WRITTEN QUESTION E-3908/98

by Miguel Arias Cañete (PPE) to the Commission

(4 January 1999)

Subject: Flat-rate payments for the production of olive-residue oil

Under the current rules, flat-rate payments continue to apply only to the production of olive-residue oil. For every 100 kg of olive oil produced, aid is granted for 108 kg (8 % corresponding to olive-residue oil), whether or not olive-residue oil is actually produced, which is not subject to any checks.

Basing payments on the actual production of olive-residue oil would improve and facilitate checks without placing an additional burden on the budget, given that the production of olive-residue oil is included in the MGQ, the amount of aid granted is the same for each kind of oil and in both cases production aid is paid to the olive-grower.

This would also bring the system into line with the actual situation, since under the flat-rate system aid is paid out for olive-residue oil which is not in fact produced, and it would at the same time help to improve the quality of virgin olive oil, since maximum extraction means increased production and poorer quality. Linking payments to actual production and granting the same aid for the actual production of both types of oil would mean that mills would no longer need to maximise the amount extracted to the same extent, since the amount to be paid out would be the same regardless of the percentage received by olive-growers for either type of oil. This would also have a favourable impact on the environment.

Does the Commission not believe that the system should be adjusted in order to bring it into line with the actual situation and make it more favourable for consumers and the environment?

Joint answer

to Written Questions E-3904/98, E-3905/98, E-3906/98, E-3907/98 and E-3908/98 given by Mr Fischler on behalf of the Commission

(3 February 1999)

When Council Regulation (EC) 1638/98 of 20 July 1998 amending Regulation No 136/66/EEC on the establishment of a common organisation of the market (CMO) in oils and fats(1) was adopted, the Commission and the Council agreed to give special priority to examining matters relating to quality strategy - including aspects linked to olive-residue oil - before definitive reform of the olive oil CMO is proposed.

In the course of drafting and adopting Regulation (EC) 2366/98 of 30 October 1998 laying down detailed rules for the application of the system of production aid for olive oil for the 1998/99, 1999/2000 and 2000/01 marketing years(2), the Commission sought to make urgent changes to the system pending detailed examination of the issue before definitive reform proposals are drawn up. This applies, for example, to aspects relating to fixed-rate payment of production aid for olive-residue oil (8 %) and its adjustment.

With regard to other aspects such as olive-residue monitoring at mills and bank records for the sale of olive residues, the Member States' supervisory authorities and particularly the olive-oil supervisory agencies are required to ensure that olive-oil production aid is paid in compliance with the rules and that mills or other parties involved in administering the measure keep detailed accounts and take any other steps which the authorities deem necessary.

On the specific matter of determining a mill's yield coefficient, it should be noted that the coefficients in Article 9(3) of Regulation (EC) 2366/98 to which the Honourable Member refers are indicative and are to be used in the absence of technical specifications for the mill in question.

(1) OJ L 210, 28.7.1998.

(2) OJ L 293, 31.10.1998.