000. Included in the many options offered by the document were:

- A UK proposal for an International Financing Facility; - German and French proposals for taxes on air transport (aviation fuel and airline

tickets). 6. TAXATION OF SAVINGS The Council received an update concerning agreements on the taxation of savings for Andorra, Liechtenstein, Monaco, San Marino, Switzerland and ten dependent and associated territories of the Member States, noting that all measures would be implemented within the agreed time-frame. The Directive aims to guarantee that cross-border flows between Member States of savings income in the form of interest payments are taxed.

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7. EXCISE DUTY APPLIED ON ALCOHOLIC BEVERAGES – Council conclusions The Council noted that:

- enhanced approximation would help reduce the distortions of competition and fraud; - a positive minimum rate for all alcoholic beverages was not agreed; - the proposal that minimum rates of excise duty should be compensated for inflation

received broad convergence of views; - Health and Safety aspects were not considered a major determinant in setting rates; - there is a need to modernise the existing classification of alcoholic beverages for

excise duty purposes. The council called upon the Commission to:

- propose a means of adjusting the minimum rates of excise duty to avoid a fall in the real value of the Community minimum rates;

- modernise the system. OTHER ITEMS DEBATED 1. ECONOMIC AND FINANCIAL AFFAIRS The Council gave its opinion on a draft amendment of Commission regulation, which takes into account legal instruments for the implementation of expenditure from the Common Foreign and Security Policy budget of the EU.

2. EXTERNAL RELATIONS Cote d’Ivoire The Council adopted a regulation concerning the freezing of funds and economic resources of certain persons and entities who constitute a threat to the peace and reconciliation process in Cote d’Ivoire. Africa The Council adopted a common position concerning conflict prevention, management and resolution in Africa. EU – Croatia The Stabilisation and Association Council will monitor the implementation of the Stabilisation and Association Agreement between the EU and Croatia. 3. EUROPEAN SECURITY AND DEFENCE POLICY The Council approved a general concept for setting up a mission to provide advice and assistance for security sector reform in the Democratic Republic of Congo. 4. ENLARGEMENT The Council adopted the internal arrangements for negotiation with Croatia concerning its accession to the EU.

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TRANSPORT The US has prohibited passengers from carrying lighters on board flights. The Council approved the submission of a note to the US authorities concerning the proposed prohibition. TELECOMMUNICATIONS The Council approved a programme which promotes safer use of internet. The programme entails four measures:

- Fighting against illegal content; - Tackling of unwanted and harmful content by the final user; - Promoting a safer environment; - Awareness raising.

ENVIRONMENT The Council adopted a common position on a draft Directive of the European Parliament and of the Council on the management of waste from extractive industries. The aim of the draft Directive is to prevent accidents resulting directly from the prospecting, extraction, treatment, storage, recovery and disposal of mining waste and to limit their harmful effects on the environment and human health.

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Post-Council Report: Justice and Home Affairs Council 14 April The second formal JHA Council of the Luxembourg Presidency. The UK was represented by Baroness Ashton. Detailed discussions focussed on the European Order for Payment and the exchange of criminal records. Agenda Items CIVIL AND JUDICIAL CO-OPERATION Proposal for a Regulation of the European Parliament and of the Council creating a European order for payment procedure This is a proposal for a simplified procedure for obtaining and enforcing a judgement in uncontested claims and the draft applies to both cross border and internal cases. Whilst the Scottish Executive fully supports this proposal in so far as it relates to cross border cases, it has along with other jurisdictions in the UK, sought to restrict it to cross border cases only, questioning the treaty base and the need for the proposal as it presently stands. After lengthy discussion the majority of member states supported a text limited to cross-border disputes only, within the meaning of Article 65 TEC. There was general support for the Presidencies compromise proposal that an application for the order for payment should include a brief description of at least one means of proof to support the claim, with the evidence to be provided if the State of origin required. There was also support for the automatic recognition and enforcement in Member States of the order for payment once it had been issues by the Member State of origin, thereby abolishing the exequatur procedure. Once the European Parliament opinion on the Regulation was received final decisions on the issues discussed at Council would be reached. Scottish Executive officials attend the Working Group to discuss this dossier as part of the UK delegation. Policy Debate on the Exchange of Information Extracted from Criminal Records There was a presentation by France and Germany of the pilot project which was being established between themselves, Belgium and Spain. The system they were piloting was based on the inter-connection of national databases, with information sought from the State of an individual’s nationality. There was a lengthy discussion on the merits of the pilot project with no real consensus reached. The Commission would be invited to prepare an instrument on which further discussions could continue reflecting the Presidency model for a mechanism on the exchange of criminal records. Scottish Executive officials are involved with the UK on working on the negotiating line for this dossier.

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JHA Financial Programmes – Commission Presentation The Commission gave a presentation to Member States for the financial perspectives for JHA for 2007 - 2013 in preparation for the Action Plan for implementing the Hague Programme. The Action Plan will be adopted by the College on 10 May and hopefully agreed by the June JHA Council. The priorities of the Hague Programme are Fundamental Rights, terrorism, making access to justice easier, trafficking of human beings and illegal immigration. The Presidency intended to agree the Hague Programme Action Plan at the June JHA Council and also the financial figures would continue to be debated with an overall agreement also in June. Implementation of the Principle of Availability The principle of availability involves the commitment to share data freely between law enforcement and judicial authorities. The Presidency wanted an indication of Member States willingness to agree to its proposal on the way forward. The Commission agreed with this proposal but also noted that the proposals on data protection and to implement the principle of availability were just as important. The Commission would also bring forward proposals to grant law enforcement authorities’ access to the Visa Information System and to examine the possibility of interconnecting EU JHA databases. Some member states agreed with the Presidency but thought that the list of information types was made up in a random way. Others thought that a roadmap or work programme for the application of the principle of availability and include work on data protection and the monitoring of the application of the principle should be made available. There was discussion on various aspects of the Presidency’s proposal. The Presidency had concluded that there was a general agreement on the way forward on the proposal. Police Chiefs Task Force During lunch the Presidency gave an update on the Police Chiefs Task Force in its implementation of the COSPOL operational policing strategy. The UK thought that good work was being done and said that this would continue under the UK Presidency. European Agency for the Management of Operational Co-operation at the External Borders of the Member States of the EU A lengthy discussion on the location of the European Borders Agency. The result was that Poland would be the home of the Agency which is expected to be up and running by end of May.

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Co-operation with Libya in the field of Immigration Commissioner Frattini gave an overview of the report of the recent technical mission to Libya to consider illegal immigration. The Commission would like to include Libya in the Barcelona process.

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Post-Council Report: Competitiveness (Internal Market, Industry and Research) Council 18 April Awaiting information from the Scottish Executive

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Sift of EC/EU legislative proposals and other documents EU/S2/05/09/4 Background This document contains the list of EC/EU documents received by the European and External Relations Committee for this meeting, classified according to which committee(s) the particular document is most relevant. The document is sent by the Committee to each of the Scottish Parliament’s committees for their attention.

Table of Contents Note This list of recent legislative proposals and developments in the EU contains a preface to the Committee Relevancy lists. The preface highlights documents that this Committee considers to be of ‘Special Importance’, setting out the reasons in a short explanatory note.

Committee Page Number Enterprise and Culture 1 Environment and Rural Development 2 Local Government and Transport 3 Other 4-8

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Documents of Special Importance

Subject Committee SP Ref EU Ref Document Title Explanatory Note

Communities

Equal Opportunities

European and External Relations

2220

2226

COM (2005) 116

SEC (2005) 442

Proposal for a Decision of the European Parliament and of the Council establishing for the period 2007-2013 the programme "Citizens for Europe" to promote active European citizenship.

COMMISSION STAFFWORKING DOCUMENTAnnex to the Proposal for a Decision of the European Parliament and of the Council establishing for the period 2007-2013 the programme "Citizens for Europe" to promote active European citizenship[COM(2005) 116 final] - Impact assessment.

These two documents may be of interest to these three Committees. The documents deal with the issue of bringing the EU Institutions closer to the citizens, including making citizens more aware of their rights as EU citizens and as such are relevant to the Communities and Equal Opportunities Committees. The European and External Relations Committee may have an interest in the overall issue of engaging citizens with EU matters and the EU Institutions.

“The European Union today forms a dense network of institutional, social and political relationships which has become even richer in the context of an enlarged Europe and will continue to do so in the context of future enlargements. European citizens are at the heart of this process and their active involvement is essential in order to ensure a democratic and balanced development of the European Union. The European Union is, however, currently facing a paradox: despite the successes and achievements of the European Union since its creation, European citizens seem to have developed a certain distance towards the European institutions and to have difficulties in identifying themselves

In the introduction, the document states:

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within the process of European integration. The low level of participation in the last elections for the European Parliament is a recent illustration. The European Council has recognised on several occasions the need to bring the European Union and its institutions closer to the citizens of the Member States and it has encouraged the Union's institutions to promote citizens' participation in public life and in decision-making.”

A UK Government Explanatory memorandum is available on request.

Enterprise and Culture

Environment and Rural Development

2195

2218

COM (2005) 121

SEC (2005) 433

Proposal for a Decision of the European Parliament and of the Council establishing aCompetitiveness and Innovation Framework Programme (2007-2013).

These two documents may be of interest to these Committees. They continue the series of documents which link to the goals of the Lisbon Agenda and specifically to the re-launch of the Lisbon Agenda in 2005. The document states:

Commission staff workingdocument - Annex to the proposal for a Decision of the European Parliament and of the Council establishing a Competitiveness and Innovation Frameworkprogramme (2007 - 2013).

“The Competitiveness and Innovation Framework Programme (CIP) will bring together into a common framework specific Community support programmes and relevant parts of other Community programmes in fields critical to boosting European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.”

UK Government Explanatory Memorandum available on request.

Environment and Rural Development

2207

COM (2005) 117

Proposal for a Council Regulation establishing Community financial measures for the implementation

These two documents relating to the Common Fisheries Policy may be of interest to this Committee, as part of the continued monitoring of

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SEC (2005) 426

of the Common Fisheries Policy and in the area of the Law of the Sea.

Commission Staff Working Paper on the Annex to the Proposal for a Council Regulation establishing Community financial measures for the implementation of the Common Fisheries Policy and in the area of the Law of the Sea - Extended Impact Assessment.

CFP developments and their possible impact on Scottish fishing. The document states:

“The present Regulation establishes the framework for financial interventions for the implementation of the CFP in addition to the proposal for a Council Regulation on the European Fisheries Fund. Interventions are planned in particular in the following areas: control and enforcement, conservation measures, data collection and improvement of scientific advice, governance, international relations and the Law of the Sea.

This Regulation shall contribute to improving the conditions for implementing financial interventions in each of these areas by setting specific objectives for each of them.”

UK Government Explanatory Memorandum available on request.

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title Enterprise and Culture (to include Lifelong Learning, Tourism

2194 COM(2005)119 Proposal for a Decision of the European Parliament and of the Council concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007- 2013). Proposal for a Council Decision concerning the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011).

2211 COM(2005)118 Communication from the Commission on building the ERA of knowledge for growth. 2212 COM(2005)138 Proposal for a Council Decision on the position to be taken by the Community concerning the proposal to amend the International Convention on the Harmonisation of Frontier Controls of Goods 1982. 2217 SEC(2005)430 Commission staff working paper - Annex to the proposal for the Council and European Parliament decisions on the 7th Framework Programme (EC and Euratom) 2219 SEC(2005)431 Commission staff working document - Simplification in the 7th Framework Programme

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title Environment and Rural Development

2194 COM(2005)119 Proposal for a Decision of the European Parliament and of the Council concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007- 2013). Proposal for a Council Decision concerning the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011).

2229 COM(2005)148 Proposal for a Council Regulation amending Regulation (EC) No 27/2005, as concerns fishing opportunities in Greenland, Faroese and Icelandic waters and fishing for cod in the North Sea, and amending Regulation (EC) No 2270/2004, as concerns fishing opportunities for deep-sea sharks and roundnose grenadier 2230 COM(2005)151 Proposal for a Council Directive on the control of potato cyst nematodes (presented by the Commission)

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title Local Government and Transport

2213 SEC(2005)323 Commission Staff Working Paper: Annex to the Communications from the Commission to the Council and the European Parliament. European Initiative for Growth - EU loan guarantee instrument for TEN-Transport projects.

2214 COM(2005)75 Communication from the Commission to the Council and the European Parliament European Initiative for Growth Feasibility report on EU loan guarantee instrument for TEN-Transport projects 2215 COM(2005)76 Communication from the Commission to the Council and the European Parliament European Initiative for Growth Concept for the design of an EU loan guarantee instrument for TEN-Transport projects

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title Other

2192 Communication from the Commission to the European Parliament and to the Council concerning the implementation and continuation of the Pericles programme for the protection of the euro against counterfeiting. OLAF: Report of the Evaluation of the "PERICLES" Programme under Council Decision (2001/923/EC) 17th December 2001. 2193 COM(2005)127+ Communication from the Commission to the European Parliament and to the Council concerning the implementation and continuation of the Pericles programme for the protection of the euro against counterfeiting. Proposal for a Council Decision amending and extending Council Decision of 17 December 2001 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme). Proposal for a Council Decision extending to the non-participating Member States the application of Council Decision amending and extending Council Decision of 17 December 2001 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme).

2196 COM(2005)134 Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee Policy on Coherence for Development: Accelerating progress towards attaining the Millennium Development Goals. 2197 SEC(2005)455 Commission Staff Working Document on the Annex to the Communication from the Commission Policy Coherence for Development: Accelerating progress towards achieving the Millennium Development Goals - Impact Assessment. 03 May 2005 Page 4 of 8

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title 2198 SEC(2005)456 Commission Staff Working Document on the EU Report on Millennium Development Goals 2000-2004: EU contribution to the review of the MDGs at the UN 2005 High Level Event. 2199 SEC(2005)452 Commission Staff Working Document on the Annex to the Communication from the Commission on accelerating progress towards achieving the Millennium Development Goals: The European Union's contribution - Impact assessment. 2200 COM(2005)132 Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee on speeding up progress towards the Millennium Development Goals: The European Union’s contribution. 2201 COM(2005)133 Communication from the Commission to the Council and the European Parliament concerning accelerating progress towards attaining the Millennium Development Goals: Financing for Development and Aid Effectiveness. 2202 Council Decision designating the seat of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union. 2203 SEC(2005)454 Commission Staff Working document on the Annex to the Communication from the Commission concerning accelerating progress towards achieving the Millennium Development Goals: Financing for Development and Aid Effectiveness - EU follow-to the Barcelona Commitments and operationalisation of the Monterrey consensus. 2204 SEC(2005)453 Commission Staff Working Document on the Annex to the Communication from the Commission concerning accelerating progress towards achieving the Millennium Development Goals: Financing for Development and Aid Effectiveness - EU follow-to the Barcelona Commitments and operationalisation of the Monterrey consensus. 2205 COM(2005)136 Proposal for a Council Directive amending Directive 77/388/EEC on the common system of value added tax, with regard to the length of time during which the minimum standard rate is to be applied.

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title 2206 Council Common Position extending restrictive measures against Burma/Myanmar and amending Common Position 2004/423/CFSP. 2208 COM(2005)131 Proposal for a Council Decision on the signing of a Protocol to the Agreement between the European Community, the Republic of Iceland and the Kingdom of Norway, concerning the criteria and mechanisms for establishing the State responsible for examining a request for asylum lodged in a Member State or in Iceland or Norway. Proposal for a Council Decision on the conclusion of a Protocol to the Agreement between the European Community, the Republic of Iceland and the Kingdom of Norway concerning the criteria and mechanisms for establishing the State responsible for examining a request for asylum lodged in a Member State or in Iceland or Norway.

2210 COM(2005)111 Communication from the Commission to the Council and the European Parliament concerning Community Programmes Customs 2013 and Fiscalis 2013. 2216 3710-160r3 Draft co-operation Agreement between the Government of Canada and The European Police Office 2221 COM(2005)145 Proposal for a Council Decision concerning the signing of the Agreement between the European Community and the Kingdom of Denmark extending to Denmark the provisions of Council Regulation (EC) No.44/2001 on jurisdiction and the recognitions and enforcement of judgements in civil and commercial matters. Proposal for a Council Decision concerning the conclusion of the Agreement between the European Community and the Kingdom of Denmark extending to Denmark the provisions of Council Regulation (EC) No.44/2001 on jurisdiction and the recognitions and enforcement of judgements in civil and commercial matters.

2222 COM(2005)150 Communication from the Commission to the Council: Establishment of an OECD EDRC examination of EC economic policies alongside to the Euro Area Survey 03 May 2005 Page 6 of 8

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title 2223 COM(2005)154 Proposal for a Council Regulation amending Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies 2224 COM(2005)155 Proposal for a Council Regulation amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure 2225 COM(2005)108 Proposal for a Regulation of the European Parliament and of the Council establishing the European Union Solidarity Fund 2227 SEC(2005)423 Commission Staff Working Document - Annex to the Communication on the Community Programmes Customs 2013 and Fiscalis 2013 2228 COM(2005)146 Proposal for a Council Decision concerning the signing of the Agreement between the European Community and the Kingdom of Denmark extending in Denmark the provisions of Council Regulations (EC) No 1348/2000 on the service in the Member States of judicial and extra judicial documents in civil or commercial matters 2231 COM(2005)153 Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions: Reinforcing EU Disaster and Crisis Response in third countries 2232 COM(2005)21 Proposal for a Council Regulation amending the anti-dumping measures imposed by Regulation (EC) No 348/2000 on imports of certain seamless pipes and tubes of iron or non-alloy steel originating in Croatia and Ukraine

2233 COM(2005)80 Proposal for a Council Regulation further amending Regulation (EC) No 1601/2001 imposing a definitive anti-dumping duty and definitively collecting the provisional anti-dumping duty imposed on imports of certain iron or steel ropes and cables originating in the Czech Republic, Russia, Thailand and Turkey

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Committee Relevancy: Next Meeting 10-May-2005 Committee SP Ref EU Ref Document Title 2234 COM(2005)114 Proposal for a Council Regulation amending Regulation (EC) No 827/2004 as regards the prohibition of imports of Atlantic bigeye tuna from Cambodia, Equatorial Guinea and Sierra Leone, and repealing Regulation (EC) No 826/2004 prohibiting imports of blue-fin tuna from Equatorial Guinea and Sierra Leone and Regulations 2235 COM(2005)113 Proposal for a Council Regulation establishing a Rapid Response and Preparedness Instrument for major emergencies 2236 SEC(2005)439 Commission Staff Working Document : Annex to the Proposal for a Regulation Establishing a Rapid Response and Preparedness Instrument for Major Emergencies - Impact Assessment 2237 COM(2005)137 Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions Improving the Community Civil Protection Mechanism 2238 COM(2005)159 Proposal for a Council decision on the signature and provisional application of the Agreement between the European Community and the Republic of Croatia on certain aspects of air services

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CONVENER’S REPORT 1. Monthly report from the Clerk/Chief Executive and the External Liaison Unit on the

external relations activities in the Parliament. The Committee has received the latest update from the Clerk/Chief Executive and External Liaison Unit (Annex A). The Convener now recommends that:

Members note and welcome the report.

2. Letter from the Minister for Environment and Rural Development, Ross Finnie MSP, concerning progress on the implementation of the Waste Electrical and Electronic Equipment (WEEE) Directive

Members are asked to consider a letter from the Minister (Annex B) which is a reply to an inquiry from the Committee concerning the delay in implementing the WEEE Directive. The Committee asked whether the delay in implementing the Directive could lead to infraction proceedings and what the potential cost implications would be of complying with the Directive.

3. Letter from the Scottish Executive concerning matters arising from the Committee meeting of 12th April 2005

Members are asked to consider a letter from the Finance and Central Services Department of the Scottish Executive (Annex C), responding to matters arising from the Committee meeting of April 12th 2005. The letter responds to questions regarding the Pre-Council Agenda of the ECOFIN Council of April 12th 2005 and the Pre-Council Agenda of the Transport, Telecommunications and Energy Council of 21st April 2005. Specific matters discussed are the Lorry Road User Charge (LRUC), the rights of air passengers with reduced mobility and the EU Budget.

John Swinney MSP Convener

5th May 2005

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Annex A INWARD VISITS – APRIL/MAY 2005 Sunday 10 April - Friday 15 April - Regional representatives attended meeting of CPA International Executive Committee. Dennis Canavan MSP attended on behalf of the Scotland Branch. Wednesday 13 April - The Ukraine Ambassador visited the Scottish Parliament to participate in a meeting of the cross-party International Development Group. In addition to this, the Ambassador met with the Presiding Officer for a courtesy call Wednesday 13 April - The Presiding Officer hosted a Dinner for Scottish based companies and students involved in the Scottish Networks International Project. This British Council initiative matches high calibre international postgraduate students (associates) studying in Scotland with Scottish based companies for a period of mutually beneficial work experience. The aim of the dinner was to welcome the new associates to Scotland and introduce them to Scottish companies Wednesday 13 April - A delegation led by the Secretary General of the East Africa Community, Hon. Amanya Mushega visited the Parliament to raise the profile of the region’s trade and investment. In addition, he addressed the cross party group on International Development Wednesday 20 April - A delegation of Parliamentarians from the Standing Committee of Business and Industry in the Storting visited the Scottish Parliament whilst on a study visit to Scotland on 19-21 April. The study visit was related to the Standing Committee's consideration of a recent Norwegian Government report focussing on sea fisheries, aquaculture and the development of the marine sector. In learning of Scotland's experience, the delegation met with Members of the Environment and Rural Development Committee. In addition to the Parliament visit, the delegation also met with the Scottish Executive and external organisations Thursday 21 April - The Chinese Consul General, Mrs Guifang Guo met with the Deputy Presiding Officer, Murray Tosh MSP, for a courtesy call Tuesday 26 April - South African Minister of Water Affairs Ms Buyelwa Sonjica visited Scottish Water and met with a Scottish Executive Minister counterpart and Parliament Members Wednesday 27 April - A delegation of Parliamentarians and officials from the Justice and European Committee of the Parliament of Mecklenburg Vorpommern visited the Scottish Parliament to meet with other Members and officials to discuss EU legislation and policy, the Scottish legal system - including crime reduction, re-conviction rates and young offenders. The Committee also discussed sustained growth and the Common Agriculture Policy with Members Wednesday 04 May - The Clerk of the House of Lords, Paul Hayter, will visit the Scottish Parliament to attend business and meet with the Chief Executive and officials to discuss issues such as the management of Chamber business and engaging the public in the legislative process.

EU/S2/05/09/5 Wednesday 04 May - A delegation of Parliamentarians from the CSU Parliamentary Working Group on Further Education, Science and Culture, Federal State Parliament of Bavaria will visit the Scottish Parliament to learn about further education and the funding of cultural institutions in Scotland. Included in the programme will be a meeting with Members of the Enterprise and Culture Committee. Thursday 05 May - The Secretariat of the Committee of Social Insurance in the Swedish Parliament will visit to learn about the working practices and structure of the Scottish Parliament, with specific focus on the Committee system and how to engage the public. The programme will include meetings with the Head of the Committee and Chamber Offices, as well as the European and External Relations Committee Monday 09 May - The Scottish Parliament, Scottish Executive, European Parliament and European Commission are working together to host a Reception to celebrate Europe Day in the Garden Lobby of the Scottish Parliament Monday 09 May - The New South Wales Ethics Committee propose to visit the Parliament and meet with the Standards Committee Wednesday 11 May - Christine Saum, Director of the Urban Design and Plan Review Division of the National Capital Planning Commission, Washington DC will visit the Parliament and receive a tour of the building with specific reference to how the building meets security requirements Thursday 12 May - Veterans and representatives from veterans’ organisations will attend a Scottish Executive led debate in the Chamber to recognise the contribution made by veterans of all conflicts and the work - in terms of health, community care and housing - of the veteran organisations involved in the aftercare. A reception will then be held in the Garden Lobby, hosted by the Presiding Officer and First Minister and the Watoto Children's Choir from Uganda will be also be in attendance to sing to guests during the Reception Wednesday 18 May - Gerard Segu, the Head and Ares Montardit, a Member of the International Team in the General Secretariat for Youth in the Government of Catalonia will visit to meet with officials to issues in regard to children and young people Wednesday 18 May - Possible visit from the China National School of Administration. More details to follow on receipt of VEF Friday 20 May - Sunday 29 May - . The Speaker of the Legislative Assembly of Ontario has made initial contact with the Parliament with the view of a two day visit. More details to follow Wednesday 25 May - The Lithuanian Ambassador will visit the Scottish Parliament to meet with the Presiding Officer for a courtesy call. The purpose of the Ambassador's visit to Scotland is to identify links for future co-operation between Scotland and Lithuania and as well as the visit to the Scottish Parliament, he will also meet with the Scottish Executive Thursday 26 May - A delegation of senior civil servants from the Bavarian State Ministry who are participating in the "Top Management" course - a programme which seeks to strengthen links between the Scottish Executive and the Bavarian State Chancellery - will visit the Scottish Parliament. The main purpose of the visit is to learn of the Scottish Parliament's experience of devolution and meet with officials from the European and External Relations Committee

EU/S2/05/09/5 Thursday 26 May - Sunday 29 May - One member from the Scottish Parliament Corporate Body will visit Zanzibar to take part in the CPA's Study Group on the Financing and Administration of Parliament in Zanzibar to discuss various issues covering; best practice in corporate management, recommendations for the establishment of new corporate bodies, methods of increasing accountability for the use of public funds and services, to develop the capacity of the CPA to assist Branches with issues of corporate management Thursday 26 May - HE Mr Yoshiji Nogami, the Japanese Ambassador to the UK plans to pay a courtesy call to the Presiding Officer Tuesday 31 May - The Commissioner for Science and Research in the European Commission, Commissioner Potocnik, will visit the Scottish Parliament to meet with the Presiding Officer for a courtesy call and Members of the European and External Relations and Enterprise and Culture Committee OUTWARD VISITS – APRIL/MAY 2005 Monday 18 April - Sunday 24 April - . The 3rd Commonwealth Youth Parliament will be held in Brisbane, Australia. The CPA (Scotland Branch) will be represented by two university students, one male and one female selected from the CPA's Executive Committee Thursday 19 and Friday 20 May - The Presiding Officer will travel to Wroclaw, Poland, where he will be one of the main speakers at the European Summit of Regions and Cities. Sunday 22 May - Saturday 28 May - One Member will attend the 17th Commonwealth Parliamentary Seminar in South Africa

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Annex B

Available in hard copy only from the Clerks

EU/S2/05/09/5

Annex C Letter from the Finance and Central Services Department of the Scottish Executive Meeting of the Committee 12th April 2005: Questions Arising Thank you for your letter of 19 April in which you sought clarification for a number of points which arose during members’ consideration of pre-Council agendas and post-Council reports. I will deal with each of your points in turn: Pre-Council Agenda: ECOFIN Council 12 April 2005 The Minister will respond directly with his views regarding the Commission report on the implementation of the Broad Economic Guidelines for the period 2003-2005. Pre-Council Agenda: Transport, Telecommunications and Energy Council 21 April 2005: Lorry Road User Charge (LRUC) The Committee asked:

“The Council is due to consider a proposal for a Directive on the charging of heavy goods vehicles for the use of certain infrastructures. It seems to the Committee that the average distance travelled per tonne of goods delivered will tend to be higher in Scotland than in other parts of the EU and that, therefore, such a Directive might have a disproportionate effect on costs for the road haulage industry and business and consumers in rural areas of Scotland. Whilst the Committee notes the work that the Executive has in hand on this proposal with HM Customs and Excise and that it attaches particular importance to taking forward a Regional Regulatory Impact Assessment, it would nevertheless be grateful for reassurance that the Executive is taking the potentially disproportionate effect on transport costs in Scotland fully into account. Also, the Committee would be grateful to have clarification that the intention of the proposal is to ensure that trucks from mainland European countries travelling on British roads will be required to pay the Lorry Road-User Charge whereas previously they were not subject to any road user charge or a charge having a similar effect. Can the Executive provide any detail on off-setting tax cuts for UK hauliers?”

As well as responding to the Committee’s specific questions on this subject, I include clarification on the difference between the UK LRUC and the EU ‘Eurovignette’ Directive The EU Eurovignette Directive sets out the rules governing the use of tolls, user charges and vehicle excise duties on heavy goods vehicles across Member States. Neither the Directive nor the proposed amendments require Member States to introduce lorry charging, however, should they choose to do so (as the UK is doing with the LRUC) Member States will be obliged to comply with the new rules. This is a reserved issue and the DfT is taking the lead role. The Directive was approved by the Ministers at the Transport Council on 21 April 2005. However, the European Parliament will need to approve the provisions of the new Directive before it is finally adopted. The LRUC is a tax being introduced by the UK Government aimed at ensuring all lorry road-users in the UK contribute on a fair and equal basis to the costs of using roads, regardless of nationality. The

EU/S2/05/09/5 LRUC is being implemented by HM Customs and Excise and it is expected that the charge will be offset by fuel tax cuts for the road haulage industry. In response to the Committee's specific concerns, the Executive can assure the Committee that it is in close contact with DfT, and industry stakeholders, as the EU Eurovignette Directive progresses and that we will seek to address any implications for the Scottish road haulage industry as they emerge. We can also confirm that the Executive is maintaining close contact with both HM Customs and Excise and DfT to ensure that neither the Scottish economy in general, nor the Scottish road haulage industry, are disadvantaged by the introduction of the LRUC. We have specifically requested that a regional economic impact assessment is carried out as early as possible. Proposal for a Regulation of the European Parliament and of the Council on the rights of air passengers with reduced mobility The Committee asked

“... whether the effect of this proposal is remove any limit on the number of passengers with reduced mobility that an airline can carry. The Committee notes that low-cost airlines usually have a limit of four wheelchair passengers per flight and this may be for safety reasons rather than cost to these airlines. The Committee therefore asks the Executive what, in its view, are the implications of this proposal for low-cost carriers.”

The Commission's proposal for a Regulation on the rights of air passengers with reduced mobility is also a reserved issue. There is no formal limit on the number of passengers with reduced mobility (PRM) that an airline (including low cost) may carry on a particular flight and, therefore, the proposal has nothing to influence in this regard. That said, aviation safety guidelines, as set out in the Joint Aviation Requirements - Operations (JAR-OPS1) state that "An operator shall ensure that PRMs are not allocated, nor occupy, seats where their presence could:

• impede the crew in their duties; • obstruct access to emergency equipment; or • impede the emergency evacuation of the aeroplane."

The number of PRMs carried by a particular airline depends to a large extent on the airline's interpretation of these safety provisions. The matter is complicated by the fact that PRMs are not only those persons confined to wheelchairs but also include the blind and the elderly. Although the aim of the Commission's proposal is to prevent PRMs from being refused carriage on the basis of their reduced mobility, the current draft provides that a PRM may still be refused carriage in order to meet applicable safety requirements such as JAR-OPS1. The implications of the Commission's proposal are currently being assessed by the DfT. One key point is that responsibility for providing assistance to PRMs at airports would in future fall solely on the airport operator, with the costs of the service being recovered from the airlines in proportion to the number of passengers carried. Currently, most airlines provide assistance to their own PRMs between check-in and the aircraft. Transfer of responsibility to the airport operator raises a number of questions about the agreement of quality standards, transparency of charges and whether the airport should pay a proportion of the costs of the service. These issues will all need to be resolved in due course and may influence the impact of the proposed Regulation on the industry.

EU/S2/05/09/5 EU Budget The Committee asked:

“...whether audited accounts have been produced in relation to the budget. “ The final consolidated accounts are published in the Official Journal of the European Communities together with a statement of assurance given by the Court of Auditors in accordance with Article 248 of the EC Treaty and Article 160c of the Euratom Treaty by 31 October of the following financial year. Therefore the latest published annual accounts of the European Communities are those for financial year 2003. These were published in the Official Journal (Notice No 2004/C 294/01) together with the Court of Auditors’ statement of assurance (Notice No 2004/C 294/02).