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111WS<br />

Written Ministerial Statements<br />

6 JUNE 2013<br />

Written Ministerial Statements<br />

112WS<br />

The Council took note of a proposal for a space surveillance and<br />

tracking support programme. Under AOB, the Commission briefly<br />

presented its proposals for the funding and operation of the<br />

European Earth monitoring programme (Copernicus) 2014-20<br />

(previously known as “GMES”). Their latest proposal reflected<br />

the agreement made at February’s European Council that Copernicus<br />

should be funded from within the multi-annual financial framework<br />

(MFF). It would provide a solid legal base from which to launch<br />

the next set of satellites in the “Sentinel” series and support the<br />

delivery of downstream applications that would foster economic<br />

growth. The Commission emphasised the importance of a swift<br />

negotiation on the regulation in order to ensure the programme<br />

could launch at the beginning of 2014. The space discussion<br />

closed with a short update from the Commission on work to<br />

re-evaluate the relationship between the EU and the European<br />

Space Agency (ESA). The Commission argued that reciprocal<br />

access to the respective decision-making bodies was essential for<br />

the relationship to function effectively. The UK intervened to<br />

insist that the issue of the Commission role in ESA governance<br />

was one that required careful analysis before decisions could be<br />

taken by Ministers.<br />

On the research items, the Council adopted conclusions in<br />

response to the Commission communication “High Performance<br />

Computing: Europe’s place in a Global Race”. These highlighted<br />

that HPC is an important asset for the EU’s innovation capacity.<br />

The Council then adopted conclusions in response to the Commission’s<br />

communication on “Enhancing and focusing EU international<br />

co-operation in research and innovation”. The Commission undertook<br />

to closely involve member states in the implementation of multi-annual<br />

“road maps” for co-operation with selected countries. Council<br />

subsequently adopted without discussion a resolution on the<br />

advisory work for the European research area (ERA). This resolution<br />

agreed that the advisory committee ERAC should be renamed the<br />

European Research and Innovation Committee (while keeping<br />

the existing acronym ERAC) in order to enhance its advisory role<br />

in research-led innovation.<br />

The presidency updated Council on progress in negotiations<br />

with the European <strong>Parliament</strong> on the Horizon 2020 Regulation<br />

and associated Rules for Participation Regulation. The presidency<br />

noted that seven trialogue meetings had been held with the<br />

European <strong>Parliament</strong>, and that negotiations were now entering a<br />

critical phase if a deal was going to be delivered by the end of<br />

June. They believed that a compromise package could secure an<br />

agreement which did not alter the Council’s agreed position on<br />

the reimbursement model. The Commission reiterated the importance<br />

of simplification; this was essential to make life more straightforward<br />

for participants, and widen participation by reducing barriers to<br />

entry. The Council then broke for lunch. After receiving a short<br />

presentation from the CERN Council on the European strategy<br />

for particle physics, the presidency hosted an informal discussion<br />

between heads of delegation on their strategy for the Horizon<br />

2020 negotiations. The UK intervened to support the presidency’s<br />

aim of securing political agreement by the end of June, while<br />

recognising the need to demonstrate a willingness to compromise<br />

on several issues of importance to the European <strong>Parliament</strong>.<br />

Following this discussion the Council reconvened. The presidency<br />

concluded without further discussion that a large majority of<br />

member states had subscribed to their proposal that simplification<br />

and the “flat rate” funding model should be defended and that in<br />

exchange the Council could show flexibility on other issues, such<br />

as widening participation, a fast track to innovation instrument,<br />

some earmarking in favour of renewable energy research, and<br />

stronger support for SMEs. As a result of the discussion the<br />

presidency noted that they would intensify negotiations with the<br />

European <strong>Parliament</strong> with a view to securing an informal agreement<br />

by the middle of June.<br />

A policy debate then took place on joint programming initiatives<br />

(JPIs). The UK intervened to underline the strong UK support<br />

for JPIs. These were complex initiatives and member states had<br />

invested significant time, money and effort in them. In the UK it<br />

was for research councils to make decisions about funding. The<br />

Commission called for swifter implementation, in particular in<br />

relation to alignment of national strategies.<br />

Under AOB, the Commission updated Council on the state of<br />

play on the proposal for a Council regulation on the Euratom<br />

research and training programme 2014-18 and on the proposal<br />

for the European Institute for Innovation and Technology (EIT)<br />

programme (these both form part of the Horizon 2020 package).<br />

The incoming Lithuanian presidency briefly presented its work<br />

programme. The Council also received a short overview of a<br />

recently published Communication on Energy Technologies and<br />

Innovation. This would be discussed in greater detail at June’s<br />

Energy Council.<br />

Reducing Burdens on Small Businesses<br />

The Minister of State, Department for Business, Innovation<br />

and Skills (Michael Fallon): I am announcing today a<br />

strengthening of this Government’s commitment to<br />

bear down on unnecessary regulatory burdens on small<br />

businesses.<br />

The Government recognise that the burden of regulation<br />

falls disproportionately on small businesses. They have<br />

t<strong>here</strong>fore already taken specific and concrete steps to<br />

reduce the burden of regulation on smaller businesses,<br />

for example:<br />

Saving SMEs £388 million by not extending the right to<br />

request time to train to businesses with fewer than 250 employees.<br />

Exempting smaller retailers for three years from the display<br />

ban on tobacco, which applies to supermarkets and very<br />

large stores from April 2012.<br />

Phasing implementation of pensions automatic enrolment,<br />

so that small business will not need to comply until June<br />

2015.<br />

This Government are also reducing the burdens of EU<br />

legislation by holding the European Commission to account<br />

on their commitment to seek exemptions and lighter regimes<br />

for SMEs in new proposals. The Commission’s March SME<br />

scoreboard published recent examples, several of which are<br />

already bringing major benefits for UK businesses, such as<br />

the agreement exempting up to 1.4 million UK small businesses<br />

from certain EU accounting rules.<br />

We are also reducing the stock of regulation through<br />

the red tape challenge. Many changes resulting from<br />

this process will help small businesses. Examples include:<br />

Our radical package of employment tribunal reforms is<br />

expected to deliver £40 million of savings per year to employers.<br />

We are committed to a major deregulation of entertainment<br />

licensing through 2013.<br />

We are freeing around 1 million self-employed people from<br />

health and safety law whose work poses no harm to others.<br />

This Government introduced a three-year moratorium<br />

on new domestic regulation for micro-businesses and<br />

start-ups from 1 April 2011, in order to support growth<br />

and establish a period of increased regulatory stability<br />

for the smallest businesses.<br />

The moratorium is an important mark of the<br />

Government’s aspirations for reducing regulatory burdens<br />

on the smallest businesses.<br />

It reflects established evidence on the disproportionate<br />

burden that new regulation places on smaller business,<br />

as well as their importance for jobs and growth.<br />

We are now building on these achievements by extending<br />

the moratorium in the second half of the <strong>Parliament</strong> to<br />

cover small businesses as well as micros. This will now<br />

be known as the small and micro-business assessment<br />

(SMBA). It will be supported by independent scrutiny<br />

from the Regulatory Policy Committee.

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