Committee on the Environment, Public Health and Food Safety. of the Committee on the Environment, Public Health and Food Safety

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1 European Parliament Committee on the Environment, Public Health and Food Safety /2198(DEC) OPINION of the Committee on the Environment, Public Health and Food Safety for the Committee on Budgetary Control on discharge in respect of the implementation of the budget of the European Chemicals Agency for the financial year 2017 (2018/2198(BUD)) Rapporteur for opinion: Adina-Ioana Vălean AD\ docx PE v02-00 United in diversity

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3 SUGGESTIONS The Committee on the Environment, Public Health and Food Safety calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following suggestions into its motion for a resolution: 1. Recalls that the European Chemicals Agency ( the Agency ) is a consolidated entity in accordance with Article 185 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council 1 ('Financial Regulation'), and it is the driving force among regulatory authorities in implementing the Union s chemicals legislation for the benefit of human health and the environment as well as for innovation and competitiveness; notes that the Agency helps companies to comply with the legislation, advances the safe use of chemicals and provides information on chemicals and addresses chemicals of concern; 2. Highlights that in 2017 the Agency celebrated its 10th anniversary and also notes that the Management Board appointed a new Executive Director; 3. Notes that concerning Regulation (EC) No 1907/2006 of the European Parliament and of the Council 2 ('REACH'), the Agency is financed through fees paid by industry and by a balancing Union subsidy, as referred to in Article 208 of the Financial Regulation; acknowledges the fact that in 2017, the Agency collected fee income totalling EUR (in comparison to EUR in 2016), while the Union subsidy amounted to EUR (in comparison to EUR in 2016) and that additionally, the received European Free Trade Association (EFTA) contribution totalled EUR ; 4. Stresses that with regard to Regulation (EU) No 528/2012 of the European Parliament and of the Council 3 (Regulation on biocidal products), the Agency is financed through fees paid by industry and a balancing Union subsidy, as referred to in Article 208 of the Financial Regulation; notes that in 2017, the Agency collected fee income totalling EUR (in comparison to EUR in 2016), while the Union subsidy amounted to EUR (in comparison to EUR in 2016), and that additionally, the received EFTA contribution, including Switzerland, reached EUR (EUR in 2016); 5. Highlights that with regard to Regulation (EU) No 649/2012 of the European 1 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, , p. 1). 2 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (OJ L 396, , p. 1). 3 Regulation (EU) No 528/2012 of the European Parliament and of the Council of 22 May 2012 concerning the making available on the market and use of biocidal products (OJ L 167, , p. 1). AD\ docx 3/7 PE v02-00

4 Parliament and of the Council 1 (PIC Regulation), the Agency is fully financed by a Union subsidy, as referred to in Article 208 of the Financial Regulation; notes that in 2017, the Union subsidy amounted to EUR (compared to EUR in 2016); stresses that the Agency adopted its first report on the operation of the PIC Regulation covering the period ; 6. Stresses that the final budget of the Agency for the financial year 2017 was EUR , representing a decrease of 0,8 % compared to 2016; notes that the fees and charges collected by the Agency in 2017 covered 38 % of its expenditure (compared to 46 % in 2016); 7. Notes that the fees paid by industry vary substantially year by year, which complicates budget planning and that fees paid with regard to one regulation can only be used in that section of the Agency s budget, which can mean surplus in one section and deficit in other sections of the budget; recommends that it be considered whether collected fees could be transferred to the Union budget while the Agency would be fully financed by the Union budget through one subsidy amount covering all regulations that the Agency implements; 8. Notes that budget monitoring efforts during the financial year 2017 resulted in a budget implementation rate of 98,1 %, representing an increase of 1,1 %compared to 2016; notes furthermore that in 2017 the payment appropriations execution rate was 86,9 %, representing an increase of 0,9 %compared to 2016; 9. Notes that approximately registration dossiers were received in 2017 (out of which generating a fee), which represents an increase of 48,6 % compared to 2016; stresses that this increase in registration activity is directly linked to the last REACH registration deadline of 1 June 2018; 10. Notes that the recruitment target was achieved with 98 % of posts filled for REACH/CLP, PIC and biocides areas; highlights the difficulties faced by the Agency due to the imposed post cuts and the continued uncertainty in the biocides area; 11. Acknowledges the challenges for the Agency in verifying the correctness of its fee income, in particular with respect to the substantial fee reductions provided for in the legislation relating to SMEs; welcomes in this respect the Agency's proactive approach but recalls that a financial ex-post verification of each registrant's size is not specified in legislation as a core task of the Agency and that the Agency has not been staffed to carry out this financial work; calls on the Commission to ensure that the Agency is properly resourced to ensure the effective and proportionate verification of its fee income in a timely manner; 12. Welcomes that the Court of Auditors has stated that it has obtained reasonable assurances that the Agency s annual accounts for 2017 are reliable and that the underlying transactions are legal and regular; 13. Recommends, based on the facts available, that discharge be granted to the Executive 1 Regulation (EU) No 649/2012 of the European Parliament and of the Council of 4 July 2012 concerning the export and import of hazardous chemicals (OJ L 201, , p. 60). PE v /7 AD\ docx

5 Director of the European Chemicals Agency in respect of the implementation of the Agency s budget for the financial year AD\ docx 5/7 PE v02-00

6 INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION Date adopted Result of final vote +: : 0: Members present for the final vote Substitutes present for the final vote Substitutes under Rule 200(2) present for the final vote Margrete Auken, Pilar Ayuso, Catherine Bearder, Ivo Belet, Simona Bonafè, Biljana Borzan, Paul Brannen, Soledad Cabezón Ruiz, Nessa Childers, Birgit Collin-Langen, Miriam Dalli, Seb Dance, Angélique Delahaye, Mark Demesmaeker, Stefan Eck, Bas Eickhout, José Inácio Faria, Francesc Gambús, Elisabetta Gardini, Arne Gericke, Jens Gieseke, Julie Girling, Sylvie Goddyn, Françoise Grossetête, Jytte Guteland, Anneli Jäätteenmäki, Jean-François Jalkh, Benedek Jávor, Kateřina Konečná, Urszula Krupa, Peter Liese, Valentinas Mazuronis, Susanne Melior, Miroslav Mikolášik, Rory Palmer, Gilles Pargneaux, Bolesław G. Piecha, Pavel Poc, John Procter, Frédérique Ries, Daciana Octavia Sârbu, Annie Schreijer-Pierik, Ivica Tolić, Nils Torvalds, Adina-Ioana Vălean, Jadwiga Wiśniewska, Damiano Zoffoli Cristian-Silviu Buşoi, Christophe Hansen, Martin Häusling, Anja Hazekamp, Jan Huitema, Tilly Metz, Bart Staes, Tiemo Wölken Olle Ludvigsson PE v /7 AD\ docx

7 FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION 49 + ALDE ECR GUE/NGL PPE S&D VERTS/ALE Catherine Bearder, Jan Huitema, Anneli Jäätteenmäki, Valentinas Mazuronis, Frédérique Ries, Nils Torvalds Mark Demesmaeker Stefan Eck, Anja Hazekamp, Kateřina Konečná Pilar Ayuso, Ivo Belet, Cristian Silviu Buşoi, Birgit Collin Langen, Angélique Delahaye, José Inácio Faria, Francesc Gambús, Elisabetta Gardini, Jens Gieseke, Julie Girling, Françoise Grossetête, Christophe Hansen, Peter Liese, Miroslav Mikolášik, Annie Schreijer Pierik, Ivica Tolić, Adina Ioana Vălean Simona Bonafè, Biljana Borzan, Paul Brannen, Soledad Cabezón Ruiz, Nessa Childers, Miriam Dalli, Seb Dance, Jytte Guteland, Olle Ludvigsson, Susanne Melior, Rory Palmer, Gilles Pargneaux, Pavel Poc, Daciana Octavia Sârbu, Tiemo Wölken, Damiano Zoffoli Margrete Auken, Bas Eickhout, Martin Häusling, Benedek Jávor, Tilly Metz, Bart Staes 7 - ECR EFDD F Arne Gericke, Urszula Krupa, Bolesław G. Piecha, John Procter, Jadwiga Wiśniewska Sylvie Goddyn Jean-François Jalkh 0 0 Key to symbols: + : in favour - : against 0 : abstention AD\ docx 7/7 PE v02-00