Opinion of the Economic and Social Committee on the "Proposal for a Council Regulation extending the financing of quality and marketing improvement plans for certain nuts and locust beans approved under Title IIa of Regulation (EEC) No 1035/72 and providing for a specific aid for hazelnuts"

(2002/C 94/03)

On 6 December 2001 the Council decided to consult the Economic and Social Committee, under Article 37 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 29 January 2002. The rapporteur was Mr de las Heras Cabañas.

At its 388th Plenary Session of 20 and 21 February 2002 (meeting of 20 February), the Economic and Social Committee adopted the following opinion by 121 votes to 1, with 2 abstentions.

1. Introduction

1.1. The proposal for a regulation is presented by the Commission pursuant to the mandate of the Council of Ministers of 23 July 2001, which called on the Commission to provide a solution for organisations of producers of nuts (almonds, hazelnuts, walnuts and pistachios) and locust beans whose quality and marketing improvement plans expired in 2001 and would not be covered by the budget for 2002. The Commission proposes to extend for a period of one year aid to nut and locust bean producers whose areas were included in the improvement plans which expired in 2001.

1.2. The Commission also proposes to grant a specific aid for hazelnuts for one marketing year to certain producer organisations because of the difficult market conditions in the sector in the current marketing year caused by low-priced hazelnut imports from Turkey.

1.3. The above measures are presented against the background of the ongoing discussions in the Council, European Parliament and Economic and Social Committee on a long-term support framework for the sector. The Commission has begun an in-depth study of the matter, focusing on the economic, social and environmental aspects. The Council has asked the Commission to present the conclusions of this study and any appropriate proposals in as short a timeframe as possible.

2. General comments

2.1. The Committee would draw attention to the fact that previous opinions(1) have stressed the economic, social and environmental importance of the nut and locust bean sector in the EU and the particularly difficult market conditions created by competition from third countries.

2.2. It also stressed the need for stable support measures under the CAP in order to ensure the survival of the sector, in economic terms and also for non-economic reasons, including its role in keeping communities on the land, economic activity, employment and environmental protection in some of the less-favoured regions of the EU. It also highlighted the dangers of excessive reliance on imports and the possible consequences of this for prices, and hence consumers.

2.3. It remarked on the positive impact of the implementation of improvement plans in some Member States in terms of improvements in production, better organisation of the sector and higher quality and food safety standards, although the sector has unfortunately been unable to make its products as competitive as those from third countries.

2.4. The Committee warmly welcomes the proposed extension of the improvement plans as a temporary solution to the difficult situation in which those producer organisations whose plans expired in 2001 now find themselves. However, it is concerned at the delay in presenting proposals for a permanent solution for the sector.

2.5. The Committee believes that there is now clear evidence of a need to provide a lasting guarantee for the future of the sector, and calls on the Commission to present to the Council a proposal to resolve the uncertain situation of producers, producer organisations and the nut processing industry without further delay.

2.6. The Committee believes that the Council Regulation should include a commitment by the Commission to present a solution no later than 1 June 2002, in order to ensure continuity between these measures and future measures.

3. Specific comments

3.1. The Committee does not agree that the extended measures in their current form are based on the principle of degressive aid and a gradual shift of financial responsibility towards producers, since the aid has remained constant. Such an approach is unacceptable with a view to future long-term support measures for the nut and locust bean sector.

3.2. The Committee finds no justification for accepting the proposed reduction in the level of Community co-funding from 82 % to 75 %, which would represent a step towards renationalisation of the CAP, and hence an added difficulty for the future of the sector in the various producer Member States. It wishes to draw attention to the small financial impact of support measures for this sector, which represent a tiny proportion of expenditure under the EAGGF (Guarantee Section) and account for 0.2 % of its budget under the CAP. The Committee has called on various occasions for adequate funding for the COM in fruit and vegetables, commensurate with its needs and importance, in the framework of the financial perspective set out in Agenda 2000(2).

3.3. The Committee calls for the Commission proposal to provide for funding for all measures carried out under the improvement plans of producer organisations which expired in 2001 and that all aid applications in respect of all work carried out up to 31 December 2002 should be eligible (i.e. the deadline proposed by the Commission should be extended).

3.4. The Commission proposes that aid be restricted to those areas that received aid during the final year of the improvement plan, which creates problems for the management of improvement plans by producer organisations. Taking account of the implementing procedures for the rules currently in force, the Committee believes that all areas included in the plan should be eligible for aid, provided that the overall total area registered for the final year of each plan is not exceeded. Such a modification would have no financial implications.

3.5. The Committee supports the introduction of the specific aid for the hazelnut sector, which is intended to relieve the current market crisis, but considers that the proposal in its current form would alter conditions of access to the market for the different producer organisations within the EU and distort competition.

3.6. Likewise, the Committee feels that the unfavourable market conditions in the hazelnut sector affect all producer organisations equally, and that this proposal discriminates between the different organisations, since only producer organisations whose improvement plans have not been extended can benefit from this measure.

3.7. Given its low cost, the Committee feels that this measure should be extended to cover all hazelnut producer organisations, regardless of whether or not their plans have been extended.

4. Final comments

4.1. Subject to the above remarks the Committee accepts as a temporary solution the extension of current support measures for nuts and locust beans, and urges the Commission to present definitive proposals by 1 June 2002, on the basis of a flat rate per hectare of land, with appropriate funding to ensure that producers' income levels are protected and their farms remain viable.

4.2. The Committee wishes to reiterate all proposals contained in its previous opinion, which set out the basic elements necessary to reach a permanent solution for the sector(3).

4.3. The Committee supports the creation of a specific flat-rate aid for hazelnuts produced in the Community in the 2001/2002 marketing year, provided that this does not result in discrimination between the different producer organisations in the EU.

Brussels, 20 February 2002.

The President

of the Economic and Social Committee

Göke Frerichs

(1) Extension of improvement plans for nuts and locust beans - OJ C 116, 20.4.2001, and Commission report on the COM in fruit and vegetables - OJ C 221, 7.8.2001.

(2) OJ C 14, 16.1.2001 (amendment of Regulations 2200, 2201 and 2202) and OJ C 221, 7.8.2001 (Commission report on the COM in fruit and vegetables).

(3) OJ C 116, 20.4.2001.