WRITTEN QUESTION E-3090/02

by Jan Mulder (ELDR) to the Commission

(28 October 2002)

Subject: Increase in available maximum guaranteed quantities of hemp and flax in the Netherlands

Hemp and flax cultivation is a strong growth sector in a number of European Union countries, including the Netherlands. The fibre is an extremely useful, environmentally-friendly industrial raw material, which, in addition to traditional sales to the paper industry, is increasingly being used in the manufacture of automobile components such as dashboards, parcel shelves, etc. It is an area which offers good prospects for crop farmers. However, under the common organisation of the market for flax and hemp (Regulation (EC) No 1673/2000(1)), there is currently a restriction on quantities eligible for assistance. That means that, based on the current area of 4 000 ha of flax and more than 2 000 ha of hemp, the guaranteed quantities of long flax fibre and of short flax fibre and hemp fibre respectively allocated to the Netherlands are being fully utilised. It is anticipated that a problem will arise next year, when a further increase in cultivation of flax and hemp is expected. This is already acting as a check on production, when the area under cultivation needs to be expanded in order to develop new markets and to offer customers security in terms of adequate supplies of hemp and flax fibre. The Commission is not due to evaluate the arrangements until the end of 2003.

1. Is the Commission aware of the important and environmentally-friendly uses of hemp and flax fibre in the motor industry and the high demand from the sector for such agricultural products (including as a result of the commitment on the part of the German authorities to promoting the use of such raw materials by means of legislation)? Is the Commission prepared to introduce similar measures to promote the use of such products throughout the European Union?

2. Does the Commission agree that the current maximum guaranteed quantity for the cultivation of hemp and flax grown for fibre in the Netherlands is too low and that an increase is needed in order to allow crop farmers to fully exploit potential to meet demand from the motor industry? If so, is the Commission willing to bring forward the evaluation of the measures laid down in Commission Regulation (EC) No 245/2001(2)?

3. Does the Commission see any possibility of relaxing the restrictions on guaranteed quantities as from the 2003 crop year, for example by allowing quantities that have not been utilised by a Member State to be utilised by another Member State where the guaranteed quantities have been exceeded?

(1) OJ L 193, 29.7.2000, p. 16.

(2) OJ L 35, 6.2.2001, p. 18.

Answer given by Mr Fischler on behalf of the Commission

(6 December 2002)

1. The Commission is already aware that fibre flax and hemp can be used in the motor vehicle industry and mentioned this in the explanatory memorandum accompanying the market organisation reform it proposed for the sector in November 1999.

To encourage profitable disposal of crops for industrial use aid is granted for processing flax and hemp straw to yield fibre that is sufficiently cleaned for such use.

These crops are also supported under the aid scheme for growers of certain arable crops.

2. The processing aid scheme for straw was introduced only in the 2001/2002 marketing year. A Commission report due before the end of 2003 will cover production trends and the national guaranteed quantities. Since in order to reconcile sound administration and the particular nature of the markets in this sector the period during which flax straw can be processed is 22 months, at present the Commission has only provisional production figures for 2001/2002 and first estimates for 2002/2003. It is too early therefore to draw conclusions about national guaranteed quantity levels and a report drawn up early would be at serious risk of irrelevance.

3. Transferring national guaranteed quantities between Member States would require amendment of Council Regulation (EC) No 1673/2000 of 27 July 2000 on the common organisation of the markets in flax and hemp grown for fibre(1).

(1) OJ L 193, 29.7.2000.