WRITTEN QUESTION E-0122/02

by Eluned Morgan (PSE) to the Commission

(29 January 2002)

Subject: Foot and mouth disease

Can the Commission give an indication of how much money will be paid to the British government in compensation for foot and mouth disease? What is the percentage of the compensation that the EU will be expected to pay, and what control mechanisms are in place to ensure fraud will not occur?

Answer given by Mr Byrne on behalf of the Commission

(26 March 2002)

Council Decision 90/424/EEC of 26 June 1990, on expenditure in the veterinary field(1) states in its Article 11 that under certain conditions, the Member State concerned shall obtain a financial contribution from the Community equal to 60 % of the costs incurred by the Member State in:

(a) compensating owners for the slaughter and destruction of animals, the destruction of milk, the cleaning and disinfecting of holdings, the destruction of contaminated feeding stuffs and, where it cannot be disinfected, the destruction of contaminated equipment;

(b) the transport of carcasses to processing plants;

(c) any other measures which are essential for the eradication of the outbreak of the disease (if defined by the Commission).

Under Commission Decision 2001/654 of 16 August 2001 concerning a financial contribution towards the eradication of foot-and-mouth disease (FMD) in the United Kingdom in 2001(2), the United Kingdom may obtain financial assistance for the adequate compensation of owners for the compulsory slaughter of their animals relating to the outbreak which occurred until 30 June 2001. In that Decision, adequate compensation is defined as the value the animals had immediately before they became affected. This decision also mentions that, pending completion of checks by the Commission, a first advance of 355 million could be paid.

The total amount of the Community financial contribution will depend inter alia on the supporting documentation submitted by the United Kingdom, and the results of the controls and inspections carried out by the Commission.

The verification of the eligibility of the declared expenditure by the United Kingdom is currently ongoing. In this context, three control missions have already taken place, the last one in the week of 28 January 2002. Additional missions will be scheduled in the next months. The final eligible amount for Community compensation will be fixed in the light of the results of the control missions.

Furthermore, in addition to the Commission controls, Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agriculture policy(3) states that the Member States shall take the measures necessary to:

(a) satisfy themselves that transactions financed by the Fund are actually carried out and executed correctly;

(b) prevent and deal with irregularities;

(c) recover sums lost as a result of irregularities or negligence (Article 8).

Finally, the Court of Auditors is also conducting a formal enquiry into the management and financing of the FMD crisis and the European Parliament has also established a Temporary Committee on FMD.

(1) OJ L 224, 18.8.1990.

(2) OJ L 230, 28.8.2001.

(3) OJ L 160, 26.6.1999.