Proposal for a COUNCIL DECISION on the total amount of Community aid for the eradication of classical swine fever in the Netherlands in 1998

(presented by the Commission)

EXPLANATORY MEMORANDUM

Article 3 of Council Decision 90/424/EEC on expenditure in the veterinary field provides for Community financial assistance to eradicate certain animal diseases, including Classical swine fever (CSF).

In 1997 and 1998 a serious epidemic of CSF occurred in the Netherlands (NL). In relation to this epidemic, the Commission adopted Decision 2000/362/EC, which provided for a total financial aid of EUR 109 million for the expenditure related to the eradication of the outbreaks during 1997.

However, Decision 2000/362/EEC included a financial correction of 25% to the eligible expenditure, which was applied as a consequence of the technical and administrative shortcomings detected in the implementation of the eradication measures carried out by the NL.

In particular, some unfortunate technical choices not notified to the Commission resulted in a vast increase in expenditure during the epidemic. According to a study by the University of Wageningen presented to the Dutch Parliament at the request of the Dutch Minister of Agriculture, the cost of the disease would have been reduced by 50% if certain CSF control measures had been properly applied.

Numerous administrative irregularities were also found: systematic and significant overestimation of the compensation paid to pig farmers (estimated on average at about 20%), double payments for the same animal, etc.

NL also submitted for Community assistance some types of expenditure not covered by Decision 90/424/EEC, incurred in particular for the slaughter of healthy pigs or for administration (salaries, rents, security, computers, etc.).

In accordance with the approach adopted towards other Member States during earlier epidemics, the expenditure not expressly covered by the legislation was not reimbursed, because there is no legal basis for doing so.

When Decision 2000/362/EC was adopted, the Commission took into account the results of several checks by the Commission's services, including Financial Control, and the special report issued by the Court of Auditors on CSF (special report No 1/2000). The remarks and the conclusions of the Court of Auditors corroborated the findings and the position of the Commission.

The Netherlands have submitted a further application to the Commission in relation to the expenditure for the eradication of the CSF outbreaks in 1998.

Further controls were then carried out by the Commission's services to verify if the conditions for Community co-financing laid down in Decision 90/424/EEC have been met. These controls have confirmed the findings of the controls carried out in relation to the outbreaks of 1997.

In order to ensure financial support to the Netherlands for the expenditure related to the CSF outbreaks of 1998, a draft Commission Decision was submitted to the Standing Veterinary Committee on 4 April 2001.

This Committee did not give its opinion on the draft submitted by the Commission (NL and Spain voted against, UK, Sweden and Portugal voted in favour, the other Member States abstained).

The present proposal is sent to the Council in accordance with the Regulatory Committee procedures (procedure IIIb).

As in Decision 2000/362/EC, the present proposal excludes any financial support to the expenditures not expressly covered by Decision 90/424/EEC and it provides for the application of a 25% reduction in the eligible expenditure, confirming the position adopted on the reimbursement of the expenditure for the 1997 outbreaks in the NL.

The total amount reimbursable to the NL amounts to EUR 6 277 156 out of a claimed amount of EUR 14 311 725.

Proposal for a COUNCIL DECISION on the total amount of Community aid for the eradication of classical swine fever in the Netherlands in 1998

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Decision 90/424/EEC of 26 June 1990 on expenditure in the veterinary field [1], as last amended by Council Decision 2000/12/EC [2], and in particular Article 3(3) and (5) thereof,

[1] OJ L 224, 18.8.1990, p. 19.

[2] OJ L 3, 6.1.2001, p. 27.

Having regard the proposal of the Commission,

Whereas:

(1) An epidemic of classical swine fever occurred in the Netherlands in 1997 and in 1998. The appearance of the disease represents a serious danger to the Community pig herd. With a view to the speedy eradication of the disease the Community is able to contribute to expenditure incurred by the Member State.

(2) In relation to the outbreaks of classical swine fever which occurred in 1997 the Commission adopted Decision 2000/362/EC [3] on the total amount of Community aid for the eradication of classical swine fever in the Netherlands in 1997. This Decision provided for the payment of a total amount of EUR 109 937 795.

[3] OJ L 129, 30.5.2000, p. 33.

(3) On 10 September 1999 the Netherlands presented an application for reimbursement of all the expenditure incurred in the country in relation to the outbreaks of classical swine fever in 1998. At the request of the Commission, the Netherlands provided further information on this matter on 6 December 1999, 7 February 2000 and 21 April 2000.

(4) The Commission has checked to see whether all Community veterinary legal provisions have been observed and all the conditions for Community financial assistance have been met.

(5) As a result of these checks, not all of the expenditure submitted could be accepted as eligible. This position is consistent with the special report on classical swine fever issued by the Court of Auditors [4] and with Decision 2000/362/EC.

[4] OJ C 85, 23.3.2000, p. 1.

(6) The Commission's comments on the application submitted by the Netherlands were officially notified to the Dutch authorities on 11 December 2000.

(7) The total amount of Community aid for the expenditure related to the outbreaks of classical swine fever in the Netherlands in 1998 must now be fixed.

(8) Pursuant to Article 3, paragraph 2, of Council Regulation (EC) No 1258/1999 [5], veterinary and plant health measures undertaken in accordance with Community rules shall be financed under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund; for financial control purposes, Articles 8 and 9 of Council Regulation (EC) No 1258/1999 apply.

[5] OJ L 160, 26.6.1999, p. 103.

(9) The Standing Veterinary Committee has not given a favourable opinion.

HAS ADOPTED THIS DECISION:

Article 1

The total amount of Community financial aid for the eradication of classical swine fever in the Netherlands in 1998 is hereby fixed at EUR 6 277 156.

Article 2

The amount referred to in Article 1 shall be paid after adoption of the present Decision.

Article 3

This Decision is addressed to the Kingdom of the Netherlands.

Done at Brussels,

For The Council

The president