WRITTEN QUESTION E-1849/97 by Daniela Raschhofer (NI) to the Commission (30 May 1997)

Subject: Hectare premiums

What action will be taken in future to prevent false returns in applications for hectare premiums? What monitoring system will the Commission set up? By when is it to be set up?

What is the percentage of false returns in Austria? Which EU country has the highest percentage? Which EU country has the lowest percentage?

What is the level of damage caused to the EU as a result?

What penalties can the Commission impose, and what scope does it have for compensation, in such instances?

What data are available on these points for 1996?

Answer given by Mr Fischler on behalf of the Commission (3 July 1997)

With the introduction of the area-related compensatory payments for producers of certain arable crops under Regulation (EEC) No 1765/92 ((OJ L 181, 1. 7.1992. )) in the framework of the reform of the common agricultural policy the Member States were obliged under Council Regulation (EEC) No 3508/92 and Commission Regulation (EEC) No 3887/92 ((OJ L 355, 5.12.1992. )) to establish an integrated administration and control system (IACS) which provides, among other things, for controls so as to avoid unjustified payments.

The most important features are a system for the identification of all plots used for agriculture as regards their location, size and use, a data base which permits comprehensive automated controls and an integrated control system which allows incorrect applications to be identified as a result of wide-ranging specific checks.

The Member States were given a transition period up to 1 January 1997 in order to fully introduce the IACS (for Austria, Sweden and Finland up to 1 January 1998). However, certain elements which were available before the deadlines already mentioned, had to be used in controls as soon as they became available. In Austria the system is already completely set-up.

Community law in respect of the integrated system contains, among other things, sanctions in the form of reductions in aid when the surface for which aids are requested exceeds the area determined as a result of controls. The proportion of incorrect applications, which were corrected by the national administrations during processing, is conveyed to the Commission annually by the Member States.

The data requested are being sent direct to the Honourable Member and to the Parliament's secretariat. They concern the year 1995 as those for 1996 are not yet complete.

Furthermore the Commission carried out numerous controls in all Member States. These aimed at ensuring a proper establishment and application of the IACS. When Community regulations are not properly applied, financial corrections are proposed in the framework of the clearance of accounts procedures.

The scope of incorrectly declared surfaces as well as the impact on the Community budget are difficult to quantify.

After comparing the inspection results the Commission estimates the risks which result from the unsatisfactory implementation of Community law in the respective Member State as regards the financial interests of the Community, and proposes, where appropriate, flat rate corrections, if the resulting financial damage cannot be determined more accurately.