WRITTEN QUESTION E-0253/01

by Ilda Figueiredo (GUE/NGL) to the Commission

(8 February 2001)

Subject: Funds allocated to wine growers

Thousands of Portuguese wine growers could be seriously disadvantaged by the fact that funds to support wine distillation have practically run out because Spain and Italy submitted their applications more quickly than Portugal.

While there is no denying that the Portuguese Ministry for Agriculture should have published the guidelines for submission of applications for Community wine distillation aid more promptly, it seems unfair that the Commission should distribute aid on a first-come-first-served basis and thereby discriminate against farmers in countries facing administrative difficulties.

The Commission:

1. Will it confirm that the available resources have been practically used up by Italy and Spain?

2. What measures will be taken to solve this problem, given the need to alleviate the resulting difficulties faced by thousands of Portuguese wine growers?

Joint answer to Written Questions E-0253/01 and P-0358/01 given by Mr Fischler on behalf of the Commission

(12 March 2001)

Distillation of wine to supply the market for potable alcohol was opened on 1 September 2000. The rules on the application of the measure lay down strict criteria covering the Commission's obligation to suspend this distillation measure (or to apply rates of reduction). In particular these concern an overrun, or the risk of an overrun, in budget resources or in the absorption capacity of the market for potable alcohol. In early December 2000, those conditions were met and the Commission accordingly suspended the measure until the beginning of the following wine-growing year.

The Commission confirms that most of the quantities available under the measure were taken up by contracts with producers and distillers in two Member States, but operators in two other Member States did submit contracts covering a large percentage of the table wine produced in their countries.

The Commission regrets that Portuguese wine and alcohol producers did not secure contracts under the measure, which was open to all Community producers. It is aware that the first year of application of any new measure is a difficult period for all operators.

Nonetheless, in response to the call for a review of the rules covering these distillation measures and a return to allocation of quantities for distillation by Member State, the Commission would point out that the abandonment of the former provisions was a key aspect of the reform of the common organisation of the market in wine (COM) undertaken in 1999. The aim was to bring the provisions governing the COM for wine more closely into line with the requirements of the market and the development of the Community, in particular in connection with the single market.

The Commission wishes to draw the Honourable Members' attention to the fact that where serious difficulties arise on the wine market in a Member State or a particular wine-growing region, the COM for wine has an instrument more specifically targeted to dealing with such situations, namely crisis distillation.

In view of the current situation in Portugal which the Honourable Members have described, on 15 February 2001 the Commission put a draft Regulation to the Management Committee for Wine for the opening of crisis distillation of 450 000 hl of wine in Portugal. The Committee delivered a favourable opinion on the draft Regulation and it has applied since 5 March 2001.