WRITTEN QUESTION E-1000/01

by Paulo Casaca (PSE) to the Commission

(30 March 2001)

Subject: 1999 discharge agriculture

The information provided by the Commission in connection with question 2.7 of the second questionnaire on the granting of the discharge in respect of the implementation of the general budget of the European Union for the 1999 financial year does not reply to the Questions raised in various aspects. Can the Commission therefore clarify the following points:

With regard to question 2.7(c): The reply does not correspond to the question. The question refers to fraud and irregularities, and not the common organisations of the market designed to restrict surplus production. Consequently, the Commission is asked once again to reply to the above question.

Answer given by Mr Fischler on behalf of the Commission

(8 June 2001)

The question in point 2.7(c) of the second Blak questionnaire for the 1999 discharge, which the Honourable Member is referring to, was:

Will the Commission indicate where in the regulatory framework regarding consumption aid for Skimmed milk, or any other dairy product, penalties up to eight times the amount of the subvention can be claimed (e.g. consumption aid for olive oil, paragraph 6, article 12, Commission Regulation (EEC) No 643/93, of 19 March 1993 amending Regulation (EEC) No 2677/85 laying down implementing rules in respect of the system of consumption aid for olive oil(1)).

In the reply given to point 2.7 (c) the Commission explained the procedure for paying aid for the use of skimmed milk powder or butter in certain industrial products and gave examples of sanctions in the milk sector.

It is correct that the Commission did not explicitly reply to the question of where in the milk sector sanctions of up to eight times an aid can be claimed. However, the Commission can inform the Honourable Member that such an explicit provision is not foreseen in any of the regulations governing the milk sector.

Aid for the use of skimmed milk powder in animal feed and for butter used in ice cream, pastry etc. is only paid to undertakings approved by the Member States (Commission Regulation (EC) No 2799/1999, of 17 December 1999 laying down detailed rules for applying Regulation (EC) No 1255/1999 as regards the grant of aid for skimmed milk and skimmed-milk powder intended for animal feed and the sale of such skimmed-milk powder(2), article 9, and Commission Regulation (EC) No 2571/1997, of 15 December 1997 on the sale of butter at reduced prices and the granting of aid for cream, butter and concentrated butter for use in the manufacture of pastry products, ice-cream and other foodstuffs(3), article 10). The approval is subject to a number of conditions. If controls reveal that an undertaking does not comply with these conditions, in addition to the loss of the aid, the approval can be suspended for one to twelve months, depending on the seriousness of the irregularity. This may indeed in itself constitute a heavy sanction.

In order to complete the information, it may be of interest to the Honourable Member to know that for area based aid schemes subject to controls under the Integrated Administration and Control System, a sanction can reach almost five times the aid unduly applied for or already paid. If a control reveals a discrepancy of more than 20 %, the beneficiary loses the total amount of the aid.

(1) OJ L 69, 20.3.1993.

(2) OJ L 340, 31.12.1999.

(3) OJ L 350, 20.12.1997.