WRITTEN QUESTION E-1279/96 by Salvador Jové Peres (GUE/NGL) and Pedro Marset Campos (GUE/NGL) to the Commission (24 May 1996)

Subject: Special measures to assist the beef market following the crisis caused by bovine spongiform encephalitis

Regulations (EC) Nos 716/96 ((OJ L 99, 20.4.1996, p. 14.)), 717/96 ((OJ L 99, 20.4.1996, p. 16.)) and 774/96 ((OJ L 104, 27.4.1996, p. 21.)) lay down a series of measures to support beef producers affected by the health measures taken in order to control bovine spongiform encephalitis (BSE) in the United Kingdom, Belgium, France and the Netherlands.

Nevertheless, the Commuity beef market has suffered as a result of the contraction in demand in all the Member States. The support measures contained in the above regulations do not cater for this situation, nor will they do anything to offset its economic effects on the incomes of cattle farmers.

The above regulations combine health measures with market support and the Commission needs to clarify the following questions:

1. If the purpose of these regulations is to control BSE, why is its application voluntary?

2. If they are intended to provide market support, why is such support linked to the adoption of health measures?

3. How will the Commission compensate for income losses caused by the contraction of the market in states which have not been affected by BSE?

Answer given by Mr Fischler on behalf of the Commission (12 July 1996)

The purpose of the emergency support measures referred to by the Honourable Members is to enable the competent authorities to purchase and slaughter cattle over 30 months of age in the United Kingdom, and those of over 6 months of age born in the United Kingdom and held in Belgium, France and the Netherlands.

These support measures are a direct follow-up to emergency action taken on 27 March to counter bovine spongiform encephalopathy through the imposition of a temporary ban on exports of all cattle, beef and beef-derived products from the United Kingdom. The three Regulations referred to are based on Article 23 of Council Regulation (EEC) No 805/68 ((OJ L 148, 28.6.1968. )) on the common organization of the beef and veal markets. This measure expressly authorizes the Commission to take emergency action in support of the market to compensate for any restrictions on free movement that might result from measures taken to counter the spread of animal diseases.

In addition to this emergency action the Commission has facilitated and increased the use of normal market support measures, mainly by easing the conditions for access to public intervention, but also by increasing refunds for exports to third countries while taking initiatives to restore trade with some of these countries, and, finally, by granting aid for the private storage of beef.

It is true that such measures only partially offset the economic impact of the fall in domestic demand on producers' income. The Commission also proposed to the Council that emergency aid be granted to beef producers. The largest proportion of the aid, which was approved by the Council meeting from 24 to 26 June, will be distributed directly as a supplement to the premium for male bovine animals and the premium for suckler cows taking as a basis the animals eligible for these premiums in 1995. Another part of the aid will consist of a financial package shared between Member States to enable them to give assistance to beef producers in severe difficulties. The total cost of these measures be ECU 850 million and can be financed within the agricultural guideline for 1996.