I am enclosing a copy of the Committee's report on this Explanatory Memorandum which is published today.[5] The Report largely welcomes the Directive, but as you will see from paragraph 35, the scrutiny reserve has not been lifted. Sub-Committee A took this decision as they would like to receive further information on the issues that they have highlighted in the report's conclusions, and in particular on the predicted operation of the disclosure requirements discussed in paragraph 23. The Sub-Committee would also like to see the Regulatory Impact Assessment when it is available. I would be grateful if you could focus on these issues in the Government's response to the Report.

  The Chairman of Sub-Committee A has also asked me to express her gratitude to your officials for the help that they extended to the Sub-Committee during its work on this report.

6 February 2008