WRITTEN QUESTION E-2353/00

by Adriana Poli Bortone (UEN) and Sergio Berlato (UEN) to the Commission

(13 July 2000)

Subject: Reducing the running costs of farms

Can the Commission say whether it intends to promote the introduction of a regulation allowing the early payment of aid and income support due under the terms of Regulation (EEC) 1765/92(1) and Regulation (EEC) 2078/92(2) (now incorporated in Regulation (EC) 1775/1999(3), issued following the Agenda 2000 reform) as is already the case for Regulation (EEC) 2080/92(4), Regulation (EEC) 565/80(5) and Regulation (EEC) 3665/87(6)?

This would achieve the aim of preventing the tension caused by the notorious incapability of the paying authority the Italian State intervention agency to respect the deadlines laid down and would help to reduce costs for farms which are obliged to obtain bank advances for these sums.

(1) OJ L 181, 1.7.1992, p. 12.

(2) OJ L 215, 30.7.1992, p. 85.

(3) OJ L 212, 12.8.1999, p. 9.

(4) OJ L 215, 30.7.1992, p. 96.

(5) OJ L 62, 7.3.1980, p. 5.

(6) OJ L 351, 14.12.1987, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(11 September 2000)

The Commission is aware that prompt payment of aid and premiums to beneficiaries is a key element in the effectiveness of the common agricultural policy (CAP).

Council Regulation (EEC) No 1765/92 of 30 June 1992 establishing a support system for producers of certain arable crops laid down time limits for payment of aid for arable crops by the Member States' paying agencies. The new Regulation (Council Regulation (EC) No 1251/1999 of 17 May 1999 establishing a support system for producers of certain arable crops)(1), which applies from the financial year 2000, also lays down time limits for payment of the aid. Early payment of this aid to recipients

would require the Commission to reimburse payments to the Member States earlier. It would involve budgeting a very large amount twice over in the transitional financial year, thus leading to an overrun of the ceilings laid down in the Interinstitutional Agreement of 6 May 1999 between Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure. It is therefore not possible to introduce early payment of this aid.

With regard to payment of aid for arable crops by the Italian paying agency AGEA, the Honourable Members' attention is drawn to the fact that the Commission requested Italy to tighten up controls in this sector. Since these checks had to be carried out before making payment, the Commission authorised Italy to delay these payments until the first six-month period following the time limit laid down in the rules.

Also, with regard to payments under the old accompanying measures, Council Regulation (EEC) No 2078/92 of 30 June 1992 on agricultural production methods compatible with the requirements of the protection of the environment and the maintenance of the countryside, and Council Regulation (EEC) No 2080/92 of 30 June 1992 instituting a Community aid scheme for forestry measures in agriculture, did not lay down any time limits for payment. They left it to the Member States to introduce administrative provisions at national level best suited to the programmes' specific requirements.

(1) OJ L 160, 26.6.1999.