Britannia Radio

Subject:	Knowing me, knowing EU
Date:	Sat, 7 Aug 2010

This inevitably long but very balanced overview of the effect of EU

legislation on Local Government is interesting on several levels. The

final paragraphs give a rare insight into the labyrinthine, Byzantine

tra costs that these ever

processes of our new EUSSR.

n another level it highlights the huge e

O

xincreasing layers of bureaucratic government place upon the taxpayer.

who are employed by the Council Taxpayer, not to mention the need to ha

Just think of all the extra jobs it is providing for the boys and girls

ve expensively maintained offices in Brussels and the employment of

ves as a free, independen

lobbyists at every level. Is there anything here being achieved that we couldn't do at far less expense through our own elected representat

it nation? B&A European and International Knowing me, knowing EU Local Government Association guide to the impact of EU laws on Councils 1. Foreword

radar 7. Conclusion Role in influe

2. The EU matters to local councils 3. Procurement and councils 4. Landfill and councils 5. Energy Performance and councils 6. Getting councils on the EU

ncing Contents Acknowledgements The report’s findings are the result of extensive consultation with a small number of councils.

ble insight into the impact EU laws have had on them. Thanks also to J

Special thanks go to Arjun Singh-Muchélle for conducting the research, and to those councils which helped provide us with an invalu

aasbir Jhas for editing and finalising this report. Knowing me, knowing EU 3 Ask a councillor what the European Union (EU) means for them, and they

ears, which townhalls can access. The Local Government Association (L

may name check an EU funded project which has helped regenerate their community. The UK receives upwards of £7 billion worth of EU money over seven

yG Association) will seek to ensure councils continue to benefit from EU money in the future. But add the EU to townhalls, and you don’t just get EU funded local

r best. EU laws on energy, waste and working hours etc set standard

projects. It means that, and much, much more to councils. While the combination of EU and local councils might not excite everyone… please read on, and we’ll do o

us across Europe. When the government signs up to these laws, it is councils that implement them. They have a direct impact on their statutory duties, affecting local services up and down the country. Around half of all

this that councils have to deliver more with less money and resour

regulation affecting councils is developed from EU laws, which have radically changed how councils manage their services and staff. One thing is certain – implementing EU laws locally costs councils time and money. Add t

oces, they must be at the forefront of EU decision making through the LG Association. Some EU laws create European wide standards so that all countries live up to certain obligations. For instance EU wide open competition in areas such as the internal market are valuable as

and the potential impact on local councils, so that they improve l

they ensure all EU countries ‘play by the rules’ helping the UK to compete fairly abroad. The LG Association, therefore seeks to influence those making future EU laws – central government, UK Parliament, the European Commission and European Parliament – to ensure they unders

tocal services rather than hinder them through disproportionate costs or overregulation. To understand how EU laws work locally, this report, the first of two, demonstrates to EU law makers exactly how the laws they make are implemented by councils. By taking a retrospective look at how three

action on biowaste. These are in the EU pipeline now, and could aff

European laws on energy efficiency, public procurement and landfill affect services in six councils, we make recommendations to improve the way future EU decisions are made. The second report analyses the impact on local services of proposed revisions to the EU Working Time Directive and new EU

ect local services a few years down the line. Both reports demonstrate why local government must engage in EU lawmaking, and why Members of the European Parliament (MEPs), the European Commission, central government and UK Parliament need to work with us. Foreword Richard Kemp Chair, Local Government Association European and international strategy group

t pretty quickly. But whatever your view, or theirs,

* The LG Group comprises of six partner organisations. For a full list see the back page 4 Knowing me, knowing EU Ask your neighbour, friend, or relative what impact the EU has on the services which local councils provide for their constituents, and you’d be hard pressed for a response. In fact they’d either give you a blank look or try and change the subje

cthe reality is that decisions made at EU level have a very real impact on local councils and the communities they serve. Agreeing EU rules is ultimately the job of our MEPs, and the EU’s 27 national governments (which form the Council of the EU). But it doesn’t stop there…someone has to implement the resulting UK regulations, and that often falls on local councils, although they may not realise that

s and interpretations about how much UK legislation and regulation stem

many UK regulations start their life in Brussels. So it’s clear that in the EU and national decision-making process, the earlier we can influence, the better. Consequently, the LG Association seeks to influence future EU decisions. The centrefold illustrates the process and how we work to get the best deal for our member councils through the rather complex EU law-making process. There are varying vie

ws from the EU, which range from: • House of Commons: 9.1 per cent, this only covers Statutory Instruments, not all laws • Open Europe: all regulation has cost the UK economy £176 billion since 1998. Of this, £124 billion, or 71 per cent, had its origin in EU legislation • London Councils: 72 per cent of all local authorities’ environment policies have been affected, directly or indirectly, by laws emanating from the EU.

lation affecting local councils has its origins in the EU. Almost al

• During 2002-03, 50 per cent of primary legislation sponsored by the Department for Environment, Food and Rural Affairs (DEFRA) was introduced to implement EU requirements. This goes to show that no one can agree on how much UK legislation and regulation stems from the EU, let alone on specific sectors such as local government or business. Considering what others say, the LG Association believes that around half of all reg

ul council services are affected by EU laws in one way or another…whether it’s EU legislation on energy efficiency, equalities, procurement, recycling, waste and working hours, it is by and large councils that implement it. Take social services. While the EU has tried, unsuccessfully, to bring forward specific legislation on social services (EU plans were quashed, due in part to LG Association lobbying), it still frames how services are managed. The EU Working Time Directive

d of Life Vehicles Directive and Waste Electrical and Electronic Equip

The EU matters to local councils led to UK regulations which determine shift patterns of care home staff and fire and rescue authorities; municipal buildings and their transport fleet are affected by EU energy efficiency targets; and public procurement rules guide how councils design and deliver services and how they tender for goods, works, and services. The EU has a massive influence over local environmental services and waste management strategies. The Landfill Directive, E

nment (WEEE) Directive have all radically changed the way councils collect, treat, dispose of, and recycle waste and has led to an array of local recycling targets. The EU also legislates on energy efficiency. With councils being major users and providers of energy, they are subject to EU rules and targets on energy consumption of municipal buildings and housing stock and public transport. This is why local councils need to know what is happening in the EU and influence decisions taken there – which ultimately they will have to

e, knowing EU The EU introduced rules to simplify procurement, ensure

implement. Once a new EU law has reached Westminster, the game is up, the deal is done. Knowing me, knowing EU 5 Did you know that UK rules governing how councils buy goods, services and works were being discussed at EU level back in 2002? MEPs and national governments agreed new EU laws in 2004. During the following two years the EU’s Public Procurement Directive became UK law. By January 2006 councils had to follow them – it has transformed councils’ purchasing, and promoted stronger competition between suppliers. 6 Knowing

m transparency and equal treatment between private sector competitors across Europe. The 2004 Public Procurement Directive was the most recent and profound change. The public contracts rules set procedures to be followed at each stage of the procurement process, leading to the award of a public contract through competitive tendering (above certain thresholds) for works, services and supplies. In the UK we know it by the snappy title of ‘Statutory Instrument 2006 No. 5: The Public Contracts Regulations 2006.’ The government predicted that the new rules would not add new costs or

uncil Whilst not directly increasing the effectiveness and efficiency

administrative burdens to the public sector or business, and that ‘any costs in the procurement process should be reduced by these simplified and improved rules’. In practice however there have been a number of different cost and administrative burdens. Procurement and councils an example of how EU rules can lead to more transparent services Did you know that since 1977, local procurement teams have been working to EU rules, and have had to update their practices each time EU rules are changed? Knowing me, knowing EU 7 What has this meant for councils? Gloucestershire County C

oof its procurement activities, the Directive was an important impetus for change and incentivised the sector to follow procedures. The ‘competitive dialogue procedure’ for major projects has provided a clearer process for the council to follow, as compared to the previous negotiated procedure. However the procedure is costly and the sector generally is now acting in a risk-averse manner. Procurement officers may spend more time with EU processes rather than focusing on procurement benefits unless they are extremely confident with the rules. To mitigate against this, Gloucestershire has

rchasing’. The Directive was a driving force for implementing electroni

put a comprehensive training package in place covering legal issues and procurement benefits. It is keen to ensure innovation and value for money continue to thrive alongside best legal practice. The council also points to the possibility of ‘spiralling administrative burdens’ nationally and an increasing culture of legal challenge due to new opportunities for failed bidders to challenge the award of public sector contracts. Newry and Mourne District Council Procurement procedures have been more effective and efficient since introducing ‘e-hub’, their e-Procurement system and ‘dynamic p

uc systems and has led to a ‘value for money’ culture, rather than just opting for the ‘safe’ option of choosing the lowest price bid. It is now buying the same goods, 10 to 30 per cent cheaper due to increased competition through the electronic system as they are no longer tied to the same three or four suppliers historically used in manual paper based competitions. Dynamic purchasing has dramatically increased the proportion of awards to small and medium enterprises (SMEs) too, which results in benefits for the local area. Suppliers have become more adept at targeting their bids to score well in the

on resources. 8 Knowing me, knowing EU What does this tell us? Th

scoring processes, which is positive as it increases competition. To ensure competitive tendering, criteria could be changed periodically. While competitive dialogue has resulted in clearly defined final solutions, it has led to additional work and incurred higher initial associated costs which reduced as staff became used to the procedure. Legal risks have increased due to continually changing interpretations of the Directive, as well as case law from the Courts setting important new precedents. The continual change of complying with UK/EU legislation and the effects of continual case law are a burden

e balance sheet is mixed: • EU procurement rules oblige councils to implement new procedures (framework agreements, e-auctions, dynamic purchasing systems, and competitive dialogue procedures) • more positively, the benefits are being realised in cost savings to councils from better value goods, works and services. The new rules also firmly commit to ‘e-auction’ systems. It has helped increase competition amongst suppliers, which in turn is likely to have led to reduced costs. Some ambiguities and frustrations remain: • how to embed environmental and social criteria into public contracts • inability to specify local benefits in tender documents ie local employment

rrent procurement rules are unwieldy. The LG Association will se

• lack of legal clarity on sharing or ‘pooling’ services between councils without tender to ensure mutual savings • procurement officers spend more time on legal issues, where failed bidders seek disclosure of all information about the contract award, and challenge it. The LG Association has taken forward councils’ concerns about how EU procurement rules are uncoordinated and create legal uncertainties on the ground. In 2011, these rules may be reviewed, and result in further changes – we welcome this as public sector spending and public contracts will come under increased scrutiny in future years. At long last, the Commission has taken note of councils’ views that c

uek to ensure EU plans to better coordinate rules will help councils, not hinder them. Cllr David Parsons LG Association Improvement Board and CoR member Knowing me, knowing EU 9 The Directive sets out procedures at each stage of the waste stream and sets targets to progressively reduce the landfill of municipal biodegradable waste to 35 per cent by 2016 (compared to 1995 levels). Member States, like the UK which relied heavily on landfill in 1995, had a four year extension period. UK targets are: • 75 per cent of the total municipal waste produced in 1995 by 2010 • 50 per cent of the total municipal waste produced in 1995 by 2013 • 35 per cent of the total municipal waste produced in 1995 by 2020.

ook a unique approach to implementing the Directive by developing th

Did you know that a staggering 108 million tonnes of municipal waste was diverted to landfill sites across the EU back in 1995? The UK produced an estimated 24 million tonnes, which amounted to nearly one quarter of all waste sent to landfill. It was clear that action was necessary, both at home and across Europe, but the EU took almost a decade to reach agreement on new rules. Landfill and councils an example of how EU rules drove councils to modernise waste systems, but at a cost 10 Knowing me, knowing EU What this means for councils? The Directive came into force in the UK in 2002. The LG Association worked closely with councils to help raise awareness of the new legislation. The UK government

te Landfill Allowance Trading Scheme (LATS) whereby councils are issued with landfill credits which limit the amount of waste that can be sent to landfill. If a council exceeds its maximum threshold, it can purchase additional credits from others which are able to divert their landfill-bound waste for recycling. It has had the effect of encouraging councils to divert higher proportions of waste to recycling. Although, as ever, prevention is better than cure. The European Commission sets specific targets for municipal waste. The UK government recently issued a consultation looking at these definitions after the European Commission warned that the UK approach was too narrow. Cambridgeshire County Council

elop options for increased re-use or recycling to avert this. This app

The Landfill Allowance Trading Scheme (LATS) has seen waste management costs potentially go up at Cambridgeshire. It has developed a progressive approach towards recycling and treating residual waste. It is the first Waste Disposal Authority in East Anglia to have a Mechanical Biological Treatment (MBT) plant facility. The Directive has encouraged new methods of waste management as alternatives to landfill. Working with others including Cambridgeshire and Peterborough waste partnership (also known as RECAP), it has helped drive up recycling rates and gain national recognition. The council has effectively adopted a ‘life-cycle approach’ to better predict what kinds of waste might end up in landfill and de

vroach has helped Cambridgeshire meet its 2010 landfill allowance and those for 2013 and 2020. It will also hope to increase its current 51.3 per cent recycling rate to 65 per cent during this time. While associated costs from implementing the Directive have increased, the legislation has nevertheless presented an opportunity to develop innovative approaches to sustainable waste management. LG Association’s role in influencing EU decisions EU co-decision legislative procedure The procedure described (known as codecision or ordinary legislative procedure) is the most common way of agreeing EU laws. It is a lengthy process, requiring agreement by the European Parliament and national governments. Also charted here is how the LG Association works to

not approve EP text EC informs EP of its opinion on amendments EP Sec

influence EU decisions from inception…the earlier we can influence, the better, in order to get the best outcome for council services. European Commission (EC) issues draft proposal Economic and Social Committee has advisory role Influence EC thinking before a new EU proposal is made Works with councils to develop evidenced-based policy positions & briefings Supports UK members in CoR, with amendments and meetings with MEPs, and UK government Lobbies MEPs and the UK government by preparing evidence based briefings EP approves Council position or takes no position within 3 months EP amends Council position Council second reading (includes EC opinion on EP amendments) EP rejects Council position EU law adopted if Council approves EP text Council doe

sond Reading European Parliament (EP) first reading Council (national governments) first reading Committee of Regions (CoR) has advisory role Pre-legislative LG Association key activity LG Association role in influencing EU decisions evidence based briefings and recommending amendments Continues to work with MEPs throughout Works with UK government to ensure effective implementation for councils Council approves proposal as amended by EP Council does not approve proposal Conciliation Committee between EP and Council Agreement reached on both sides No agreement reached EU law is adopted Proposed EU law is rejected UK parliament and/or devolved assemblies transposes into national law UK local authorities implement law EP and Council third reading amendments) Implementation Legislative Knowing me, knowing EU 11

s vitally important tha

What does this tell us? The Directive has fundamentally changed councils’ approaches to waste management systems, and diverted huge amounts from landfill. A number of councils have switched from weekly to alternate weekly residual collections and have introduced additional recycling services as methods to address the targets set down in the legislation. However, councils are also increasingly looking at alternative waste management systems. From a regulatory, administrative and financial perspective, the Directive continues to have a direct impact on local authorities, not least through the LATS implementing measure. This sees councils achieve EU-imposed targets differently from their European counterparts. Councils are clearly taking the lead role in reaching Landfill Directive targets but it has been costly. It

it we get EU legislation right, and we understand the EU is still looking at action on kitchen and garden waste (biowaste). We need to ensure this and future proposals to coordinate waste legislation address councils’ concerns, and do not add to them. Cllr David Sparks LG Association European and international strategy group London Borough of Bexley With alternate weekly collections across most of the borough and a new energy-from-waste plant due for completion in 2011, the Directive has made a huge impact on recycling and waste collection services. Legislation was late in being implemented in the UK, but the council was fully prepared to implement the Directive’s provisions. Bexley does not run disposal sites so while non-hazardous waste, such as residual waste, was not affected, the treatment of hazardous waste had to

5 levels and is well on target to meet the 2013 and 2020 targets. T

change, ie asbestos could previously be taken to various sites, but landfill regulations mean that only one site can now accept it. While Bexley has met its landfill targets, there is a risk that it might not in the future and so could be fined. Together with the escalating cost of landfill tax per tonne, Bexley has gone from weekly to alternate weekly residual collections, with recycling increased to weekly and food and garden waste (biowaste) remaining weekly. The council also tendered for residual waste disposal which was awarded to a company who are building an energyfrom- waste-plant due for completion in 2011. The related capital costs for this project were substantial and link directly to meeting the Directive’s requirements. Bexley council exceeded the 2010 target of reducing waste to landfill by 75 per cent of 19

9he Directive has therefore seen a positive behaviour change in dealing with waste in Bexley and a greatly reduced amount of waste to landfill – but with major capital costs, the regulations are being met through a hefty price tag. 12 Knowing me, knowing EU The 2002 EU Energy Performance of Buildings Directive set minimum energy standards for new and existing buildings undergoing major renovation. Importantly for councils, public buildings of 1,000m² or over had to display an energy certificate, not older than 10 years, highlighting its energy consumption and recommending energy saving activities. It had to be displayed in a prominent place to raise public awareness. As with any EU directive, it set minimum standards to be achieved – but individual countries can seek to outperform these standards if they wish. This is what happened in the UK. In implementing the Directive,

wide range of national indicators (NIs) including NI 185: CO2 re

the UK government issued two types of certificates: one for public authorities Display Energy Certificate (DEC) and one for the private sector Energy Performance Certificate (EPC). The government calculated that updating a DEC annually would result in year-on-year carbon savings of 1.9 million tonnes and a yearly net economic benefit of £38.5m by 2020, thereby achieving more carbon savings than if DECs were updated every 10 years. Energy Performance and councils an example of how EU rules and UK implementation can lead to an over focus on process Did you know reducing energy consumption is a big EU ambition, and one which local councils share? Buildings are responsible for almost 40 per cent of EU energy consumption, and 36 per cent of EU CO2 emissions. Knowing me, knowing EU 13 So what has this meant for councils? All councils report annually on their performance against

aduction from local council operations. Larger councils participate in the UK’s mandatory carbon emissions trading and energy saving scheme. DECs and the accompanying advisory reports contribute to an organisation understanding its carbon emissions. In 2008, the European Commission proposed lowering the size of buildings covered by the Directive from 1,000m² threshold to 250m² by 2010. Working with councils, the LG Association lobbied Whitehall and the EU that the proposed timescale was unrealistic for councils, especially during the economic downturn. The proposed timescale was shelved, and the final revised Directive suggests a phased approach (500m2 by 2012, and 250m2 by 2015) to ensure councils can plan for the new provisions. The following case studies provide us with evidence of the impact of the original Directive, and illustrate the importance of getting national implementation right. Teignbridge District Council

ded improvements incorporated into the council’s five year planned ma

Teignbridge believes the annual renewal of DECs has been ‘progressive and cost effective, and led to improvements in monitoring and management processes, delivering savings and efficiencies’. Although not solely attributable to DECs, it cites a 5 per cent decrease in electricity and energy consumption in year one. With DECs being placed in highly visible areas, they have helped raise awareness to the general public demonstrating the council’s leading role in reducing energy consumption. As part of its ongoing carbon management programme, Teignbridge will promote DECs to the wider community through the local media. While it has not carried out a comprehensive analysis of the Directive, the benefits are clearly evident: • reduced energy consumption where DECs are visible • increased public awareness • increased corporate ambition to reduce the council’s energy consumption. Each DEC is priced at around c.£2,000 with recomme

nintenance programme, and upcoming green energy use and sustainable technology programme. With the threshold being reduced further within five years to 250m², it estimates an additional fifteen buildings will need certificates, but is disappointed that no funding is offered to cover the cost of compliance. 14 Knowing me, knowing EU What does this tell us? The Directive and annual renewal of DECs have clearly put pressures on councils, perhaps leading to an over focus on process rather than outcome. However there are advantages to the system. A 2009 LG Association consultation suggests a huge variation between prices of DECs, due to a number of issues including how many assessors there are in any one area, to how many buildings in a local authority area are being assessed at any one time. DECs have increased the workload of energy assessors and, in some cases, obliged councils to either outsource work or hire (more) energy assessors to meet the

rnal consultants to produce DECs for schools, Lewisham did no

implementation deadline. The LG Association continues to urge Communities and Local Government (CLG) to take a keener interest in the quality of accreditation of assessors. Although LG Association lobbying has given councils an additional five years to prepare for the lowering of the threshold to 250m², it will increase pressures on councils by increasing the capture of buildings set out in the revised Directive. We will continue to lobby CLG and the EU to ensure they understand the challenge which councils face in implementing the government’s revised regulations. London Borough of Lewisham The annual renewal of DECs has helped reduce Lewisham’s energy consumption and meet its NI 185 requirements and Carbon Reduction Strategy. In 2008/09, the first year DECs were produced, there was a recorded decrease in energy consumption of 3 per cent, although it is difficult to gauge whether the savings reductions were a direct result. Apart from using ext

et need to hire additional staff to implement the Directive, keeping staff costs to a manageable minimum. That said, it faced a shortage of qualified assessors to conduct independent assessments. The average price of an initial DEC and Advisory Report in Lewisham was c.£550 per certificate. DEC recommendations have been incorporated into the CarbonManagement Plan. While Lewisham has faced some challenges in implementing the Directive, overall the experience has been positive and raised public awareness of the council’s commitment to safeguarding the environment. The lowered threshold would require DECs for an additional 100 buildings, at an estimated total cost of £55,000. The price may reduce due to more competition between assessors, and smaller, less complex buildings may take less time to survey, further reducing costs. Knowing me, knowing EU 15 No one said it would be easy! The EU decision-making procedure is lengthy and complex, but in short,

impact of draft EU laws. The evidence is used to directly influenc

the European Commission proposes new laws. Having consulted various stakeholders; these are then debated, amended and adopted by the European Parliament and national ministers; new EU rules are then made into UK law, after which they are implemented by local councils. A complicated proposal can take three years to reach the UK statute book. We need to have a say in all of this! So how do we do it? The LG Association is well-positioned to lobby those deciding new EU laws and policy in Brussels, Westminster and Whitehall by: • spotting important new initiatives in the pipeline • analysing draft proposals • lobbying opinion formers and decision makers both in Brussels and Whitehall (UK Government, UK Parliament, MEPs and the European Commission) • briefing our members on the Committee of the Regions • keeping in touch with our European partners. Most importantly, we keep local councils informed. Vital to this is consulting member councils on the likel

ye EU decisions. Getting councils on the EU radar 16 Knowing me, knowing EU Working with the opinionformers Working through our pan-European LG Association, the Council of European Municipalities and the Regions (CEMR) brings together all 40+ local government associations from across Europe, representing more than 100,000 local councils! Such a powerful and comprehensive voice can exert great influence. Where we share common views on proposed EU laws, we lobby together through CEMR to strengthen local government’s message to the European Commission and Parliament. At the same time we lobby independently our respective governments and parliaments. The LG Association also helps local politicians to influence EU proposals directly through the EU Committee of the Regions (CoR) – the EU’s own advisory body for local government – which is regularly consulted on proposed EU action. The LG Association provides the secretariat and briefs the UK delegation, which is one of the most

Commission officials as they draft their proposals. During this draftin

active and effective in the CoR, and regularly teases out the potential local impact of draft EU laws, policies and regional funding decisions. Increasingly, the Commission and Parliament amend their positions in the light of CoR recommendations. The LG Association also maintains links with other key UK stakeholders, thinktanks, press etc to ensure that the local dimension is well known and understood.…to influence the decision makers The European Commission initiates new EU law and policy. Its annual work programme (a list of forthcoming initiatives sometimes referred to as the EU’s ‘Queen’s Speech’) gives an initial hint of what new laws might be forthcoming. This enables the LG Association to try to influence the agenda from the very outset, the objective being to influence Commission proposals even before they put pen to paper. Through the CEMR, we are often consulted directly, and often (but not often enough!) involved in stakeholder groups used as a sounding board by g period, the Commission assesses the impact of its draft

Council, which brings together relevant ministers from all EU co

proposal on the environment, small businesses etc. As a result of successful LG Association lobbying on the Lisbon treaty, the Commission will take into account the likely impact on local councils. We hope this will lead to better, and lighter, EU laws. Once an EU proposal has been drafted, the Commission submits it to the two main EU institutions: the European Parliament and the Council of European Union (Council) need to negotiate and agree a text before a proposal becomes EU law. The European Parliament, represented by 72 UK MEPs, has an increasingly strong role in shaping new EU laws and decisions on funding. Along with the other 664 MEPs from around the EU, they debate and amend the Commission’s proposals during their committee and plenary (equivalent to full council) sessions – it is a powerful institution. The LG Association has developed strong links with UK MEPs, and works with local government associations from other countries to influence MEPs from other countries. National governments have a say on EU issues through th

euntries on a given topic. Therefore if the European Commission proposes to legislate on landfill, the UK’s environment minister will seek to influence proceedings through the Council. The Council and the European Parliament must agree on a text before it can become law. Knowing me, knowing EU 17 The European Council, where heads of state and government come together four times a year, sets the strategic direction for the EU’s policies and arbitrates on issues that could not be resolved at ministerial level. The UK government’s eyes and ears in Brussels is the UK Permanent Representation to the EU (UKREP) which links Whitehall and EU decision-makers. It is the UK Embassy to the EU. The LG Association discusses new EU proposals regularly with the UK government in Whitehall and Brussels and our delegation to the CoR has good links. The UK Parliament, checks that all proposed EU laws are proportionate and necessary and do not overstep the roles of the UK and devolved parliaments, the so-called ‘subsidiarity principle’ which ensures that new laws are decided as close to the citizen as possible. The

raft EU Renewable Energy Directive, which set the UK a mandatory targe

Parliament also scrutinises the impact of future EU laws on the UK and thus influence the UK ‘line’ in negotiations. The House of Lords EU Committee has a very high international standing and the quality of its analysis is exceptional. The LG Association keeps peers informed of the local dimension of new EU laws. And of course, the UK Parliament has a role in the UK laws which implement EU legislation. An important point to note is that with EU directives (the basic and most common form of EU legislation) the EU sets out the result to be achieved, normally in the form of minimum standards. It is for national parliaments to frame domestic laws in a way that achieves these minimum standards – but they can aim to outperform these standards, eg. in achieving a better reduction in carbon emissions or landfill of waste than that stipulated in the EU rules. Sound a bit abstract…here’s an example of how LG Association influenced a real piece of EU legislation to benefit councils. Influencing the EU Renewable Energy Directive (Cllr Paula Baker) The LG Association successfully campaigned to influence the

dt to increase its use of alternative energy to 15 per cent by 2020. The LG Association wanted to ensure the Directive would not add complexity to planning regulations, but give councils the freedom to press ahead with renewable energy. We worked through CoR to influence key EU decisions. CoR member Cllr Paula Baker developed an EU-wide local council response to the draft Directive. The LG Association helped Cllr Baker to work with an expert from Birmingham City Council to decipher how it would work locally. LG Association and Cllr Baker worked closely with Fiona Hall MEP to propose amendments to the European Parliament (EP) efforts to get rid of overly prescriptive references to local administration and planning. We worked closely with the UK government (Department for Energy and Climate Change), and the European Commission who all had to agree a final text. The final Directive recognises local councils’ role in deploying decentralised, renewable energy and makes the link with local green job creation; more secure energy sources; and more local control on future supplies. The resulting UK strategy recognises councils’ crucial role

ropean Commission: to anticipate future European Commission proposals

and has led to closer working between central and local government on renewable energy issues. The work shows how effective CoR can be in influencing key EU decision-makers for the benefit of councils here in the UK. 18 Knowing me, knowing EU EU decisions matter to local councils: having explored three policy areas, the local impact of European law and resulting UK regulation that flows from it is crystal clear. We will seek to ensure EU rules and resulting UK laws recognise the impact on local services, and do not place new or excessive burdens on councils. We recommend: Political and officer engagement: councils, both elected politicians and officers, need to be engaged and aware of new and upcoming EU laws as they can have administrative and financial costs for councils once they become UK law. Responding to consultations: we will continue to alert councils to new EU initiatives and their possible consequences. To lobby effectively, we will ask councils to respond to our consultations to gauge the expected impact of proposed EU laws and evidence-base our lobbying to those making EU decisions. Getting in early to influence the E

u such as those to coordinate EU procurement and waste legislation, we are gathering views from councils’ procurement and waste teams now so we can help inform future thinking on how to coordinate existing legislation. In the EU and national decision-making chain, the earlier LG Association and councils influence decisions, the better. Strengthening links with MEPs: the LG Association regularly briefs MEPs ahead of key EP debates and votes. Recently, we worked together on proposed fines for late payments which could have cost councils and the National Health Service up to £600m a year. Continuous communication: the LG Association will continually strengthen links with UK MEPs, who are crucial to determining EU laws which councils ultimately implement. what we think EU decision makers must do to make the process more effective Conclusion Knowing me, knowing EU 19 UK government implementation matters: our report shows how much more effective it is to influence legislation before and during EU drafting stages, rather than once it is in the decision-making phase; it is harder still once an EU directive has been adopted, as the objectives

y: we acknowledge that ‘good governance’ is not ‘no governance’,

are then set. The job of UK Parliament is then to make it UK law (‘transposition’). While Whitehall may choose to consult stakeholders on how to implement an EU directive, the directive’s intentions must be respected. The case studies show that while EU rules might stipulate one thing, or may leave room for manoeuvre, national governments may decide to implement it in a unique way. Equally, it is not always clear that government is responding to an EU agenda when it introduces new law or policy. • Identifying challenges early: if the government is signing councils up to implement EU law, it needs to understand the challenges councils may face in delivering it. It must engage with councils and the LG Association at two crucial stages: firstly: before and during negotiating the UK’s line on a draft piece of EU law which could affect councils; and secondly: when UK Parliament transposes an EU directive into UK law. • Clarity in EU rule changes: the LG Association urges the UK government to implement new EU rules in the lightest possible way, making it clear where it is responding to EU legislation. The EU should legislate only when necessa

r and there are some policy areas where it makes sense for EU countries to collaborate and set a level playing field. The EU has had a ‘better legislation initiative’ on the go for some years, and our representatives on the CoR scrutinise and influence this. The LG Association demands that the EU legislates only when absolutely necessary and with a minimum of bureaucratic rules and a maximum of consultation, forewarning and financial assistance, leaving it to local councils and the UK government to work out the detail. • Light touch EU legislation: we urge ‘lighttouch’ EU legislation, and that it should be for the government, in consultation with local councils and the LG Association, to work out the detail of how we achieve EU objectives. • Seek alternatives to EU law: we urge the EU to seek alternatives to legislation, to introduce time limits and review periods (‘sunset clauses’), to accelerate the repeal and simplification of existing rules. • Strengthen democratic legitmacy: we call on EU decision-makers to better involve councils, through the LG Association and local government representatives in the CoR, to strengthen the democratic legitimacy of EU decisions

and ensure all new EU laws are necessary, proportionate and workable on the ground. Watch out for our next report in which we work with a range of councils to analyse the impact on local services of proposed revisions to the EU’s Working Time Directive and new EU action on biowaste. Both are in the EU pipeline now, and could affect local services a few years down the line. Local Government Association Local Government House Smith Square London SW1P 3HZ Phone 020 7664 3000 Fax 020 7664 3030 Email

info@lga.gov.uk

www.lga.gov.uk

Local Government Association, July 2010

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