Committee Reports > List of Committees > Joint > 1976 > Committee on the Secondary Legislation of the European Communities > Report No. 49 - Statutory Instruments [15] made under the European Communities Act 1972 and Food Standards Act 1974

APPENDIX 3

Cléireach an Chomhchoiste faoi Reachtaíocht

Thánaisteach na gComhphobal Eorpach

I am directed by the Minister for Finance to refer to your minute of 15 Meitheamh, 1976, and subsequent correspondence regarding the European Communities (State Financial Transactions) Regulations, 1976 (S.I. No. 121 of 1976) and to convey the observations set out below.

Section 4 of the Joint Committee’s Report of 28 April.

Although Statutory Instrument 121 of 1976 was made for the immediate purpose of giving effect to certain of the State’s obligations under the Association Agreement with Turkey and related Protocols and Internal Agreements (whose implementation by the State is obligatory under Articles 3, 4 and 108 of the Act of Accession), it is envisaged that the making on behalf of the State of further contracts of guarantee and loan contracts will be required in the future pursuant to the obligations of membership of the Communities. These obligations may arise from sources other than the Articles of the Act of Accession to which reference is made above. Accordingly in order to avoid the necessity to make new Regulations under the European Communities Act 1972 in each such case, S.I. 121 of 1976 empowers the Minister to enter into the contracts to which it refers whenever they are necessitated by the State’s obligations of membership of the Communities. It would not in the circumstances have been appropriate to refer in the Statutory Instrument to any particular provisions of the Treaties or to any particular secondary legislation of the Communities.

Relevant Provisions of the Treaties or Community Secondary Legislation.

As mentioned above the Regulations are general in nature but were prompted in the first place by the provisions of the Agreement establishing an Association between the European Economic Community and Turkey and the Additional Protocol (OJ C113: vol. 16; 24 December, 1973).

Article 3(2) of the Financial Protocol to the Association Agreement provided for the granting of loans by the EIB to Turkey up to an aggregate amount of 195m uas while Article 9 provided that the Community would examine the possibility of supplementing the loans mentioned in article 3 by loans granted by the EIB from its own resources. On the 23rd June, 1973 the Council of the EEC decided that this provision should be implemented.

An internal agreement on the Financial Protocol was adopted by the Member States and came into operation on 21 December 1972 (OJ L293/74 of 29/12/72). This agreement provided for the apportionment of the amount of 195 million uas mentioned in Article 3(2) of the Financial Protocol among the original Member States (Article 4 of Internal Agreement). It also provided, under Article 11, for giving to the EIB by the original Member States the guarantees in respect of the additional loans mentioned in Article 9 of the Financial Protocol.

The Financial Protocol and the Internal Agreement were adapted on 30/6/73 to take account of the enlargement of the Communities by a Supplementary Protocol and a Supplementary Internal Financial Agreement. The latter two instruments have not yet been ratified by all the Member States of the Community, have not entered into force and do not, therefore, appear in the Official Journal of the European Communities. Texts of the Financial Protocol of 23 November, 1970 as modified by the Supplementary Protocol of 30 June, 1973 and the Supplementary Internal Financial Agreement concerning the Supplementary Protocol of 30 June, 1973 are attached for your convenience.

Approval of the terms of the Supplementary Protocol to the Association Agreement and of the Supplementary Internal Financial Protocol was obtained from Dáil Éireann on 14 June, 1976. This Department was advised by the Attorney General’s Office that the taking of the appropriate legislative powers was necessary before the submission of the relevant texts for the approval of Dáil Éireann. Accordingly, on 8 June, 1976, the Minister for Finance made the European Communities (State Financial Transactions) Regulations, 1976 in order to provide him with the authority to discharge his responsibility under the Supplementary Internal Financial Agreement.

Effect on existing domestic legislation.

The Regulations do not impinge on any existing domestic legislation.

The delay in replying to your minute of 15 Meitheamh, 1976 is very much regretted.