Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the production of annual Community statistics on steel for the reference years 2003-2009

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Background

The present Community system for steel statistics rests on the European Coal and Steel Community (ECSC) Treaty which expired on 23 July 2002. There are some 300 enterprises in the European steel industry, producing a fifth of world steel output. Almost all of them are large enterprises, with a strong interest in using statistics. A comprehensive statistical system was developed in the last fifty years to meet ECSC policy needs, and the needs of the industry. This was done in close co-operation with the European steel associations. In most Member States, the Commission has collected data directly either from the steel companies or their national associations. Up until 2000, there were 17 monthly questionnaires, one was quarterly, and there were a dozen annual ones. The number was reduced in 2000.

In a companion regulation, the Commission is proposing to extend the life of the ECSC steel statistics system until the end of 2002. This proposal deals with Community steel statistics from 2003 onwards. Eurostat has carried out user needs studies, and these showed the areas where statistical information was required after the expiry of the ECSC Treaty. The Commission's policy units, national ministries and the industry requested that key statistics on the steel industry should continue to be made available. However the needs for Community policy making will be much less after the end of the ECSC Treaty. For this reason, this proposal implies a very large reduction in official Community steel statistics compared with the ECSC statistical system.

One option would have been to make no proposal, but to rely on existing Community legislation. In fact, this is largely the case. Statistics on production and sales of steel products, which constituted a large part of the ECSC statistical system, will be absorbed into the existing Community system of production statistics, Prodcom. A modernised list of steel products has recently been approved, and collection will start in 2003. The monthly series on employment in steelworks will be discontinued, but annual data for employment in the steel industry will continue to be available from Structural Business Statistics.

Four of the existing annual ECSC questionnaires produce information which are important for developing and monitoring Community policy, but which are not collected under existing Community legislation. The present proposal is for a regulation covering the period 2003 to 2009 to allow for a core set of the information in these questionnaires to continue to be collected in all EU States where there is a significant steel industry. The proposed regulation is for a fixed period, with a provision for an intermediate report after four years to evaluate the results and propose possible future actions.

2. Content of the regulation

The proposed regulation covers data previously collected in four ECSC questionnaires (2-50, 2-58, 2-60 and 2-61). After discussion with users, the list of variables from these questionnaires has been reduced. This list is the annex of Regulation. It covers: iron and steel scrap balance sheets; energy balance sheets; investment by type of plant; and steel making capacity.

The steel scrap balance data covers the demand and supply of iron and steel scrap. This is nowadays an important raw material for steel making, and for which a free and open market is needed internationally. The Commission may need this information if third countries restrict exports of scrap to help their domestic industries.

The energy balance sheet yields not only information on energy use and production within the steel industry but indirectly also on emission of pollutants. For example, blast furnaces use coke, limestone, and iron ore to make steel, and produce carbon dioxide as a waste product. The energy balance sheet data enables the quantity of these CO2 emissions to be calculated.

The investment expenditure and capacity data are used to assess possible future under- or over- capacity for particular classes of steel products. This information is useful not only to the industry but also for international trade negotiations. It also feeds into an network of world steel capacity monitoring organised under the auspices of the OECD.

The adoption of this regulation would allow the compilation of important Community steel statistics series to be continued.

The draft regulation was discussed at the meeting of the Statistical Programme Committee held on 19th and 20th September 2001. A large majority of Member States were in favour of this Regulation.

2002/0251 (COD)

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the production of annual Community statistics on steel for the reference years 2003-2009

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 285 (1) thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Having regard to the opinion of the Economic and Social Committee [2],

[2] OJ C [...], [...], p. [...].

Acting in accordance with the procedure laid down in Article 251 of the Treaty [3],

[3] OJ C , , p. .

Whereas:

(1) The statistics on the steel industry were based on the ECSC Treaty which will come to an end on 23 July 2002. A new Regulation is therefore needed on the collection of Community statistics on the steel industry pursuant to the EC Treaty.

(2) It is necessary to continue collecting statistics on the steel industry in order to implement future Community policies on the steel industry. No other existing statistical system at a European level is able to satisfy the need for such statistics,

(3) A transitional phase running from 2003 to 2009 is needed to determine whether steel statistics can be integrated into other statistical systems,

(4) Enterprises in the steel industry need worldwide information on investment and capacity in order to assess possible future undercapacity or overcapacity for particular classes of steel products. Community statistics on investment and capacity contribute to a global network of information on world steel capacity, organised under the auspices of the OECD.

(5) Statistics on energy consumption in the steel industry yield information not only on energy use and production within the steel industry but indirectly also on emission of pollutants.

(6) Statistics on the availability of stocks of iron and steel scrap are needed to monitor the use of this important raw material for steel making, for which a free and open market is needed internationally.

(7) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission, [4]

[4] OJ L 184, 17.7.1999, p. 23.

HAVE ADOPTED THIS REGULATION:

Article 1 Subject-matter

This Regulation establishes a common framework for the systematic production of Community statistics on steel for the reference years 2003-2009.

Article 2 Definitions

For the purpose of this Regulation, the terms "Community statistics" and "production of statistics" shall bear the meanings given to them by Council Regulation (EC) 322/97 [5].

[5] OJ L 52, 22.2.1997, p. 1.

Article 3 Scope

Member States shall submit to the Statistical Office of the European Communities ("Eurostat") data on the steel industry, defined as group 27.1 of the general industrial classification of economic activities in the European Community, ("NACE Rev. 1") established by Council Regulation (EEC) 3037/90 [6].

[6] OJ L 293, 24.10.1990, p.1

Where the value-added at factor cost of the enterprises in a Member State's steel industry represents less than 1% of the Community total, the data on the characteristics need not be collected.

Article 4 Characteristics

The data supplied, which shall conform to the format set out in the Annex, shall relate to kind-of-activity unit characteristics and to enterprises having 50 or more employees.

Article 5 Time reference and periodicity

Member States shall compile the data specified in this Regulation for the first time for the year 2003 and for each year thereafter until 2009.

Article 6 Transmission of data

The competent national authorities shall send to Eurostat data and metadata, supplied in accordance with this Regulation, in electronic form.

Transmission shall conform to an appropriate interchange standard approved in accordance with the procedure referred to in Article 8(2). Eurostat shall make available detailed documentation in relation to approved standards and shall supply guidelines on how to implement these standards according to the requirements of this Regulation.

Article 7 Implementing measures

The following measures for the implementation of this Regulation shall be laid down in accordance with the procedure referred to in Article 8(2):

(a) additions or modifications to the list of characteristics, or deletions from it;

(b) transmission formats.

Article 8 Procedure

1. The Commission shall be assisted by the Statistical Programme Committee, instituted by Decision 89/382/EEC/Euratom) [7].

[7] OJ L 181, 28.6.1989, p.47.

2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period referred to in Article 5(6) of Decision 1999/468/EC shall be three months.

3. The Committee shall adopt its rules of procedure.

Article 9 Reports

Within five years of the entry into force of this Regulation, the Commission shall submit a report to the European Parliament and the Council on its implementation.

In particular, the report shall:

(a) assess the benefits accruing to the Community, the Member States and the providers and users of statistical information of the statistics produced in relation to their costs;

(b) assess the quality of the statistics produced;

(c) verify synergy with other Community activities;

(d) propose any changes considered necessary to improve the operation of this Regulation.

Article 10 Entry into force

This Regulation shall enter into force on the 20th day following that of its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX List of characteristics to be transmitted to Eurostat in accordance with Article 4

1. Yearly statistics on the steel and cast iron scrap balance sheet

Unit: metric tonnes

Code // Title

// Steel and Cast Iron Scrap Balance Sheet

1010 // Stocks on first day of year

1020 // Arising within the works

1030 // Receipts (1031+1032+1033)

1031 // from home sources

1032 // from Community countries

1033 // from third countries

1040 // Total available ( 1010+1020+1030)

1050 // Consumption total ...

1051 // ... of which electric furnaces

1052 // ... of which stainless scrap

1060 // Deliveries

1070 // Stocks on last day of year (1040-1050-1060)

2. Fuel and Energy Consumption and Balance Sheet for Electrical Energy in the Steel Industry

Part A: Fuel and Energy Consumption broken down by type of plant *)

Unit: metric tonnes or Giga Joules (GJ)

>TABLE>

*)Plant for load preparation Rolling mill departments

Blast furnaces and electric iron making furnaces Electricity generating stations

Melting shops Other plant

Part B: Balance Sheet for Electrical Energy in the Steel Industry

Unit: MWh

Code // Title

// Balance Sheet for Electrical Energy

in the Steel Industry

3100 // Resources (3101+3102)

3101 // Gross production

3102 // Receipts from outside

3200 // Used (3210+3220+3230)

3210 // Consumption by plant

(3211+3212+3213+3214+3215+3216+3217)

3211 // Sinter plant and plant for preparation of burden

3212 // Blast furnaces and electric iron making furnaces

3213 // Electric melting shops and continuing casting

3214 // Other melting shops and continuing casting

3215 // Rolling mill departments

3216 // Electricity generating stations

3217 // Other plant

3220 // Deliveries to outside

3230 // Losses

3. Enquiry on Investments in the Iron and Steel Industry

(Expenditure and Capacity)

Part A: Expenditure

Unit: Millions of Euro

Code // Title

// Investment expenditure in the Iron and Steel Industry

4010 // Coking plant

4020 // Plant for load preparation

4030 // Plant for ironmaking and ferro-alloys

(including blast furnaces)

4040 // Steelworks melting shops

4041 // of which electric

4050 // Continuous casting

4060 // Rolling mills (4061+4062+4063+4064)

4061 // Flat products

4062 // Long products

4063 // Cold wide strip mills

4064 // Coating installations

4070 // Other plant

4100 // General total (4010+4020+4030+4040+4050+4060+4070)

4200 // Of which to combat pollution

Part B: Capacity

Unit: 1000 tonnes per year

Code // Title

// Maximum possible production in the Iron and Steel Industry (Capacity)

5010 // Coke

5020 // Load preparation

5030 // Pig iron and ferro-alloys

5040 // Crude steel (5041+5042)

5041 // of which electric

5042 // of which used in continuous casting

5050 // Products obtained directly by hot rolling (5051+5052)

5051 // Flat products

5052 // Long products

5060 // Products obtained from hot rolling products

(excluding coated products)

5061 // of which products obtained by cold rolling

5070 // Coated products

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Statistics

Activit(y/ies): Iron and Steel Statistics

Title of action: Proposal for a regulation of the european parliament and the council (ec) n°.../... on the production of annual Community statistics on steel for the reference years 2003-2009

1. BUDGET LINE(S) + HEADING(S)

B5-6000 + Statistical information Policy

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): EUR million for commitment

2.2. Period of application:

1 January 2003 - 31 December 2009

2.3. Overall multiannual estimate of expenditure:

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to three decimal places)

>TABLE>

(b) Technical and administrative assistance and support expenditure(see point 6.1.2)

>TABLE>

>TABLE>

(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

>TABLE>

2.4. Compatibility with financial programming and financial perspective

|X| Proposal is compatible with existing financial programming.

Proposal will entail reprogramming of the relevant heading in the financial perspective.

Proposal may require application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue: [8]

[8] For further information, see separate explanatory note.

Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

OR

|X| Proposal has financial impact - the effect on revenue is as follows:

(NB All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.)

(EUR million to one decimal place)

>TABLE>

3. BUDGET CHARACTERISTICS

>TABLE>

4. LEGAL BASIS

The Treaty establishing the European Community, and in particular Article 285(1) thereof.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention [9]

[9] For further information, see separate explanatory note.

5.1.1. Objectives pursued

Collection of key annual statistics needed for the developing and analysing the impact of Community policy.

5.1.2. Measures taken in connection with ex ante evaluation

User needs studies were carried out in 1999. Commission Services, Member States Ministries and Industry Associations were consulted.

5.1.3. Measures taken following ex post evaluation

An intermediate report will be made after 4 years.

5.2. Action envisaged and budget intervention arrangements

The proposal of the Regulation describes a certain number of statistical variables for which an annual data collection is to be carried out. Member States would be required to send this data once a year to Eurostat. Eurostat will update the production data base, check the data and then publish the statistics. Informatics support for the data base, data administration, preparation and editing of the annual publications of some ten pages will be done in-house.

The target population will be the same as in 2002, the last year of the steel statistics realised under the conditions of the ECSC Treaty.

Specify number of beneficiaries if possible: 500 statistics users in industry and government.

No budget intervention is foreseen.

5.3 Methods of implementation

Each year, approximately three months elapsed activity will needed for data collection, data base update, checking and publication.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments (in EUR million to three decimal places)

>TABLE>

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period) [10]

[10] For further information, see separate explanatory note.

Commitments (in EUR million to three decimal places)

>TABLE>

If necessary explain the method of calculation

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

>TABLE>

7.2. Overall financial impact of human resources

>TABLE>

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

>TABLE>

The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

>TABLE>

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

Eurostat internal

8.2. Arrangements and schedule for the planned evaluation

Eurostat internal

9. ANTI-FRAUD MEASURES

Eurostat internal