WRITTEN QUESTION P-2874/02

by Jonas Sjöstedt (GUE/NGL) to the Commission

(7 October 2002)

Subject: Early payment of subsidies to Irish farmers

According to a press report in Sweden (based on an Irish press report), the Irish Minister for Agriculture has asked the Commission to bring forward the date for payment of EU subsidies for cattle and to increase them by EUR 500 million. It is also reported that the Irish Minister for Agriculture has asked the Commission to pay out area support of some EUR 100 million now (i.e. before the second Irish referendum on the Treaty of Nice) when it is actually due to be paid in instalments over the coming year. The Irish Ministry of Agriculture is said to have prepared for quick payment of the money.

The Irish Examiner reports that the Minister for Agriculture has written to his party workers in Fianna Fail encouraging them to use the financial support in arguing for a vote in favour of the Treaty of Nice.

Is the above information concerning early payments to Irish farmers correct? If so, does it have a direct bearing on the referendum on the Treaty of Nice to be held in Ireland on 19 October 2002?

Answer given by Mr Fischler on behalf of the Commission

(31 October 2002)

Both Ireland and the United Kingdom informed the Commission of the cash flow problems encountered by their farmers owing to the exceptionally adverse weather this spring and summer, when a combination of abnormally low temperatures and abnormally high rainfall led to reductions in the quality of the cereal and fodder crops in certain regions.

Not all fields could be harvested, and both grazing animals and, where access to fields was possible, machinery damaged the structure of the sodden ground.

Farmers' real average yields were therefore exceptionally low and they had to meet the immediate additional cost of drying cereals and buying in extra fodder to feed cattle during the period.

Ireland and the United Kingdom therefore asked the Commission at the beginning of the summer for authorisation to pay an advance on the area payment for arable crops. Having checked the accuracy of the data sent the Commission authorised advance payment, from 16 October 2002, of a maximum of 50 % of the 2002/03 marketing year area aid payment to farmers located in Ireland and Northern Ireland.

This authorisation was given by Commission Regulation (EC) No 1818/2002 of 11 October 2002(1) derogating from Article 8 of Regulation (EC) No 1251/1999(2) under which payments for 2002/03 were due to be made from 16 November 2002.

Similar waivers had already been granted for certain regions of Germany and Italy by Commission Regulations (EC) Nos 1519/2002 of 23 August 2002(3) and 1535/2002 of 28 August 2002(4) derogating from Regulation (EC) No 1251/1999.

On beef sector premiums, the Commission, having verified the exceptional nature of the weather conditions adduced, by Regulation (EC) No 1830/2002(5) authorised all Member States so wishing to raise from 60 % to 80 % the advance on 2002 calendar year premiums in order to help farmers meet their immediate cash needs.

Under Regulation (EC) No 2342/1999 of 28 October 1999(6) laying down detailed rules of application for Regulation (EC) No 1254/1999 advances on bovine premiums can be made, on the basis of the administrative and on-the-spot checks required by the Community rules, only from 16 October of the calendar year for which the premium is requested.

(1) OJ L 276, 12.10.2002.

(2) Council Regulation (EC) No 1251/1999 of 17 May 1999 establishing a support system for producers of certain arable crops, OJ L 160, 26.6.1999.

(3) OJ L 228, 24.8.2002.

(4) OJ L 231, 29.8.2002.

(5) Commission Regulation (EC) No 1830/2002 of 14 October 2002 amending Regulation (EC) No 2342/1999 laying down detailed rules for application of Council Regulation (EC) No 1254/1999 on common organisation of the market in beef and veal as regards premium schemes, OJ L 277, 15.10.2002.

(6) OJ L 281, 4.11.1999.