WRITTEN QUESTION E-3416/01

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(21 December 2001)

Subject: Management and payment of aid to citrus fruit growers in Greece

In paragraphs, 2.36, 2.37, 2.40, 2.41, 2.42, 2.49, 2.164, 2.165, 2.173, and 2.174 of its annual report for the financial year 2000, the Court of Auditors highlights management errors, failings of control systems, inadequate effectiveness of systems of checks, and a defective system for setting prices and premiums, etc.

1. What is the actual problem in managing and paying aid to citrus fruit growers in Greece?

2. Has that problem resulted in lower incomes for producers? How great is the reduction in income and who is responsible?

3. What measures has the Commission taken or will it take to make the system more transparent and more profitable for producers?

Answer given by Mr Fischler on behalf of the Commission

(30 January 2002)

The problems observed in the management and payment of aid to citrus producers in Greece are numerous and complex.

The main ones are as follows:

- both administrative and on-the-spot checks carried out by the Greek authorities display weaknesses;

- citrus producer organisations do not always have the necessary data for them to carry out effective checks of their members or for the Greek authorities to conduct checks of organisations and their members;

- in the past, 3 % of the aid to be paid to producer organisations has been deducted by Greece for agricultural insurance (ELGA) under a national law. Greece assures the Commission that it discontinued this practice in 2001.

Citrus producers' income could fall if their contributions to ELGA were to exceed the compensation paid to them. Furthermore, if citrus producer organisations fail to meet their obligations under the regulations, the organisation and its members may be refused some aid. Weaknesses in the Member States' checks could, however, result in undue payments to beneficiaries.

Citrus producers' income is made up of:

- sales on the market for fresh produce, and

- sales to the processing industry.

Citrus producers' income is therefore the product of sales on both markets and must be compared to the cost of production. At Community level, only 20 % to 30 % of their production is sold for processing; production sold on the market for fresh produce therefore makes up their main source of income.

The fall in processing aid in recent marketing years has been due to the overrun in the Community thresholds. The Commission has therefore discharged its responsibilities. Acting on a proposal from the Commission, the Council adopted Council Regulation (EC) No 2699/2000 of 4 December 2000 (amending Regulation (EC) No 2200/96 on the common organisation of the market in fruit and vegetables, Regulation (EC) No 2201/96 on the common organisation of the market in processed fruit and vegetables and Regulation (EC) No 2202/96 introducing a Community aid scheme for producers of certain citrus fruits(1)), which has resulted in an increase in the processing thresholds. In the case of oranges, the increase is 26,2 %.

In addition, the Community threshold has been subdivided among the Member States so that producers in individual Member States are responsible for any overruns.

As a direct consequence of the increase in the thresholds, no penalty relating to processing aid for oranges was levied in respect of the 2001/02 marketing year.

(1) OJ L 311, 12.12.2000.