AID: ENHANCING THE EFFECTIVENESS OF AID
Letter from the Chairman to The Rt Hon
Clare Short MP, Secretary of State, Department for International
Thank you for your Explanatory Memorandum dated
4 December 2002 which Sub-Committee C considered at its meeting
today. The Committee have agreed to clear this item, but would
be grateful if you would provide the following information.
What scope is there in the procurement
directives to ensure aid is not tied?
How vigorously is the Commission
likely to police the directives in this context?
I look forward to hearing from you in due course.
19 December 2002
Letter from Clare Short, Secretary of
State, to the Chairman
Your Committee met on 19 December 2002 and discussed
the "Communication from the Commission to the Council and
the European Parliament untying: `Enhancing the Effectiveness
In your letter of 19 December your committee
agreed to clear this document from scrutiny and have asked for
further information on two points.
On the first, use of the procurement directives
will ensure aid is no longer tied to individual member states'
domestic supplies. The Commission Communication confirms that
the procurement directives require publicly funded contracting
opportunities above the threshold value (currently equal to £100,410)
to be publicly advertised and open to competition from firms in
the member states and member countries of the European Economic
Area and the Europe Agreement. This has the practical effect of
untying member states' bilateral aid programmes within Europebut
only within Europewhich is not full untying.
Second, enforcement of the Directives is a matter
for the Internal Market Directorate. We judge they are indeed
taking this seriously, as evidenced by recent action against Denmark
and Italy for infraction.
12 January 2003