WRITTEN QUESTION P-3512/01

by Francesco Fiori (PPE-DE) to the Commission

(20 December 2001)

Subject: Tobacco

Tobacco growing affects around 600 000 workers in the production and processing sectors in Europe. The total area under tobacco crops is around 150 000 ha, mainly located in southern Europe. Tobacco growing is of most benefit to areas where the soil is poor and the climate is unsuitable for other types of crops (in Italy, in particular, Campania, Puglia, Umbria and Veneto). As a result of these features, there is at present no financially viable alternative to tobacco growing, especially for small farmers. In small municipalities, most of the population draw their income from the tobacco-growing sector.

In 1970, in anticipation of the dismantling of the state monopoly arrangements which guaranteed that all the tobacco produced in Community countries would be purchased, a COM was introduced providing instead for a system of aid to the production of raw tobacco. Shortly before the revision of the COM in tobacco, which was due to take place in 2002, the Commission approved by a large majority a document on sustainable development, which was also approved by the European Parliament and then submitted to the Council in Göteborg, providing for the phasing out of aid to the tobacco-growing sector as a public health measure. This latest move is simply an ideologically motivated untruth since smoking would continue at the same rate in the European Union, the only difference being that 20 % of the tobacco currently grown in the UE would be imported to the detriment of the trade balance and phyto-sanitary checks on the tobacco products. The abolition of the aid, which currently accounts for around 80 % of farmers' incomes, would result in the abandonment of tobacco growing, which would no longer be profitable, and hence the abandonment of the land.

What alternative farming possibilities, or at least job opportunities, has the Commission found or planned for tobacco growers who will be forced to abandon this activity and will see their family income drastically reduced, if not completely wiped out?

Answer given by Mr Fischler on behalf of the Commission

(29 January 2002)

On 21 November 2001 the Commission adopted a proposal for a Council Regulation fixing the premiums and guarantee thresholds for leaf tobacco by variety group and Member State for the 2002, 2003 and 2004 harvests and amending Regulation (EEC) No 2075/92.

The proposal is consistent with Commission policy on the future of tobacco production aid as formulated in the communication on a European Union strategy for sustainable development, particularly regarding the need to phase out tobacco subsidies while putting in place measures to develop alternative sources of income and economic activity for tobacco workers and growers.

The Commission's decision is justified by concern for agricultural policy to be consistent with Article 152 (ex Article 129) of the EC Treaty, which stipulates that a high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities, leaving aside the question of whether there is a link between tobacco production aid and the consumption of tobacco products.

The Commission is nevertheless aware of the difficulties which converting raw tobacco production could cause, particularly in certain production regions. That is why the proposal as well as guaranteeing support to producers for the next three years amends a number of common market organisation mechanisms such as the tobacco fund, which has been recast to permit the financing inter alia of feasibility studies on retraining raw tobacco producers for other crops or economic activity and of initial specific conversion measures in production regions. Experience gained under the rural development programmes makes a key contribution in that regard.

The Commission also intends to develop tobacco fund conversion measures in combination with the quota buyback programme, thereby creating powerful synergies between the two.

Further new proposals on the sector will be preceded by a study evaluating the common organisation of the market. The Commission intends to proceed in a resolute but gradual manner so as to safeguard the production regions' economic and social vitality.