WRITTEN QUESTION E-2617/01

by Bartho Pronk (PPE-DE) to the Commission

(27 September 2001)

Subject: The Netherlands' problems with the ESF record-keeping system in 1994-1999

The report on the inquiry ordered by the Netherlands Government into the use of ESF funds between 1994 and 1999 and chaired by Mr H. E. Koning (hereafter referred to as the Koning report) mentions a number of problems with the system made available under licence by the European Union for the purpose of keeping records on the administration of the ESF during that period. The Koning report states that there was a problem caused by the millennium bug. Eventually the system which was being used in the Netherlands was replaced, giving rise to delays in reporting.

1. Did the Netherlands Government immediately inform the Commission of the complaints about and problems with the system provided by the EU?

2. Did other Member States have similar problems with and complaints about the system?

3. Did the Commission take measures to eliminate the causes of dissatisfaction?

4. Is there any truth in the suggestion that the record-keeping system was affected by the millennium bug? If so, why has this not been acknowledged previously?

5. Is the Commission aware that it took the Netherlands Government more than a year to obtain a replacement for the system which had been supplied? Did the Commission offer alternatives? Did the Netherlands Government request advice from the Commission regarding both the administrative record-keeping system and the consequences for reporting on the ESF?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(15 November 2001)

1. First contacts between the Commission and Arbvo to implement a new version of the software used for the Dutch regional European Social Fund (ESF) application

took place in 1998. September 1999 and October 1999 were selected as the period for implementation. Unfortunately, a critical hardware part that was to be provided by Arbvo, was missing and also a number of key players on the Dutch side were not available at the period envisaged for the implementation. The Dutch side was only ready for implementation as of April 2000 and implementation finally took place in June 2000 and July 2000. This was almost one year later than originally foreseen. However all through this period the original software remained fully operational.

2. The regional ESF application is specific to the Netherlands. This system was developed on the basis of the needs of Arbeidsvoorziening and not those of the Community. The Commission did pay the cost of this pilot project. It has also provided Dutch authorities with the software licences. Other Member States did not use this system.

3. The installation of a new, more powerful system, originally planned for September 1999 and October 1999 was meant to eliminate any causes of dissatisfaction.

4. There was no millennium problem with respect to the original software. This software does make it impossible to input new projects after 31 December 1999 at the expense of the 1994-1999 programming period because this is not permitted by Article 7 of Decision EN/05/94/12840100. P00, which States that the assistance has to be committed before 31 December 1999. This deliberate restriction has been falsely interpreted as a millennium bug problem.

5. Without further consulting the Commission, the Arbvo team decided to switch off the existing system at the beginning of January 2000. As a consequence most of projects committed in time before the end of 1999 were no longer introduced into the project database and the system lost its value as a programme management tool.