Your Explanatory Memorandum dated 2 January was considered by Sub-Committee G at their meeting held on 17 January.

  We recognise that the Commission's Communication addresses the serious issue of promoting jobs and growth across the EU, a policy which the UK supports in the context of the Lisbon Strategy. We understand also that the action plan set out in the Communication does not, for the present, require any legislative action.

  However, while we accept that it may be the case that the action plan is indeed both justified and beneficial, we cannot assess this from the fairly scanty information provided in the EM which you supplied.

  In order for us to assess effectively whether our scrutiny reserve should be lifted from this document, we would therefore be grateful if you could write to us further providing the Government's view (not a full impact assessment) of each of the 15 suggested actions.

  We would find it particularly helpful if this additional information can include:

(a) whether the action is within Community competence and, if so, what is the Government's view of its merits;

(b) for actions directed at Member States—what the UK expects to achieve in relation to the action during the period of the Commission's assessment of progress;

(c) for actions directed at the Commission itself or the EURES—what impact for the UK the Government envisages will result during the assessment period and beyond.

  Pending your reply with this information, we will retain this document under scrutiny.

18 January 2008

  You wrote on 18 January asking for further detail to be supplied on the above Communication following the submission of my Explanatory Memorandum of the 2 January.

  You ask for the Government's view of each of the suggested actions in the Communication and in particular: whether the actions are within the Community's competence and the Governments views of their merits; what the UK expects to achieve during the period of the Commission's assessment of progress in relation to actions for Member States; and what impact for the UK the Government envisages will result during the assessment period and beyond for actions directed at the Commission or EURES.

  The Government considers that the proposed measures fall within Community competence by virtue of the fact that the aim and purpose of the measures concern the free movement of persons and the coordination of employment policies, both of which fall within Article 3.1 of the Treaty establishing the European Community (TEC). The Treaty article establishing the European Social Fund says that "it shall aim to render the employment of workers easier and to increase their geographical and occupational mobility within the Community" (TEC Article 146).

  I set out below the Government's response to each of the proposed actions.

  Action 1: The Government believes that such an examination has merit because it is sensible to ensure that the provisions for the coordination of social security are fit for the 21st century. Member States have already had discussions at official level to start to assess whether changing patterns are developing. We envisage further discussions and information gathering over the next year and would expect the Commission to bring forward proposals to deal with issues that arise during these discussions.

  Action 2: We believe that the Training and Reporting in European Social Security (TRESS) network has value but at this stage we see no need to include a specific provision within the legislation.

  Action 3: The electronic exchange of data has been agreed and will be valuable in ensuring speedy resolution of claims, more efficient processing of data and improved detection of fraud and error. Discussions are already well underway in the area of electronic exchange of information. Member States have agreed that the legislation will be changed to ensure that we will move away from paper exchange and exchange all data electronically. We expect that the impact on Social Security coordination will be beneficial. The introduction of the electronic European Health Insurance Card (e-ehic) will be at Member States' discretion. What will be included on the e-ehic and how it will be implemented is still under discussion by Member States. Once these discussions are completed the UK will undertake a cost benefit analysis before taking a decision on its implementation in the UK.

  Action 4: The Government supports the Directive's aim of facilitating labour mobility and it believes that when workers change employment they should be able to do so with confidence in any pension rights they have acquired. The Government supported the drafts presented to the EPSCO Council on 30 May and 5 December 2007, and hopes that the Commission will be successful in pursuing agreement under the European Job Mobility Action Plan. The UK expects that negotiation on this Directive will continue under the Slovene and French Presidencies as necessary in 2008. The Government intends to continue its supportive stance on this Directive and expects to achieve agreement on a text which meets the agreed aims while minimising the financial and regulatory burden on supplementary pension schemes.

  Action 5: The Government will be reporting on UK employment and lifelong learning strategies in our next National Reform Programme (NRP) on the Lisbon Strategy for Jobs and Growth, particularly in response to Council Recommendations in these areas. That will, for example, refer to "In Work Better Off' and our aim to improve mobility by extending opportunity to the most disadvantaged groups and areas.

  Action 6: Similarly, a principle of the UK's welfare reform is working in partnership and stakeholders will be invited to make their own contribution to the NRP on how they help deliver common objectives. Furthermore, the NRP is a companion document to the UK National Strategy Report on Social Protection and Inclusion which is developed in close liaison with stakeholders.

  Action 7: The European Commission has not made a specific proposal in relation to schemes funded by the European Social Fund (ESF). The Government believes that the ESF should support Member States' employment and skills strategies within the framework of the Lisbon Strategy for jobs and growth. In particular, the ESF should add value to and complement Member States' policies to extend employment opportunities and develop a skilled workforce. The Government will want to assess any proposal against these objectives.

  Action 8: The UK supports the objectives of the European Qualifications Framework and the European Credit Transfer System for Vocational Education and Training (ECVET), and the benefits these initiatives will give to workers in the portability of their qualifications and to learners having undertaken training in Europe to have that recognised.

  Action 9: The UK is satisfied that the Commission's objectives, to significantly improve the provision of information and raise awareness of the principle of equal access to European labour markets via its portal and advisory services, fully complies with our own approach. In particular, Jobcentre Plus fully contributes to the dialogue on diversity through membership of working groups concerned with improving the quality of information provided by the network of EURES advisers and through the Web Services portal allowing jobseekers access to full information about jobs, their suitability and ways to apply.

  Action 10: The Government supports the efforts of the Commission in making jobs and opportunities available to a wide cross section of people seeking employment. Signposting is available to careers guidance and labour market information and help with creating CVs, for inclusion on EURES CV Search, a tool available to employers and jobseekers on the EURES Web Services Portal that enables matching to jobs.

  Action 11: The Government is confident that the Commission can improve information on vacancy flows through drawing on data from the Home Office Workers' Registration Scheme and information provided from the issue of National Insurance Numbers and their equivalents in other Member States. Eurostat also provides useful data on migration flows. Jobcentre Plus does not envisage any expansion to the Cross Border network involving UK partners. There is limited scope for furthering the present activity between the South of England, France and Belgium. The Northern Ireland Cross Border with Ireland is considered to be an effective mechanism for safeguarding the labour market needs of workers there.

  Action 12: The UK supports access to information about the EEA labour market, and explanation of country criteria for admission to the respective Member States, for third country nationals. In particular Jobcentre Plus would fully support giving full explanation of the rules for admission to the UK in order to prevent unplanned migration. The Government would require the Commission to commit to full consultation with Public Employment Services and Home Office equivalents throughout the Member States in order to reach a consensus on how the content of EURES should be broadcast through the planned Commission funded Immigration Portal.

  Action 13: The Commission have historically organised Job Fairs which directly engage employers and job seekers. The UK supports improving awareness of rights, and we do so nationally, and the exchange of good practice although we will ask the Commission to ensure that resources are primarily focussed on implementing the Lisbon Strategy. See also response on Actions 9 and 10 above.

  Action 14: Similarly, we support any efforts to work actively and directly in partnership with stakeholders at the EU level, as long as existing networks are used effectively to avoid adding burdens that detract from core priorities. The Government makes this point to the Commission in key areas.

  Action 15: The UK like other Member States is represented on the Progess programme management committee which has ensured that the work programme and evaluation framework do embed provision for financing pilot activities and particularly enhanced exchange of good practice and dissemination of results, all of which we see as being at the heart of the Lisbon Strategy that PROGRESS supports. The Commission are also engaging a contractor to help improve communications and, again, in particular the dissemination of information and best practice to stakeholders.

  Across all these activities, as we do consistently in our engagement with the EU, we promote the need to ensure effectiveness and efficiency particularly by focussing on agreed objectives and core priorities to deliver results.

5 February 2008

  Your letter dated 5 February was considered by Sub-Committee G at their meeting held on 28 February.

  Your letter provides us with the information we needed to assess fully the implications of the Commission's proposed actions: whether they are within Community competence and what they can be expected to achieve.

  In the light of this further explanation, we are now content to release the document from scrutiny. Please would you write to us further when the Commission's interim report on the implementation of the Communication is published; your EM stated that this was expected in 2009.

29 February 2008