WRITTEN QUESTION E-3173/96 by Cristiana Muscardini (NI) to the Commission (22 November 1996)

Subject: Milk quotas

Milk quotas, coupled with the fines imposed on producers on account of the production surplus in the year 1995/96, have caused serious trouble in the sector. The reactions in the farming areas concerned are following in the wake of those prompted by the financial measures designed to ensure compliance with the Maastricht criteria. In both cases fiscal charges have to be paid, and the financial resources of businesses are being eroded in the name of Europe.

With regard to milk quotas:

1. Is the Commission aware that the Italian authorities, specifically the State-controlled agricultural intervention agency (AIMA), made a number of mistakes both as regards the timing of the 1995-96 bulletin, which was published on 31 March 1996, the last day of the production year, and as regards the share-out of the additional fines?

2. Does it not take the view that AIMA was responsible for the late publication of the bulletin and hence for the failure to provide accurate information to producers?

3. Does it not believe that the fact that a new milk bulletin has been published and the individual additional levies recalculated confirms that AIMA was to blame?

4. If so, does it not consider that the Italian State consequently bears some share of the blame for the overrun of the production ceiling and should therefore be called upon to pay part of the fines?

Answer given by Mr Fischler on behalf of the Commission (9 December 1996)

Italy's national guaranteed quantity for 1995/96 was 9 930 060 tonnes (deliveries plus direct sales). In order to comply with the obligation not to exceed that quantity, the national agricultural intervention agency (AIMA) constituted reserves of 235 000 tonnes in its Bulletin No 1 and 145 000 tonnes in its Bulletin No 2 in order to cope with any possible appeals. Producers and producers' associations were given several opportunities to rectify these errors either through the regional authorities or by direct contact with the AIMA, without prejudice to legal proceedings.

Bulletin No 1 was published on 1 April 1995 and the vast bulk of producers knew their final situation at that point. Bulletin No 2 was published on 31 March 1995, when part of the reserve (90 000 tonnes) was allocated to rectify certain errors. It should be noted that the purpose of a reserve is always to cope with exceptional circumstances.

The Commission considers that the Italian authorities were aware of the possibility of certain errors and took the steps required to deal with them.

With regard to payment of the additional levy for 1995/96, the Commission has begun infringement proceedings against the method of calculating the levy due at the level of the producers' associations. Italy therefore adopted Decree Laws Nos 353 of 8 July 1996 and 463 of 6 September 1996 under which compensation at the level of the associations of milk producers will cease with effect from the 1995/96 marketing year.

The Commission is aware that these retrospective changes have caused very serious management problems which have had a direct impact on compliance with the date of 1 September 1996 for payment of the additional levy by purchasers. These problems do not dispense the purchaser from his responsibility for collecting the additional levy nor the producer from paying it.